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From below-ground to front-page news: The controversy behind pipelines Construction is underway at AltaGas’ Ridley Island Propane Export Terminal Oil and gas sector leads caribou research in northeast B.C.
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In this issue Message from the editor, Shayna Wiwierski.....................................................................8 Message from the Premier of British Columbia, the Honourable John Horgan.......................................................................................... 10 Message from the Minister of Energy, Mines and Petroleum Resources, Michelle Mungall.........................................................................12 Message from the Minister of Indigenous Relations and Reconciliation, Scott Fraser..................................................................... 13 Message from the Mayor of Fort St. John, Lori Ackerman........................................... 14 Message from Canada’s Minister of Natural Resources, the Honourable Jim Carr.................................................................................................. 15 Canada’s energy innovation story is one worth telling................................................ 16 Oil respect: On the importance of advocacy.................................................................. 18 Opinion: B.C. needs leadership vision for sustained economic prosperity....................................................................................... 20 A long-term approach to Aboriginal resource development participation.................. 22 Hostile campaigns and high-development costs threaten Canadian energy sovereignty................................................................ 23 Construction is underway at AltaGas’ Ridley Island Propane Export Terminal.......................................................................... 24 The cash stash behind anti-pipeline activism............................................................... 26 Oil and gas sector leads caribou research in northeast B.C......................................... 28 Canada leads the way on carbon capture...................................................................... 30 Monitoring and responding to seismic events in northeastern B.C............................ 32 Coastal management facelift key to coastal access for resources............................... 34 Métis Nation British Columbia: Investing in our people; investing in our future............................................................ 36 New technology and software continues to add value to Pointcloud solutions............................................................................... 37 Oil and gas, your core business: The necessity of rail and what you need to know......................................................... 38 The dirt on erosion and sediment control...................................................................... 40 The value of fast and portable structures...................................................................... 42 Van Houtte Coffee Services – Specializing in coffee services for the oil and gas sector..............................................44 The most trusted sand solution...................................................................................... 46 The Bridger Line Gun, the workhorse of the utility industry....................................... 48 Local B.C. company seeking new customers in the oil and gas sector....................... 50 Your worksite, our backyard – Coast Mountain Wireless............................................. 52 Index to advertisers.......................................................................................................... 54
B.C. Oil & Gas Report is published by: DEL Communications Inc. Suite 300, 6 Roslyn Road Winnipeg, Manitoba Canada R3L 0G5 President David Langstaff Associate Publisher Jason Stefanik Managing Editor Shayna Wiwierski shayna@delcommunications.com Sales Manager Dayna Oulion Account Representatives Brian Gerow | Mic Paterson Anthony Romeo Contributing writers Whitney Braun | Vivian Krause Robert Lewis-Manning | Richard MacIntosh Geoff Morrison | Stewart Muir Alberto Simoes | Gordon Wilson | David Yager Production services provided by S.G. Bennett Marketing Services www.sgbennett.com art Director / design Kathy Cable Advertising art David Bamburak | Dana Jensen © 2017 DEL Communications Inc. All rights reserved. Contents may not be reproducedby any means, in whole or in part, without the prior written permission of the publisher. While every effort has been made to ensure the accuracyof the information contained herein and the reliability of the source, the publisherin no way guarantees nor warrants the informationand is not responsiblefor errors, omissions or statementsmade by advertisers. Opinions and recommendations made by contributors or advertisers are not necessarily those of the publisher, its directors, officers or employees. Publications Mail Agreement #40934510 Return undeliverable Canadian addresses to: DEL Communications Inc. Suite 300, 6 Roslyn Road Winnipeg, Manitoba R3L 0G5 Email: david@delcommunications.com
Cover photo courtesy of AltaGas. 6
B.C. Oil & Gas Report • 2017
Printed in Canada | 09/2017
Editor’s message
shayna wiwierski
U
nfortunately, a lot of LNG news coming out of B.C. lately has been quite negative.
It was announced in late July 2017 that the PETRONAS-backed Pacific Northwest project would no longer be going ahead. Although this $36 billion project would have brought major employment and investment opportunities to the province and country, it’s not all bad news for B.C.’s oil and gas industry. Ongoing projects still include Woodfibre LNG, Tilbury LNG, LNG Canada, Grassy Point LNG, Kitimat LNG, and WCC LNG. Now that British Columbia has a new government, the NDP supports LNG as long as it meets four conditions. LNG projects must offer jobs and training for B.C. residents; British Columbians must get a fair return for the province’s resources; LNG projects must secure full partnerships with local First Nations; and projects must complete a made-in-B.C. environmental assessment and respect provincial commitments to combating climate change. In this issue of the B.C. Oil and Gas Report, we feature messages from a few of the new NDP ministers, as well as the premier. We also take a look at why there is so much controversy behind pipelines. Twenty years ago, pipelines were hidden underground; nowadays, they are making frontpage news and activist groups are rioting to prevent them from being built (#DAPL anyone?). Controversy aside, we also take a look at the decline of the boreal caribou in areas surrounding oil and gas activity, as well as monitoring and responding to seismic events in northeastern B.C. I hope you enjoy this issue of the B.C. Oil and Gas Report, and as always, if you have any story ideas, comments, or questions, please feel free to pass them my way. Shayna Wiwierski @DELCommInc n
8
B.C. Oil & Gas Report • 2017
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Message from the Premier of British Columbia
the honourable john horgan
Y
our New Democrat government is getting to work on a strong, sustainable and innovative economy that works for everyone. The energy sector has a large role to play in helping us achieve our goals, creating jobs and new opportunities for people across the province. In B.C., we are fortunate to have abundant natural gas resources and a growing interest in liquids and oil exploration. The growth and diversification of the industry creates good jobs and strengthens economic prospects for people. In northeast British Columbia specifically, activities linked to exploration and production help local businesses and create partnership opportunities for First Nations communities. Today, we have multiple Liquefied Natural Gas (LNG) proposals in British Columbia and the chance to strengthen the economy with its growth. We support the development of this industry and will be working with stakeholders to ensure our commitments to jobs training, environmental protection, partnerships with First Nations, and a fair return for British Columbians, are met. As part of our commitment to reconciliation, we will partner with First Nations and industry, working together to achieve common goals, and keeping operations safe and responsible. Having LNG projects secure full partnership with local First Nations will provide benefits from resource development and help us address important social and environmental needs in our northern communities. Your government looks forward to supporting the oil and gas sector and the opportunities it offers people in British Columbia. The industry remains a major economic contributor and we will look for every avenue possible to support the industry’s growth while respecting our commitment to Indigenous partnerships and the environment. n
10 B.C. Oil & Gas Report • 2017
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11
Message from the Minister of Energy, Mines and Petroleum Resources
Michelle mungall
Building a strong sustainable energy industry that works for everyone
O
ne of our mandate commitments to British Columbians was to build a strong, innovative economy that works for everyone. Together, we are going to tackle poverty and inequality, create good-paying jobs in every corner of the province, and ensure people from every background have the opportunity to reach their potential. In the coming months, I look forward to learning more about the oil and gas sector, its various stakeholders, and the communities where industry operations provides thousands of good-paying jobs which support services throughout British Columbia. Over the last few years, the global downturn in the energy marketplace has created economic challenges for the industry. The marketplace is challenging everywhere, not just in B.C. We have multiple liquefied natural gas proposals still on the table in British Columbia and companies remain engaged in pursuing export opportunities, demonstrating a continued interest in our province’s long-term prospects. British Columbia’s new government supports LNG development – we have been clear about our four conditions: 1. L NG projects must offer jobs and training for British Columbians, especially jobs for local people. 2. T he people of B.C. must get a fair return for our resources. 3. L NG projects must secure full partnerships with local First Nations. 4. L NG projects must complete a made-in-B.C. environmental assessment and respect our commitments to combating climate change. At the beginning of August, I was fortunate to visit the Montney Play area and to see firsthand why it has become the largest contributor to natural gas production in the province. This resource area is important to the people working in northeast B.C. and it provides an exciting opportunity for future growth. As I settle into my new job, I am becoming increasingly aware of just how vital the oil and gas industry is to our provincial economy, and the role my ministry plays in supporting this potential. I am excited by the prospect of creating a new roadmap for the future of B.C. energy that will drive innovation, expand energy-efficiency and conservation programs, generate new energy responsibly and sustainably, and create lasting jobs across the province. n
12 B.C. Oil & Gas Report • 2017
Message from the Minister of Indigenous Relations and Reconciliation
SCOTT FRASER
O
ur government is committed to transforming the relationship with B.C.’s Indigenous peoples by developing a joint vision of reconciliation and working together to address the social, environmental, and economic needs of communities. We’ve demonstrated our commitment to lasting reconciliation by making it a priority of every provincial government minister and including our commitment in their mandate letters. The B.C. oil and gas industry can be partners in reconciliation by working with government and Indigenous communities toward common goals. Engaging with First Nations communities early and regularly while also ensuring they are able to participate in and benefit from resource development projects within their traditional territories is a proven model for success. Industry, government and Indigenous peoples working in partnership will help address the important social and environmental needs of First Nations communities. Government is committed to the liquefied natural gas industry and to ensuring that B.C. remains competitive. We want opportunities that generate jobs, procurement, and training for British Columbians. The Province also wants a fair rate of return for our resources and to ensure that First Nations are meaningful partners. All development must protect our air, land, and water, and live up to our climate-change commitments. There are already good examples within the LNG sector of industry engaging early with First Nations. LNG Canada and the associated Coastal Gas Link Project is an example where both the facility and pipeline proponent engaged early and often with all affected First Nations. The company’s approach helped them be successful in completing their required assessments and reaching benefit agreements with an overwhelming majority of Indigenous communities. As well, the Kwispaa Sarita LNG project has seen the Huu-ay-aht First Nation on Vancouver Island collaborate with Steelhead LNG through all stages of the project, helping ensure government conditions are met. We know that the oil and gas sector also values B.C.’s environment and acknowledges that we are working from a shared set of principles to create sound stewardship processes and responsible development. The oil and gas sector has supported some initial efforts in British Columbia to include Indigenous people in environmental stewardship. The Natural Resource Sector Aboriginal Liaison Program, which originated through an initiative of the Oil and Gas Commission with Treaty 8 First Nations involvement, has enhanced awareness and two-way sharing and communication between First Nations groups and the natural resource sector across a number of B.C. First Nations communities. While some work is underway, continued effort is needed by industry and government to work with Indigenous communities to build a shared understanding of the environment that includes traditional knowledge, as well as western-based science. If we all work together, we can create an effective partnership model that meets our shared goals of responsible development and long-term environmental stewardship. n
B.C. Oil & Gas Report • 2017
13
Message from the Mayor of Fort St. John
lori ackerman
With leadership comes responsibility
W
hat does ‘business friendly’ mean? In Fort St. John when we say we are business friendly, we mean we want our businesses to succeed, our citizens to prosper, and our community to grow. We try to reduce bureaucracy for business and industry as much as possible while protecting the interests of our citizens and our environment. We advocate for sustainable industry, we demonstrate conservation and innovation, we listen to suggestions from our business community, encourage local hire on all major projects, and we are actively involved with our chambers of commerce. You may have heard of Site C, it’s just down the road from us. In the years leading up to project approval we worked with BC Hydro on a Community Measures agreement (CMA). This legally binding agreement ensures that our community will be left better off by the Site C mega project; not compensated, not mitigated, better off. In that agreement, BC Hydro committed to conditions that protect the interests of our community, like access to a water source and contributions to the not-for-profit sector. So, when we say ‘business friendly’ we mean that we advocate for our local businesses and we mean that we walk the talk. Our community and our industries are stronger because we work on challenges that face all of us. We take a planned and principled approach to all that we do. The business-friendly strategy applies to other levels of government as well. Our provincial government should also be business friendly. No matter which political party is governing, British Columbia’s message should always be consistent: “British Columbia is open for business. We will work with you. We have an interest in your success.”
