2022
SERVING MANITOBA’S ENERGY SECTOR
MANITOBA Energy Review
PUBLICATION MAIL AGREEMENT #40934510
Developing Manitoba’s long-term energy policy
Managing economic opportunities while reducing environmental footprint
Creating opportunities at the Centre for Oil and Gas Research and Development
First segment of legacy Line 3 taken safely out of service
Canadian Premium Sand shifts to solar manufacturing with new Selkirk facility
18 Foot Walk-In Rescue
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IN THIS ISSUE... 6 Message from Premier Heather Stefanson
Published by: DEL Communications Inc. Suite 300, 6 Roslyn Road Winnipeg, MB R3L 0G5 www.delcommunications.com
8 Message from Jeff Wharton, Minister of Environment, Climate and Parks
President & CEO:
10 Manitoba Government statistics: Oil by the numbers
DAVID LANGSTAFF
14 Public engagement process will inform new
Editor:
energy policy for Manitoba: Wharton
16 First segment of legacy Line 3 taken safely out of service 18 Creating opportunities at the Centre for Oil and Gas
LYNDON McLEAN lyndon@delcommunications.com Advertising Sales Manager: DAYNA OULION
Research and Development
22 Canadian Premium shifts from oilpatch drilling to solar manufacturing with new facility
Advertising Sales: COLIN JAMES
25 New technologies helping meet climate targets
MIC PATERSON
26 Essential oil
ANTHONY ROMEO
DAN ROBERTS GARY SEAMANS
28 Energy from the Earth 30 A message from Mark Scholz, president and CEO of the Canadian Association of Energy Contractors
31 Nuclear energy could help cost-effectively decarbonize Canada’s heavy industry 32 Solutions for managing economic opportunities while reducing environmental footprints 33 PTRC expands its expertise on CO2 storage to shallower reservoirs
Production services provided by: S.G. Bennett Marketing Services Creative Director / Design: KATHLEEN CABLE
©Copyright 2022.
36 Fort Garry Fire Trucks: Tough today, tough tomorrow
Manitoba Energy Review. All rights
38
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Industry news: SRC leads with hot water plus flue gas injection
reserved. The contents of this by any means, in whole or in part,
INDEX TO ADVERTISERS...
without the prior written consent of the
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While every effort has been made to
Bert Baxter Transport Ltd.................................... 23
H&G Directional Drilling Ltd............................... 35
contained herein and the reliability
Border Energy Ltd................................................... 33
Integrity Oilfield Hauling.......................................15
Carson Safety Services Ltd................................. 27 Corex Resources Ltd.................................................3 DL Parts for Trailers.............................................. 33 Driving Force Group of Companies.....................19 FlareTech Inc.............................................................14 Forsyth Hauling 2010 Ltd.................................... 25
publisher.
ensure the accuracy of the information of the source, the publisherin no way guarantees nor warrants the
Meridian Manufacturing Inc...................................9
information and is not responsible
MNP..............................................................................19
made by advertisers. Opinions and
for errors, omissions or statements
Netzsch Canada.............................................20 & 21
recommendations made by contributors
R.M. of Wallace-Woodworth.................................17
of the publisher, its directors, officers or
Safe Work Manitoba.................................................8
or advertisers are not necessarily those employees.
Fort Garry Fire Trucks.......................................... IFC
Tundra Oil & Gas........................................................5
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addresses to:
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COVER PHOTO COURTESY OF CAOEC – Canadian Association of Energy Contractors Story on page 30. 4
Manitoba Energy Review 2022
PRINTED IN CANADA 05 | 2022
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A MESSAGE FROM THE PREMIER
honourable heather stefanson On behalf of the Government of Manitoba, it is a pleasure to
Removing unnecessary administrative burdens to improve
welcome you to the 2022 edition of the Manitoba Energy Re-
regulatory processes is a key commitment to ensure Manitoba
view. Our government recognizes the important and critical role
is always open for business. Our government continues to work
that the oil & gas sector plays in the Manitoba economy and we
with industry on improvements to the petroleum fiscal regime
continue to promote policies that encourage economic devel-
and information delivery systems. The partnership with western
opment and job creation in this sector and all industries.
provinces in the adoption of the Petrinex reporting system im-
Our government is pleased to see industry activity rebound-
plemented last year has resulted in streamlining administrative
ing last year following the significant impacts COVID-19 in 2020.
processes such as introducing an online tax and royalty calcula-
In 2021 there were 170 wells drilled, more than doubling the
tor, making reporting easier, and reducing the risk of overpay-
83 wells drilled in 2020. Over 2.12 million cubic metres, or 13.3
ments by oil & gas producers in Manitoba. Manitoba is also set
million barrels, of oil were produced from Manitoba’s 6,384 pro-
to introduce a new and simplified tax and royalty regime by
ducing and support wells. In total, $415 million was also spent
the end of 2022 that will further reduce red tape for producers.
by the petroleum industry on exploration and development of
For almost seven decades, in both good times and bad, the
oil & gas resources in 2021.
oil & gas industry continues to adapt and innovate. We contin-
The newly formed Department of Natural Resources and
ue to work with the oil & gas industry to make Manitoba be-
Northern Development supports the provincial government’s
come Canada’s most improved province. Together, we will keep
renewed focus on responsible development of Manitoba’s
Manitoba’s resource sector resilient and strong.
abundant world-class natural resources. The department has increased capacity, with the creation of a new director position to lead reducing red tape for the mining, oil & gas sector, while also increasing support for the Manitoba Geological Survey to provide industry with the foundational geological picture required for investment. Our government has also established a new Economic Development Board of Cabinet to focus on building on Manitoba’s current and emergency competitive advantages and promoting Manitoba as an attractive investment location. By collaborating with existing investors, owners, and entrepreneurs, the board will also serve as a catalyst to drive increased investment and job growth in Manitoba.
