Business of Energy - June 2023

Page 1

OF ENERGY

BUILT FROM SCRATCH

JONATHAN BILLINGS ON THE GROWTH AND SUCCESS OF HIS CERTIFIED ABORIGINAL BUSINESS KINETIC ENERGIES INC.

JUNE 2023
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BUSINESS OF ENERGY | JUNE 2023 | 3
VOL 5, ISSUE 3 | JUNE 2023
COVER 04 Canada’s Energy Advantage –Let Us Count the Ways
05 Profile: Willow Lake Métis Group
Craats 10 Hydrocarbons Are Fundamental To An Orderly Energy Transition
14 Cover: Built from Scratch By Melanie
19 Profile: Wood Canada
By Rennay
By David Yager
Darbyshire

CANADA’S ENERGY ADVANTAGE –LET US COUNT THE WAYS

How will Canada move from a supplier country with restricted access to global energy markets, to an energy powerhouse known worldwide as the market leader in responsibly-produced oil, natural gas, uranium, wind and hydro power?

It’s going to take continued hard work. But make no mistake, we have most of the pieces already lined up. What we’re missing is the policy framework that allows the sector to get across the goal line.

When you look at the existing pieces, the picture is encouraging. Let’s review.

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 additional hydro and wind – all of which serves to lower CO2 emissions and to provide the needed energy to power a modern society, here and abroad.

Our land area and relatively sparse population distribution means we have a unique opportunity to extract the resources and to provide vital energy products not only to Canada but to the world, should we choose to do so.

What’s more, our strong Canadian institutions 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 the governing bodies that oversee the sector and ensure high standards of environmental stewardship and human health and safety.

Next, Canada has a willing and able labour pool, populated by employees, contractors

and suppliers who work tirelessly to ensure the prosperity of their families, communities, the sector and the economy at large. We can all take real pride in that workforce.

In addition, nobody should ever underestimate the economic aspirations of Indigenous communities who say daily in Canadian media coverage that they want to participate in Canada’s energy and natural resources economy. Far from presenting a challenge, this ambitious approach to partnership among Indigenous and non-Indigenous parties is a huge opportunity for every Canadian.

Our own energy needs figure into the equation as well, given cold winters and hot summers that make fossil- and non-fossil based heating and cooling essential in many parts of Canada, as well as the long distances we travel for work and recreation that point to a need for transportation fuels. And consider the important chemical inputs we require for our agricultural sector, and many other areas where fossil fuel resources are crucial to our society in the same way that renewables are also necessary.

Long-time readers will know – and most Canadians now realize – that the world benefits when more Canadian energy and other natural resource products, not less, are traded on the world market.

That’s why Canada’s global leadership position in a strong energy future is so encouraging. We just need the public policy to help make it happen. BOE

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 | JUNE 2023 | 4
CODY BATTERSHILL | Canada’s Energy Advantage – Let Us Count the Ways

STRONGER TOGETHER

Willow Lake Métis Group (WLMG) is the bridge between reconciliation and community prosperity, ushering in a new perspective on Indigenous partnerships and offering both Nation Citizens and clients meaningful benefits that drive long-term success. The partners within WLMG share the values of the Métis peoples’ rich culture of self-sufficiency, hard work, determination and resiliency.

Willow Lake Métis Group | 1
The partnerships in the Willow Lake Métis Group drive positive, lasting change while promoting reconciliation.

APEX WELL SERVICING INC.

APEX provides services to the oil and gas industry in Western Canada and the Northern United States.

Patrick James, Business Development Manager, says, “APEX’s five core services include heat and pressure, service rigs, rod rigs, continuous rod and continuous rod retail.”

APEX joined WLMG in 2021.

Bradley Sinclair, Indigenous Relations Director, says, “APEX recognizes and appreciates the unique qualities, abilities and diversities of Indigenous people and their relationship with their lands and environment. Through open communication, we develop positive relationships with Indigenous people that are based on trust, honesty and integrity. APEX commits to creating relationships with Indigenous and First Nation Peoples in areas where traditional lands and or communities are close to or are affected by projects and our operations.”

James concludes, “Working with an Indigenous community helps APEX build knowledge and understanding of the history of Indigenous people.”

BACKWOODS ENERGY SERVICES

Backwoods Energy Services, 100 per cent owned by the Alexis Nakota Sioux Nation, provides construction services to the oil, gas, utility and forestry industries in Western Canada while driving economic opportunity by empowering Indigenous people and communities. Chief Tony says of Backwoods, “We have not seen the entire landscape of what we can do, but we know we have a very strong team and the future is bright for Backwoods.”

WLMG and Backwoods Energy Services finalized the legal partnership in early 2021 but have worked together since 2020.

