Manitoba Energy Review 2023

MANITOBA

2023 Energy Review

Capturing the wind: Manitoba poised to be a leader in wind generation

Canadian CCS leadership: An opportunity too important to lose

Closing Manitoba’s clean energy demand gap through small modular reactors

Geothermal energy offers a renewable alternative to oil & gas well abandonment

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MESSAGE FROM THE MINISTER OF ENVIRONMENT AND CLIMATE HONOURABLE KEVIN KLEIN

When the Premier asked me to take on the role of Minister for the Department of Environment and Climate, I was honoured to lead the province’s work to protect nature and reduce emissions in Manitoba. In continuing the work of my predecessors to implement the 2017 Climate and Green Plan, we have made significant achievements and look forward to more actions to reduce emissions.

Manitoba’s Carbon Savings Account sets five-year goals for emissions reductions. We expect to confirm our goal of one megatonne of emissions reductions during the first period (2018-2022), and we have set a more ambitious goal of at least 5.6 megatonne reduction for the second period (2023-2027). Achieving these reductions are expected to occur throughout the energy supply chain within Manitoba, and many are focused on end-use reductions.

The Efficient Trucking Program will provide up to $6.9 million that will help extend the program for another year. The Conservation and Climate Fund allocated $1.5 million to support projects that align with the priorities of the Climate and Green Plan. We increased Manitoba’s Biofuels Mandates in 2022, and we will continue to work on renewable fuels, including hydrogen, as a way to reduce fossil fuel emissions in the province.

Our Crown corporations hold important roles in achieving emissions reductions. Manitoba Hydro is the provincial electricity and natural gas utility, and they have a critical role to support the shift away from fossil fuels and toward clean and renewable electricity where possible. A new integrated resource planning process is underway that will ensure that our electricity and natural gas needs are met in a cost-effective matter, and to ensure that customers’ needs are met as they increase their demand for electricity.

Energy efficiency and other demand-side management efforts delivered by Efficiency Manitoba will be critical to achieve the legislated mandate is to develop and support energy efficiency initiatives that will reduce provincial consumption of electricity by 1.5 per cent and natural gas by 0.75 per cent annually. By reducing provincial consumption of natural gas, the Crown corporation enables significant greenhouse gas emissions reductions.

In Budget 2023, our government recommitted to protecting Manitoba’s environment in ways that create conditions for sustainable growth and a greener economy by providing grant funding to encourage businesses, industries, and institutions to identify pathways to de-carbonization, as well as fund innovative projects to help protect the environment and create a greener Manitoba. Further, Manitoba’s Climate and Green Plan continues to guide priorities and investments to help protect the environment and reduce emissions while advancing economic opportunities and innovation for Manitoba.

Manitoba’s clean, renewable, and low-cost electricity is 99.6 per cent carbon free. This provides an unparalleled opportunity to help the energy sector, manufacturers, municipalities, private businesses, public institutions, and households across the province to prepare for a low-carbon future.

Our energy resources, economic advantages, and leadership on environmental protection will move us ever closer to a future in which greenhouse gas emissions are dramatically lower and our economy becomes more diverse, innovative, and prosperous in a carbon-constrained future. v

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As I look back on 2022, I am positive that many of us feel an overall sense of renewal in Canada’s energy services sector. Despite the challenges and growing pains due to an influx of work after years of stagnation, we are fortunate to have come up with innovative solutions to deal with the challenges head-on and come out on top.

Unfortunately, other countries haven’t had such a successful year. Geopolitical conflict and instability began in February, leading to the disastrous Russian invasion of Ukraine and eventual energy crisis in Europe and shortages in other regions. Countries including Germany and Japan visited Canada asking for our partnership on providing secure and reliable energy. Canada is known around the world as a trusted partner, centred on sustainable development with a laser focus on the highest environmental, social, and governance standards. Canada’s energy services sector is on the frontlines of championing energy security and transition.

Canada’s energy industry made exciting advancements with the near completion of the Trans Mountain Expansion Project and Coastal GasLink, which will

add considerable export capacity in the coming years. Additionally, the recent approval of Woodfibre LNG marks Canada’s second LNG export facility project in the works. BC signed a historic deal with Blueberry River First Nations, providing a framework to move forward and signalling progress in Indigenous economic reconciliation. Still, our nation falls behind on LNG projects. The global marketplace needs LNG, and approving more infrastructure projects would reduce global emissions by displacing coal-fired power in countries such as China and India.