6
Manitoba Energy Review 2022
The Honourable Heather Stefanson
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Manitoba Energy Review 2022
7
A MESSAGE FROM THE
jeff wharton
Minister of Environment, Climate and Parks I am fortunate to be asked by our new Premier to take on the role of Minister for Environment, Climate and Parks, and I am especially excited to lead our government’s work on climate and energy. Our Made-in-Manitoba Climate and Green Plan sets out a comprehensive approach to addressing climate change, protecting our environment, and contributing to our green economic recovery. We have successfully been implementing our green plan since its release in 2017, and our Expert Advisory Council has provided excellent advice on key initiatives in the plan. The Conservation and Climate
Fund has enabled numerous innovative projects, and in Budget 2022, we increased the fund from $1 million to $1.5 million. We have developed new programs like the Efficient Trucking Program to reduce greenhouse gas emissions in the transportation sector by providing rebates for fuel-saving technology for heavy-duty vehicles, we have increased our biofuels mandates, and in 2020, we launched Efficiency Manitoba. These achievements are important, and we know that more can be done. For example, a large part of our climate policy is inexorably linked to energy policy. This is why we are consulting on and developing
Let’s keep moving forward. Together. Find resources and training at safemanitoba.com
8
Manitoba Energy Review 2022
a new, modern, long-term energy policy for Manitoba. Manitoba has many new and emerging opportunities to leverage our clean electricity, improve our energy efficiency, and ultimately reduce our reliance on imported fossil fuels. The challenge of achieving emissions reductions while enabling an orderly transition to clean energy is something that governments around the world are learning to manage. Manitoba`s modern energy policy will help to guide us through a period of unprecedented transformation. Recognising the enormity of this transformation, our government’s energy policy establishes the following objectives: • Respond to current and future energy market trends, and economic and environmental challenges facing industrial, commercial, and residential consumers and energy utilities; • Capitalize on Manitoba’s vast renewable electricity resources, such as hydro, wind, and solar; • Recognise and respond to our reliance on imported energy, and promote lowcarbon alternatives; • Combat climate change and successfully transition to a low-carbon future; and • Maximize the use of electricity and other forms of renewable energy to generate economic benefits for Manitoba. I am optimistic that our green energy resources, economic advantages, and environmental leader will lead to a future with lower emissions and cleaner energy for a prosperous and diverse economy. I am proud that we are getting it right by listening to the invaluable feedback of Manitobans, and I encourage your input and feedback. v
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MANITOBA GOVERNMENT STATISTICS
Oil by the numbers CATEGORIES
2020
2021
Drilling Licenses Issued..................................................................................................90.................................................... 184 New Wells Drilled............................................................................................................83.................................................... 170 New Wells on Production..............................................................................................100.................................................... 159 New Wells Abandoned......................................................................................................2........................................................ 3 Horizontal Wells Drilled..................................................................................................76.................................................... 160 Wells Capable of Production (Dec)............................................................................ 5,397................................................. 5,202 Wells Producing (December)..................................................................................... 3,656................................................. 3,828 Abandoned Producers...................................................................................................101...................................................... 89 Other Wells Abandoned...................................................................................................17...................................................... 18 Certificates of Abandonment Issued..............................................................................73...................................................... 63 Lease Sale Bonuses ($)..................................................................................... 293,303.45........................................ 191,660.28 Reservation & Lease Rentals & Fees ($)................................................................ 17,816............................................... 17,992 Crown Lease Area (ha)............................................................................................... 1,776................................................. 1,712
OIL PRICES 2021 Month
Manitoba LSB
2021
$/M
3
Selling Price Manitoba Production
$/BBL
$/M3
$/BBL
January
$373.82
$59.40
$358.98
$57.05
February
$426.81
$67.82
$411.54
$65.40
March
$463.75
$73.69
$449.75
$71.47
April
$456.14
$72.48
$451.28
$71.71
May
$467.21
$74.24
$458.70
$72.89
June
$529.96
$84.21
$507.98
$80.72
July
$534.80
$84.98
$521.33
$82.84
August
$510.89
$81.18
$496.90
$78.96
September
$533.73
$84.81
$523.83
$83.24
October
$608.81
$96.74
$597.01
$94.87
November
$615.98
$97.88
$591.13
$93.94
December
$535.62
$85.11
$527.25
$83.78
Avg. 2021
$504.79
$80.21
$491.31
$78.07
$/M3
$/BBL
$/M3
$/BBL
January
$613.66
$97.51
$593.80
$94.36
February
$714.35
$113.51
-
-
2022
INFORMATION COURTESY OF MANITOBA AGRICULTURE AND RESOURCE DEVELOPMENT
10
Manitoba Energy Review 2022
Manitoba Energy Review 2022
11
MANITOBA GOVERNMENT STATISTICS
Oil by the numbers
MELITA RESOURCES, 5
SHIFFOIL, 3
BURGESS CREEK EXPLORATION, 5
PADCOM, 2
Top Drillers
COREX RESOURCES, 41
TUNDRA OIL & GAS , 114
Average Oil Price ($/bbl)
Wells Drilled 600
100.00
500
80.00
400
60.00
300
40.00
200
20.00
100 0
05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 Horizontal
12
Manitoba Energy Review 2022
Vertical
Average Oil Price
0.00
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PROVINCE SEEKING PUBLIC INPUT TO HELP DEVELOP LONG-TERM ENERGY POLICY FRAMEWORK
Public engagement process will inform new energy policy for Manitoba: Wharton The Manitoba government is seeking
Minister Jeff Wharton announced in mid-
mend options to government for a new
the public’s feedback for consideration
February. “We encourage all Manitobans
energy policy framework for Manitoba.
in developing a long-term energy policy
to share their views on this important
Governments and stakeholders recog-
framework for the province.
topic to help us establish the priorities
nize the importance of clean energy as
that will guide our province’s future en-
a critical way to reduce greenhouse-gas
ergy policy.”
emissions as well as an opportunity for
“The Climate and Green Plan Implementation Office and Dunsky Energy + Climate Advisors have embarked on an
Canada-based Dunsky Energy + Cli-
green economic development. A mod-
engagement process for the develop-
mate Advisors has been hired to engage
ern, long-term provincial energy strategy
ment of a long-term energy policy frame-
a wide variety of stakeholders to explore
would reflect government priorities, re-
work,” Environment, Climate and Parks
potential priority areas and will recom-
spond to the needs of multiple sectors, consider opportunities and risks associated with switching to electricity from
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fossil fuels, and assess opportunities for Manitoba to build on its existing value proposition as a producer of reliable clean electricity. “There have been incredible changes in the way we produce, use, and manage our energy resources and technologies. This new policy framework will replace the 2012 Clean Energy Strategy in order for us to address significant local, national and global shifts in the energy landscape,”
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said Wharton. “Issues including climate change, green economic recovery and development opportunities, the availability of new technologies and changes in government priorities across North America have dramatically changed the goals and objectives of energy policy frameworks. We want to hear Manitobans’
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Manitoba Energy Review 2022
thoughts on these important issues.” The survey is available at EngageMB.ca. v
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MANITOBA PIPELINE DECOMMISSIONING
First segment of legacy Line 3 taken safely out of service
Left: Inspector Sandy Armstrong shows a section of pipe following installation of a steel cap. After the pipe segment is cut, a cap is fabricated onto the ends of the pipe and coated with epoxy. This permanently seals the pipeline at that location and backfill can then be completed. Above: Once the cap is in place, backfilling of the excavation begins. For more than 50 years, Enbridge’s Line
consin. Line 93, as the replacement pipe-
3 pipeline ensured the safe and reliable
line is now named, came into service Oc-
delivery of energy from the oilfields of Al-
tober 1st following more than eight years
berta to the Midwestern U.S. and refiner-
of extensive community engagement,
ies across North America.
