Upstream ISSUE 21 I JULY/AUGUST I 2012
Dialogue
CAPP’s award-winning
Energy in Action program connected companies with children in nine operating communities this spring. Look to page ten for more details.
CAPP Events & Updates CAPP Environmental Issues Seminar November 14, 2012 Calgary, Alta. CAPP Investment Symposium December 10 – 12, 2012 Toronto, Ont.
Inside Industry in the news PAGE TWO In case you missed it PAGE NINE u Economist Todd Hirsch answers questions following his June 19 Speaker Series presentation.
Relationships behind the resource PAGE TEN Employee perspectives PAGE TWELVE u Meet Noel Hill of Dover Operating Corporation and Paul Perkins of Talisman Energy, two advocates of Energy in Action.
Industry practice and regulations PAGE FOURTEEN Heard round the patch PAGE SIXTEEN u What people are saying about the CNOOC bid for Nexen.
Keeping employees informed about Canada’s oil and gas industry I www.capp.ca
Industry in the news
Touring for balance Seeing the scale of oil sands development for the first time can be a jaw-dropping experience. Travis Davies, CAPP’s manager of media and issues, has seen it many times, coordinating tours of journalists and dignitaries through oil sands operations. “Being able to provide the physical context of the oil sands to a reporter is very important,” says Davies. “It helps to balance out some of the emotion that people have surrounding the issue.” Media tours, which CAPP has been
Brad Bellows of MEG Energy and journalists from the Washington Post board a helicopter for a tour.
coordinating in partnership with member companies for the last several years,
they can see the enormous effort that goes
walk journalists through the full scope
in to reclaiming land.
of oil sands operations. The first stop is usually a mine, where participants get a chance to see the operations and talk to people who work on the front lines of oil sands development. Visitors get to see
sands to provide some context of the
From there visitors are transported to see in situ operations and the innovative technologies being applied at in situ oil sands facilities.
the bitumen being mined and processed,
Overall, these tours are having a positive
and the technologies that mitigate
effect on the tone of reporting on the oil
environmental impacts. Oil sands economic
sands.
and energy supply benefits to Canada and
“We are able to provide reporters with a
North America are also discussed.
solid understanding of the entire scope
“On one tour we hosted the largest media
of the oil sands and that leads to more
outlet in the greater Atlanta, Georgia
balanced reporting,” Davies says.
market. They had a chance to see
Each year 20 to 30 media outlets tour
technology and products manufactured in Georgia being used in the oil sands,” says Davies. “It was a real eye opener for them and had a significant and positive impact on audiences in Georgia when they saw thousands of jobs in their community connected directly to Canadian oil sands development.” Visitors are shown reclamation projects, like Syncrude’s South Bison Lookout, Bill’s Pond and Suncor’s Wapisiw Lookout, so
uW SB-TV in Atlanta toured the oil
the oil sands, ranging from small blogs and publications to large organizations like CNN, Fox News and the Washington Post. Davies also recently toured with American magazine Esquire, which will run a feature story on the oil sands in the fall of 2012. uT he Washington Post recently toured
the oil sands with CAPP and is now touring the proposed route of the Keystone XL Pipeline. Read more.
economic impacts of the oil sands in Georgia. Learn more.
Putting together a tour With 20 to 30 media outlets requesting a tour each year, organizing tours can be a challenge. “It can be a bit tricky,” said Davies, “but our members are very accommodating.” Tours are crucial to stakeholder and public understanding of issues and performance in the oil sands. “There is a wide scope of needs in the media that tours the oil sands. The level of understanding differs, as does the focus of stories. Companies do a great job of describing performance improvements and the challenge of daily operation on a very large scale,” said Davies. Members also arrange for subject matter experts to engage with media. “These people are passionate about what they do and are terrific ambassadors for the industry,” said Davies. “Media engagement certainly takes time for preparation, but it pays dividends in making a tangible difference in how we get reported and how the public considers our industry.”
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Troy Heibein of Suncor shows off The Facts on Oil Sands app on his iPhone.
The Facts on Oil Sands – Do you have the app?
CAPP’s Facts on Oil Sands has recently been updated and reprinted in English and French. View the new facts online or order a printed copy.