14 B.C. Oil & Gas Report • 2017
The process to receive approval for a project is long, it is thorough, it is arduous, and it is expensive. Once a project has received its Environmental Assessment Certificate, it has been examined by the nation. Once the project has been approved, that commitment should be honoured, regardless of the government of the day. We honour our commitments and no matter whose signature is on the document, that person represented the province at the time, therefore the approval should be respected. Who will trust us and want to do business here if we don’t uphold decisions made by previous governments, by our regulatory institutions, by Canadians? When business and industry in B.C. thrive, so do citizens. Our very way of life; healthcare, education, community, and sustainability initiatives, depend on B.C. being business friendly. Government’s role is to protect and promote the interests of our citizens and we do that by ensuring we have a thriving economy. My message to our leaders is: Honour the commitments made by British Columbians and Canadians, and educate yourself about our industries and the people you are impacting when you decide not to play fair. Leadership is practiced, not just in words, but in attitude and actions. And remember, leaders act for all citizens. It is a heavy burden to bear. British Columbia and Canada have worked for decades to build our global trade reputation and build strong relationships with our international trading partners. It takes years to build a good reputation, but it can be ruined in minutes by not honouring commitments. There is a significant return on investment to be earned just by keeping our word. n
Message from Canada’s Minister of Natural Resources
the honourable jim carr
I
n northeastern British Columbia – in places such as Dawson Creek East and Groundbirch East where new meter stations were just completed this summer – an 87-kilometre pipeline expansion is quickly taking shape to deliver natural gas from the Montney formation to waiting markets. The project is another firm reminder that even in these uncertain times, the province’s oil and gas producers have reason to remain upbeat about their future. I share that optimism for an industry that is proving itself to be remarkably nimble, adapting to its challenges, embracing clean technology and innovation, and making itself more sustainable than ever. Our government’s Oil and Gas Clean Tech Program was designed to support those efforts and speed the industry’s transition to the lowcarbon economy. Announced in Budget 2016, with a $50-million investment, the program is funding innovative projects to develop clean oil and gas technologies, proving once again that growing our economy and protecting the environment are not competing interests – they’re shared priorities. The result is nine projects, including four already announced in Western Canada, that are forging new partnerships – with private companies, public institutes and provincial governments – and leveraging hundreds of millions of dollars in new money to finance forward-looking and inspired research. Budget 2017 builds on all of this by identifying clean technology – and clean resources – as two of six economic sectors where Canada has the potential to be a world leader. Our government is determined to see good resource projects proceed as part of our plan for sustainable growth in communities throughout B.C. and across Canada. That’s why we approved the Towerbirch pipeline expansion in March, and why
we’re developing an environmental and regulatory system that is open and transparent, ensures modern safeguards, advances reconciliation with Indigenous peoples, and enjoys the confidence of Canadians. A balanced approach is critical to Canada’s ongoing prosperity, and investing in the development of clean oil and gas technologies is one more way to ensure British Columbia’s traditional sources of energy continue to help power the global economy. All of this is important because, as organizations such as the International Energy Agency have told us, demand for oil and gas will actually continue to grow for at least a few more decades, as large parts of the developing world advance. Canada is well-positioned to leverage its traditional sources of energy today to deliver even cleaner energy solutions for tomorrow. The bottom line? Canada is open for business: our government welcomes investments in our resource industries and we offer many competitive advantages, including a stable and predictable investment climate, world-class energy reserves, proximity to global markets, a skilled workforce, vital support services, and enabling technology. Market conditions may not allow every proposed oil and gas project to proceed in British Columbia, but our government will continue to strengthen Canada’s investment climate, improve competitiveness, and enhance environmental stewardship so we can get more shovels in the ground, create more good jobs, and grow our economy for decades to come. Our Oil and Gas Clean Tech Program is another important way to keep us working together as we step into the future with the help of some of Canada’s best and brightest minds. n
B.C. Oil & Gas Report • 2017
15
Canada’s energy innovation story is one worth telling
At Encana’s Water Resource Hub near Dawson Creek, it is using and storing saline water – water unfit for human consumption – from a subsurface aquifer.
By Geoff Morrison, manager, british columbia for capp
The pages of our history books are filled with stories of innovation.
Without the invention of the wheel we wouldn’t have motorized vehicles, electric cars, airplanes or motorcycles. The evolution of the telephone has opened the door to the Internet – not only connecting us to the world with the use of our smartphones, laptops or tablets, but through social media such as Facebook, Instagram, and Twitter.
or lipstick. Our hair would be a mess without shampoo and conditioner, or the aid of hairbrushes, combs, and hairspray.
What many don’t realize is that these conveniences are made possible with the production of oil and natural gas. Without Western Canada’s abundant natural resources, everyday pleasures we take for granted couldn’t be manufactured.
Fortunately, it is innovation in Canada’s energy sector that is driving growth for a better, more sustainable future. Organizations such as Canada’s Oil Sands Innovation Alliance (COSIA) are accelerating the pace of environmental performance in the oil sands through collaboration and innovation.
There would be no luxuries such as deodorant, shaving cream, or cologne, not to mention eyeliner, eyeshadow, 16 B.C. Oil & Gas Report • 2017
More importantly, necessities such as medical supplies, artificial heart valves, hearing aids, or eyeglasses wouldn’t exist without oil and natural gas. The list goes on and on.
In its 2017 Crude Oil Forecast, Markets
Encana engineer with rig supervisor.
and Transportation report, the Canadian Association of Petroleum Producers (CAPP) forecasted oilsands production will grow 53 per cent to 3.7 million barrels per day by 2030, making the need for innovation never more significant than it is today. Oilsands producers are working together and sharing ideas to develop new technology that will not only change the way they extract oil, but will also change the course of our future to make a better world for all of us. Since COSIA’s inception in 2012, its member companies have spent $1.33 billion to develop more than 935 distinct technologies. Project’s such as Shell Canada’s Quest carbon capture and storage facility is capturing about one million tonnes of carbon dioxide per year from oilsands refined at its Scotford upgrader. The CO2 is stored more than two kilometres underground – which is two kilometres beyond the deepest drinkable groundwater and one kilometre below the deepest hydrocarbon deposits in the area. In Northern British Columbia, Encana has taken major strides to reduce the amount of fresh water it uses for hydraulic
fracturing operations in natural gas. At its Water Resource Hub near Dawson Creek, it is using and storing saline water –water unfit for human consumption – from a subsurface aquifer. Not only does the Water Resource Hub decrease Encana’s reliance on fresh water, its safe transport by pipeline cuts down water hauling truck traffic which, in turn, reduces greenhouse gas emissions, dust, noise, and wear and tear on roads near Dawson Creek. The Water Resource Hub is expected to provide up to 75 per cent of Encana’s water needs in the area and save millions of litres of fresh water during its first five years of operation. It also means reducing the number of water hauling trucks, which are the size of a city transit bus or bigger, by about 160,000. But don’t take our word for it. Canada’s conscientious approach to the development of its natural resources has the rest of the world taking notice. According to the 2017 Global Energy Pulse – a first-of-its-kind survey conducted by Ipsos on behalf of the Canadian Association of Petroleum Producers (CAPP) – Canadian oil and
natural gas are the preferred source of exported energy globally, according to respondents in 32 countries. Although the majority would prefer energy made by their own country, 31 per cent preferred Canadian oil and natural gas versus other producing nations as a result of our stringent regulatory system, stable political environment, and most responsible producers in the world – making us the number-one choice on a list of 11 producing countries. Of note, Canada’s oil and gas natural industry got top marks for inventing and using leading-edge technology to reduce its environmental impact from India, which is poised to become the world’s number-one importer of oil and a potential new customer for Canadian energy. Canada’s innovation story is one worth telling and one we all should to be proud of. The responsible development of our natural resources not only fuels our lives today but also the energy of tomorrow. n
B.C. Oil & Gas Report • 2017
17
Oil Respect On the importance of advocacy
I
n September 2016, Alberta Oil magazine ran an article entitled “Oilwell Drillers’ Association President Remembers Life Before Energy Politics”. The writer questioned CAODC President Mark Scholz about what life was like in the oil and gas industry prior to largescale pipeline protests and American celebrities flying up to Fort McMurray to lambast the Canadians oilsands. At the time, Scholz noted that the Oil Respect campaign was necessary “because of the urgency to fight back against a well-funded and well-organized radical and extreme environmental movement. [The campaign] was designed to get our political leaders to champion the industry and market access for our products.” Fast-forward to the summer of 2017 and the need for Canada’s resource industries to educate the public and our policymakers about the merits of our sector has never been greater. If anything, Canada’s oil and gas industry has become even more politicized since the Alberta Oil piece hit the stands. In the wake of the Standing Rock protests, another high-profile visit from a celebrity (Jane Fonda, in this case) and two conditional –to a very vocal minority, controversial – pipeline approvals, our industry still faces considerable resistance. Over the past several years, proponents of Canada’s resource industries have slowly 18 B.C. Oil & Gas Report • 2017
woken up to the fact that well-funded groups like STAND, Greenpeace, and the Tides Foundation, as well as ‘news outlets’ like DeSmog and their affiliated mouthpieces will do absolutely anything in their power to keep our oil and gas in the ground. These folks lie, manipulate, and pay protestors to rob ordinary Canadians of their jobs and threaten our future prosperity as a nation. They object to resource extraction in principle, and a significant cottage industry has arisen around killing projects – from refineries to terminals to pipelines – and blocking access to new markets by any means necessary. But you know what? It’s a free country. People have the time and the right to protest these projects. Short of engaging in illegal activities like trespassing or violating the federal government’s constitutional right to force these projects through, this vocal minority, while misguided, is engaging in activities well within its rights. So where does that leave us? Industry has, historically, failed to present a compelling case for the extraction, use and export of Canada’s plentiful hydrocarbon resources. We’re late to the party on this, but the facts are on our side. We must passionately defend our
industry, but, more than that, we must celebrate it. It’s tough to engage with Twitter cry-bullies, paid protestors or your eco-activist uncle who insists on referring to the Alberta oilsands as the “tar sands”. But that is what we must do to ensure that vital nation-building projects are completed and that Canadians will enjoy prosperity and a robust quality of life for generations to come. That is where the CAODC advocacy campaign, Oil Respect, comes in. The campaign, founded in early 2016, has three main goals: 1. Addressing the misinformation disseminated by opponents of Canada’s oil and gas industries. 2. Giving regular folks in the industry a voice. 3. Reminding Canadians that our exceptional quality of life is owed to our resource industries, including oil and gas. Oil Respect is not the only campaign that is aiming to change the narrative around Canada’s resource sectors. Check out the other groups mentioned in this piece and support them in any way you can. After all, we’re in it together for the future of all Canadians.
Canada’s Energy Citizens
Modern Miracle Network
Rally 4 Resources
Canada Action
Canada’s Energy Citizens (CEC) is a CAPP-sponsored movement aimed at educating Canadians about energy. Energy Citizens are advocates for Canada’s oil and gas industry, and help spread the word about the positive role energy plays in our lives every day. Energy Citizens are proud of Canada’s energy, and excited about its future; they speak positively about Canadian oil and gas, and share relevant information with friends and family.
A not-for-profit run by a volunteer board, the Modern Miracle Network (MNM) represents citizens concerned about Canada’s future prosperity, who want to have an adult conversation about energy choices. Our oil and gas industry is a world leader in innovation, safety, and environmental protection that employs citizens from coast to coast. Support of Canadian industry workers helps us to maintain our world-class quality of life, including schools, hospitals, and social programming.