and thorough environmental, regulatory,
Its legacy continues with a new pipe-
and legal review.
line along essentially the same corridor,
“This was a landmark undertaking that
stretching 1,765 kilometres (1,097 miles)
has redefined how Enbridge builds major
from Edmonton, Alberta to Superior, Wis-
projects,” says Guy Krepps, Line 3 Project
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Manitoba Energy Review 2022
Director in Canada. “The new pipeline was designed and executed with state-of-theart construction materials and a strong safety and environmental performance. The level of public engagement, which included Indigenous communities and groups, was unprecedented and led to a better outcome, both for Enbridge and communities near the right of way.” In Canada, Line 93 has been operating since December 2019, leading to a focus on reclaiming the pipeline construction right of way and safely removing the legacy Line 3 pipeline from service, a process known as decommissioning. Decommissioning of the first of four segments began in August and was completed ahead of schedule in Manitoba by mid-October, thanks in part to a very dry summer and fall, with zero safety or environmental incidents. A joint venture of Métis N4 Construc-
A worker looks on during removal of a valve south of Morden.
Vehicles and equipment were washed and disinfected under a strict biosecurity protocol to prevent the spread of noxious weeds.
With backfill completed and the topsoil replaced, the land is ready to be returned to its pre-construction state. tion and Steel River Solutions served as general contractor for an area covering 260 kilometres from Cromer to Gretna, with a peak workforce of 55 persons. In-
Inclusion was an important component of the Manitoba project, with the selection of an Indigenous-owned general contractor and approximately 75 per cent of the decommissioning workforce made up of Indigenous men and women. Pictured (from left): Travis Favel (Enbridge); Ellis Cochrane (Peguis First Nation); Dennis Esperance (Enbridge); and Jade Dewar (Manitoba Metis Federation).
digenous men and women comprised approximately 75 per cent of the workforce. “Decommissioning is a logistically challenging job that N4-Steel River handled very successfully,” says Enbridge Construction Manager Allen Sawatzky. “It’s different than building a pipeline – you don’t just work from kilometre zero to kilometre 100 in a straight line. You go back-and-forth, from site-to-site, and this job involved 31 different locations for segmentation, valve isolation and railway fill.” v
www.wallace-woodworth.com ph: 204-748-1239 | info@wallace-woodworth.com Manitoba Energy Review 2022
17
Creating opportunities at the Centre for Oil and Gas Research and Development Image of some of the instruments at COGRAD used to measure petroleum-based chemicals in the environment. Funding for the Centre was from Western Economic Diversification Canada (now Prairies Economic Development Canada).
The Centre for Oil and Gas Research and
environmental research. The Centre works
Development (COGRAD), located in the
closely with industry and/or government
Department of Chemistry at the Univer-
organizations to help support their envi-
sity of Manitoba, is an analytical facility
ronmental monitoring obligations.
committed to advancing the analyses and
The Centre recently augmented its op-
remediation of petroleum-based chemi-
erations to include research and develop-
cals in the environment.
Founded in
ment in the field of environmental DNA
2015 through funding from the Western
(eDNA). The technique relies on the use
Economic Diversification Canada (now
of molecular methods to measure cellular
Prairies Economic Development Canada,
material shed by organisms into aquatic
PrairiesCan), the Centre is an International
and terrestrial environments. With this
Organization for Standardization (ISO) ac-
approach, rapid, non-invasive screening
credited analytical laboratory. Because of
tools, complementary to traditional visual
the ISO-17025 accreditation, the Centre
taxonomy, can be used to monitor ecosys-
provides scientifically defensible analytical
tem biodiversity.
data to external clients. The Centre houses
Strategically situated at the University
state-of-the-art analytical instrumenta-
of Manitoba, the Centre attracts gradu-
tion used primarily to develop faster and
ate and undergraduate students keen to
more cost-efficient analytical means of
conduct research in the field of oil & gas
measuring petroleum-based compounds,
science. Student-led research at COGRAD
development of tools to delineate sources
encompass study areas of environmental
of crude-oil exposures, design of innova-
analytical chemistry, ecotoxicology, bio-
tion strategies to remediate and monitor
chemistry, eDNA, with hands on training
crude-oil components and forensic finger-
on the use of state-of-the-art instrumenta-
printing studies leading to new areas of
tion. Our research team encourages both
18
Manitoba Energy Review 2022
dependent and independent learning and the diversity of skills that are transferred to students and the unique ability to work in an ISO-accredited facility ensures that they are well equipped for the workplace. The Centre collaborates with scientists from Environment and Climate Change Canada on many student-led research projects at the master’s and PhD level focused on the general theme of understanding impacts and distribution of petroleum-based chemicals in the Canadian environment. We also have a longstanding collaboration with members of the Kivalliq Inuit Association (KIA) with a vision to combine traditional knowledge with western science to enhance protocols of field-based water sampling for eDNA analysis. For further information please visit our website: http://cogradmb.ca or contact Gregg Tomy (Gregg.tomy@umanitoba.ca) or Jorg Stetefeld (jorg.stetefeld@umanitoba.ca). v
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19
Canadian Premium shifts from oilpatch drilling to solar manufacturing with new facility
By Paul Adair
Last December, Calgary-based Canadian Premium Sand announced that Selkirk was its preferred choice for a proposed patterned solar glass plant − a first of its kind facility in Canada. For a number of years previous, the company had been working to develop a silica sand quarry near the community of Seymourville and Hollow Water First Nation, which has already voiced its support for the project. The sand was originally intended for use in supporting hydraulic fracturing (fracking) within the oil
22
Manitoba Energy Review 2022
and natural gas industry, but the volatility of the oil & gas market, combined with an oversupply of frac sand, presented an opportunity to explore alternatives uses for the company’s high-quality sand. “In making solar glass, we could increase the value of each grain of sand by 15 times compared to selling it to the frac sand business. And for a single manufacturing plant, like the one we are proposing, we would need less than 150,000 tonnes of sand per year,” says Glenn Leroux, President & CEO at Canadian Premium Sand.