Ross Morrison, SVP, Business Development & Partnerships, says, “Traditionally the industry looks at us as Treaty 6 West. Now we have the resources to service Treaty 8. The partnership with WLMG has allowed Backwoods to interface with a new roster of clients and eliminate geographical confinement. We have expanded our economic territory while also diversifying our commercial relationships.”

EDGE ENERGY LOGISTICS

Edge Energy Logistics is a transportation company providing service to the oil and gas, rail, forestry and construction sectors. Edge specializes in drilling and service rig moves and tubular hauling and storage.

“Multiple locations strategically located throughout Alberta allow us to service a large area and customer base while keeping travel costs between branches down, resulting in savings to our customers,” says President Dustin Rizzoli. Edge joined WLMG in 2022.

“Our original working relationship started as a result of work requested to perform at CNOOC Long Lake,” explains Chris Rizzoli, General Manager. “We are an Aboriginally Owned Business and knew working with WLMG would be a very good fit. It helps to ensure potential work stays within our region, employs Aboriginal personnel and contributes to the Willow Lake Métis Nation. The partnership has also increased our brand recognition through the marketing WLMG does on our behalf.”

GFL ENVIRONMENTAL INC.

Partnered with WLMG to form JV Willow Lake GFL Environmental Services LP

GFL Environmental is the only major diversified environmental services company in North America offering services in solid waste management, environmental services and soil remediation.

Willow Lake Métis Group | 2

shared values to enhance the economic and capacity-building opportunities which benefit the community members and help protect and sustain their lands.”

Wiebe concludes, “With the WLMG industry partners offering services that complement each other, we grow together while supporting the Willow Lake Métis community.”

GRIZZLYTREK

GrizzlyTrek’s goal is to generate long-lasting, sustainable employment opportunities for Indigenous individuals throughout Canada.

President and CEO Allen Tobber says, “By partnering with Indigenous communities like WLMG, we can integrate within various industries to increase Indigenous workforce participation in the region and contribute economically to these communities. We offer a range of skilled labour, from entrylevel positions to senior project management roles in oil and gas operations, maintenance and construction.”

GrizzlyTrek joined WLMG in March of 2022.

“Collaborating with WLMG and their strategic partners has been an incredibly rewarding experience. We have already witnessed significant opportunities and the employment of Indigenous individuals across various projects,” explains Tobber.

He concludes, “Presently, we have Indigenous workers that are actively participating in shutdown and construction projects. In addition, we have teamed up with a producer to create opportunities for a junior operator role and a power engineer position at one of the Steam-Assisted Gravity Drainage (SAGD) facilities.

MAVIRO

Maviro is comprised of a team of project managers, engineers, equipment operators, technicians, chemists, HSE specialists, and veteran foremen that work together to provide specialty catalyst and pigging services throughout Canada.

“We joined WLMG four years ago, as we were looking to partner with a group that had other proven service providers that would synergize with what we bring to the table,” says Jason Manoukian, VP Business Development.

Chris Boase, Senior VP, adds, “The WLMG partnership has effectively brought Maviro together with other professionals in the industry and made us part of a team. This team has allowed us to cast a wider net by giving us the ability to approach clients with bundle packages. Moreover, this team approach provides both expertise as well as the ability to quickly staff personnel needs.”

MELLOY INDUSTRIAL SERVICES INC.

Melloy Industrial are maintenance, turnaround and project specialists that perform complex equipment repairs, piping repairs, change outs and installations in the heavy industrial market through Western Canada. They excel in their ability to swiftly adapt and provide a dedicated team of professionals to efficiently execute the required work.

Mitch Soetaert, Vice President and District Manager explains, “Melloy provides integrated construction services including engineering; modular design; large-scale fabrication and civil, general mechanical, electrical and instrumentation work. Our

Willow Lake Métis Group | 3

lean construction principles make us flexible enough to tackle a job of any size and as part of the PCL family of companies, we have the resources and expertise to offer full capacity no matter how complex the project.”

Melloy joined WLMG in 2020.

Allan Rose, Business Services Manager, says, “Being part of the success of WLMG is important to us; supporting cultural events, generating revenue, providing training and employment opportunities.”

Melloy is very committed to reconciliation and has taken steps to educate their teams through DE&I initiatives, including collaborating with WLMG on creating orange shirts in support of National Day for Truth and Reconciliation.

RADIUM TECHNOLOGIES INC.

General contractor Radium Technologies offers a skilled trades force for field work as well as a pump and valve rebuild shop. “With a shared drive for business transparency and collaboration, as well as a commitment to giving back to the communities we work in, Radium joined the WLMG in 2022,” says Dan Forigo, Chief Corporate Officer. “The strength of the partnership has been in the networking and collaboration opportunities with others within the group and our resultant ability to provide a ‘one-stop-shop’ to clients.”