Rally 4 Resources is a grassroots movement from Western Canada working tirelessly to promote our resource-based industries. Our mission is to unite support from all levels - the people of Canada, industry, and government, and to influence government in their policy making affecting Canada’s natural resource sector.
Canada Action is a volunteerdriven, grassroots advocacy organization founded by Calgary’s Cody Battershill in 2010. The group’s focus is spreading the good news about Canada’s resource industries – their contribution to our economy, to job creation and our country’s impressive track record on the environment, safety and human rights.
Canadians needs to stand in solidarity to defend and promote the future of our resource-based industries, dependent on pipeline approvals and construction, tidewater access, liquid natural gas, oilsands, and coal development. Rally 4 Resources gives ordinary citizens a voice and a platform to do just that.
The Canada Action team understands that Canada’s natural resource sectors are important to our future prosperity and the Canadian quality of life envied the world over. The group has enjoyed tremendous success with its ‘I Love Oilsands’ and ‘I Love Pipelines’ campaigns, encouraging all Canadians to speak up and be proud, while spreading the facts about Canada’s world-class resource industries.
Where to find them: www.energycitizens.ca FB: CanadasEnergyCitizens Twitter: @Energy_Citizens
Since predictions from many non-partisan organizations indicate that oil and gas will remain part of the world’s energy diet over the next several generations, MMN believes that Canada has a role to play in meeting this demand, and that doing so will create a better life for all Canadians. modernmiraclenetwork.org FB: Modern Miracle Network Twitter: @mdnmiracle
rally4resources.com FB: Rally 4 Resources – The Movement Twitter: @rally4resources
canadaaction.ca FB: Canada Action, Oil Sands Action Twitter: @CanadaAction, @OilsandsAction
B.C. Oil & Gas Report • 2017
19
Opinion
B.C. needs leadership vision for sustained economic prosperity By STEWART MUIR
B
.C.’s urban-rural divide is quickly emerging as an explainer for divided provincial election results, with the starkly contrasting colours of the new, but unsettled, electoral map providing the evidence.
Forestry jobs are up in the past five years. Progress in building an LNG export industry is tangible and real because our natural gas continues to interest foreign buyers who require affordable and cleaner energy solutions.
Within this, the role of natural resources is seen by some as a source of conflict. Political scientist Norman Ruff of the University of Victoria shared that viewpoint in trying to distinguish rural and urban voting trends for the Vancouver Sun. “While one lags behind in its continued dependence on a dwindling natural-resource-based economy, and in a sense still looks backward for its future, the other continues an exponential growth in diversity and enjoys a transition to an entirely new economy,” said Ruff.
A recent study by the David Suzuki Foundation found that
Drawing on similar thinking is B.C. Green party leader, Andrew Weaver. He argues a new approach is needed because it’s an economic fallacy to think we can continue to grow forever in the current mode. This will inevitably lead to collapse, he recently told the Sun’s editorial board. Yet in the next breath, the newly powerful MLA said that if we follow his solution of a non-carbon-emitting energy system, he’s looking forward to a future of “massive economic growth” that will make earlier industrial revolutions “pale in comparison.”
Our resource sector produces the world’s cleanest aluminum
Is the resource-based economy really backward-looking? And what exactly is this new economy to be based on in the era of global trade?
that exemplify this trend.
The stunning success at the polls of the Green party on May 9 shows that lots of people are troubled by these same questions and are searching for answers.
any industry, are the most productive, and are the most likely
The first thing to know about B.C.’s resource economy is that it’s changing and growing, with environmental protection at the top of the list. Its potential to be a key driver of any green “industrial revolution” is clear.
linked to new jobs for nurses, teachers, real estate agents,
B.C. is in a position today to leverage its positive global brand in natural resources to increase access for technology companies into opportunities in natural-resource sectors globally and, in so doing, grow B.C.’s exports.
they live in the province, do share some ideas about the
20 B.C. Oil & Gas Report • 2017
in B.C.’s gas-producing region new infrastructure emits barely any harmful methane emissions, stating that B.C. “has generally been very progressive on many issues of environmental stewardship.” Plans to export crude oil safely to new foreign markets will ensure that Canadians acquire a high level of economic benefit from a non-renewable resource. at a time when it’s needed for electric cars and a thousand other uses. Our rich copper deposits are essential for the growth of all types of clean energy and high technology. B.C. has become a world leader not just in producing valuable export commodities, but also in sending brainpower abroad to help others be as green as we are. The recent Resource Works “Naturally Resourceful” series looked at companies, including Inuktun Systems, Inventys and SOFTAC Systems, Voters of all parties think a green resource economy is possible. Many are aware that resource jobs pay the best of to be full-time. An economic study conducted for Resource Works showed that growth in resource exports is directly insurance brokers, tourism and factory workers, and many other occupations. Despite evidence of a divide, residents, regardless of where economic future. Earlier this year, polling firm Ipsos, on our behalf, took a look at the state of the resource debate. Some highlights are…
B.C. has become a world leader not just in producing valuable export commodities, but also in sending brainpower abroad to help others be as green as we are. • 84 per cent agreed that “it’s possible to create green jobs and grow the green economy within B.C.’s natural-resource sector.”
The urban-rural divide is a problem, but not a solution. For these challenging political times we’re going to need a better grasp of how to create a winning solution that benefits all.
• 83 per cent agreed that “natural-resource development creates opportunities and hope for B.C.’s future.”
The next provincial government should consider a coordinated government-industry effort based on a common vision. A cohesive approach can lead to pilot projects showing how B.C.’s innovative resource technologies can flourish in target markets like China, Japan, India, and the U.S., based on relationships already established through today’s trade.
• 76 per cent agreed that “B.C.’s natural-resource sector creates good opportunities for employment in high-tech jobs.” The public is clearly not sold on the idea that our future in this material world can be created without materials. Resources are needed now more than ever. When it comes to spinning good jobs and environmental protection from the resource economy, it doesn’t get any better than B.C. Clearly, there is work to be done. Fewer than half of British Columbians surveyed agreed that the debate and discussion about natural-resource development in the province is accurately described as transparent or co-operative (regulatory agencies, take note).
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B.C. Oil & Gas Report • 2017
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A long-term approach to Aboriginal resource development participation By David Yager for Petroleum Services Association of Canada
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or the development of major energy projects, everyone accepts participation at some level, but Canada’s First Nations is essential. The issue has clearly moved from “what” to “how”. Nowhere is this more important than in B.C. where Aboriginal communities are on both sides of the debate. Many are cautiously optimistic about the economic opportunities. Others are steadfastly opposed to change. Non-Aboriginal proponents and opponents speak frequently and passionately on their behalf of both sides. What isn’t discussed enough is what makes sense for First Nations. What type of participation would be of the greatest benefit to the communities and their citizens? There are several distinct components of major energy projects, most unsuitable for regional Aboriginal groups. But there are very interesting opportunities if the objectives were defined and focused. First Nations aren’t going into the large-scale pipeline, refining, LNG or oil and gas development business anytime soon. Big capital projects are done by multinational corporations with billions in assets and revenues, operations in multiple jurisdictions, a staff of thousands, and enormous technical depth. There are only a few dozen companies of this type in the world. The next level is large engineering, service, or manufacturing companies. While they are smaller than their clients, these too have billions in assets and revenues, highly specialized capital assets, a big staff and multijurisdictional operations. Think drilling rigs, pipe plants, hydraulic fracturing spreads, compressor manufacturing, and large equipment fabrication and assembly. Their operations and assets are highly specialized and portable. No First Nation is going to open (and then close) a largediameter pipe mill to fill the order for a single pipeline through their territory. The third level of participation is closer to home for Aboriginal communities wishing to participate in energy project development. This includes logistics and support like trucking, construction, welding, camps and catering,
22 B.C. Oil & Gas Report • 2017
hotels and restaurants, safety and environmental, and general labour. These types of businesses are local and regional. But starting one of these companies for a single project carries a higher risk and an uncertain future. Most of these businesses can provide ongoing support after construction not at the same revenue or employment levels. The area of focus should be production and maintenance. Once a major energy project is completed, it will operate for years. The activity and jobs take place in a single location. Think of a producing oil or gas field, a gas plant or oil battery, compressor station or processing facility. Whether it is a pipeline, producing field or processing asset, it requires continuous supervision, monitoring, maintenance, repair, safety and environmental protection. Much of the activity is highly technical, including computers, communications, automation, instrumentation, quality control, and continuous supervision of complex machinery and assets. And it occurs in a fixed location which should be attractive to First Nations. People don’t have to leave their ancestral lands to find meaningful and rewarding employment because the jobs come to them. Project planners would anticipate Aboriginal participation in the long-term operating and maintenance phase when construction begins. Interested computer-savvy youth (existing or aspiring) would start a multi-year and comprehensive technical and practical training program to become fully qualified to safely and efficiently operate energy producing, transportation and processing assets, or any similar assets in the world should they wish to travel. Want to protect the environment for the future? No better way to keep an eye on things than actually running the operation on a day-to-day basis. Discussions about First Nations participation often focuses on the up-front dollars and not multi-year, multi-generational opportunities. Let’s not overlook a commitment to exploring long-term, sustainable, valueadded employment with growth potential. n
Hostile campaigns and high-development costs threaten Canadian energy sovereignty By Gordon Wilson
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espite Canada’s enormous energy potential provided by world-class reserves of natural gas within the Liard and Montney basins, Canada’s development to feed an export market other than the United States has proven, with one exception, to be elusive.
the electorate to oppose LNG development became a serious impediment to a successful industry in B.C., and made B.C. much less competitive for investment. While the LNG sector is expanding globally, Canada’s principal competition comes from the U.S. In the time it has taken Canada
Absent a desire to take a state-owned stake in liquified natural gas export facilities and the pipelines that supplied them, the role of government has been to introduce policies that make B.C. a desirable place for LNG proponent companies to take the final investment decision (FID).
to finalize the permitting process for a major proponent, the U.S.
As an advocate for British Columbia company engagement within the emerging LNG industry, my mandate was to identify impediments and assist line ministries in developing programs to help B.C. businesses to overcome obstacles, and in particular, work with First Nations to facilitate their direct engagement in projects, both within their traditional territories and elsewhere.