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Manitoba Energy Review 2022
23
the manufacture of solar glass. “The solar glass industry requires glass with a very low iron content of less than 100 parts per million, which allows us to produce the ultra-clear glass required by solar panel manufacturers,” says Leroux. “This is an emerging market that’s forecasted to grow at a rate of 20 per cent annually, and one that shows no sign of slowing down. Plus, we will be the only producer of this type of glass in North America, as all this type of glass is currently imported
“So that’s a tenth of the extraction rate and 15 times the added value of frac sand! Just on that economic basis alone, it would make zero sense to use this valuable resource for fraccing.” The ultra-high silica/low iron content is what makes this Manitoba sand uniquely special. And as one of only four similar sand deposits currently in North America, the importance of this particular quarry − just 160 kilometres north of Winnipeg − cannot be overstated, especially for use in
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Start planning a safe return to work today. Learn how at wcb.mb.ca 24
Manitoba Energy Review 2022
from Asia-Pacific suppliers. At the forecasted rate of growth, we could build a new plant every few years and still not exceed 20 per cent of the North American demand for our glass.” There are several factors that set Selkirk up as the best location for the proposed manufacturing plant. Selkirk is the closest sizeable community to the sand deposit and has easy access to both trucking and rail service. Other selling features include access to natural gas services, renewable hydroelectricity, industrial-grade water from the city’s new wastewater treatment facility, and local labour. “We’re very pleased CPS has selected Selkirk to build and operate its solar glass facility,” says Tim Feduniw, the Director of Sustainable Economic Development at the City of Selkirk. “This initiative aligns with our commitment to sustainable development and will create significant economic benefits for our community.” The project wouldn’t be possible without the support of its Participation Agreement Partners, the Hollow Water First Nation and the incorporated community of Seymourville. These communities have a historic relationship with Selkirk and the supply of silica sand to industry from nearby Black Island dating back to the 1920s through to the 1980s. When up and running, the sand quarry will employ approximately 30 people from Seymourville and Hollow Water First Nation, and the manufacturing plant in Selkirk would create up to 300 permanent, good-paying jobs. “Selkirk is absolutely perfect,” says Leroux. “When I approached the city, they were very keen on this type of industry coming in because it meets their vision for sustainable development and long-term job creation. It really is an ideal fit that works for everybody.” Canadian Premium Sand is currently setting the permitting process in motion for both the quarry and plant and expects that construction might start at the solar glass plant early in 2023. v
New technologies helping meet climate targets New technologies helping meet climate targets By Deborah Jaremko, Courtesy of Canadian Energy Centre Ltd. Global interest in reducing methane emis-
creased by 1,400 per cent, and they’re ex-
– could help the world meet its methane
sions from oil & gas is rising, but in Canada
pected to more than triple again in 2022.
targets.
it’s been an area of focus − and success − for nearly two decades. According to CEC research, Canada’s methane emissions fell by 16 per cent be-
O’Shea says the company’s explosive
“There’s nothing to suggest we couldn’t
growth is because customers are increas-
have similar impacts in the United States,
ingly seeing the value of lowering their environmental footprint.
the Middle East, or former Soviet countries that also are involved in oil and natural gas
tween 2000 and 2018, even as oil produc-
“I don’t think it’s going to stop,” he says.
tion increased by 91 per cent. Meanwhile,
“I think management teams are going to
worldwide methane emissions increased
continue to want and go get those year-
by 27 per cent while oil production in-
over-year improvements in emissions per-
risdiction that is as far forward in terms of
creased by 38 per cent.
formance. And there’s lots of opportunity.”
its methane management as Canada.”. v
“Canada, and especially Alberta, is the
PTAC has been working for more than a
global leader in technologies to reduce
decade on the challenge and opportunity
methane emissions,” says Soheil Asgar-
of methane emissions reduction. Late last
pour, CEO of Petroleum Technology Al-
year, the research organization achieved a
liance Canada (PTAC), a non-profit that
major milestone. As of October 2021, the
helps technology developers cross the
technologies field tested through PTAC
bridge from R&D to commercial success.
have capacity to reduce methane emis-
The governments of both Alberta and Canada now expect oil & gas producers
sions by more than 45 per cent − if adopted by oil & gas producers.
to meet the target of reducing methane
The opportunity for these technology
emissions by 45 per cent in 2025 com-
providers isn’t just within Canada. Dur-
pared to levels in 2012.
ing last year’s COP26 climate summit in
A reduction of 34 per cent in 2020 com-
Glasgow, Scotland, over 100 countries in-
pared to 2014 has already been achieved
cluding Canada signed the Global Meth-
in Alberta.
ane Pledge, with the goal to reduce world
“We’re seeing a shift in mindset of the industry to where oil & gas producers are
methane emissions by at least 30 per cent from 2020 levels by 2030.
seeing it as a strategic choice with eco-
“If we can maintain our global leader-
nomic upside to improve their emissions
ship on technologies that reduce meth-
performance,” says Connor O’Shea, presi-
ane emissions, there’s going to be huge
dent of Calgary-based cleantech company
market created globally,” Asgarpour says.
Westgen Technologies.
production. It could be quite significant,” Fogwill says. “I don’t know of any other ju-
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PTAC chief operating officer Allan Fog-
Westgen’s technology reduces meth-
will says the success in Canada – both
ane emissions from oil & gas well sites. In
of reducing emissions and developing
the last three years, its revenues have in-
technologies that address the challenge Manitoba Energy Review 2022
25
Tundra’s Taylor Wilkinson.
Essential oil Early in the pandemic, workers in the oil & gas sector were among the first to be deemed “essential.” While maintaining operations to ensure the flow of production was critical, the safety and well-being of its people re-
spite the stay-at-home order because this is a 24-hours-per-day, 365-days-per-year business,” says Craig Lane, Tundra’s Vice
mained Tundra’s primary focus since field operators do not have the option to work from home. “More than 100 operators in southwest Manitoba and southeast Saskatchewan had to continue working in the field de-
President of Production Operations. “Even during a global lockdown, we had a responsibility to maintain business as usual.” Sinclair Field Lead Operator Lonnie Brown says that in his 10 years working at Tundra, he has not encountered such a challenge. “Our industry has had its share of peaks and valleys. Most of us are used to dealing with change, but no one was expecting a situation like COVID-19 that affected all of us at work and home. Early on, fear of the unknown seemed to be the biggest concern, especially with the risk of bringing an infectious disease home to the family. But the more you learned, the more you felt at ease,” Brown says. “Tundra did the right thing by reacting quickly and as early as possible. There was good communication from the start, and they’ve stayed the course, checking in frequently, answering questions, modifying procedures, and providing masks and
Tundra’s Steven Gray.