Are you looking for more convenient
“CAPP’s oil sands app builds on the
or click the links
ways to have oil sands facts, clear up
success of the hard copy mini-book
below. With
misconceptions and discuss the benefits
Upstream Dialogue: The Facts on Oil
a strong signal,
of Canada’s oil sands? CAPP now has a
Sands,” said Janet Annesley, CAPP’s
downloading the app
comprehensive, handy smartphone app to
vice president of communications. “With
takes only a few minutes.
help you join the discussion.
more than 200,000 copies in circulation, CAPP’s fact book has considerable reach
Suncor employee Troy Heibein had no
and impact, but people want instant
problem downloading the app.
up-to-date oil sands information at their
“The Facts on Oil Sands app was
fingertips when they need it most. Most
incredibly easy to download both on my
people have smartphones with them all
work BlackBerry and my personal iPhone,”
the time so we created a free oil sands
said Heibein. “Within seconds, it was up
app for BlackBerry and iPhones.”
and running. As someone who works in the industry, I was pleasantly surprised with how much useful information and interesting facts I was able to uncover”.
Downloading the app is easy. From your mobile device, simply search “oil sands”
“In all we do, we encourage Canadians simply to consider the facts and to think critically about complex issues such as the environment, energy and the economy,” Annesley said. “Good information and critical thought supports informed conversations and decision-making.” u BlackBerry: http://bit.ly/Hhk7N5 u Apple: http://bit.ly/zwsRWi
in the Apple or BlackBerry app stores
Offshore search and rescue facility opens in N.L. Cougar Helicopters has opened a new facility to support first response search and rescue for the Newfoundland and Labrador offshore oil and gas industry. While offshore operators have always maintained a level of first response capability, the new facility is dedicated solely to search and rescue. The new 2,550 m2 facility houses a dedicated S-92A helicopter fully outfitted for first response search and rescue, as well as offices, training areas and living quarters to support a 24-hour-a-day response posture. “The opening of a standalone facility for first response search and rescue is an important step in our journey towards continuous improvement in our offshore operations,” said Paul McCloskey, senior vice president for Husky Energy’s Atlantic region. “The new hangar supports our commitment to further reduce response times.”
A Cougar search and rescue employee conducts an emergency response drill.
The facility was funded by the offshore industry. With a focus on prevention, it is the industry’s hope that this state-of-the-art facility will never need to be used in a first response situation. Offshore operators also recently developed a video to provide an overview of offshore helicopter travel as part of the implementation a recommendation of the Offshore Helicopter Safety Inquiry. PAGE THREE SEND US YOUR FEEDBACK
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uW atch the video here.
Industry in the news continued
Membership has its privileges CAPP provides a strong unified voice, initiates change and
Membership dues are based on the average daily Canadian
responds to issues on behalf of its member companies. A
production and start at $5,000 per year.
membership in CAPP offers many benefits. Some of these benefits include: • Official representation by CAPP through negotiations with and presentations to government and other stakeholders. • An opportunity to participate in committees to review, analyze and recommend industry policy positions in Canada. • Access to MemberNet providing industry trends, statistics and CAPP presentation materials. • Access to research information through CAPP’s Environmental Research Advisory Council (ERAC) program.
Associate: CAPP’s associate members provide a wide range of services such as banking, supply, drilling and computing that complete the infrastructure of this country’s upstream oil and gas industry. Associate members also include producers with less than 2,000 barrels of equivalent per day of Canadian production and with less than 75 per cent of their total production in Canada. Membership dues are based on the type of business and the number of employees in Canada, and vary from $1,000 to $7,500 per year. uP lease click for a full listing of CAPP’s producer and
associate members.
• A channel for media support, information and opportunities. Types of memberships: Producer: CAPP’s producer members actively and responsibly explore for, develop and produce Canada’s petroleum resources.
Digital Download MemberNet: Does the word “MemberNet” ring a bell? No? That’s exactly why MemberNet is undergoing an overhaul. So far, the project team has met with a sample of CAPP’s members to make sure member’s top-rated features are included. Collaboration, ease of use, notifications and improved content are top the “must-have” list. Keep an eye on Upstream Dialogue for updates. The revitalized MemberNet will launch in fall 2012. Oil patch online: A lot of online resources about the oil and gas
all stakeholders. ForumSchiste.com (@ForumSchiste) is the
industry. Here are a few great resources are available for you to
French sister site to ShaleTalk. Take a look and join in on the
check out:
conversations.
u Check out the American Petroleum Institute’s
u Finally, it’s all about tackling the difficult issues and Suncor’s
EnergyTomorrow.org (@EnergyTomorrow on Twitter) for
Oil Sands Question and Response (osqar.suncor.com) does
information about the industry south of the border. This
just that. Designed to support constructive dialogue about the
website provides news, stories and ways to get involved
oil sands, OSQAR covers a wide range of topics. It’s fitting
with energy.
that the most used categories are energy, economics and
u Closer to home, ShaleTalk.ca (@ShaleTalk) is a space for
environment.
dialogue on the development of shale gas in Canada among
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Gas dialogues surface diverse issues This spring, the Canadian Natural Gas
environmental, social and energy security,
Initiative (CNGI) hosted a series of
price and reliability dimensions of natural
dialogues across Canada to listen and
gas were heard.
learn about key influencers’ perspectives on natural gas. Bringing together seriousminded Canadian business, environmental, sustainability, academic, aboriginal and community leaders to engage in a positive, respectful and productive discussion, the dialogues took place in seven Canadian cities: Moncton, N.B., Halifax, N.S.,
“One of my takeaways was that the end goals of industry and NGOs in the room aren’t all that different,” said Richard Dunn, vice-president of regulatory and government relations at Encana. “There is a genuine mutual desire for responsible sustainable development.”