One of the highlights of the year was creating our industry white paper, Leading Collaboration Through the Energy Transition, which expands on our vision to create the world’s most carbon-efficient and productive drilling and service rig sector.

We spent time in Ottawa and continue to meet with government leaders to share how the services sector is ready to introduce innovative solutions that will reduce emissions while spurring jobs and opportunities across the country. The white paper builds on government priorities to support Indigenous businesses and com-

munities, incentivize Canadian innovation, retain and create sustainable jobs, and establish our leadership on the world stage.

Throughout the year, we continued to see progress on new energy initiatives across the country. From geothermal to lithium extraction from brines, the future depends on the expertise of the energy services sector. Canada’s energy sector provides 845,500 direct and indirect jobs to people from coast to coast to coast. Our workforce is proud to be on the frontlines of the transition, focused on drilling projects for geothermal, helium, potash, lithium, natural gas which can be made into hydrogen, and carbon capture utilization and storage (CCUS) projects.

The International Energy Agency (IEA) estimates that oil demand could rise 1.9 mb/d, up to 101.7 mb/d in 2023, the highest ever before. Industry experts forecast $83 (USD) per barrel oil in 2023, a number which looks steady throughout this decade. We have seen more rigs working and anticipate a modest increase in wells drilled and operating days this year. I look forward to continuing our advocacy efforts with the provincial and federal governments and working with the Board of Directors and our members to see our vision through to the finish line.

In closing, I would like to thank our dedicated Board of Directors who lead us, and our dedicated staff and volunteers who carry out our mission. I am proud to serve our membership and will continue to drive our mission forward to advocate on behalf of the hard-working Canadians who provide energy security for those around the world. v

MESSAGE FROM THE PRESIDENT AND CEO OF THE CANADIAN ASSOCIATION OF ENERGY CONTRACTORS

MESSAGE FROM THE EXPLORERS AND PRODUCERS ASSOCIATION OF CANADA (EPAC) TRISTAN GOODMAN

President and CEO, Explorers and Producers Association of Canada

EPAC represents over 80 upstream oil and natural gas producers from start-ups to multi-billion-dollar public companies. EPAC members have their head offices in Canada and produce about 40 per cent of all hydrocarbons in the country. On an annual basis, our members directly support over 45,000 jobs and over $40 billion in capital and operational spending. These companies are the engine of the industry and invest billions of dollars each year developing new energy reserves while providing the North American market with secure, reliable, and responsibly produced energy sources.

As 2023 moves along, a renaissance in our Canadian energy sector is starting to take shape – the future will be cleaner and look different than in the past, but it will also include many old friends. This renaissance represents a massive opportunity: our producers can supply the responsible, clean, and secure energy the world needs while also helping Canada achieve its climate goals, its Indigenous reconciliation goals, and respond to inflation and affordability concerns for Canadians.

EPAC member companies are delivering real emissions reductions and are producing more with less GHG emissions than just a few years ago. Our members have collectively invested hundreds of millions of dollars in abatement technologies, including the deployment of three of the four large-scale CCUS projects in Canada. Others are actively investing in clean tech ventures, including potential future hydrogen development and methane reductions. All of these are being accomplished with an unprecedented level of engagement and participation of Indigenous communities who see huge economic opportunities associated with responsible resource development.

While many in our sector are delivering strong business performance and emissions reductions, the world has entered a period of energy crisis. To ensure the sector can continue to produce needed energy for home and abroad, while continuing to lower emissions, we need increased competitiveness in government policy and balanced, realistic policy discussions – because investors consider this as they determine whether they should bring their business to Canada or move it to other countries (like the United States whose recent Inflation Reduction Act has tilted the balance in favour of U.S.-based clean technology investment).

It is important for all Canadians to understand that to improve energy security and affordability, mitigate inflation, and continue reducing emissions – investment in our sector must occur. For this to happen, international investors need to stop seeing Canada as an environment where projects take too long to get approved and built and where regulatory goalposts are uncertain.

Energy security, inflation, and affordability challenges are likely to remain for the foreseeable future. So too are the challenges around the implementation of climate policy and the continuation of the long journey toward Indigenous reconciliation.