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Manitoba Energy Review 2022
Tundra’s Deanna Joyce.
sanitizers. It went a long way to help alle-
viate any anxiety people were experiencing, so we felt safer coming to work.” At the start of the pandemic, Tundra President Jane Mactaggart assembled a multidisciplinary COVID-19 response team that met weekly to discuss the quickly evolving situation, develop safety guidelines in accordance with public health orders, and plan the company’s most effective actions in the worst-case scenario. “We quickly identified critical tasks required to maintain our base business,” explains Darren Vande Graaf, Vice President, Development Operations. “Teams were created to evaluate extreme event scenarios and develop contingency plans around increased or unexpected absenteeism,” he says, adding that having three geographically distinct offices in Calgary, Virden, and Winnipeg was an inherent advantage in the separation of critical people. Vande Graaf credits the collaboration between the safety and operations teams in maintaining safe working conditions in the field. “The Safety group has worked hard to build a strong safety culture with open, trusting lines of communication, which proved essential in keeping our people safe and informed,” he says. “At the same time, the execution and diligence of the operations team to adjust their processes, buy-in to revised or new safety requirements, and keep our field operations running were critical.” Tundra was able to purchase mass quantities of hand sanitizers, disinfectant wipes, three-ply non-medical masks, and other face covering options to keep operators safe – and, as it turned out, protect other essential workers in the community as well. “During early stages of the pandemic when there were shortages of personal protective equipment in rural hospitals, we were able to donate some of our extra N95 masks to the hospital in Virden,
Manitoba and local EMTs for their ongoing protection,” says Ryan Potter, Tundra’s Manager of Health and Safety. A huge component of Tundra’s safety program is its mental health initiatives − especially important in rural areas where such resources are limited. Recognizing the added pressures faced by employees and their families, Director of Human Resources Kim Mowat coordinated dozens of mental health awareness resources,
including virtual presentations related to social isolation, self-care, parenting issues, relaxation techniques, dealing with grief, and many other related themes. “What we all thought would be a couple of weeks has stretched into a year and a half, but Tundra is still on top of the situation and reminding us about the importance of taking care of each other,” says Brown. v
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27
Energy from the Earth Now in its 29th year, the Williston Basin Petroleum Conference is one of the preeminent gatherings for North America’s energy sector and is cohosted by the Government of Saskatchewan, the state government of North Dakota, the North Dakota Petroleum Council, Saskatchewan Geological Survey, and the Petroleum Technology Research Council. The conference takes place annually in Saskatchewan and North Dakota in alternating years, attracting business, technical and government leaders who come together to share technical advancements and business opportunities specific to the region. The theme of the 2022 Williston Basin Petroleum Conference is “Energy from the Earth,” an in-depth look at Saskatchewan’s energy industry opportunities and homegrown innovations. The conference will showcase technical innovation centred around emissions reduction, CO2 sequestration, enhanced EOR, helium, hydrogen, geothermal, as well as advancements in heavy oil, light and tight oil, advanced energy systems and advanced technologies. The Williston Basin Conference will also focus strongly on all the sources of energy in the earth – from the potential for geothermal from reservoirs in Canada and the US, to the burgeoning lithium extraction industry in Saskatchewan, to CO2 storage to help mitigate emissions in oil and gas, and finally to identifying and exploiting other subsurface commodities like helium and hydrogen.
Schedule of Events
Boundary Dam Tour
8:00 a.m. - 4:30 p.m.
For complete information, visit www.wbpc.ca/conference/. v
CSEG Short Course
8:00 a.m. - 4:00 p.m.
Preliminary schedule – subject to updates May 16, 2022 Registration
8:00 a.m. - 4: 00 p.m.
Core Workshop - Morning Session
8:00 a.m. - 1:00 p.m.
Exhibitor Move-in
9:00 a.m. - 5: 00 p.m.
Core Workshop - Afternoon Session
1:00 p.m. - 5:00 p.m.
Ice Breaker Reception - Exhibition Area
5:00 p.m. - 7:00 p.m.
May 17, 2022 Registration
7:00 a.m. - 4: 00 p.m.
Business Conference
8:00 a.m. - 1:30 p.m.
Exhibition
8:00 a.m. - 5: 00 p.m.
Technical Conference Day One
1:40 p.m. - 5:00 p.m.
Reception - Exhibition Area
5:00 p.m. - 7:30 p.m.
May 18, 2022 Registration
7:00 a.m. - 4: 00 p.m.
Bacon and Regs
8:00 a.m. - 9:30 a.m.
Exhibition
8:00 a.m. - 5: 00 p.m.
Technical Conference Day Two
10:00 a.m. - 5:00 p.m.
Exhibitor Move-out
5:00 p.m. - 8:00 p.m.
May 19, 2022
– Introduction to Applied Geophysics for Non-geophysicists
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Manitoba Energy Review 2022
JUNE 7-9, 2022 | CALGARY, CANADA
ENERGY EVENT
Manitoba Energy Review 2022
29
A MESSAGE FROM
mark scholz
President and CEO of the Canadian Association of Energy Contractors
In the past decade, we’ve been through unimaginable highs and lows in Canada’s energy services sector, but it seems the worst is finally behind us as we move on to brighter days. From the darkest days of 2020, we bounced back in 2021 with an outlook better than it had been in years. With economies reopening and restrictions lifting, it was full steam ahead for CAOEC members in 2021, and the increased demand led to strong commodity pricing and peak oil prices not seen since 2014. We had a memorable year with the association’s historic name change and membership expansion to include directional drillers. We welcomed many new associate members, including several producers, helping to deliver on our vision of being the most influential trade association in the Canadian energy industry, and promoting the interests of the energy services industry operating near the wellhead. While the industry picked up in North America, some continents faced unprecedented energy shortages. Europe in particular faced uncertainty with commodity pricing for natural gas increasing sharply and some people facing the unconscionable dilemma of “heat or eat.” The energy crisis illustrated the risks of carrying out
30
Manitoba Energy Review 2022
a transition too quickly and the need for secure, reliable, and affordable energy for Canadians. To help prevent a full-scale emergency, Europe received additional shipments of liquefied natural gas (LNG) from many countries, Canada unfortunately not being one of them. An issue for the past several years has been Canada’s lack of export capacity. Canada missed out on supplying Europe with LNG due to a lack of export capacity. LNG provides affordable and clean-burning fuel. We look forward to seeing progress being made on LNG Canada, as it will provide our best-in-class energy to Asian markets and alleviate future shortages in years ahead. There were still celebratory signs of additional export capacity in 2021 as Enbridge’s Line 3 came into service after years of no new pipeline development in Canada. The Trans Mountain Pipeline Expansion is expected to be completed by the H2 of 2023, and both the LNG Canada Project and Coastal GasLink pipeline surpassed 50 per cent completion and are on track to be finished by their target date of 2023. Canada’s oil & gas sector is committed to emissions reduction and clean technology, exploring opportunities in LNG, hydrogen, lithium, helium, CCUS, geo-
thermal, and more. The oil & gas sector alone spent $28.1 billion on environmental protection in Canada between 2006 and 2018, and that number is expected to grow in the next decade. We will continue to champion environmental protection and maintain we should be the global energy supplier of choice on Canada’s path to net-zero emissions. Investors and industry analysts are predicting $100 per barrel oil in 2022, and as pandemic restrictions fade, demand will only grow stronger with people returning to their normal lives. This year, I am looking forward to seeing strong numbers in both operating days and active rigs, and working closely with the board of directors and our members to demonstrate our responsible stewardship and active role in the global energy evolution. In closing, I would like to extend a special thank you to our dedicated CAOEC staff and volunteers who help us fulfill our mandate, and our board of directors who steer the association in the right direction. I am honoured to serve as President and CEO of this great association and will unwaveringly advocate for the energy services sector and the thousands of women and men who work to provide secure, reliable, and affordable energy for Canadian families. v
Nuclear energy could help cost-effectively decarbonize Canada’s heavy industry Along with the rest of the world, Canada is under immense pres-
vide heat and power to remote and First Nations communities.