Ottawa, Ont., Toronto, Ont., Red Deer,
The dialogues had industry representation
Alta., Fort St. John, B.C. and Vancouver,
from producers, pipeline companies and
B.C. A post-election dialogue for fall 2012
gas distributers. The discussion topics and
is also being scheduled in Quebec.
focus of each dialogue came from the day’s
“There were some regional differences,
participants and varied from city to city.
but overall there were a lot of similarities
“During our session in Fort St. John, the
between both the concerns about
majority of the discussion was focused
resource development and the
on community infrastructure and social
opportunities resulting from development,”
programs that are lacking due to the
said Kim McCaig, vice-president and
results of the industry’s success and
chief operating officer of the Canadian
activity levels,” said Michael Forgo, vice-
Energy Pipeline Association (CEPA). “In
president of business services at Encana.
all dialogues a thirst for knowledge was
“The dialogues validated and detailed
very apparent. The participants want and need more of these dialogues to help them better prepare for influencing decisionmaking within their areas of concern.”
views we know exist and also brought some new perspectives to the table” said CAPP president Dave Collyer. “We gained a lot of insight into what Canadians
Mike Cleland, former president of the
are thinking about natural gas and each
Canadian Gas Association (CGA),
group was constructive and solutions-
moderated each discussion, faciliting
oriented. Our next step is to compile and
opportunities for participants to provide
summarize what we heard in the dialogue
their views about the natural gas
sessions, and to provide stakeholders with
industry. Various points on the economic,
a substantive and meaningful response from CNGI.”
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Discussing shale online CAPP launched a new forum to open up the discussion on the development of shale gas in Canada. Shaletalk.ca, and its French sister website ForumSchiste.ca, are open and respectful disussion spaces that permit users to ask questions and obtain answers directly from the industry and its opponents. The moderators of Shaletalk.ca add interviews with academics, activists and industry representatives, along with links to conversations from other social networks on the topic. Both sides of the discussion are given equal representation in terms of visibility and content. Current topics of conversation on the page include the contents of hydraulic fracturing fluids, shale gas protests in New Brunswick and emissions. CAPP encourages members to go to shaletalk.ca or forumschiste.ca to engage with others about shale gas development in Canada.
Industry in the news continued
CAPP 2012 Investment Symposium CAPP’s 2012 Investment Symposium
2012 theme is “Canadian Oil and Gas:
creating employment and economic
will take place December 10-12 in
Leading Globally.” In addition to individual
growth opportunities that benefit
Toronto, Ont. The symposium is the
company presentations to investors,
all Canadians.
industry’s annual showcase to investors
CAPP’s 2012 Investment symposium
and features participation from a broad
will feature keynote speakers focused on
spectrum of CAPP members.
the opportunities for Canadian energy
Given the industry’s focus on market diversification and its strong record of attracting global investment, the
companies on a global scale, and the significant role oil and gas plays in attracting investment capital to Canada,
A new feature of the CAPP 2012 Investment Symposium will be a retail investor and supply chain day on December 12. For more information about CAPP’s 2012 Investment Symposium please visit www.is2012.capp.ca.
CAPP in the news u CAPP President Dave Collyer, CEPA president Brenda Kenny and CGA president
Timothy Egan wrote about the benefits of a strong natural gas industry to the province of British Columbia in the Vancouver Sun on June 25, 2012. Collyer highlighted the B.C. government’s new regulations for natural gas in the transportation sector, liquefied natural gas export potential and natural gas royalty’s importance to the balance sheet of the province. u CAPP President Dave Collyer spoke with the Oil and Gas Report at the Globe
2012 conference in Vancouver in March about the importance of oil and gas to the Canadian energy mix.