The good news is that if we can improve Canada’s competitiveness for investment, our energy sector is well positioned to help Canada navigate these challenges. EPAC member companies will continue emissions reductions while generating the good paying jobs, government revenues, and economic contributions to help Canada’s economy weather storms – like we have in the past, only cleaner.

In summary: A Canadian energy renaissance is poised to occur in a manner that all Canadians can support. There is enormous opportunity ahead as the world increasingly recognizes Canadian energy production can be a solution to climate challenges and energy security – the key to realizing this opportunity is making Canada the most competitive jurisdiction for investment. v

Closing Manitoba’s clean energy demand gap through small modular reactors

By John Gorman, President and CEO,

Canada Nuclear Association

An energy transition is underway in Canada, and for now, Manitoba has a leading edge. Not only is the province home to some of the nation’s richest natural resources, from agriculture to electricity, oil, mining, and forestry, but it has one of the cleanest electricity grids in the country thanks to abundant hydroelectric resources. As businesses look to reduce their own carbon footprints, they will be looking to jurisdictions such as Manitoba as sources of clean energy to power their operations.

However, beyond electricity, Manitoba faces a challenge shared with the rest of the country: significant reliance on fossil fuels for transportation, agriculture, buildings, and industry. As of 2019, approximately three quarters of all energy used in the province comes from oil or natural gas. There also continues to be heavy reliance on high emitting diesel for many remote communities, with Manitoba’s diesel demand at 25 per cent above the national average per capita. Closing the province’s clean energy gap by shifting these sources of energy demand to electricity, or potentially other energy carriers

like hydrogen, will be a massive challenge. While Manitoba has historically relied on a single source of clean electricity in hydro, the future electricity mix is likely to be much more diversified. One potential source of clean power for Manitoba is nuclear. Manitoba already has a history of nuclear expertise, having been home to Whiteshell Laboratories for over 40 years. The work done at Whiteshell was one part of the success story that is nuclear energy in Canada, which was one of the first countries in the world to generate electricity from a nuclear reaction and today maintains a robust and growing nuclear power sector and supply chain.

Other provinces in Canada are currently working to either expand their existing nuclear sectors, such as Ontario or New Brunswick, or enter the nuclear sector, such as in Alberta or Saskatchewan. While in the past, nuclear power in Canada has focused mainly on providing electricity at a large scale, the future of nuclear in Canada is going to be more diverse: different types of reactors, different sizes, and different use cases. In particular, Canada is becoming a world leader in

the development and deployment of small modular reactors, or SMRs.

SMRs have the potential to create three major benefits for Canada. First, they will help create the clean power required for further electrification. Second, they can provide clean energy to remote communities (including those that are off the grid and that are reliant on diesel). And third, they can help to make the process of extracting natural resources much cleaner by providing non-emitting process heat and power, a challenge currently facing Manitoba’s oil & gas sector.

Canada is already an established world leader in clean nuclear energy, with an impeccable safety record that spans several decades. We already have 19 nuclear reactors that generate approximately 15 per cent of the country’s electricity and are one of the world’s largest exporters of nuclear medicine. We are also set to be the first G7 country to build and connect a grid-scale SMR, with the Darlington SMR project set to come online in 2028.

Through the 2023 federal budget, the federal government has indicated its clear and strong support for nuclear power playing in indispensable role in the countries clean energy transition and in ensuring domestic energy security. Looking to the future, there’s no doubt that non-emitting nuclear energy will play a fundamental role in helping Canada meet both its provincial and national emission reduction goals on our path to building a future green economy. v

While in the past, nuclear power in Canada has focused mainly on providing electricity at a large scale, the future of nuclear in Canada is going to be more diverse: different types of reactors, different sizes, and different use cases.

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Canadian CCS leadership: An opportunity too important to lose

By James Millar, President and Chief Executive Officer of the International CCS Knowledge Centre

With the world in the grip of the first truly global energy crisis, millions of people are bracing for a winter that is expected to be marked by power brownouts, heating fuel shortages, and widespread economic recession. Skyrocketing energy prices sparked by Russia’s invasion of Ukraine at the same time as global demand entered a post-pandemic rebound are having devastating consequences. In the United Kingdom, for instance, three-quarters of the country is expected to enter energy poverty by the new year, and countless families are facing the stark choice between spending money to keep warm or having enough to eat.