This was recently demonstrated when a client jokingly asked if Radium could supply a scaffold team, and the answer was yes, due to the group’s relationships.

“Additionally,” Forigo adds, “support offered by Andy Harnett (newly appointed CEO) in ways such as a personal Suncor/ Syncrude tour and promotion of Radium in his meetings, has been a tremendous asset.”

SKYWAY CANADA LTD.

Skyway provides services coast to coast, including scaffolding, insulation, fireproofing, swing stage, asbestos abatement, and more.

“We specialize in customized services using 3D design, modeling and scanning technologies that optimize planning and execution to provide solutions that lower labour requirements, increase productivity, reduce cost and provide cost certainty,” says Dean Dancey, Vice President of Western Canada.

He describes the partnership with WLMG and why Skyway joined in 2020.

“WLMG is taking a progressive, creative, passionate approach to inclusivity. Skyway and WLMG are coming together, along with Willow Lake’s other partners, to contribute to industry success while helping serve the goals of the Citizens of the Willow Lake Métis Community. This is our opportunity to work together and to touch the sky, which is ultimately a win/win for all stakeholders.”

SPENCE CORROSION SERVICES LTD.

Spence provides corrosion and erosion services in Western Canada by offering rubber linings, coatings, specialized linings, abrasive blasting, water jetting and inspections. The company recognizes the importance of active community engagement as the key to successful long-term projects.

“We decided in 2021 to increase our involvement with the communities in and around the areas we work. We came across WLMG and they were a good fit and logical choice for us,” says Mackay Spence, VP of Operations. “We have benefited from the partnership by increasing our network and connections as we work and collaborate with the other partners.

He concludes, “WLMG members have valuable information and experience that help us better serve our customers and explore new opportunities.”

WQS GROUP OF COMPANIES

WQS Group of Companies provides accurate, dependable and reliable inspection and rope access services. They aim to be Canada’s trusted leader in NDT and field evaluation services that protect the environment, clients’ assets and the people and communities they serve.

Travis Drew, CEO, describes why WQS Group joined WLMG in 2023.

“As a very new entity within the WLMG, WQS is excited to be amongst industry-leading contractors with similar values and shared goals. Our partnership is guided by our corporate value of connection. We honour our roots as an Indigenous company and let our heritage guide us on our journey, with the intention of creating a partnership that will strengthen the communities in which we serve. WQS looks forward to working with industry leaders to develop long-term strategic contracting opportunities within Willow Lake traditional lands, creating economic stability for the community of the Willow Lake Métis.”

WE ARE ALL STRONGER TOGETHER

WLMG is leading the way in showing how business and culture can connect, bridge gaps and have a positive effect in the province – and beyond.

Andy Harnett, CEO for WLMG says, “We have strategically chosen partnerships that align with the Nation’s mission and values.”

The Group was founded in 2020 and has substantially grown in a very short time. With the strong desire for continued success, they recently welcomed their new Board of Directors to govern the group of companies.

“The collaboration that we see amongst the group allows us to continue to grow, develop and prosper. With all of our partnerships, we now have the ability to be a turnkey service provider; your strategic indigenous industry partner,” says Harnett.

Willow Lake Métis Group | 4
Alberta’s leaders working together on this collaborative partnership, defines how the Willow Lake Métis Group is stronger together. www.willowlakemetisgroup.ca MEET THE EXECUTIVES
Bradley Sinclair Apex Well Servicing Inc. Central Alberta, Business Development & Indigenous Relations, Director Chris Boase Maviro Senior Vice President Dan Forigo Radium Technologies Chief Corporate Officer Dan Richards GFL Environmental Services Inc. Vice President, Industrial Services, Western Canada Dean Dancey Skyway Canada Vice President, Western Canada Dustin Rizzoli Edge Energy Logistics President Mitch Soetaert Melloy Industrial Services Ltd. Vice President/District Manager Travis Drew WQS Group CEO McKay Spence Spence Corrosion Services Ltd. Vice President Andy Harnett Willow Lake Métis Group CEO Ross Morrison Backwoods Energy Services Senior Vice President, Business Development, Strategy & Partnerships
Willow Lake Métis Group | 5
Allen Tobber Grizzly Trek Group President & CEO

HYDROCARBONS ARE FUNDAMENTAL TO AN ORDERLY ENERGY TRANSITION

Because of climate change, the world is attempting to execute its first centrally planned, policy mandated, global energy transition.

In a hurry.

Nothing like this has ever been attempted before. Therefore, the rivets are popping.

The sources of 80 per cent of the world’s primary energy – petroleum, coal and natural gas – are mandated to be replaced with wind, solar, nuclear, hydro, geothermal and plant-based biofuels.