The previous Liberal government made efforts to address the
As the LNG-Buy BC program took root, and proponents and engineering, procurement, and construction management companies (EPCM) embraced it, many B.C. companies engaged in pre-FID work, while others invested in upgrading certifications and establishing financing options to scale up and meet eligibility requirements to fully participate in post FIDgrowth, which would have been unparalleled in B.C. history. Despite the province’s proactive Liberal provincial government, well-funded campaigns presenting factually inaccurate narratives against the LNG industry were advanced at every opportunity. In addition, opposition politicians discredited government-mandated environmental approval procedures, both provincial and federal, in an effort to erode public confidence and have the public withhold their support. These campaigns created a confrontational climate hostile to business engagement within the LNG industry, which was perplexing to most who saw little opposition to exporting the same “fracked” natural gas into the U.S. through southern pipelines, and yet vehement opposition to a pipeline to the B.C. coast which allowed us to diversify our markets and meet growing demand in Asia. Democratic governments survive by winning public consent to the policies that are advanced. The unceasing efforts to get
has converted brownfield import facilities to export operations with additional trains, widened the Panama Canal, and shipped to an LNG-hungry China. And they have done so with a much more competitive tax structure. lack of competitive tax law, but did not go far enough quickly enough. Government revenue from a thriving LNG industry can only be realized when that industry is making profit. After all, every farmer knows that you have to let the calf grow to become a cow and produce offspring before you can start to milk it. Pacific Northwest LNG attributed “market conditions” as the reason for their exit from B.C. A soft LNG price is part of those conditions, no doubt, but a hostile social climate, uncompetitive tax policy and approval costs, and a hostile new government were likely the dominant factors. Opportunities for LNG development remain, and given market projections for the next two to three years, it would appear to be the likely window for investment. I am proud of the part that the LNG-Buy BC program played in helping many B.C. businesses and First Nations-owned companies to fully prepare for the opportunity. It is critical that we develop new export markets and reduce our dependence on the U.S. B.C. needs to counter the forces whose actions will forever chain us to exclusively supplying the U.S. to the benefit of American companies and detriment of our own. Only by developing Canadian energy sovereignty will we ensure that the full benefit from extracting our resources accrue to Canadian companies and workers, and through full First Nations participation maximize the long-term potential for those communities. Gordon Wilson is a former advocate for the LNG-Buy BC program. n
B.C. Oil & Gas Report • 2017
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Construction is underway at AltaGas’ Ridley Island Propane Export Terminal Canada’s first propane export facility off the west coast
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onstruction is moving at a swift pace at AltaGas’ Ridley Island Propane Export Terminal (RIPET), and already the project is capturing interest from suppliers, local communities and businesses, and the Asian market. Operating from Ridley Terminals Inc., near Prince Rupert, British Columbia, the advantages of the project are indisputable. The brownfield site has excellent access to CN’s rail network and AltaGas’ processing plants. An existing world-class marine jetty with ample deep water access to the Pacific Ocean will allow for the efficient loading of very large gas carriers that can access key global markets. With short shipping distances to Asian markets –10 days compared to 25 days from the U.S. Gulf Coast – RIPET will open up new market opportunities for natural gas producers in Western Canada.
Ridley Island Propane Export Terminal Project site.
On August 1, 2017, AltaGas and Astomos Energy Corporation of Japan held an official signing ceremony to conclude a sale and purchase agreement for liquefied petroleum gas (LPG) from RIPET. Astomos, one of the world’s largest LPG players, will purchase half of the 1.2 million tonnes of propane expected to be shipped from the terminal each year, beginning in Q1 2019. “The long-term agreement with Astomos is a major step in underpinning development of our Ridley Island Propane Export Terminal, Canada’s first propane export terminal,” said Dan Woznow, vicepresident, energy exports at AltaGas. Annually, RIPET is expected to ship 24 B.C. Oil & Gas Report • 2017
Ridley Island Propane Export Terminal rendering.
Propane tank foundation. David Cornhill, chairman and founder of AltaGas with Osamu Masuda, president of Astomos Energy as they celebrate the signing of an agreement for the sale and purchase of LPG from the Ridley Island Propane Export Terminal currently under construction.
propane that will be sourced from British Columbia and Alberta and transported using the existing CN rail network. Based on production from AltaGas’ existing facilities and forecasts from new plants under construction and in active development, AltaGas anticipates having volumes equal to approximately 600,000 tonnes. The remaining volumes are expected to come from other producers and suppliers. “This export terminal is one of the key building blocks of our strategy to build out natural gas processing and liquids separation capacity in the Montney formation, a leading North American gas play. The additional processing capacity we are building and connectivity to the export terminal provides upstream energy producers with unparalleled access at the most competitive rates to these premium markets. Market diversity, including global markets outside Canada, is a key step forward for Canadian producers,” said Woznow.
are working on the concrete outer portion of the propane tank and have assembled two tower cranes that will be used in civil construction work. Civil site preparations have been completed and all major long-lead equipment has been ordered. Over the next few
months, the propane tank will start to take shape with the final pour on the outer portion scheduled near the end of 2017. RIPET is expected to be in-service by the first quarter of 2019. n
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AltaGas’ self-perform construction model – successfully used in the past to build other projects on time and on budget – is once again being used to build RIPET. Construction began in the first quarter of this year. Crews B.C. Oil & Gas Report • 2017
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The cash stash behind anti-pipeline activism
By Vivian Krause
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ipelines are crucial to the safe transportation of oil and gas, and yet they have become unusually controversial. Let’s be clear: this is not by chance. This is squarely because a group of American funders, mostly from California, has financed a massive, anti-pipeline campaign against Alberta oil. Back in 2009, the anti-pipeline movement was put into motion by a trio of U.S. charitable foundations: the Rockefeller Brothers Fund, the William and Flora Hewlett Foundation, and the Tides Foundation. The Rockefeller fund is one of the charitable entities of the famous family of oil pioneers. The Hewlett Foundation was created by one of the founders of Hewlett-Packard, and the Tides Foundation (Tides) is an intermediary that receives funds from billionaire philanthropists, including Warren Buffett, and then distributes the money as the donor directs.
The Apollo Alliance, which was created as an energy policy initiative, changed its logo, replacing the words “energy independence” with “clean energy” and then merged with labour unions to become the BlueGreen Alliance.
Since 2009, Tides and its funders have quietly financed more than 100 First Nations and environmental activist groups in order to bring the Alberta oil industry to its knees. Under the banner of an international effort named The Tar Sands Campaign, Tides has made more than 400 payments totalling $30 million to First Nations and environmental groups in Canada, the U.S., and in Europe, tax returns show. That’s more than 400 cheques and wire payments ranging from $12,000 to $700,000.
the long-time director of the Tar Sands
To the average person, the Tar Sands Campaign is invisible. None of the participating organizations go around saying that they are part of a Rockefellerfunded campaign to put the screws to Canada. But that is exactly what they are doing.
funding, environmentalists have been
When the Tar Sands Campaign funding was first reported in The Financial Post in October of 2010, information about it was scant. In fact, the only reason that this campaign was discovered was because of three little words, “Tar Sands Campaign”, that were unexpectedly noticed in dozens of payments that were reported in the U.S. tax returns filed by Tides.
and First Nations, taking them at their
Since the Tar Sands Campaign has come to light, public opinion about it has been split. Some scorn the activist groups and First Nations who are involved, accusing them of being bought-and-paid for by their American funders. But this view doesn’t fit the facts. Even without U.S.
reach the international market where
trying to restrict the oil industry for decades. Indeed, activists have been against oil since long before the big U.S. cheques began to roll in. In general, the media has given the benefit of the doubt to the activists word that their campaign is purely environmental. However, in light of statements made by Michael Marx, Campaign, this stance lacks merit. On his organization’s website, Marx admits, “From the very beginning, the campaign strategy was to landlock the tar sands so their crude could not it could fetch a high price per barrel.” Evidently, the Tar Sands Campaign is not strictly about the environment. By the admission of its original director, this campaign is meant to hurt Canada where it matters: in our national wallet.
Saving the climate has become code for reducing U.S. dependence on the Middle East. 26 B.C. Oil & Gas Report • 2017
“ From the very beginning, the campaign strategy was to land-lock the tar sands so their crude could not reach the international market where it could fetch a high price per barrel.” No doubt about it, the Tar Sands Campaign also helps to protect American economic and trade interests, guaranteeing that the U.S. has exclusive access to Alberta’s heavy crude at lower prices than U.S. buyers would pay for the same oil from anywhere else. It is important to note that anti-pipeline activism is funded as a small part of a much larger effort to foster renewable energy. To understand the overarching motivations of the funders, it helps to look at the history of their effort and the way that energy independence has been re-branded as “sustainable energy”, and more recently, as “clean energy”. Saving the climate has become code for reducing U.S. dependence on the Middle East. As we know, renewable energy is domestic. Fostering renewable energy is tantamount to increasing energy independence and weaning the United States off of foreign oil, particularly from the Middle East. The California philanthropists that are funding the campaign against oil from Western Canada are doing no such thing in their own backyard. Against Texas, North Dakota, or Oklahoma, there’s no multi-million-dollar campaign like there is against Canada. On its website, the Hewlett Foundation makes clear that it does not fund activism in the states that account for 95 per cent of U.S. oil production. Indeed, American charitable foundations are not funding a major campaign against domestic oil production. They are trying to restrict
foreign oil production, particularly from Canada. Come to think of it, this isn’t so surprising. Canada is the only oilexporting country that can be bullied out of the international market without risk of civil unrest and economic collapse.
like getting off Middle East oil, and
Back in 2001, on the heels of the California energy crisis and the beginning of the Iraq war, a group of California philanthropists set out to achieve something that had eluded the United States for decades: energy independence. Leading the pack were the Rockefeller Brothers and the Hewlett Foundation, which has since become the world’s biggest funder of climate activism. Since 2010, the Hewlett Foundation has granted more than $1 billion to organizations that spearhead the climate movement.
labour unions to become the BlueGreen
By 2004, the Hewlett Foundation and like-minded philanthropists had put together a suite of energy policy initiatives, including Securing America’s Future Energy and the Apollo Alliance. Why that name? Its funders recognized that energy independence would be no less of a challenge than putting a man on the moon. The Apollo Alliance produced a landmark document titled New Energy for America that called for no less than $300 billion in U.S. government loans, subsidies, and grants to kickstart a global market for renewable energy. Around that same time, the Rockefeller Brothers and others produced a document titled How to Talk to Americans. This report gives tips for what to say about touchy issues
promotes the re-branding of energy independence in the name of protecting the environment. Eventually, the Apollo Alliance changed its logo, replacing the words “energy independence” with “clean energy” and then merged with Alliance. In 2015, the United Stated ended its longstanding ban on exporting U.S. oil. By 2016, according to Bloomberg News, U.S. oil companies exported three-million barrels a day of refined products. Gasoline exports hit an alltime high of almost one-million barrels a day, up ten-fold from a decade ago. Of course, the U.S. couldn’t export its own oil without a lock-down on the Canadian crude that covers at least one quarter of domestic requirements. Since the Tar Sands Campaign began, anti-pipeline activism has come to be about much more than oil. First Nations who have felt powerless for decades have new power, purpose, and more. If pipeline companies and their clients want to dial back the activism against their business, they need to deal directly with the big U.S. funders who have bankrolled the organization of anti-pipeline protests. The protestors aren’t paid, but the organizers sure are. Until pipeline companies deal directly with the big U.S. funders, the organizers of the anti-pipeline movement will continue to do what they are paid for. Vivian Krause is a Canadian writer. On Twitter, she’s @FairQuestions. n B.C. Oil & Gas Report • 2017
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Oil and gas sector leads caribou research in northeast B.C. Photos captured by trail camera, courtesy of Matrix Solutions. Inc.
Grey wolf travelling on a seismic line. Linear features make for easy travel into caribou habitat, particularly if the snow has been packed by snowmobiles or other traffic.
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hy are woodland caribou in decline and what does it have to do with oil and gas exploration and development? The answer is complicated and the B.C. oil and gas sector is investing heavily to figure it out. When most Canadians think of caribou they think of herds of thousands crossing the arctic tundra, but further south from Yukon to Labrador ranges the boreal population of woodland caribou, a close cousin of its northern neighbour. These caribou are forest-dwellers and occur in only small groups. Many urban Canadians are surprised to learn that it’s a woodland caribou that has graced our quarter for 80 years, but these animals have been central to many First Nations cultures for millennia. Unfortunately, Canada’s boreal caribou 28 B.C. Oil & Gas Report • 2017
are in trouble. Populations are in steep decline throughout their range, as are neighbouring tundra caribou to the north, mountain caribou to the south, as well as their more distance cousins, the reindeer, which range throughout northern Scandinavia and Russia. Some of the steepest declines have been in western Canada in areas where oil and gas exploration and development are prominent. But is the sector causing the decline? The federal government decided that the answer to this question is ‘yes’. In 2012, Environment Canada released a recovery strategy that laid out the case that landscape change associated with industrial development is a primary cause of woodland caribou declines in the boreal forest. The strategy requires provinces and territories to restore 65 per cent of the habitat in caribou ranges to an “undisturbed” state. “Disturbed”
Woodland caribou bull in the Parker range west of the city of Fort Nelson.
habitat is defined as human-caused landscape change that is visible on satellite imagery, buffered by 500 metres on all sides, plus the area covered by wildfires that have occurred over the past 40 years. With its legacy of geophysical activity, pipelines, roads and other clearings, it is hard to find areas within the range of woodland caribou in B.C. (most of the region north of Fort St. John and east of the Rockies) that is not considered disturbed by the federal government. But many questions remain: how do industrial activities cause caribou to decline? Are there other explanations? What does habitat restoration look like? Will it work? For the past five years a unique collaboration between the B.C. government and the province’s oil and gas sector has been working to answer these important questions. The B.C. Boreal Caribou Research
Excavator creating mounds on a seismic line. Mounds create suitable micro-environments for planted tree seedlings and make wolf travel difficult.