Stringham responded to the article citing a recent study by Alberta Innovates that
New faces at CAPP
shows diluted bitumen is comparable to conventional oil
Janine Vandenberghe joins CAPP
during pipeline flow.
as a new administrative assistant
u On July 10, 2012, an article in the Saskatoon StarPhoenix by Paul Hanley alleged
diluted bitumen of is “worse than crude oil” in a pipeline. CAPP vice-president Greg
u Thomas Mulcair, federal NDP leader, accused CAPP of pulling a “con job” with
the hydraulic fracturing operating practices that were released in January 2012, saying they were not regulations. CAPP responded by pointing out that the operating practices are an initiative by industry to improve performance and that regulations must be introduced by the jurisdictions that own the resources, primarily provincial governments.
providing additional support to the communications and environment and policy departments. Vandenberghe has worked as an administrative assistant for five years, the last three in oil and gas. Janine.Vandenberghe@capp.ca
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Farmers on fact-finding mission What do canola, cows and hydraulic fracturing have in common? Farmers of course. And for 12 farmers and politicians from Quebec, an idyllic locale near Rosemary, Alta. turned out to be a great place for a down-to-earth discussion on natural gas. “The best people in the world [to discuss hydraulic fracturing] are here in Alberta, the best technology is here and that is why I wanted to have people from Quebec see the technology and meet the people and understand the way to do it,” said Mario Lévesque, president of the Oil
Farmers from Quebec talk to their Alberta counterparts about natural gas development.
hydraulic fracturing operations. The tour
Gauthier of Saint-Marcel, Que. at a
was organized by CAPP, OGSAQ and
news conference. “It is a good thing to
farmer, to have people from our small
Questerre Energy Corp.
take our time. It is best to wait. Things
towns meet with people here to get their
Aimed at demonstrating co-operative
questions answered.”
responsible development is possible,
The group met with Alberta farmers
Alberta’s success story only served to
and Gas Services Association of Quebec (OGSAQ). “We wanted farmer to meet
who have dealt with the oil and gas
highlight Quebec has a way to go.
industry, toured natural gas operations
“For now I think we have to take our
and were given a technical presentation
time and create lots of regulations that
by Trican Well Services, who conduct
we don’t even have,” said farmer Daniel
are different in Quebec and they are far away from here. We just have no experience in gas.” u To learn more about the Quebec
farmer’s tour, visit the Canadian Natural Gas Facebook page.
Now or Never for Canadian energy Canada has potential to be the most productive energy nation
The need for a Canadian energy strategy was major piece
in the world, according to the chair of the Standing Senate
of business at last year’s federal-provincial energy ministers’
Committee on Energy, the Environment and Natural Resources
conference in Kananaskis, where CAPP released its CAPP
(ENEV).
on Canadian Energy Strategy brochure. A Canadian national
Senator David Angus made the comments as the committee released Now or Never, a report that outlines an energy vision
energy strategy will remain a priority for this year’s meeting in Charlottetown, P.E.I., starting September 9.
for Canada based on a clear and responsible path for Canadian
The Senate report produced 13 priorities for action to achieve
energy development and a low-emissions economy.
long-term and affordable energy solutions, addressing the
“Many of the recommendations in the Senate report are wellaligned with the priorities and direction for our industry,” said Dave
challenges and opportunities of responsible development and energy efficiency.
Collyer, President of CAPP. “It also underscores the need for a
“There is a great sense of urgency and we need an energy literacy that
Canadian energy strategy to align interests and clarify direction
includes a profound recognition that energy pervades all aspects of
regarding energy production, transportation and use.”
our lives, and is a key element of our social fabric,” said Angus.
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Industry in the news continued
Streamlining the process On June 18 the Canadian government
• Designated projects [
see below] will
(Canadian Environmental Assessment
passed the Jobs, Growth and Long-term
replace existing triggers determining
Agency, National Energy Board and
Prosperity Act, also known as Bill C-38. This
which projects are subject to review.
Canadian Nuclear Safety Commission).
omnibus bill impacts more than 70 laws, including many affecting Canada’s oil and gas industry. “These new regulations are an important step forward for our industry,” said Phil
• The establishment of set timelines for
• The use of provincial review processes as a substitute for a federal
project regulatory decisions. • The number of federal responsible authorities to be reduced to three
environmental assessment. • Changes to the Fisheries Act.