The urgency of the transition is backed with data about emissions, temperature and targets. The current GHG reduction goal for Canada’s oil and gas industry is 46 per cent below 2005 levels by 2030. This was announced in April 2021. The previous target, set at the Paris climate conference in 2015, was 30 per cent below 2005 levels by 2030.

This makes for great headlines. But “what” is much easier than “how.” Those who understand energy science and physics have been wondering for eight years how Canada was going to achieve the original 30 per cent reduction commitment.

Increasing that by 50 per cent in early 2021 as the world emerged from the pandemic lockdown – and without any quantum technological advancements in low-carbon energy replacements – has resulted in politicized reduction targets that are destined to fail.

Energy transitions have been continuous for centuries. But they have never occurred on demand or legislated by government policy.

Energy originally came from the sun, wood, grass and coal. Using mechanical ingenuity, wind and water were added to the mix.

The breakthrough energy transition that powered the industrial revolution was coal. This required more ingenuity for subsurface mining, transportation, boilers, and steam engines. Coal still supplies 27 per cent of the world’s electricity and is difficult to replace because of low cost and high reliability.

For developing countries, price and availability remain more important than emissions. Coal is difficult to dislodge because it requires minimal processing prior to combustion. Steam and electricity appear shortly thereafter.

Early last century, petroleum and natural gas from underground sources fueled the next great energy transition. This was possible only because of concurrent and significant technological advancements in exploration, drilling, pipelines, transportation, processing, refining and distribution. Today oil and gas supply 56 per cent of the world’s primary energy.

But it took decades. Oil and gas work only because of massive investments in the equipment, expertise, chemistry, processing and infrastructure to move them from deep underground to individual and commercial consumers in the form of useable energy and a myriad of useful products and devices.

Powerful and compact, they can be easily shipped all over the world.

Today the oil and gas extraction, transportation, processing and distribution infrastructure is taken for granted. For billions of people, hydrocarbon energy and products simply exist. The biggest issue for the developing world is securing the same access to valuable by-products that the developed world has enjoyed for decades.

Believing that this massive and proven process can quickly be easily replaced is easier when you don’t

BUSINESS OF ENERGY | JUNE 2023 | 10
DAVID YAGER | Hydrocarbons Are Fundamental to an Orderly Energy Transition

understand that it exists, or how it was created. As a result, not enough is understood about the enormity of the challenge to make the current energy transition possible and affordable.

Vaclav Smil of the University of Manitoba is a leading expert on energy transitions. In an address to the World Economic Forum years ago, Smil stated, “Energy transitions are not sudden revolutionary advances that follow periods of prolonged stagnation, but rather continuously unfolding processes that gradually change the composition of sources used to generate heat, motion and light… And while the recent focus has been on the unfolding transition from fossil fuels…the most consequential global shift during the coming 20 to 40 years will be the rise of natural gas to become the world’s single most important fuel.”

Smil added, “The most important historical lesson is that new resources require extended periods of development…it took the United States 25 years to raise the share of oil consumption from 5 per cent to 25 per cent, and for natural gas it took 33 years. After crude oil reached 5 per cent of global primary energy supply, it took another 40 years to rise to 25 per cent, and the comparable period was even longer, 55 years, for natural gas.”

“There is no shortage of national, even global, targets for renewable energy deployment…but these are, at best, aspirational goals and not realistic aims... During the first decade of the 21st century, the world has been running into fossil

fuels, not away from them, a reality that will not change rapidly. And while the contributions of wind and solar more than tripled during that decade, the world is now more dependent, in both absolute and relative terms, on fossil-fuelled generation than it was in 2000.”

The spread between the political goals and the reality of the logistics, pace and cost of this massive undertaking are sobering.

An often-quoted observation about the investment and progress of the current energy transition came from Jeff Currie of Goldman Sachs in late 2021.

He noted that despite spending US$3.8 trillion worldwide in renewable energy sources – primarily wind and solar – over the previous 10 years, the share of hydrocarbons as a primary energy source had only declined from 82 per cent to 81 per cent.

What makes the current targets for the adoption of lower carbon energy regrettably aspirational is the sheer complexity of the new energy sources versus the incumbents.

BUSINESS OF ENERGY | JUNE 2023 | 11
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undertakingaresobering.

With coal, you dig it up and burn it.

Renewables are entirely different.

Expectations and targets are clouded by not understanding how long it took and how much it cost to create the existing fossil fuel infrastructure. Meanwhile, recent events like the war in Europe and the rising cost of everything are materially changed the public’s priority for energy decarbonization compared to securing the necessities of life such as food, clothing, shelter and core shared services like health care, education and public safety.