As the climate warms and fires become more common, and as we continue to harvest northern forests, moose and deer are likely to become more abundant and wolves will as well. and Effectiveness Monitoring Board (REMB) was established through a Memorandum of Understanding between various B.C. government ministries and the Canadian Association of Petroleum Producers and the Explorers and Producers Association of Canada. Industry partners agreed to support the REMB through a levy on oil and gas permitting and production and provide up to $2 million annually for up to five years. Funds are administered through the BC Oil and Gas Research and Innovation Society. The REMB is a panel of biologists and other technical experts from government and industry that directs projects to support B.C.’s management of woodland caribou. Funding has been used to improve inventory, conduct basic research, and to begin the long and difficult process of habitat and population recovery. Projects are carried out by graduate students, independent researchers, and contractors. Results have been published in the scientific literature, presented at conferences throughout North America and in Europe, and practical advice has been disseminated to companies and regulators. Specifically, the REMB has been tracking the fates of nearly 400 caribou, moose and wolves to understand how these species use habitats and how they interact with each other, and it’s the interaction where oil and gas activities likely play a role.
The emerging hypothesis of how caribou are declining is inextricably linked to wolves, and the wolves’ main prey, which is another icon of Canadian forests, the moose. Moose forage extensively in regenerating forests that occur following forest fires, logging or other land-clearing, and where there are more moose, there are more wolves. Caribou avoid this moose-wolf dynamic by spending most of their time in lowland bog and fen habitats that are not favoured by moose and, hence, by wolves. But things change when seismic lines, pipeline rights-ofway and roads create travel corridors for wolves into caribou habitat. Studies conducted by the REMB and others have demonstrated that wolf predation is by far the most common cause of death for caribou.
are low-impact seismic techniques,
As the climate warms and fires become more common, and as we continue to harvest northern forests, moose and deer are likely to become more abundant and wolves will as well. We are also likely to cut more wolf highways into caribou habitat. Can we recover caribou under these circumstances? Scientists are not sure, but now that they have largely figured out the problem, the job is figuring out the mix of management techniques that are most likely to recover caribou.
restoring habitat in the winter of 2016-
The REMB has been exploring the extent to which we can rely on natural forest regrowth to restore caribou habitat. Particularly encouraging
recovery remains a challenge, the oil
which minimize soil disturbance and tree cutting. These lines regenerate more quickly and do not facilitate the movement of wolves like older, conventional lines. Older seismic lines are proving to be a challenging problem because many are regenerating very slowly. Decades after being cut, many lines in low-lying areas show no signs of tree establishment. These areas require special treatment to set them on a recovery trajectory. This can involve using excavators to create mounds above the water line on which to plant seedlings. Although expensive and invasive, the technique can both slow the travel of wolves and encourage a new forest to grow. The REMB began 17 in the Parker boreal caribou range, west of Fort Nelson. The project was the first of a four-phase plan to conduct the necessary treatments to recover habitat throughout the entire range. Environment Canada will soon be revisiting their recovery strategy to review the latest science and recovery progress to date. The REMB has made significant contributions on both of these fronts. Although caribou and gas sector in B.C. is playing its part in supporting the development of science-based solutions. n B.C. Oil & Gas Report • 2017
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Canada leads the way on carbon capture By Richard MacIntosh
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s work on the $8.5 billion first phase of the Sturgeon Refinery in Alberta nears completion, we would do well to reflect upon the positive impact —on the economy and the environment – of its cutting-edge technology: carbon capture and storage (CCS). The facility will take carbon dioxide that is produced
in the refining of oil and pump it into the shale formations of the oilsands where, through enhanced oil recovery, it will help extract oil that was previously inaccessible, making the existing oil fields 50 per cent more productive. The revenue from the extra oil will pay for the operation of the carbon-capture facility, and the carbon dioxide will be stored permanently within the shale – a win-win situation. Hundreds of boilermakers are working on the Sturgeon Refinery – erecting, welding, repairing, testing, and maintaining the facility’s boilers, tanks, pressure vessels, liquid-tight containers and power plants. These jobs are a boon to our economy. In fact, as all three phases of the project are completed – bringing the investment in the refinery to $25.5 billion – it will create thousands of jobs over a 30-year period. We boilermakers are proud to be at the vanguard of this new and exciting technology. The benefits don’t end there. Through the enhanced oil recovery process, the Sturgeon Refinery will produce a diesel fuel that is 30 per cent cleaner than a similar product made 30 B.C. Oil & Gas Report • 2017
from light oil in Texas. Doing more of the processing right in Alberta will mean less carbon use in transporting the product to market. Most importantly, sequestering the captured CO2 – about 1.2 million tonnes a year – will mean the equivalent of taking more than 250,000 cars off the road. As this new technology revolutionizes our energy industry, it will also contribute significantly to meeting Canada’s greenhouse gas targets and our commitments under the Paris Accord. CCS is a relatively new technology, but Canada is leading the way in implementing it at a large scale. Already it is proving itself to be a viable way of reducing our carbon output, at two facilities that are already operational. Boilermakers were instrumental in building Shell Canada’s Quest CCS plant in Fort Saskatchewan, Alberta, which has already removed and safely stored one-million tonnes of CO2 after little more than a year in operation – the equivalent of the annual emissions from more than 200,000 cars. Members of our union were also key players in the construction of SaskPower’s Boundary Dam Carbon Capture Project. Opened in 2014, this coal-fired facility became the first power station in the world to use CCS successfully. As a worldwide first, the project experienced some problems along the way, but after just three years, it is now operating as it was designed, with a capacity to reduce CO2 emissions from the
Previous page: Initially six seismographic stations were installed in northeast B.C. to enhance the Canadian National Seismographic Network. A further four stations were soon added to further enhance the network’s coverage, and the addition of the Yukon Government to the consortium in the last year has added an additional five stations near the Yukon/B.C. border.
coal process by up to 90 per cent – 1.3 million tonnes a year. While the goal of eliminating fossil fuels altogether is a laudable one, its achievement will realistically take many, many decades, and our reliance on oil for everything from plastics to pharmaceuticals requires us to invest in the most environmentally sound methods of extracting and processing fossil fuels. Carbon capture is the clear way forward. As this nascent technology matures, advances in design and infrastructure will only improve its effectiveness. With more
large-scale projects like these, it’s believed that CCS on its own could contribute the major part of Canada’s success in meeting our Paris Accord targets. We Boilermakers invite our industry partners to join us at the forefront of this proven and promising technology – for the sake of our economy, our employment, and our planet. Richard MacIntosh is a Vancouver-based representative for the International Brotherhood of Boilermakers. He can be reached at 604-219-3589. n
B.C. Oil & Gas Report • 2017
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Monitoring and responding to seismic events in northeastern B.C. Regional seismographic network in northeast B.C. monitors seismic events related to hydraulic fracturing and fluid disposal
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he BC Seismic Research Consortium was established in 2012 by Geoscience BC, the Canadian Association of Petroleum Producers (CAPP), Natural Resources Canada (NRCan), and the BC Oil and Gas Commission (BCOGC). It followed a recommendation from the BCOGC in response to concerns regarding induced seismicity associated with hydraulic fracturing in the Horn River Basin. In the report, Investigation of Observed Seismicity in the
Horn River Basin, the BCOGC recommended augmenting the Canadian National Seismographic Network (CNSN) to improve knowledge of the effects of induced seismicity by monitoring seismic events created by oil and gas operations that are related to hydraulic fracturing and fluid disposal. This, in turn, would increase oversight of induced low-magnitude seismic events. The mandate of the BC Seismic Research Consortium is to
Initially six seismographic stations were installed in northeast B.C. to enhance the Canadian National Seismographic Network. A further four stations were soon added to further enhance the network’s coverage, and the addition of the Yukon Government to the consortium in the last year has added an additional five stations near the Yukon/B.C. border.
32 B.C. Oil & Gas Report • 2017
monitor seismic events from oil and gas activities in the region, providing publicly available information that also enables the energy sector and the regulator to continue the safe and responsible development of B.C.’s natural gas resources. Initially funded by Geoscience BC and industry (CAPP, via the BC Oil and Gas Research and Innovation Society), project activities began with Geoscience BC and industry sharing the cost and maintenance of the seismic stations, with additional financial and technical support coming from the BCOGC and Natural Resources Canada, respectively. The Yukon Government was added as a consortium funding partner in 2016. The consortium is managed by a joint steering and technical committee comprised of representatives from each of the consortium partners. Initially six seismographic stations were installed in northeast B.C. to enhance the CNSN. A further four stations were soon added to further enhance the network’s coverage, and the addition of the Yukon Government to the consortium in the last year has added an additional five stations near the Yukon/B.C. border. All events registered by the network are published on the NRCan website (http://www.earthquakescanada.nrcan. gc.ca/index-eng.php), and annual project updates can be found on Geoscience BC’s website (www.geosciencebc.com). As the network has expanded across the Liard Basin, Horn River Basin, and Montney play, the determination of
earthquake epicentres and magnitude resolution in northeast B.C. has greatly improved. A recent internal study by the consortium-sponsored seismologist suggests the minimum detectable earthquake magnitude in the region is 1.4 to 2.4, an improvement of 0.2 in detectable magnitudes from just over a year ago. Data regarding seismic events in northeast B.C. are being used by the BCOGC for on-going review and development of protocols for responsible hydraulic fracturing and fluid disposal operations. This information has also been used by the oil and gas sector to improve completion practices and is also used by local communities and First Nations. A fundamental goal of BCOGC is to understand and quantify the emerging seismic hazards from oil and gas activities. The consortium has just wrapped up its fifth year of existence, but the seismic network isn’t going away. Viewed by both local communities, government and the resource sectors as necessary to the development of natural gas in B.C., the consortium is working on ensuring the existing stations remain funded and operational today and far into the future. For more information about the BC Seismic Research Consortium contact: Geoscience BC, Carlos Salas salas@geosciencebc.com / Phone: 604-662-4147 n
B.C. Oil & Gas Report • 2017
33
Coastal management facelift key to coastal access for resources By Robert Lewis-Manning, President, Chamber of Shipping
I
t might be easy to be cynical with the degree of change that is occurring in Canada’s approach to coastal management, but that would be time wasted. There are fundamental changes
In all likelihood, commercial marine shipping will be subject to and partner with additional federal departments and Indigenous and coastal communities in the not-so-distant future. While Canada continues to progress its commitments
taking place that will transform the
to marine protection under the United
relationship that marine transportation
Nations Convention on Biological
has with its traditional regulator, and
Diversity, it is also seeking to expand its
more broadly with coastal communities.