Langille, manager of federal regulatory
“Critics of the new regulations have argued
and northern affairs at CAPP. “They
that they will result in lower environmental
will eliminate redundant and inefficient
standards or that they turn back the clock
regulatory processes, improving our
on environmental regulation,” said Langille.
international competitiveness without
“This is not true. Efficiency of process
compromising Canada’s strong record of
does not equal reduced environmental
responsible development.”
protection. More regulation is not necessarily better regulation. In fact, it’s
The new regulations replace an existing
usually quite the opposite.”
patchwork of requirements developed
Ultimately, the new regulations provide
over the years. The old requirements often conflicted with each other and required industry to submit projects for approval to several government agencies. Complicated and inefficient regulatory
a greater degree of certainty for all Finance Minister Jim Flaherty and Prime Minister Stephen Harper hold up the Jobs, Growth and Long-term Prosperity Act which holds several new regulatory reforms.
related economic benefits and jobs, while contributing nothing to environmental
hat is a designated W project?
performance or standards. An example is
The Canadian Environmental
the Mackenzie Valley Pipeline, which took
Assessment Act 2012 says
over nine years to be approved, during
“designated project” means one
which time estimated costs grew from
or more physical activities that:
$7.5 billion to $16.2 billion. There are over $123 billion in projects currently awaiting review from the federal and provincial governments, making wait times long and investors uncertain. Bill C-38 aims to improve the regulatory process while ensuring environmental standards are maintained or enhanced. Some of the major changes in the new regulations include: • Fewer projects are required to be subject to federal environmental assessment.
investment that may have been deterred by the previous cumbersome review processes. Investment creates Canadian
processes run the risk of slowing down or outright killing projects, and the
industries in Canada. They will help attract
jobs, economic growth and security in an increasingly competitive global market. “In Canada, we are very fortunate to have abundant natural resources, enough to meet our needs for decades, provide reliable and secure supply to other countries, create well-paid and highly
(a) a re carried out in Canada or on
skilled jobs and contribute significantly to Canada’s public accounts,” said CAPP
federal lands; (b) a re designated by regulations made under paragraph 84(a) or designated in an order made by the minister under subsection 14(2); and
President Dave Collyer. “Canada’s governments own our country’s oil and gas resources and make the rules regarding their development – rules for operations, environment, royalties, taxation and exports. There is comprehensive and
(c) a re linked to the same federal
robust policy and regulatory oversight of
authority as specified in those
the oil and gas industry from production
regulations or that order.
through to consumption. And this will
It includes any physical activity that is
continue to be the case.”
incidental to those physical activities.
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In case you missed it
CAPP Speaker Series with Todd Hirsch 1. What do you see as Canada’s greatest challenges in the coming decade? The greatest challenge in the coming decade will be for Canadians to purposefully take control of their own creativity — and their own economy. We’ve become too used to asking – insisting? – that the government solve problems for us. Governments are very good at delivering all sorts of public goods that the market can’t. However, when it comes to creativity, productivity, entrepreneurialism and innovation, government policies and programs have let us down. It’s not so much that governments create bad policies, but rather that government policies cannot accomplish what we’ve pretended they can. No tax credit can make you a more creative person — that’s 100 per cent up to you. 2. What do you see as Canada’s greatest strengths in the coming decade? Without question, we are smart. Our education system — both K to 12 and postsecondary — could be improved on. Nonetheless, our students and graduates are among the best in the world. This gives us an enormous advantage over a lot of other countries,
On June 19 CAPP hosted Todd Hirsch for our Speaker Series. Hirsch spoke about his new book “The Boiling Frog Dilemma: Saving Canada from Economic Decline.” CAPP asked him some questions following his talk.
including our neighbours to the south, where quality education is perhaps less available. As the saying goes: “People search for the Fountain of Youth. We have enough youth. What we need is the Fountain of Smart.” 3. Where do you see Canada being able to add the most value to our resources? There are so many ways to add value to our natural resources beyond the traditional sense of the term “value-added” – which is to refine or otherwise add secondary manufacturing to them. Adding value to resources can also come at the top end of the value-added chain, which is to engineer better ways of extracting and harvesting resources. For Canada’s energy sector, this is happening all the time with advances in oil sands (such as steam assisted gravity drainage), but it can also happen with more technologically advanced ways of extracting forestry resources, agriculture and mining. 4. What failures do you see in the Canadian economy that can be turned into success? It is perhaps less of a failure than a character flaw, but Canadians are generally not very risk taking. It’s always possible to point to a few individuals or companies that are risk takers, but more commonly we sit back and wait for other countries to do the heavy lifting for us. Risk taking does not only mean taking financial risks — far from it! Risk taking can also mean being brave enough to suggest a new idea or product to your peers/managers. But however you define risk, we could use a little more of it here in Canada to steer our innovations towards successfully commercialized products. 5. What do you believe is the number one way to enhance a person’s creativity? The very best way to enhance creativity is to expose your mind to new stimulus—basically, get up off the couch and take in some activity outside your normal range. If you are an opera fan, go see a rock concert. If you love NFL football, go take in a show at an art gallery. It almost doesn’t matter what it is, as long as it is different. This will make your brain work in new ways to make new connections. And from this, creativity flows. Travel is great for this, as is living abroad. u To read more of Todd’s work or to order his book, please visit www.ToddHirsch.com.