Recent polling by IPSOS in its monthly What Worries The World surveys has seen climate concerns decline in most countries, particularly those without resources like Japan.

In the fall of 2019, Japan ranked second among 28 countries with climate change being an issue for 31 per cent of respondents. By the end of 2022 this had fallen to 17 per cent.

Before COVID, Canada was number two at 34 per cent, the U.S. seventh at 24 per cent. Two years later the figures were 25 per cent and 21 per cent respectively.

Because of major power shortages in Texas in early 2021 and Europe six months later, the policy changes by governments and industry in the past two years surrounding the energy transition have been remarkable.

After the Russian invasion of Ukraine, it became clear that Europe’s energy supplies were no longer

BUSINESS OF ENERGY | JUNE 2023 | 12
DAVID YAGER | Hydrocarbons Are Fundamental to an Orderly Energy Transition

Bigfinancialinstitutionsarereversingclimate commitmentsfromCOP27inGlasgowinNovember

2021.HighprofiledefectionsincludeZurichInsurance, MunichReandAmerica’sVanguard.Thecitedreasonis violatingcombineslegislation.

secure, the EU reversed earlier decisions that determined that natural gas and nuclear power should play no part in the decarbonization of energy.

Coal plants were restarted in many countries. The IEA now reports that in 2022, world coal consumption for electricity generation reached an all-time high of 8 billion tons. It is expected to remain at that level through to 2025.

In its April world oil market report, the IEA warned again of possible shortages later this year under current conditions. If nothing changes, higher oil prices are assured.

Texas has re-regulated its power markets by committing to major investments in gas-fired backup power to support wind and solar. And consumers will pay for it whether or not it is required.

In decisions criticized by environmentalists but applauded by producers, American President Joe Biden’s administration has approved the Willow oil development on Alaska’s North Slope. On March 29 a federal lease sale in the Gulf of Mexico was concluded.

The two European supermajors that were publicly leading the energy transition in 2020 – Shell and BP – are reviewing earlier commitments because their legacy assets become very profitable again.

Big financial institutions are reversing climate commitments from COP 27 in Glasgow in November 2021. High profile defections include Zurich Insurance, Munich Re and America’s Vanguard. The cited reason is violating combines legislation.

ESG investment is taking a bruising. Industry heavyweight Larry Fink of Blackrock is saying

much different things about what constitutes appropriate ESG investment criteria. Several U.S. states have publicly stated they would avoid investing funds under their control with ESGfocused money managers.

And the carbon footprint and mineral supply issues for EV batteries, wind power generators and transmission lines are finally gaining the attention they deserve. As the world finally starts to pay attention to the logistics of accelerated electrification, we’re all learning about scarce supplies, nationalistic hoarding, huge costs and the massive carbon footprint of increased mining, shipping and processing.

China is touted as the world leader in solar panel manufacturing and EV adoption. Which sounds great until you understand that the energy required comes primarily from coal.

Much research has been done about the energy cost of energy – how all low-carbon energy replacements are heavily dependent on the stuff they are trying to replace for their existence. The good news is more people are finally acknowledging it.

This all looks good for Alberta. The focus in 2023 and beyond less on replacing hydrocarbons but finding ways to reduce the carbon footprint.

Finally. BOE

David Yager is a Calgary oil service executive, energy policy analyst, writer and author. He is president and CEO of Winterhawk Casing Expansion, a new wellbore and methane remediation technology company. His 2019 book From Miracle to Menace - Alberta, A Carbon Story is available at www.miracletomenace.ca.

BUSINESS OF ENERGY | JUNE 2023 | 13
Hydrocarbons Are Fundamental to an Orderly Energy Transition | DAVID YAGER

BUILT FROM SCRATCH

JONATHAN BILLINGS ON THE GROWTH AND SUCCESS OF HIS CERTIFIED ABORIGINAL BUSINESS KINETIC ENERGIES INC.

For some people, the future appears set – a pre-planned path laid out to a particular destination. Following said path will, for the most part, lead to an expected and desired outcome. For others, the future’s not so clear cut. With no set direction to follow, these individuals must forge their own way, taking unexpected detours and side roads along the way.

Success or failure can be achieved in either scenario of course. In the latter, however, the soonto-be-discovered path is often just as interesting as the destination.

This is the case with Jonathan Billings and his company, Kinetic Energies Inc. Born in Trenton, Ontario, the son of a Newfoundlander military father and Mi’kmaq mother, Billings’ journey to today – owner of a successful Certified Aboriginal pipeline and facilities construction and maintenance business based in Grande Prairie and servicing Alberta’s energy industry – is as unique as his background. And both his past and his present bode well for his future.