It’s a painful example of the real-life dif-

ficulties of trying to balance the world’s growing demand for reliable, affordable, and responsibly produced energy while simultaneously working to meet ambitious goals for cutting GHGs. There are no easy answers for how these competing objectives can be achieved over the next few decades, but it is increasingly clear that if we have any hope of meeting the aggressive emissions reductions required by the Paris Agreement to avoid catastrophic levels of climate change, an “all of the above” strategy is required.

While the immediate impacts of the current energy crisis may not be as acute for Canadians, the long-term challenge is a daunting one, as our lifestyles are energy

intensive and our economy is founded on heavy-emitting industries that provide the products and resources the rest of the world desires. At the same time, our national climate targets aim to neutralize carbon emissions from our electricity sector by 2035 and reach net-zero emissions across the country by 2050.

Thankfully, many of the technologies that will help us get there are already in play in Canada – including a key solution in which we are a world leader – carbon capture and storage (CCS).

CCS is a suite of technologies that can be applied to a variety of industries and applications. Deploying CCS involves complex engineering, but the concept is simple: capturing the carbon dioxide that is the by-product of burning fossil fuels and storing it far underground so it cannot enter the atmosphere and contribute to global warming.

Respected international organizations

SaskPower’s Boundary Dam Power Station and the CCS facility (to the right of the power plant).

including the UN’s Intergovernmental Panel on Climate Change and the International Energy Agency agree that it will be virtually impossible to meet the critical emissions reduction targets needed to avoid dangerous climate change without significant expansion of large-scale CCS. It is seen as a pillar of the long-term transformation of the energy system because it enables deep and rapid emissions cuts to many of the largest emitting industries, as well as the potential for removing large amounts of CO2 directly from the atmosphere after it has been emitted from a smokestack or a tailpipe.

Using equipment and processes that are already proven successful over the last 20 years, CCS serves as an important bridge by removing the climate impacts of fossil fuels in a cost-effective manner while the world undertakes a massive expansion of renewables and other energy alternatives such as nuclear and hydrogen.

Canada has been a leader in the first generation of CCS. We are home to five of the world’s 30 commercial CCS facilities, and we account for approximately 15 per cent of current global CCS capacity even though our country generates less than two per cent of global CO2 emissions.

Our experience includes several projects that were the first of their kind. SaskPower pioneered the world’s first com-

mercial CCS facility on the Boundary Dam coal-fired power plant, which began operation in 2014. The facility has safely captured more than 5 million tonnes of CO2 – the equivalent of taking 1 million cars off the road for a year. Meanwhile in Alberta, Shell’s Quest project has captured more than six million tonnes from an oil sands refinery since 2015, and the Alberta Carbon Trunk Line, the world’s largest CO2 pipeline, transports emissions from a refinery and a fertilizer plant for industrial use and underground storage.

These projects are models for the next

generation of CCS being planned around the globe. They provide valuable lessons that the Regina-based International CCS Knowledge Centre is leveraging to help companies develop new facilities with the potential to safely capture and permanently store more CO2 at a lower cost than what has been possible to date.

Canada’s latest climate plan calls for more than tripling the country’s CCS capacity over the next decade. It is expected to play a central role in eliminating emissions not only from the oil & gas sector, which accounted for 180 million tonnes

Inside the Boundary Dam Unit 3 CCS facility.

The International CCS Knowledge Centre’s Director of Project Development & Advisory Services conducting a tour of the BD3 CCS facility.

of GHGs in 2020, but also the 115 million tonnes that come from power generation and other heavy industries. With more than 100 new projects in development worldwide, some estimate the CCS industry will grow to be a $55 billion/year industry by 2030, and it’s expected to be responsible for 25 per cent of the emissions reductions required for the world to reach net zero emissions by mid-century.

With this level of activity underway, it’s clear that Canada is uniquely suited to capture enormous value from the CCS boom on the horizon. But there must be strong collaboration between industry and government to move multiple billion-dollar projects forward quickly. There is much discussion about what the appropriate level of taxpayer support for CCS projects

should be, and whether oil & gas companies should receive additional incentives while they are profiting from fossil fuels. These are important questions, and they must be considered with an understanding of the significant short- and long-term benefits that are at stake.