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Alycia Wong of Dover Op Co helps students to paint their storage shed as part of Vera M. Welsh’s outdoor classroom in Lac La Biche.
Relationships behind the resource
Energy in Action 2012
Rachel Hofman of Inside Education teaches the students about natural resources and stewardship at Deveraux Elementary School in Arras.
(Left to Right) Melanie Sharpe, Christa Then and Ali Klippenstine of Petrobakken help students plant flowers in recycled tires at Queen Elizabeth School in Weyburn
CAPP’s award-winning Energy in Action
Inside Education to start their day
where we operate, Energy in Action’s
program took to the road for its ninth
thinking critically about energy development
2012 projects were diverse, from building
season this spring to spread the message
in Canada.
outdoor classrooms, to planting gardens,
of environmental education and energy literacy to schools across Western Canada.
This year Energy in Action visited schools in Bonnyville, Alta.; Lac La Biche, Alta.;
This year over 40 oil and gas companies
Anzac Alta.; Rocky Mountain House, Alta.;
signed on to the program to build unique,
Elrose, Sask.; Weyburn, Sask.; Arras, B.C.;
sustainable environmental projects
Hudson’s Hope, B.C. and Fort Liard, N.W.T.
tailored to each school’s environmental vision. Students received an interactive presentation about natural resources from
to learning about local bird habitat by building bird boxes – each project taught that everyone has a role to play when taking care of our environment. u For a look at what really goes on the
road, check out our vlog series.
Reflecting the oil and gas industry’s increasing commitment to the communities
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Dave Wizinsky of MEG Energy at Anzac Community/ Bill Woodward School in Anzac
Jessica Yarnell of Cenovus measures and cuts wood to build bird houses at Vera M. Welsh School in Lac La Biche.
Dallas Fallscheer of Champion Technologies with a student from Duclos School in Bonnyville.
Justine Lissack from Apache at St. Matthew Catholic School in Rocky Mountain House.
Samantha Sedlowsky from Encana helps students at Echo Dene School learn about local bird habitats in Fort Liard.
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(Left to right) Allan Goosney, Maddison Gee, Tanner Georgsen and Kale Drevor of Crescent Point monkeying around at Elrose Composite School in Elrose.
Employee perspectives
Growing roots in the community When Noel Hill attended CAPP’s Responsible Canadian Energy (RCE) Awards in March, 2012, he got far more out of it than he initially anticipated. Hill was impressed by the individual company initiatives that benefit our industry, but it was a video screening of CAPP’s collaborative Energy in Action program that immediately inspired him. As the HSSE Manager for Dover Operating Corporation, a company that is only two years old, Hill saw Energy in Action as a first step in creating Dover’s corporate social responsibility plan even before they hit first oil. “I see the value in communicating to the next generation,” says Hill. “Energy in Action provides a great means of creating new ideas that move us forward on how we interact, with the communities and the people we affect. It’s something we can easily get behind.” After attending the RCE Awards, Hill explains that he immediately approached management to get involved with Energy in Action. He received a massive amount of support to participate in two 2012 communities: Anzac and Lac La Biche, Alta. Hill put a cross-company team together to take part in the program, involving employees from Name
procurement, human resources, regulatory and HSSE.
Noel Hill
“Our biggest challenge was restricting the number of Dover volunteers, because
Title
everyone wanted to be involved,” says Hill. “We came back from Energy in Action all
Health, Safety, Security and Environment (HSSE) Manager
excited. It was team building, it was a road trip, it was hands-on community engagement and it was really fun.”
Company
Hill recalls his favourite memory of their tour was building a bird box with a young girl in
Dover Operating Corporation
Lac La Biche who wasn’t quite engaged with the other students. It warmed his heart to
Department/Group
work with her and to create a personal connection.
Health, Safety, Security and Environment
Since coming back from the tour, Hill has presented his team’s experience with Energy in
Years of Experience
we want to support community initiatives,” explains Hill. “Energy in Action was our first
18 in HSSE oil and gas Location
Calgary
Action to his whole company. “We’re challenging Dover to think about next steps of how step – our catalyst. So what’s our next step?” With plans to expand this year, Hill hopes to work with Dover to “grow a bigger family” instead of simply growing a bigger company, and to help to strengthen collaboration amongst the industry culture through community relations. Dover hopes to lead by example in future Energy in Action days by attending events across Alberta and not only where Dover has operations. “I really believe in this program and as long as Energy in Action exists, you’re likely going to see us supporting it every year.”