sure to build its path to net-zero by 2050. But unlike many parts
Research conducted by EnviroEconomics and Navius looked
of the world, Canada faces unique challenges and opportunities.
at the economic and climate implications of using SMRs in Can-
Canada’s economy is built on the advantage of extensive, rich
ada’s high-emitting heavy industry, and explored different cost
natural resources – but this is a double-edged sword when it
and technical assumptions for deploying SMRs. The research
comes to climate change. While our energy, mining, and heavy
highlights that SMRs in Canada could reduce GHGs in the heavy
industry sectors form the backbone of our economy, they rep-
industrial sector by 18 per cent by 2050 while contributing up to
resent a large portion of Canada’s greenhouse gas emissions
$5 billion to gross domestic product (GDP) annually in the same
(GHGs). Currently, the oil sands, chemical manufacturing, and
timeframe.
mining collectively contribute more than 30 per cent of Canada’s
With deployments set to begin as early as 2026, SMRs could
GHGs. We also know that these sectors face enormous challeng-
be widespread by 2035 to meet the rapidly growing demand for
es in reducing their carbon footprint.
emission reductions in heavy industry and resource extraction
It’s not realistic to abandon these industries. Doing so would
sectors.
cause significant socio-economic destruction. Instead, Canada’s
Beyond the obvious environmental benefits, investing in clean
path to net-zero must include decarbonizing heavy industry in
nuclear technology offers huge economic opportunities, with
an environmentally and economically advantageous way.
the global SMR market projected to reach $300 billion per year
There is a path to a more sustainable green economy for Canada’s heavy industry sector − a path that includes clean nuclear energy working in partnership with renewables. World-renowned scientists, environmentalists, and climate change experts have concluded time and time again that there is no path to net zero without nuclear in the mix.
by 2040 according to the World Economic Forum. With 65 years of industry experience, an impeccable safety track record, and the world’s largest natural reserve of high-grade uranium, Canada is well-positioned as a global nuclear leader. Nuclear is one of the largest producers of clean electricity around the world and in Canada, accounting for 15 per cent of
As an energy-dense, carbon-free, and reliable energy source
Canada’s electricity production. But we have only scratched the
available around the clock, nuclear can play an integral role in
surface of nuclear’s potential to help drive a low-carbon green
fighting climate change − including through SMRs (small modu-
economy. Data demonstrates that SMRs could deliver low-cost
lar reactors).
emission reductions while driving down the overall cost of get-
SMRs use fission to generate reliable, carbon-free electricity
ting to net zero as a nation.
and heat with a small land footprint. These innovative reactors
With the right investments today, Canada can use its world-
are scalable and can be built economically in factory settings,
leading nuclear expertise to provide the vast amounts of clean
allowing for easy transportation to remote or challenging loca-
heat and electricity required to make this country’s energy tran-
tions.
sition clean and economically advantageous.
Working in tandem with renewables, SMRs are uniquely positioned to provide clean electricity, produce carbon-free hydrogen, decarbonize our extraction and heavy industries, and pro-
SMRs have the potential to be a game changer in helping to fight climate change in Canada, but the clock is ticking. The time to take decisive action is now. v Manitoba Energy Review 2022
31
Solutions for managing economic opportunities while reducing environmental footprints By Allan Fogwill, COO, Petroleum Technology Alliance Canada
The Canadian oil & gas industry is challenged with balancing environmental management with economic development, competitiveness, and value-added opportunities. While some companies have the resources to develop and manage their own research and development programs, all the producers and service companies benefit from a collaborative approach to new research. Collaboration can leverage the resources of all stakeholders to better deliver on new research and technologies. Given these challenges, the Petroleum Technology Alliance Canada (PTAC) has been operating as a neutral non-profit facilitator of collaborative R&D and technology development. It operates in partnership with all industry stakeholders to deliver on technology and business process solutions to address these challenges. Over the past 25 years, this collaborative approach managed by PTAC has: • Facilitated over 450 projects worth more than $180 M from an industry contribution of only $30 M. • Conducted technical committee collaborates with over 250 volunteers and 200 member organizations including
32
Manitoba Energy Review 2022
producers, technology vendors and academia. • Aided the oil & gas sector in the development, field testing and deployment of technology solutions to address the challenges of environmental management, cost savings, value added products and solutions for net-zero. • Saved industry over $90 M in operating costs per year. This year as in past years, PTAC is working with industry, government, and regulatory volunteers to assess over 50 projects for the new intake for 2022/23. These projects address issues related to air emissions management – in particular, methane. In addition, challenges being considered include reclamation, well management, water management, and ecosystem management. Oil & gas stakeholders have several programs to access in order to move forward on various projects. These are: CANADIAN EMISSIONS REDUCTION INNOVATION CONSORTIUM (CANERIC) The CanERIC program is a pan-Canadian network of researchers and end-users collaborating to develop and deploy tech-
nologies to reduce methane emissions. This network is providing industry with a platform to articulate and rank their most pressing methane emission challenges. Clean Tech technology vendors can better understand the potential market for their products and develop appropriate solutions. The industry works collaboratively with the technology vendors to lab and field test their technologies, and the vendors are able to refine their designs with the testing information. Institutional and academic members are also involved in CanERIC to provide the expertise to conduct the lab tests and monitor and analyze field tests for the network. SYSTEMATIC THIRD-PARTY VALIDATION (STV) AND METHANE CONSORTIA PROGRAM (MCP) Even if a technology is field tested and proven to be cost-effective and reduce methane emissions, the SMEs still face the challenge of increasing the market uptake of that technology. To attempt to mitigate this challenge, PTAC launched two consortia that pay up to 75 per cent of the cost of equipment and installation of cost-effective methane mitigation technologies, encouraging Canadian pro-
ducers to get first-hand experience with
was an estimated cost savings of $93 mil-
The Canadian oil & gas industry is an
the new technologies. These consortia
lion realized per year for producers with
international leader in environmental
aim to increase the investment in massive
a projected future value of $204 million
protection while continuing to provide
deployment of such technologies by pro-
per year. The savings realized by industry
economic benefits to the country. The
ducer, hence increasing market uptake.