trading opportunities globally, including
Adding Value and Providing Access to International Markets for Canada's Natural Resources
Michael Dewar, Economic Development
mdewar@kitimat.ca 250-632-8921
SUITE 300, 6 ROSLYN ROAD, WINNIPEG, MANITOBA, CANADA
www.delcommunications.com
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34 B.C. Oil & Gas Report • 2017
domestic oil and LNG. This concurrent activity is swiftly becoming a potential space for friction and the necessity to innovate Canada’s approach to coastal management has never been so great. This facelift in approach to coastal management is happening on several different fronts, including legislative, regulatory, and programmatic. Reconciliation with Indigenous people will transcend all of these formal processes and will likely be realized through both formal governance frameworks, such as the Pacific North Coast Integrated Management Area, and more broadly through engagement on all matters associated with coastal management. Perhaps the greatest features of legislative change originate in the draft amendments to the Oceans Act, Bill C-55, which itself has trundled along without change for 20-plus years. These amendments will have profound change that include accelerating the establishment of marine-protected areas, “freezing the footprint” of existing human activities, and increasing both the enforcement and punishment of offenders. Although it has yet to be realized what these powers will include, it should be interesting to understand their application, especially as Canada considers establishing large off-shore marine protected areas beyond its territorial seas and in the approaches to many U.S. ports and binational waterways. Likewise, it is highly probable that the marine transportation sector will become increasingly subject
to requirements under the Species at Risk Act (SARA), especially as it relates to protecting critical habitat for endangered marine mammals and mitigating impacts caused from shipping. Both the marine industry and Transport Canada is inexperienced in working with SARA, and this legislation is likely to affect shipping nationally in some capacity. Mitigating the impacts of vessel-generated noise will top the SARA agenda and will likely increase in its importance globally through the International Maritime Organization.
require a holistic and integrated
well positioned with experience and
planning approach that is currently
must now develop sufficient capacity
absent. Realizing this must be a priority
to both fulfil the commercial and
for marine transportation. A holistic
operational demands, but also support
approach to coastal management
the education, advocacy, and planning
will put an obligation on marine
that will be required as a result of the
stakeholders to be proactive and
Oceans Protection Plan, and more
innovative with the use of technology,
generally, the increased attention paid
data, and engagement of governments
to the marine transportation sector
and stakeholders. The industry is
overall. n
Much of the anticipated change in coastal management will be enshrined in the principles of the federal government’s $1.5 billion Oceans Protection Plan. While our industry has an enviable record of safety, several recent incidents have shaken the confidence of coastal communities and rebuilding the trust of Canadians must be a priority for the marine industry such that it is prepared for the increased volume and complexity of marine transportation. One of the principle objectives of this plan is to work more closely with Indigenous and coastal communities. The expectations of coastal communities have increased dramatically and numerous stakeholders now consider their involvement essential in the planning and risk management of marine traffic, and many stakeholders now desire to have a “first responder” capability. Indeed, coastal communities are often the first to be on-scene during a marine incident and frequently have substantial experience in a local area. The federal government’s approach will inevitably lead to fresh planning processes that should integrate risk planning and mitigation, but also conservation planning and implementation. There is little doubt that marine transportation is subject to an obsolete legislative and regulatory framework and, if it is to truly transform, it will B.C. Oil & Gas Report • 2017
35
Métis Nation British Columbia Investing in our people; Investing in our future
M
étis Nation British Columbia (MNBC) Ministry of Employment and Training provides training to employment supports to Métis people in British Columbia through a network of seven regional offices and one provincial office. Clients do not have to be provincially registered Métis citizens to receive funding. We are here to support all Métis people in B.C.
Métis Nation British Columbia is able to fund course fees, tuition, books, supplies, equipment, and in some situations, travel and living allowances can cover short courses, apprenticeships, diplomas and certificate programs, and the final two years of a bachelor’s degree.
MNBC’s goal and mandate is to provide support and mentorship to the future decision makers and policy makers of the province of British Columbia.
36 B.C. Oil & Gas Report • 2017
MNBC is the official Métis agreement holder for the Aboriginal Skills and Employment Training Strategy (ASETS) for the Province of British Columbia, the entire geographic catchment area for service. While ASETS is the primary funder for Métis Employment and Training, MNBC also receives funding from the Province of B.C. for project specific or industry-specific training programs. MNBC partners with industry to provide training programs specific to employers’ needs, to ensure that trained individuals meet the expectations and requirements of their future employer. The majority of MNBC ASETS clients through an individual training model receive one-on-one advice and career counselling throughout their entire application process. Individual training is available to clients who are either unemployed or under-employed. MNBC is able to fund course fees, tuition, books, supplies, equipment, and in some situations, travel and living allowances can cover short courses, apprenticeships, diplomas and certificate programs, and the final two years of a bachelor’s degree. MNBC’s goal and mandate is to provide support and mentorship to the future decision makers and policy makers of the province of British Columbia.
If the application for funding meets approval, training and mentorship supports shall continue up to and including employment. MNBC strongly believes when we focus on the intake of the client and provide strong career counselling at the beginning of their training to employment journey, our clients’ success rate increases as a result. Training for transferable skills is important to MNBC, so we are always monitoring the labour market and connecting with employers to ensure the training we are funding is providing sustainable employment to our clients. MNBC is also able to provide wage subsidies and employment supports for employees with pending employment. Through the Employment Supports program, MNBC is able to provide assistance to Métis people with confirmed pending employment with the purchase of mandatory safety equipment, small tools, business attire, union initiation fees, one-way transportation to the job, and assistance with other items that pose an immediate barrier to employment. MNBC takes a holistic approach to employment and training. We understand that it is not only the clients’ relationship that is critical, the relationships that MNBC develops with industry and employers are just as important to the success for the client and to the economic development and growth of our communities and of our province. If you would like more information about the MNBC Employment and Training Program and what it may offer your organization or to you as a Métis person, please feel free to contact the director of employment and training at 1-800-940-1150 or 604-557-5851. n
New technology and software continues to add value to Pointcloud solutions
F
or 30 years, TDB Consultants Inc., (TDB) has brought
traditional aerial surveys which utilizes a photogrammetric
its resource development capacity and expertise to
solution of measuring in three-dimension. At TDB, the
help move development projects from the planning
geomatics department has been embracing both technologies
phase to shovel ready. Dick Mynen, CEO, asserts that
for its client base and helping its clients to determine which
it is TDB’s diverse and multidisciplinary expertise
solution would work best to deliver value to their projects.
that is an asset to its clients and their property
developments from supporting access planning surveys, transmission and pipeline corridor developments, timber volume assessments to site clearing. Access planning is a prime example of why TDB develops creative solutions. Over the years it has become a leading consulting
For the past five years, TDB has also embraced the advancements in digital photography and software to create a photometric pointcloud solution for ground and vegetation surface models of areas throughout British Columbia. Both industry and government agencies have looked to this new solution to bring down costs and still gain the same end result of a better surface model
firm delivering
from which to plan large
engineering, forestry,
projects.
and geomatics services fully complemented with its photogrammetric capacity. TDB’s teams of experienced technical and professional staff work closely with each other to plan and manage multidisciplinary field and office services to efficiently and safely complete projects.
Within these past five years, Rob Kragt, TDB’s director of geomatics, has overseen successful projects with ground and vegetation surface models created for over five-and-a-half million hectares for the BC Ministry of Forests, Lands and Natural Resource operations along with over half a million
Resource developments across large tracts of land have seen
hectares for industry. TDB is focused on research-driven
the demand for LiDAR data increasing in recent years. LiDAR
solutions and has been developing a new data fusion solution
technology utilizes a pulsed laser light reflected off the earth’s
of LiDAR and photo pointcloud data as its next advancement.
surface to accurately create a pointcloud of data to represent the ground surface model of an area. This technology is not new and the application of the technology has become a staple tool for projects where large tracts of land are examined for planning and logistics of resource developments. When first introduced, this technology was seen to replace the more
TDB consultants’ success is attributable to its belief in the value of strong and long-lasting partnerships and business relationships. By bringing research and solutions to the marketplace, TDB combines its expertise together with an innovative mindset to find solutions to problems, helping both clients and resource development projects. n
B.C. Oil & Gas Report • 2017
37
Oil and gas, your core business The necessity of rail and what you need to know By Alberto Simoes
Our core business, oil and gas/railroading Concentration on what we do best, this is what keeps us successful. We are the professionals of our business, our industry. As railroaders, we concentrate on best practices in railroading, working as part of our clients’ team to ensure safety, productivity, efficiency, and rules compliance. Over the many years of working with the oil and gas industry, “safety first” is emphasized foremost. In the railway industry, this expectation is echoed. Both industries cross each other on dependencies of transportation in different departments of rail operations. The most obvious is the movement of railcars from service providers (CN, CP, BNSF, etc). Some of the issues to consider are: the number of railcars required, timing of initial delivery, availability, and a time frame for delivery once loaded to market. This is the operations and sales departments of the railway industry. While delivery of railcars and switching times can sometimes be challenging, generally it is a straightforward process.
Track From here however, it can get a little more complicated. Across Canada, if an operator has a rail track or railyard where railcars are loaded and/or unloaded, the operator is subject to the Railway Safety Act and the Railway Act. Under these acts, certain rules, regulations and standards may or may not apply to the operator. It is the responsibility of the operator to ascertain which apply. Generally, there are two types of railway operations for the oil and gas industry when being serviced by a service provider (dependent on the location of operations). The first and most basic operation is where there is a simple rail track or yard where the service provider switches the necessary railcars for the operator to load and/or unload product(s). This occurs when there are no rail movements involved other than by the service provider. In this situation,
38 B.C. Oil & Gas Report • 2017
the operator is responsible for the applicable legislated rules, regulations, and standards in the application of loading railcars, unloading railcars, and unloading facility specifications, etc. Depending on the location in Canada, there may be a requirement to provide a regular track infrastructure inspection, Track Inspection. Normally this is a monthly activity, but again is location dependent. In this operation type where railcars are not moved, the request for track inspections normally comes from the service provider. The track inspections are used by the service provider to ensure that the tracks meet or exceed regulatory requirements. In providing these inspections to the service provider, the operator takes responsibility for the accuracy of the inspection, the competency of the inspector and resulting reasonability’s under the legislated regulations.
Rail operation training The second type of operation is where the service provider supplies railcars, spots them on the track, and the operator or a contractor moves the railcars as necessary to load and/or unload the product. In some (not all) provinces, these type of rail operations are referred to as industrial railways. Proper rail operation training, by experienced and qualified personnel is essential. In some provinces, where there is the movement of railcars, the operator is required to apply for a railway operating permit. In some provinces, there is a registration fee for this permit, while in others no fee is applicable. In all provinces where registry is required, operators are governed by provincial regulatory authorities or government. In all instances where provincial regulatory is applicable, operators are obligated by provincial regulations to follow the Provincial Railway Act/Railway Safety Act and its rules, regulations, and standards. However, because the operator is being serviced by a federally regulated railway (CN, CP, BNSF, etc.), is the operator obligated to meet federal regulatory compliance to facilitate the service provider? Yes! Why? For the sake of safety.