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Building a legacy in Hudson’s Hope Paul Perkins leads a very versatile work life. From planning open houses and barbeques, to conducting aboriginal consultation in northeastern British Columbia, this community engagement advisor has seen it all. With over five years of experience with Talisman Energy, Perkins works hard to ensure that the communities where he operates know him on a first-name basis. So, when Talisman advocated bringing the Energy in Action program to Hudson’s Hope, B.C. for the first time, with Perkins leading the charge, CAPP was eager to support them. Talisman has been an active contributor to Energy in Action for the last seven years and they have participated in events across Western Canada, but this was Perkins’ first time as a project team lead. He worked with Hudson’s Hope School for months, sourcing materials and working with the community to enhance their outdoor classroom, by planting a series of trees and building bird boxes with the students. Although he has participated in the program before as a representative of the British Name
Paul Perkins
Columbia Oil and Gas Commission, Perkins gained a new appreciation for the planning involved in making these events successful.
Title
“What you don’t see as a guest of Energy in Action is all of the hard work that happens
Senior Community Engagement Advisor, Community and Aboriginal Engagement
dedicated about 80 hours of prep time before the event.”
Company
Talisman Energy Department/Group
Stakeholder Relations Years of Experience
5 years with Talisman (35 years total in energy sector)
in the background to pull this event together and make it a success,” explains Perkins. “I Perkins explains that the commitment is well worth the hard work and the monetary investment when everything is said and done. Energy in Action leaves a legacy piece for the community to enjoy long after oil and gas development is complete in a particular area. “Taking it all in as a completed project was overwhelming,” says Perkins. “I looked back at all the hard work we did and I said: ‘Wow that was good!’” Perkins remains humble about his work in Hudson’s Hope, claiming that it couldn’t have happened without all of the volunteers that came out to assist during the Energy in Action
Location
day. He is certain that Talisman will continue to support Energy in Action for years to come.
Fort St. John, B.C.
Now that the program is over for the season, Perkins is back to his versatile career in community engagement. He is passionate about his work and his efforts in projects like Energy in Action truly demonstrate that. “I want to come back to Hudson’s Hope in the future and say: ‘See those big trees? In 2012 we put those in. The legacy remains.’”
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Industry practice and regulations
New CAPP publication: H2S Release Rate Guideline CAPP released a new H2S Release Rate Guideline that provides a methodology and standard for industry to calculate the potential H2S release rate of a well. Regulators in Western Canada have mandated the preparation of an H2S release rate before an application to drill a well can be submitted. H2S release rates are prepared for drilling, well completion and producing operations to determine the following: The emergency planning zone for each operation type. The classification of the well (i.e. critical special or non-critical non-special). The facility level designation for land-use setback requirements. u E lectronic copies of the H2S Release Rate Guideline are
available at no charge to download or view here.
An employee working in an H2S environment.
Lighting up the night Enform has released a new Lease Lighting Guideline that covers outdoor lighting requirements during dark hours. The guideline is intended to clarify roles and responsibilities for lighting on leases, help operators and contractors determine minimum lighting requirements for work activities on the lease and improve safety and security by focusing on outdoor lighting. The guideline covers: • Mobilization and demobilization of drilling equipment on a lease site • Ancillary drilling activities • Any lease site servicing operations (snubbing, cement pumping, well testing, stimulation, coiled tubing operations, wireline, etc.) The guideline does not address the lighting requirements for the rig floor, inside structures or road and lease construction New guidelines are now available on minimum lighting requirements on oil and gas leases.
or reclamation. u E nform will hold Lunch and Learns about the guideline this
fall. Click here for more information.
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Talking about safety in Saskatchewan
A drilling rig at work in New Brunswick.
Saskatchewan has the second highest injury rate in the country. In an effort to lower the number of workplace injuries, the Saskatchewan Ministry of Labour Relations and
New Brunswick seeks input on environmental management and royalty regime
Workplace Safety introduced new amendments to the Occupational Health and Safety Act. These amendments will be discussed at information sessions hosted by the ministry across the province.
The New Brunswick government released two discussion documents to kick off
The amendments come into force on
consultations on the province’s regulatory framework for oil and gas development.
September 3, 2012 and include:
The first discussion document, titled Responsible Environmental Management of Oil and
• Enhanced duties for employers,
Gas Activities in New Brunswick, outlines 116 recommendations related to environmental
supervisors and suppliers relating to
management of the petroleum industry. The recommendations include suggested changes
occupational health and safety.
to the province’s regulatory framework, focusing on protecting water, the environment and communities and landowners.
• Requirements to provide training and supervision of employees, as well as
The second discussion document focuses specifically on the royalty regime and the
maintenance of equipment.
introduction of an economic profit royalty.