through these studies is often the result
existence and demonstrated effective-
of industry best practices and improved
ness of PTAC is a clear indication of how
policies and regulations.
the industry takes its role in reducing en-
These programs together have resulted in installing 101 pieces of equipment, including 10 site electrifications, 37 pump optimizations, 26 smart pumps, 14 STD Electrics, 12 Instrument air compressors, one facility of the future, and one new
INDUSTRIAL RESEARCH ASSISTANCE PROGRAM (IRAP) PTAC also works with SMEs in collaboration with the National Research Council
compressor engine design.
Industrial Research Assistance Program ALBERTA UPSTREAM PETROLEUM RESEARCH FUND (AUPRF)
(NRC-IRAP). This program provides oil & gas SMEs with innovation support, par-
vironmental impacts seriously. Also clearly shown is the collaborative and cooperative approach the industry is taking with governments and regulators. Those organizations support the research through funding and volunteering in the various committees.
Since inception, the AUPRF program
ticularly for demonstrating and deploying
Canadian companies continue to de-
(Alberta Upstream Petroleum Research
near-commercial or deployment-ready
velop technologies and process to reduce
Fund) has invested $30 M to over 465 proj-
technologies that improve environmental
environmental impacts while also devel-
ects related to conventional oil & gas ac-
performance and reduce costs. Last year
oping significant economic opportunity
tivities. The focus areas include the man-
alone PTAC completed 55 assessments
domestically and internationally. Canada
agement of emissions, water, ecosystems,
with the financial help from NRCan/ IRAP
will continue to be a leader in the sustain-
land reclamation and well abandonment.
and launched 20 consortia to help SMEs
able development of oil & gas through
In a recent analysis of the program, there
achieve economic prosperity.
these efforts. v
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33
PTRC expands its expertise on CO2 storage to shallower reservoirs For the past 22 years, the Petroleum Technology Research Centre has had a growing reputation for expertise in monitoring and validating the deep subsurface storage of CO2 – both in depleted oil reservoirs and in deep saline formations. The substantial body of research and data available from the PTRC stretches across its 15 years of research at the Weyburn CO2-EOR project, and most recently at the Aquistore CO2 storage project. This latter research and injection site, which is taking CO2 from SaskPower’s Boundary Dam CCS facility near Estevan and storing it 3.2 kilometres underground in a
brine and sandstone formation, has so far permanently stored more than 400,000 tonnes of CO2 underground. That’s the same as taking 100,000 cars off the road for one year. “What we’ve learned at Weyburn and Aquistore has allowed the companies involved to provide assurance to both the public and to provincial and federal regulators that the CO2 has been permanently and safely stored underground,” notes Ran Narayanasamy, the CEO of the PTRC. “From project conception, through geological characterization, risk assessment and measurement monitoring and verification
(MMV), the PTRC has proven itself to be Canada’s expert organization on bringing CCUS projects to reality.” With the recent announcements by the Government of Canada supporting tax credits for geological storage and CO2 emissions reductions from the oil and gas sectors, PTRC’s expertise is increasingly sought after. Both of PTRC’s storage projects, situated in southeastern Saskatchewan, are about very deep geological storage of carbon dioxide (between 1.5 and 3.2 kilometres underground). Saskatchewan and Alberta are very fortunate to have several geo-
Well distribution in the heavy oil regions of SK and AB. Black dots are closed wells; red suspended. It is thought some of these suspended wells could be used for CO2 storage. Image composed using GeoScout.
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Manitoba Energy Review 2022
The Aquistore research site is the largest field research lab in the world related to CO2 storage. Here, the CO2 pipeline from Boundary Dam feeds into the injection well, behind and to the left.
logical strata that are capable of storage – many of them with good porosity and permeability that makes storing of significant volumes of captured CO2 possible. But injected CO2, in order to take up as little space in the reservoir as possible, usually needs to be compressed to a liquid-like status (called super-critical). This compressed CO2 acts like a liquid and becomes miscible with the water, brine, or oil in the formations. “When injecting CO2 into shallower formations – let’s say around 1,000 metres or even shallower – the challenge is that pressures in the reservoir may not be high enough to keep the injected carbon di-
panies hoping to capture and dispose of their CO2 in areas where the geology only allows for shallower forms of storage. Our research is now addressing this challenge head on.” Areas of Saskatchewan and Alberta − such as the heavy oil region around Lloydminster, which has significant emissions reduction challenges for both production and refining of oil and gas − could benefit from research into shallow storage in reservoirs above 1,000 metres. There are thousands of suspended oil wells in the region that could act as storage locations, using existing infrastructure that would otherwise go unused. Likewise, the stor-
oxide in this supercritical state,” notes Erik Nickel, the Director of Operations at the PTRC. “This is a concern for those com-
age and use of CO2 in some of the strata of the Bakken and Viking Formations in Southern Saskatchewan carry emissions mitigation potential. “Aquistore remains one of the best field laboratories in the world for studying deep geological storage of CO2,” notes Nickel. “We are sharing our findings with industrial and research clients from around the world, but we recognize not all jurisdictions have the ability for deep geologic storage. We are now working in unison with groups like Carbon Management Canada and through our heavy oil research network (HORNET) to find a way to make shallower storage feasible and safe.”