Meeting the regulatory requirements for the rail operation
understanding of the four aspects of rail: federal regulatory
is a matter of obligation under the Railway Act and Railway
compliance, provincial regulatory compliance, service provider
Safety Acts. The safety critical employee operation training,
policies and compliance and a very clear understanding of the
rules, regulations, and standards to which the operation
operators’ rail movement needs.
must conform to, is vital to safety, regulatory compliance, and
Oil and gas and railway operations are among the two largest
liability of the operation.
and oldest industries today. They continue to develop and
When choosing to have a contractor represent a rail
grow with the same common interest of safety.
operators’ interests for these obligations, safety, efficiency,
Stay informed and stay safe.
operation training, and coordination, be sure there is clear
Alberto Simoes is the director at RTC Rail Solutions Ltd. n
B.C. Oil & Gas Report • 2017
39
The dirt on erosion and sediment control By Whitney Braun Hydro-seeding is the application of hydraulic mulch with a combination of ingredients. New technology allows for high-quality mulches to contain tackifier, along with fertilizer and seed mixes. Inset left: Turf Reinforcement Matting is installed in water runs, wash outs, or on steep slopes to keep soil in place. Inset right: Fiber Filtration Tubes are installed on slopes or in water runs in place of silt fencing to filter the sediment out of the water.
E
rosion and sediment control is not a new idea. Traditional approaches on oil and gas construction and reclamation projects have been attempted with varying levels of results, never one strategy outshining the rest.
Hand seeding on some sites might never work on others. Silt fences fail, letting sediment wash from work site to private land, transferring undesirable soil and vegetation from location to location. Hydro-seeding on slopes with inaccurate application rates and the wrong products result in little or no germination. But good news! Technology and research is advancing in this field, and erosion and sediment control are showing consistent and effective outcomes. Just as companies have integrated vegetation management plans, erosion and sediment control plans should be developed for any new construction or reclamation projects. That does not mean that one strategy fits all. Just as mowing isn’t the only way to control vegetation, hand seeding isn’t the only way to implement sustainable revegetation. Plans should be developed depending on terrain, weather, and soil conditions using multiple methods of erosion and sediment strategies to ensure proper germination and control. Hydro-seeding is the application of hydraulic mulch with a combination of ingredients. New technology allows for highquality mulches to contain tackifier, along with fertilizer and seed mixes. Tackifier ensures adhesion of seed and mulch to the ground. This helps the seed and mulch stay in place without the risk of washing away. Tackifier is ideal for slopes,
40 B.C. Oil & Gas Report • 2017
such as ditches, berms, or water runs. Hydro-seeding is an effective revegetation method for new construction, whether it be roads or well sites, as well as reclamation projects. It provides a moist environment, allowing for rapid establishment of lasting vegetation. Turf Reinforcement Matting (TRM) is new to the erosion and sediment control industry. This matting is installed in water runs, wash outs, or on steep slopes to keep soil in place. Not only does it keep soil in place, but seed as well, making it ideal for any place where there is water runoff. This method is combined with hydro-seeding to establish rapid germination and sustainable revegetation. Fiber Filtration Tubes are a recent innovation to sediment control. These tubes are installed on slopes or in water runs in place of silt fencing to filter the sediment out of the water. This keeps soil and vegetation in place while allowing water to flow. Also, it reduces turbidity and maintains ground formation while showing more effective results than traditional silt fencing. Again, this method is often combined with others, like turf reinforcement matting or hydro-seeding, to create the most effective control. These are some of the most common methods of managing erosion and sediment. Alone or combined, each serves a purpose to provide manageable and sustainable control. Consider these when developing an erosion and sediment control plan for your next construction or reclamation project as an important part of obtaining a Certificate of Restoration. The best way to start building a plan is to consult a local erosion and sediment control lead (ESCL) about these methods. n
QUALITY VEGETATION CONTROL SINCE 1997
GROWING A GREEN TOMORROW
• Vegetation Management Specialists • Erosion & Sediment Control Planning • Hydroseeding • Herbicide Application
Fort St. John, BC
• Certified Erosion & Sediment Control Leads
250.261.9544 pineviewmanagement.com
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41
The value of fast and portable structures
A
Frontier garage, exterior of the Surrey Fire Hall 3.
common occurrence on active oil and gas sites throughout British Columbia is the need for quick and durable structures, whether to protect equipment and vehicles, or to be used for office space and common areas. We have found that industrial sites are inclined towards building with our patented “slip-fit” framing system, not only for
the durability and an expedited installation process, but for the benefit of being able to disassemble, relocate, and reassemble the building at a different location. Our framing system consists of galvanized steel tubing that slips Summit garage.
together and is fastened with self-tapping screws, which allows for quick assembly when compared to traditional wood-framed buildings. Moreover, once our framing system is completed, our structures are maintenance-free and will never suffer from rotting or termites. Our buildings are able to be anchored into any foundation and have the ability to be disassembled and relocated with minimal material loss. As an added benefit of our product, if you require a larger footprint in the future, you have the ability to extend the length of your building with ease. Our structures range from 10-feet to 50-feet wide (clear span) with clearance heights starting at eight feet through 16 feet, and the length being as long as you need.
42 B.C. Oil & Gas Report • 2017
With our harsh winter climate, it is essential for any company to want to protect its investment in costly equipment and vehicles from the elements to ensure they maintain high-performance and longevity. Having a proactive approach by erecting a portable building to shelter expensive equipment will be more costeffective than continuous maintenance and repair.
We understand every site is different and our company focuses
erecting a portable building to shelter expensive equipment
on working with individual companies to create a building
will be more cost-effective than continuous maintenance
package that is suitable for their specific requirements. We
and repair, especially when considering some of the remote
have buildings that range from roof coverage only to fully
working sites and conditions in B.C.
enclosed office or warehouse buildings equipped with overhead and man doors, windows, insulation options, and more. Once the building envelope is completed, you have an open-concept to complete the interior to suit your needs.
On any industrial or active working site, it will always be essential to find fast and durable building solutions to continue to work on the task at hand. Easy Build Structures will work with your company to help solve your shelter issues and
With our harsh winter climate, it is essential for any company
ensure you have protection for your fleet and equipment.
to want to protect its investment in costly equipment and
With continual rising construction costs, especially on distant
vehicles from the elements to ensure they maintain high-
operating sites, our portable framing system is the cost-
performance and longevity. Having a proactive approach by
effective and the efficient answer to your shelter needs. n
STRUCTURES UP TO 50’ WIDE x 16’ HIGH AT ANY LENGTH T: 604.589.4280 F: 604.589.4202 www.easybuild.ca 55 - 13325 115th Avenue Surrey, BC V3R 0R8 Easy Build Structures pre-engineered galvanized steel framing system uses an unique “slip-fit” design that simplifies the installation process with the added strength and durability to withstand our Canadian winters. Whether you are looking for roof-coverage only to protect your fleet and equipment or fully-enclosed warehouse packages for storage or workspace, Easy Build has the building for you.
We offer complimentary on-site consultations to assist in designing your custom building package and we offer structure erection services throughout the Lower Mainland. Furthermore, all of our building packages are designed as do-it-yourself kits with a step-by-step assembly manual.
Our engineer can provide you with stamped and sealed foundation design and structural drawings, Schedule B and Schedule C-B, Our sales team will work with you to customize your structure to meet all your and site inspections to help assist you with any permitting requirements. Easy Build packages come complete with everything you need, processes required by your municipality. These drawings also ranging from overhead and man doors, windows, insulation options, sheeting come with our CSA-A660 certification for preand flashing profiles and colours, and hardware. Our structure widths range engineered steel structures in Canada. from 10’ to 50’, with the length being as long as you need.
B.C. Oil & Gas Report • 2017 43
Van Houtte Coffee Services – Specializing in coffee services for the oil and gas sector
F
or over 30 years, Van Houtte Coffee Services has been providing quality coffee solutions to all sectors of the oil and gas industry throughout Western Canada. From oil and gas camps, field/ site offices to corporate workplaces, we offer the right equipment and coffee products to help your business keep their employees satisfied while staying within budget. Our services include supplying onloan brewing equipment, providing equipment servicing and maintenance, and direct shipping of product and supplies to even the most remote oil and gas sites! Today, Van Houtte Coffee Services employs over 750 staff in 31 branches across Canada and offers the largest national service coverage of any other coffee service company in Canada. In terms of product quality, Van Houtte Coffee Services has something to please everyone. Drawing upon almost 100 years of coffee-roasting and café bistro experience, we offer a wide selection of premium, gourmet coffees that include Van Houtte® and many other well-known premium brands. As well, we inventory other more economical coffee brands for those seeking a more budget-sensitive employee coffee solution. In addition, we offer an impressive variety of teas, hot chocolate, cold beverages, and other products for your staff breakrooms.
brewing equipment in the right staff area is important in establishing a well-functioning employee coffee program. From traditional, high-volume brewing systems to single-cup and specialty beverage systems, we have it all. As part of our Total Coffee Solution hassle-free program, customers are provided with free, on-loan coffee equipment, as well as free equipment servicing and maintenance. This means no up-front costs or capital investment required and no more fixing broken-down coffee equipment yourself. We realize you have better, more productive things to do to keep your business operating, so leave it up to us! So, whether you are looking for a coffee program for your corporate employees or workers in the field, look no further than Van Houtte Coffee Services for your coffee service needs. We offer precisely the right coffee selection, coffee-brewing equipment, and service quality that is best suited for the diverse and fast-moving oil and gas sector. n
Van Houtte Coffee Services knows that placing the right
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44 B.C. Oil & Gas Report • 2017
O R G A N I Z E D B Y:
C E L E B R AT I N G T H E F U T U R E O F E N E R G Y. J U N E 1 2 - 1 4 , 2 0 1 8 / C A L G A R Y, A L B E R TA
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The most trusted sand solution
S
and is an extremely destructive force in the oil and gas industry. It puts your people, your production, and your profits all at risk. Headquartered in Calgary, Alta., Specialized Desanders has two field offices in the province, as well as one in Pennsylvania. It is the most trusted sand management solution. Innovation involves exploring novel means of thinking and considering what can be, rather than what is. It’s the ability to question, ‘Is there a better way?’, which is why we are at the forefront of the industry. Specialized Desanders (SDI) was founded in 2001 by three energy sector veterans who saw a need for horizontal well desanding technology. The co-founders realized that sand is a huge concern for oil and gas producers because sand continuously blasts away at your mission-critical equipment. It can inflict expensive damage and shut down production for weeks at a time. The risks range from $10,000 seals and $30,000 pumps to regulatory injunctions and multi-million-dollar catastrophic failures. Unabated sand flow compromises the integrity of infrastructure and your corporate reputation. Our team of elite engineers designed a portable patented desander that is installed upstream of surface equipment. Our exclusive focus is sand extraction from oil and gas wells. Our technology has earned 20 patents worldwide. It is the standard by which all other companies are measured. Specialized Desanders has been mimicked by many, but equaled by none. SDI stops sand right at the wellhead before it can inflict any damage. We protect well site workers and downstream facilities from the devastation of sand. We’ve logged more than 35,000 well months (not including units sold) of sand production globally, which is why we are unrivalled by any competitor. The competition can’t handle the volumes of sand that we can handle. SDI lives at the forefront of the industry. For more than 16 years we have earned the trust of our clients by solving their most challenging sand dilemmas. We have the industry’s largest fleet of desander units. We have designed 78 models of desanders. That’s more than all our competitors’ combined. Anything less 46 B.C. Oil & Gas Report • 2017
Specialized Desanders’ vessels rely on gravity separation rather than hydrocyclonic or filter principles, meaning that its engineering solutions is an application of Stokes’ Law that allows the sand to fall to the bottom.
is a compromise that jeopardizes worker and equipment safety. Specialized Desanders’ vessels rely on gravity separation rather than hydro-cyclonic or filter principles, meaning that its engineered solution is an application of Stokes’ Law that allows the sand to fall to the bottom. The competition’s products have several parts that can erode or fail, requiring replacement. All our pressurized vessels are certified and registered with the Alberta Boilers Safety Association (ABSA) to maintain safe operation. All well operators receive specialized training and orientation in the safe operation and servicing of the desanders. Safety is paramount to us. Specialized Desanders’ Sand Sentry enables monitoring of sand production at well sites or online to schedule desander clean outs. Sand Sentry is the world’s first real-time monitoring system on the market. SDI’s solid steel vessels can’t be seen through, but the Sand Sentry will indicate how much sand is in the vessel. It is a web-based, on-site sand monitoring system that will monitor your sand production automatically and make sure you know when cleanouts are required. Access your data anytime, anywhere, and be notified by SMS or email when cleanouts are required. This system can be integrated into a well site SCADA system to automate shutdown protocol. It’s just one more thing that really set us apart in the market. Get production peace of mind! Solve your sand problems at the source. Rely on SDI, the industry’s most trusted, most effective, most experienced, and most reliable sand management solution. n Sand Sentry is a web-based, on-site sand monitoring system that will monitor your sand production automatically and make sure you know when cleanouts are required.