“We grew Kinetic by building an exceptional team of people,” Billings says proudly. “Our business is highly focused on skilled people. And it’s only because of the team that Kinetic has been successful. I can’t stress that enough, we have an incredible team.”

That team comprises 100 people during non-peak times and upwards of 300 during busy seasons. Approximately 50 per cent of Kinetic’s employees are on the facility fabrication and construction side, while the other half are on the pipeline side of the business. Revenue is also equally split between the two divisions.

“They’re kind of separate trades or groups,” Billings says. “On the facility side, our tradesmen build gas

plants, oil batteries, facilities and stations. Right from the ground up. They are their own separate trade and niche. They are really good at their trade. On the pipeline side, our tradesmen are really good at building and maintaining pipeline projects in the field, which is a significantly different skillset.”

The team’s skills and expertise, built off of Billings’ own dedication to excellence, have been

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COVER | Built From Scratch
Jonathan Billings, Owner of Kinetic Energies Inc. Photo by Riverwood Photography.

foundational to the company’s success. This is evidenced by its notable client list, which includes some of the largest names in the industry such as Archer Exploration, Kelt Exploration, Hammerhead Resources, Kiwetinohk Energy, Strathcona Resources and Tamarack Valley Energy.

Originally from Ontario, Billings grew up on Canadian Forces Base Gagetown in New Brunswick, where his father was posted with the military. His mother was from the Eel Ground First Nation, a Mi’kmaq community located along the Miramichi River in northern New Brunswick. “We spent every weekend driving to visit my grandmother in Miramichi,” he says. “I sort of grew up on the reserve.”

A love of sports – basketball, in particular – kept him on a positive path (many of his friends from the reservation didn’t fare so well, he notes).

“I played high school basketball and then at the collegiate level for the University of New Brunswick for two years,” he says. Summer jobs were spent in the province’s oil and gas industry, surveying right-of-ways for wildlife and at a water treatment plant dealing with piping and pumps. “Those jobs were actually predecessors – I didn’t know it at the time – to the rest of my career which was in Alberta and pipelines.”

After two years of university, things weren’t going quite how Billings – who was on an Aboriginal grant – had planned. “My marks suffered from too much sports, too much friends. I was 17 when I started, just not mature enough for it. I lost my grant because of my grades.”

His father, meanwhile, had been posted to CFB Wainwright, Alberta, and suggested he head west for a summer job. “I was 19 when I arrived in Wainwright in 2001,” he reflects. “I started looking for oil field jobs and I never went back to New Brunswick.”

While his first job was mowing lawns, Billings had quickly zeroed in on a well-respected local company called Dave Co. Welding, hoping to obtain employment pipe fitting and welding. “They were a very good, reputable company in town,” he explains, “so I hounded them until they finally hired me as a labourer. They were very forward thinking, focused on training and building people. The staff were second to none, all amazing tradespeople. I spent seven years with them and got very good training from the start. I got my business model from them.”

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Built From Scratch | COVER
Kinetic’s Stollery Children’s Hospital “Baby Boomer” pipe layer on its first job with creator Jim Bailey. Kinetic employees doing tank repairs for Crescent Point Energy. Kinetic coaters preparing to epoxy coat tie ins.

Having learned everything Dave Co. could teach him, Billings eventually moved on. He worked the turnaround season out of Lloydminster, then joined UA Local 488 (Alberta piping union) where he worked various jobs in the pipeline and construction sectors. By 2010 Billings was working as a sole contractor on various projects: “And I realized, I could do it myself.”

Friends Minter Greenwood and Keith Alguire, also in the industry, felt the same way, so the trio decided to strike out on their own. Each put in roughly $10,000 and Kinetic was born in 2013. To qualify as an Aboriginal business, Billings owned 51 per cent.

Their first job came thanks to Billings father-in-law who told them about a structural project Suncor had out for bidding. “And just for a joke I said, ‘I guarantee I can do it better and for cheaper’,” he laughs, “and so he went to his boss and asked if he’d give us a shot. And his boss said yes!”

Their work was very well received and Kinetic quickly gained traction in the industry. “We were known for our skill sets,” Billings explains. “All three of us were good at our jobs. We did one million dollars in revenue in our first year.” And it took off from there: in its second year, Kinetic made $9 million in revenue.

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COVER | Built From Scratch
Kinetic shop in Grande Prairie, photo by pipefitter Patrick Evans. Kinetic painter Terry helping pipe fitter hydrotest pipe to be painted.

The 2015 downturn caused challenges to all in the industry – Kinetic included – and Alguire and Greenwood eventually wanted out. They sold their shares to Billings who remained on to steer the business through a volatile energy price environment.