• Designation of a prime contractor for
Public information sessions are being held as part of the consultation process and written
coordination of site safety where there
submissions are also being accepted. CAPP met with government officials to discuss the
are multiple employers or self-employed
royalty structure the environmental management discussion paper. CAPP also intends to make
people.
a written submission on both documents by the September 18 deadline.
• Procedures for creating and improving
u J oin in the discussion.
occupational health committees and health and safety programs. • New maximum and ranges of penalties. The goal of these amendments is
Determining offshore economics
to reduce the province’s workplace
The Nova Scotia government has updated its Oil and Gas Exploration Economic Model.
injury rate, build incident and injury-
The purpose of the model is to provide industry with a tool to analyze the economics of
free workplaces, lower healthcare and workers’ compensation costs and improve business. uL earn more about the information
sessions here. To register for a session, call (800) 567-7233 or (800) 667-5023.
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exploration and development off the shores of Nova Scotia. The model provides full cycle calculations, from exploration to abandonment, and includes Nova Scotia offshore royalty and provincial and federal corporate income taxes. The Excel-based model includes deep water development costs and provides full cycle calculations. u For more information check out the Economic Scoping Tool.
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Heard round the patch
China’s CNOOC offers $15B for Nexen Nexen Inc., a Calgary-based oil and gas firm, has agreed to be acquired by China National Offshore Oil Company (CNOOC) in a US$15.1 billion cash deal. The deal would see state-owned CNOOC Ltd. pay $27.50 per Nexen share. That price makes the deal the largest foreign “If being a state-owned company is the problem, what if it was Statoil (Norway) instead of CNOOC (China)? Lots of politics in this decision.”
transaction CNOOC has ever attempted. As part of the deal, CNOOC will keep the current Nexen management team and employees in place. CNOOC will also maintain and enhance capital expenditures on Nexen’s assets and enhance community and social commitments. CNOOC will
“If the CNOOC-Nexen deal closes, the tally of Asian investment into Canada over the past three years will total over $45-billion.” Peter Tertzakian chief energy economist, ARC Financial Corp
Duane Bratt, Mount Royal University political science professor via Twitter
“We simply cannot allow strategic energy resources to disappear from Canadian control at such a rate and level with no real oversight.” Elizabeth May, Green Party of Canada
If you would like to receive this newsletter directly from CAPP, email your request to upstreamdialogue@capp.ca.
“You won’t find a single shareholder on the entire planet, or in the solar system, who is unhappy with this deal.” David Taylor, president and chief investment officer of Taylor Asset Management
“We are in Canada to invest, to be a good employer, and to continue Nexen’s commitments to the environment and communities.” CNOOC CEO Li Fanrong
“There are hundreds of companies in the oil patch with a wide diversity of ownership, meaning no single player can control the industry. There are also substantial federal and provincial regulations governing the sector, no matter where the ownership hails from. It really has continued to be a Canadian industry they are investing in rather than making it a foreign industry,”
The Canadian Association of Petroleum Producers (CAPP) represents companies, large and small, that explore for, develop and produce natural gas and crude oil throughout Canada. CAPP’s member companies produce more than 90 per cent of Canada’s natural gas and crude oil. CAPP’s associate members provide a wide range of services that support the upstream crude oil and natural gas industry. Together CAPP’s members and associate members are an important part of a national industry with revenues of about $100 billion-a-year.
Here is what people are saying about the deal.
Nexen chief executive officer Kevin Reinhart
Prime Minister Stephen Harper
Canadian Association of Petroleum Producers (CAPP)
The proposed transaction is subject to review by Investment Canada.
“This transaction will allow for significant investment in our business and opens the door to new opportunities for our employees.”
“Under the law, the transaction must be of net benefit to the country. The government will make sure that investment is clearly scrutinized to ensure it is of net benefit if it is approved – and nothing should be assumed in terms of the government’s decision one way or the other on that transaction.”
CAPP vice-president of oil sands and markets Greg Stringham
establish their North and Central American headquarters in Calgary and intend to list CNOOC shares on the TSX.
“Under the Competition Act, the Bureau has a mandate to review mergers to determine whether they are likely to result in a substantial lessening or prevention of competition.” Industry Minister Christian Paradis
2100, 350 – 7 Avenue S.W. Calgary, Alberta Canada T2P 3N9 1000, 275 Slater Street Ottawa, Ontario Canada K1P 5H9 403, 235 Water Street St. John’s, Newfoundland and Labrador Canada A1C 1B6 CAPP is on Twitter. Follow us @OilGasCanada. CAPP is on Facebook.
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