,
Well Months of Sand Production Globally (not including units sold)
Your Well Should Run 24/7 We’ll Help Keep It That Way Contact us today at:
desanders.com
SPECIALIZED DESANDERS INC.TM The Most Trusted Sand Solution
Calgary Head Office
Three Hills Office
Beaverlodge Office
Pittsburgh Office
111, 3355-114 Ave SE
320A-2nd St NW
Box 749
24 Summit Park Dr.
Calgary, AB T2Z 0K7
Three Hills, AB
Beaverlodge, AB
Pittsburgh, PA
(403) 233-2040
(403) 443-5453
(780) 354-2039
(412) 327-2213
The Bridger™ Line Gun, the workhorse of the utility industry
The Lyle Gun, named after creator David Lyle, was the first viable lightweight line gun used for rescue in the Americas. It was deployed to lifesaving stations along many coastlines of the United States and Canada.
I
t all started in 1878 when David Lyle,
Philadelphia, and then Doylestown,
a recent graduate of West Point,
Pennsylvania, USA.
specializing in ordinance, invented a line thrower. He spent two years experimenting while employed at Springfield Armory, and his devotion
to the research and development paid off. David Lyle created the first viable lightweight line gun used for rescue in the
48 B.C. Oil & Gas Report • 2017
In the mid to late 1800s, what was considered lightweight for a line-throwing gun was a bit of an oxymoron. The Lyle Gun weighed in at about 185 lbs. It was retired and replaced by a much lighter shoulder-fired line-throwing gun… the Bridger Line Throwing Gun. The Bridger
Americas. It was deployed to lifesaving
Line Gun is still in production today
stations along many coastlines of the
by Naval Company Inc. In addition to
United States and Canada. The “Lyle Gun”
being reliably used for lifesaving, it has
as it was called, remained in production
become the number-one go-to line gun
through the Second World War. During
for transmission line construction across
that time, David Lyle wasn’t the only one
North America. There are plenty of other
making a Lyle Gun. The Naval Company,
applications, but if you have to get a
the predecessor of Naval Company, Inc.,
cable from one side of a river or ravine to
owned by the same Meininger family,
the other, it’s a lot less expensive than a
made plenty of them while located in
helicopter!
Since it was so heavy, the Lyle Gun was retired and replaced by a much lighter shoulder-fired line-throwing gun, the Bridger Line Throwing Gun, which is still in production today by the Naval Company Inc.
Some tools rarely change, and in this case, that has been a benefit. For example, Bridger Line Gun owners from the 1970s can continue to use the same line gun for those hard-tobridge areas. Naval Company Inc. is committed to ensuring their customers will always have access to both hardto-reach places, and to the Bridger supplies necessary to accomplish those stringing, cabling or other tasks in logistically difficult areas. Although Bridger hasn’t been a known name in Canada like it is in the USA, the company is expanding across Canada and looks forward to serving Canadian industries as a reputable name in the future. n
Power Line Stringing Challenge? A Bridger™ Line Gun can get your lines across most rivers, ravines or the high wall of your open pit mine. Power, telephone, rescue lines or even zip lines! You name it, the Bridger™ does it! For a quote, contact NAVAL COMPANY INC at sales@navalcompany.com or call 215-348-8982 www.linethrowing.com
™
LINE THROWING GUN
B.C. Oil & Gas Report • 2017 49
The company is also able to build all types of vessels, such as fish, tugs, and crew boats, whether in aluminum or steel to their customers’ drawings and specifications.
Local B.C. company seeking new customers in the oil and gas sector
B
racewell Marine Group is a family-run company led by Lance Bracewell, a successful entrepreneur in the marine industry for over 35 years. Under his leadership, we have
assembled a highly skilled management team, and in turn, this management team has been able to hire a highly skilled workforce of 70-plus employees who understand the need for quality work and take pride in the work they perform. Our specialty is providing a one-stop shop for repairs and to perform modifications that meet Transport Canada’s specifications on commercial vessels up to 220 tons. Our ability to supply in-house services such as mechanical, electrical, blasting, painting, steel aluminum fabrication, and welding is all a bonus to our customers with a reduction of downtime for them.
50 B.C. Oil & Gas Report • 2017
In addition to this, we also supply an inhouse line of tugboat winches ranging in various sizes and are able to supply the boating industry with their shafting in a wide assortment of sizes, from ¾-inch diameter to six-inch diameter in Aqualoy 17, Aqualoy 22, 316 stainless steel, and steel. We also carry a full line of cutlass bearings in brass and phenolic as required. To meet the quality we require on shafts and winch components, we have the ability to modify, alter or repair machined items in-house in our fully outfitted machine shop. Our machine shop has the ability to fabricate items from new with drawings, or can repair existing items as required to meet all customers’ needs. We can fabricate custom capstans to suit customers’ requirements. One of our other strengths is the ability to build all types of vessels, such as fish,
tugs, and crew boats, whether in aluminum or steel to our customers’ drawings and specifications. Building boats to a certain spec is an area we are quite familiar with, whether it being DNV, ABS or Lloyds. At the present time, we are presently building two pusher tugs, 81-feet-long to Lloyds spec and have recently built two 48-foot tugs to DNV specifications. Building work boats or ice breakers for the tailing ponds would also fall into our area of expertise as well.
Bracewell Marine Group supplies an in-house line of tugboat winches ranging in various sizes are able to supply the boating industry with their shafting in a wide assortment of sizes.
Our company mission statement and philosophy is a quality product at a reasonable price, which will pave the path to success. n
Inset: Machine shop.
ELL BRACEaW ns
me
built well
Yard Services • Millwork • CSI • Refits • Repower Machine Shop • Painting • New Builds • Winches
Now supplying all of your shafting and bearing needs. Prop shafts in 316, Aqualoy 17, 19 and 22 – any size & length as needed up to 6” diameter and 24’ long. We have 316 shafting for rudders or other needs.
Cutlass Bearings in assorted sizes in metallic, non-metallic and flanged.
Phone 604-821-1890 Email info@bracewellmarinegroup.com
www.bracewellmarinegroup.com
B.C. Oil & Gas Report • 2017
51
Your worksite, our backyard Coast Mountain Wireless By Desiree Bahr
C
ommunication can be quite a challenge on British Columbia’s north coast. The mountainous terrain and elements can take their toll on our infrastructure, however Coast Mountain Wireless (CMW) has entrenched itself as the premier communications experts in northwest B.C. Our ability to adapt to different work environments and keep up to the changing technology ensures that our clients are given the best possible solutions for their correspondence needs; whether it is up on a mountaintop, a remote camp site, or travelling the back roads, we’ve got you covered. Maintenance is always an issue when you are battling the elements. From soaring temperatures, torrential rain, and piles of snow and ice, there is no telling what you can encounter on the north coast. At CMW we are experts at winning the fight against the elements from season to season. Our skilled technicians are at the forefront of innovation and are prepared to face whatever challenges come our way. Since our company’s formation in 1999 we have seen numerous changes to communications technology. Traditionally, mountaintop repeaters were large shelters that took up to three days to install. These repeaters, while essential to extending the working range of two-way radios, were inconvenient to build and relocate for changing jobs. CMW technicians set out to redesign these mountaintop repeaters to make them smaller, lighter, and more efficient. This innovation resulted in the A-Pod repeater. Now armed with the ability to prepare and test the repeaters in the CMW 52 B.C. Oil & Gas Report • 2017
shop, installation takes less than four hours on the customers’ site. One of our recent projects challenged us to grow beyond our boundaries to accomplish what few have done before. Without the use of hydro-electric or diesel generator power, we were asked to build a long-range microwave backhaul communications system for a large, high-grade mining operation under development. This would provide them with high-speed Internet, two-way radio communication, and the potential for cellular coverage. Historically, microwave systems are ideal for short-range areas with a clear line of site between dishes. In this instance however, we were confronted by over 73 kilometres of mountain range to get around. Because microwave signals cannot pass through or around obstacles in the same way lower frequencies can, our 14-metre towers were built atop 1,800-metre mountain peaks with up to 49 kilometres distance between our towers with solar panels to provide power. It seemed a daunting task, but after months of careful planning and execution, we were able to create the microwave link and provide the camp with communications coverage, proving that no job is too big or too small for us at Coast Mountain Wireless. As the only authorized Motorola dealer west of Prince George,
CMW carries a large selection of mobile and portable radios. Our in-shop technicians are always available to add channels to your radio or to give you advice on the best solution based on your current needs. Our communications options are not just limited to radio either – we supply the top brands in satellite communication, including Iridium, Delorme and Globalstar. So whether you are a foreman setting up a job site, or a hunter wanting to keep in touch while you are out in the wilderness, we are sure to have the right choice for you. Our team at Coast Mountain Wireless looks forward to working with new partners to develop customized correspondence solutions based on their individual needs. Please contact us at 1-855-638-0577 or visit us at coastmountainwireless.ca for more information. n
YOUR WORLD.
Toll-free 1.855.638.0577 3650 River Drive, Terrace, BC V8G 3N9
Coast Mountain Wireless is the only authorized Motorola™ two-way radio dealer west of Prince George.
www.coastmountainwireless.ca Motorola XPR7550
CMW 4002d (BC Oil & Gas Report).indd 1
OUR SOLUTIONS.
Motorola and the Stylized M Logo are registered in the US Patent and Trademark Office. © Motorola, Inc. 2005.
11-03-15 2:06 PM
B.C. Oil & Gas Report • 2017
53
Index to advertisers BK Two Way Radio Ltd................................................................25
Lhi Tutl’it Services Inc...................................................................7
Bracewell Marine Group Ltd......................................................51
Naval Company...........................................................................49
British Columbia Safety Authority.............................................33
Pineview Management...............................................................41
Chamber of Shipping B.C...........................................................35
Rosenau Transport Ltd............................................................OBC
Coast Mountain Wireless Communications Ltd.......................53
RTC Rail Solutions Ltd................................................................39
Compass Bending Ltd................................................................21
Society of Petroleum Engineers.................................................11
D&D Insulators..............................................................................3
Specialized Desanders Inc..........................................................47
Easy Build Structures..................................................................43
TOG Systems...............................................................................55
Global Petroleum Show 2018.......................................................4
Trans Peace Construction............................................................5
Indian Resource Council.............................................................11
Van Houtte Coffee Services..........................................................9
International Brotherhood of Boilermakers...............................31
Waterax........................................................................................21
International Union of Operating Engineers Local 115.........IFC
WSP Group...................................................................................17
Kitimat LNG.................................................................................34 Del_Filler_HalfHorizontal_Oil_Del_Filler_WESTT.qxd 15-09-04 1:56 PM Page 1
Call: 1.866.831.4744 www.delcommunications.com
DEL Communications Inc. & You.
The key to success.
We offer outstanding personal service and quality in the areas of: 54 B.C. Oil & Gas Report • 2017
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