The company emerged intact and, in 2020, purchased its shop in Grande Prairie. “It was a steel manufacturing facility,” Billings explains. “So it was a perfect shop for fabrication. It’s where we fabricate and test all our above ground piping.”

Safety is a major priority at Kinetic. The company holds a Certificate of Recognition for safety from Energy Safety Canada and every employee participates in the health, safety and environment program: “Our prime focus is that everyone goes home at night. We built the business on the family premise – we are a family, and we don’t want anybody ever getting hurt. These are people we care about.”

The team’s culture is also focused on giving back, in time and dollars, to many local charities. Three years ago, they decided to paint one of the company’s booms purple, and donate all the profit generated by it to the Stollery Children’s Hospital in Edmonton. “We nicknamed it the Baby Boomer,” Billings laughs. “We’ve donated about $30,000 from it so far.”

While his original dream for Kinetic was to be an Indigenous entrepreneur and help inspire

other Indigenous people, he notes it’s been other factors – being a good community leader and providing good quality work – that have led to the company’s success.

Nonetheless, he highlights the benefits of energy development for First Nations communities: “There are a ton of benefits. With more training and education and the more knowledge everyone gains, there are a lot of positive things happening for Indigenous communities in the energy sector.”

“Canadian energy is amazing,” he continues. “It’s clean, it’s safe, it’s the best energy you can get. We are so environmentally focused, everything from wildlife surveys to how many trees are cut down. The rules are very stringent here, especially compared to other parts of the world.”

Despite all his achievements, Billings, a husband and dad of four, remains grounded. On whether as a kid he ever expected to end up owning his own energy services business in Alberta, his answer is straightforward: “Nope.”

Leading a highly skilled and professional team, and with a passion for the work and the local community, Billings and Kinetic will no doubt continue along their successful journey – however it looks. BOE

BUSINESS OF ENERGY | JUNE 2023 | 17
Built From Scratch | COVER
First oil battery built by Kinetic for Anegada Oil Corp.
EASY TO USE SOFTWARE EXPERIENCED & SAFETY CERTIFIED HIGH DEFINITION SEE EVERYTHING Cameras Access Alarm Intercom 24 HOUR ONSITE QUOTE SECURITY (403) 288-6468 sales@survshop.com www.survshop.com

NEW HOME, NEW CULTURE

Same High Standards at Wood

Alberta was built on the strength of its natural resources, and over the last few years, three legacy companies in that sector have amalgamated to create Wood Canada, a powerhouse that is forging a path as the premiere Engineering, Procurement and Construction (EPC) service provider in Western Canada.

“Amec purchased Foster Wheeler to make an integrated upstream and downstream business and then Wood Group saw an opportunity and purchased the two to create that combined upstream, midstream and downstream business with a global footprint,” says Jason Westrup, vice president of oil and gas, Canada, at Wood.

Wood Canada • 1
Craats | Published by Courtney Lovgren Photos by Riverwood Photography Jason Westrup, vice president of oil and gas, Canada, at Wood.

CONGRATULATIONS

The result is an impressive full-service organization that draws on the Wood network of 37,000 employees across more than 60 countries to provide quality solutions to its oil and gas clients. As an integrated EPC firm specializing in oil sands, petrochemicals and refining, pipelines, carbon capture, hydrogen, mining and biofuels, Wood can not only engineer greenfield and brownfield facilities but also procure the necessary materials and equipment and execute the design in the field. Unlike many EPC companies, Wood has an experienced construction arm in Leduc that creates a one-stop shop for clients as they take a project from conception through to operation.

Wood has also added an “F” to the EPC capabilities with the introduction of fabrication, developing fit-for-purpose solutions that include anything from well pads to pump house modules to marine assets for tailings ponds. These value-add propositions present a significant opportunity for Wood in the market while helping customers reduce capital costs on their projects at the same time.

“We have several inhouse products that we’ve developed and are in the process of developing where we can disrupt some of the incumbent solutions typically used here in Western Canada,” says Westrup.

Ph: 403-236-7744 • Fax: 403-236-7785 www.straight-up.ca O n Your M ove Wood!
Jason Westrup and members of Wood’s developing professionals network hang out in one of the soft seating areas.

Bucking traditional methods is something Wood has settled into as it has grown and diversified in an increasingly challenging and changing market. A key example is carbon capture, an emerging market assisting Canada’s net-zero goals across a number of industries, and Wood is accessing local specialists and global subject matter experts to apply strategies being employed in countries that are further ahead of Canada in the energy transition.

As key part of Canada’s decarbonization journey, Wood is proud to be the incumbent engineering services provider of the Pathways Alliance CO2 trunkline project. This initiative sees Canada’s largest oil sands producers working toward their goal of net-zero emissions by 2050. The ambitious flagship project will link more than 20 oil sands facilities along a 400-kilometre trunkline and collect CO2 for permanent storage in a Cold Lake, Alberta, hub. Wood is currently executing the Front End Engineering and Design (FEED) project scope for the Pathways Alliance.