PTRC has published a white paper on CO2 use and storage in the heavy oil regions of Canada. It can be viewed at our website: https://ptrc.ca/pub/docs/OfficialWhitePaper%20Final.pdf. v
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Fort Garry Fire Trucks: Tough today, tough tomorrow By Trevor Robb, Marketing Manager Our motto at Fort Garry Fire Trucks is “One Tough Truck”. Just how tough are we talking? Considering that many of the vehicles that roll out of our Canadian manufacturing plant will be called upon to work in some of the most inhospitable conditions on the planet. That includes everything
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Manitoba Energy Review 2022
from bone-chilling lows of -60° C in Canada’s North to blistering highs of 50° C in desert climates halfway around the world. And they often have to travel on some of the most treacherous roads around to get to where they need to go. Fort Garry Fire Trucks is Canada’s oldest
and largest manufacturer of firefighting apparatus, and we sell more than 100 rigs in a typical year. While the bulk of those sales are here in Canada, where we supply equipment to every province, we also serve our neighbours to the south in the United States and as far away as China, Chile, Cuba, Costa Rica, Pakistan, the Bahamas, and the United Arab Emirates. We boast one of the largest fire apparatus engineering departments amongst our competitors, devoted to the design and production of equipment for the most extreme conditions in the world. With the exception of the commercial chassis used in some of our trucks, every aspect of design and construction is handled by our employees, from painting — we offer more than 160 shades of red — to pump assembly. As our company has grown over the years, so too have our product lines. We build everything from small rescue trucks all the way up to our top-of-the-line Bronto Skylift, with an
articulating aerial device that can reach hard-to-access spots. In fact, we now offer 130 product lines and over 10,000 options for our customers to choose from. One of our keys to success has been our willingness to listen to what our customers need rather than telling them what we think they need. Our sales team undertakes an extensive consultation process with each new or existing customer, which can take as little as a few weeks or as long as a year. It’s part of an effort to determine what the customer’s precise needs are; whether it’s command lights that can illuminate an entire football field or cameras that offer facial recognition from as far as a mile away, Fort Garry Fire Trucks can customize it for you. Our full-framed aluminum extruded bodies utilizing 5083 saltwater marinegrade aluminum include rescues, pumpers, pumper tankers, fire tankers, and aerial ladders. Our walk-in rescues, command rescues, and walk-around rescues are engineered for the harshest road conditions and environments in the world while our Emergency Rescue (ER-X) bodies are customized for flexibility and maximum performance with side-mount, top-mount, and top-mount-enclosed options available and incorporating other world-class features into your apparatus. Our emergency rescue bodies, provide fire departments with the performance of a pumper and the storage of a rescue. Be confident knowing you’re properly equipped for nearly any possible situation with our fullframed custom bodies. Our Crusader pumpers are among the most dependable in the industry featuring our form-framed body structure made from 5052 freshwater marine-grade aluminum and deliver more compartment space, a lower centre of gravity, and ergonomic side-mount or top-mount pump control configurations. While our Crusader tankers are designed for optimum performance and maneuverability, they’re also constructed with a form-framed body
structure. At any scene, one crucial element is the availability of water, and our tankers feature a wide range of tank capacities from 1,500 to 3,000 imperial gallons, along with a variety of porta-tank
storage options your fire department can choose from. Whatever your fire department’s needs are, we guarantee it will be One Tough Truck! v
Manitoba Energy Review 2022
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INDUSTRY NEWS
SRC leads with hot water plus flue gas injection December 2021 brought news that SRC would receive funding from Innovation Saskatchewan’s Saskatchewan Advantage Innovation Fund (SAIF) for its Hot Water Plus Flue Gas Injection Project. SRC’s Enhanced Oil Recovery (EOR) and In-Situ Processes team are working on the project, which is designed to validate hot water injection plus flue gas for EOR purposes in Saskatchewan’s Viking formation. THE VIKING According to Petro Nakutnyy, SRC’s director of operations, EOR and in-situ processes, the Viking doesn’t have many places left for drilling, but there is oil left that could be usable for the oil industry. The use of Hot Water plus Flue Gas Injection project has been developed to address the issue and has not been field tested in the Viking before. “Oil recovery from Viking wells often does not exceed 15 per cent of the original oil in place under primary production and waterflooding, leaving a lot of oil behind. SRC has been looking into various ideas of expanding the life of the wells in the Viking formation and improving the ultimate oil recovery,” says Nakutnyy. “We have observed a positive effect from injecting hot water into the Viking core while exploring new ideas to improve oil recovery. This project will investigate the use of the hot water plus flue gas injection process in the laboratory and will lay the ground for a potential pilot project in the field.” SRC has been working on projects in the Viking formation for more than 10 years and has developed significant expertise about the region and the technology that can help improve oil recovery for industry working in the area. INDUSTRY PARTNERS The industry consortium led by SRC has examined many ways to improve production in the Viking formation, including chemical, gas and warm/hot water flooding. Previous results suggest that hot water injection can increase oil recovery from the Viking formation. Joining SRC on the project is General Energy Recovery Inc. (GERI), who has worked with SRC on testing Direct Contact Steam Generation (DCSG) technology for Enhanced Oil Recovery (EOR) applications in heavy oil fields over several years. GERI has developed a portable hot water/and flue gas DCSGbased process. This technology will be adapted for the Viking for-
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Manitoba Energy Review 2022
mation to generate hot water instead of steam. This project will test this process under laboratory conditions to test the expectations that increased water temperature along with flue gas coinjection can positively impact oil recovery in the Viking, especially where steam may not be a practical option for operators due to the formation’s high sensitivity to fresh water. “GERI is excited to be working once again with SRC and also with leading Viking operators on new opportunities to enhance Viking oil production in a cost-effective and sustainable way,” says Brian Kay, chief technology officer, General Energy Recovery Inc. “We believe that SRC’s work will demonstrate the relevance of DCSG technology in extending Viking well life and in so doing providing crucial benefits to Saskatchewan in terms of future provincial royalties and jobs. We thank the Saskatchewan Advantage Innovation Fund, SRC, and the operators involved for their vital support.” THE PROJECT Nakutnyy notes that the Viking formation is sensitive to fresh water, and the project will focus on the optimal temperature of water for increasing oil recovery in the region. The work will take place in 2022, with laboratory work completing in the late spring. After analysis and calculations, if the results are positive, the Hot Water plus Flue Gas injection project will potentially head into field trials in the Viking formation. This project will help extend the life of oil wells in the Viking formation in a way that benefits both industry and the environment. Nakutnyy says the project will help industry avoid additional drilling while also increasing recovery in an efficient, sustainable manner. FUNDING The industry partner – GERI, Baytex Energy and Whitecap Resources – funded 70 per cent of the project. The Innovation Saskatchewan funding – a total of $23,700 – covers about 30 per cent of the total project cost. The funding will help fund the research to validate the concept, collect the data required to prepare for field trials and to help determine its technical and economic feasibility. Learn more about the Direct Steam Generation project and SRC’s Enhanced Oil Recovery (EOR) and In-Situ Processes services at src.sk.ca. v
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