Hydrogen is also playing an important role in the energy transition in Alberta, whether clients are looking at blending hydrogen with natural gas for energy, transporting hydrogen via pipeline or converting to ammonia, or altering their combustion engines to fire on hydrogen instead of natural gas. Wood supports the full hydrogen lifecycle.

Welcome Wood to Wood Centre at 2535-3rd Ave SE! Located in Calgary’s North District and proudly managed by Epic Investment Services. Providing Real Estate Management Services in Alberta since 2005. epicinvestmentservices.com Learn more about Wood Centre Wood Canada • 3
Hotel desks are available for staff to drop in and use during their unassigned desk sharing days. Staff have full access to unwind, take breaks and enjoy the view in the lounge areas.

“Wood owns its own SMR (steam methane reforming) hydrogen production technology, and we are one of only a few companies in the world that can actually license that technology to companies,” he says.

Wood is clearly not a standard EPC company, and it is striving to be both a client’s first choice service provider and a professional’s first choice employer.

#115, 7879 8th St NE Calgary, AB T2E 8A2 Tel: (403) 663-0544 Fax: (403) 532-1044 Email: info@classicoffice.ca classicoffice.ca CONGRATULATIONS on your transformative move, Wood! CONGRATULATIONS WOOD ON THE BIG MOVE! info@siftoninterlake.com Phone:
403-243-1233
Wood Centre is equipped with pool and ping pong tables, shuffleboard, foosball, classic arcade games and other games centred on collaboration. Wood Centre building amenities include a full gym facility available to all staff. In the kitchen, staff can enjoy superb Nespresso coffee and filtered sparkling or still water while enjoying the million dollar view.

Wood’s focus on attracting, training and retaining the best people in the business culminated in a move in February from its long-time downtown offices into an incredible purpose-built space at Memorial Drive and Barlow Trail. The impetus for the move was simple: to improve value for clients while offering the kind of amenities and environment that appeals to today’s workforce.

From ample free parking for the 760 Wood employees and the free on-site gym to complimentary gourmet coffee and a flexible hybrid work model, Wood has checked every box on an employee’s wish list. And that focus on employees is reinforced in the details. Enclosed management offices are concentrated in the building’s core, leaving the million-dollar panoramic view and natural light to the staff throughout the open-concept space. With its ping-pong, foosball and pool tables, massage chairs, televisions and comfortable lounge furniture, Wood’s three floors feel more like a tech space than an engineering firm. And being equipped with WiFi6 technology throughout means the team enjoys full connectivity to perform 3D modeling and process simulations from anywhere in the office without worrying about plugging in.

“Retaining and attracting is not only about salary anymore; it’s about environment, the dynamic,

the ambiance, the behaviours of people and the ability to connect. All of those things play a factor and ultimately they drove us to this type of office. If you want to hold onto the next generation of employees, you need to provide this type of working environment and the flexibility of a hybrid model,” says Westrup.

While born out of necessity during COVID, that hybrid working model proved effective and popular enough to adopt permanently after restrictions eased. About 85 per cent of staff now adhere to a formal hybrid schedule where two employees share a desk on a five-day rotation that straddles the weekend. If employees want to come in on their remote days, they can by booking hoteling stations or breakout rooms found throughout the office.

Wood is providing incredible service out of its new office and staff are enjoying the amenities and atmosphere that have come with it. Through professional development support, intercompany networking, flexible work models, and social and wellness clubs coupled with a forward-thinking, creative professional culture, management is investing in the future of both the organization and the industry – and what a bright future it is for Wood.

3000- 84th Avenue, Edmonton, Alberta 780-466-7867 • info@gmc.ab.ca • gmc.ab.ca • Field Services • Facility Construction • Mechanical Services • Full Electrical & Instrumental Services • Shop Fabrication & Modual Assembly • General Contracting • Welding Services • CWB/CSA W47.1, Div. 2 • ASME Section VIII-1 • ASME B31.1, B31.3, Z662 • Repair/Alter: Pressure Vessels SME Section I & IV Congratulations Wood on your big move! GMCC Suite 420, 2535 3 Ave SE, Calgary, Alberta, T2A 7W5 Tel: +1 587 955 2000 | www.woodplc.com Wood Canada • 5
At Mostar, we’re redefining directional drilling with a full suite of measurementwhile-drilling, mud motor, and customizable solutions. Your direction is our direction. Calgary, AB • Midland, TX • Rifle, CO www.mostardirectional.com Directional Drilling, Redefined

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