Most of the largest investments Canadian energy companies and their peers in other heavy industries are planning to make in the coming years are not in traditional growth projects. Instead, virtually all the country’s resource-based firms — from oil & gas, mining, and electricity to cement, steel, and fertilizer manufacturers — are looking to add large-scale CCS to their operations. More than a dozen projects are at various stages of development in B.C., Alberta, Saskatchewan, Manitoba,

and Quebec, each one representing the potential for thousands of high-quality jobs for engineers, tradespeople, and suppliers over several years of construction; economic partnerships with local Indigenous communities, as well as ongoing employment for running and maintaining these industrial facilities.

In Alberta, for example, the Pathways Alliance – a partnership of the six largest oil sands companies – plans to invest more than $22 billion in one of the world’s largest CCS projects and other emissions reduction technologies by the end of the decade. This is expected to generate 35,000 construction-related jobs, 1,000 permanent positions, and unlock more than $50 billion in GDP. Meanwhile, international cement producer Lehigh Hanson aims to build the world’s first full-scale CCS project on its Edmonton cement plant by 2026 — creating 800 full-time jobs and approximately 7,000 person-years of employment in the process.

These are tangible opportunities for families and communities that were borne out on the Boundary Dam Unit 3 CCS project in Saskatchewan, where 1,700 people were employed during peak construction and 5 million person-hours of employment was generated over almost

Close-up of the outside of the CCS facility.

four years. SaskPower is now studying the retrofitting of additional coal and gas-fired power plants with CCS, and global mining company BHP is examining the feasibility of deploying CCS at its proposed Jansen potash mine in Saskatchewan, which is expected to be the largest potash producing mine in the world.

Beyond the immediate economic benefits, there are broader long-term opportunities to leveraging Canadian leadership in the CCS sector. As we have seen with the first generation of CCS, the innovation and expertise created by clean technology projects is easily exported, and it’s in high demand as global climate action gains momentum. In tandem with this is the competitive advantage that can be realized by our industries being the first to supply the low-carbon commodities that can fetch premium prices in a decarbonizing world.

We are at a critical point, as world emissions continue to grow, and Canada risks falling behind our competitors when it comes to getting CCS projects off the ground. The investment tax credit included in Canada’s most recent federal budget is an important step toward mobilizing private capital to invest in CCS, but it is a substantially lower level of support than the programs now in place in the U.S., the United Kingdom, and Norway.

Depending on the regulatory process and the ability to purchase equipment and hire workers, it takes about six years to bring a large-scale CCS facility to life. This means it is imperative that companies in Canada receive the business certainty they need to move forward on the timeline required to meet our climate obligations.

As with other critical industries, we must seek to ensure our approach to CCS development is aligned with our peers in order to encourage private-sector investment in these mega-projects across international borders. The landmark incentives for CCS projects now in place in the United States promise to make the world’s second-largest greenhouse gas emitter a

world leader when it comes to the next wave of CCS development. The comprehensive incentives contained in the U.S. Inflation Reduction Act passed this past summer provide valuable guidance to our federal government while it is in the midst of developing a national strategy for CCS.

We know that bringing Canada’s strong commitment to fighting climate change to reality will not be easy, but we have the home-grown expertise necessary to con-

tinue playing a leading role in this exciting area. Capitalizing on this opportunity is critical to ensuring our energy transition doesn’t destroy the vital industries that are the lifeblood of communities across the country. Instead, CCS enables a just and sustainable transition by making our heavy-emitting industries part of the solution. Let’s make sure we don’t miss out on such a monumental opportunity.

Learn more at ccsknowledge.com. v

What does that mean for employers?

• Retain valuable team members and help them recover with modified or alternate duties

• Work with your team, healthcare providers and the WCB to create a timely and safe return to work plan

A return to work plan helps injured workers get back to work safely.

Carbon Capture, Utilization and Storage (CCUS) will spearhead energy transformation

Global CCUS spending projected at over US $256 billion to date between 2023 and 2030

Courtesy of the Canadian Energy Centre

BACKGROUND ON THE RYSTAD ENERGY CCUS SOLUTION

The Rystad Energy CCUS Solution provides data covering carbon capture, transportation, and storage for both commercial and pilot projects, including analysis of such key indicators as carbon capture capacity and spending to date on CCUS.

These capabilities allow us to analyze short- and long-term CCUS capacity and spending to date under various global decarbonization scenarios, including net zero (Rystad Energy, 2023).

POTENTIAL FOR CCUS TO CAPTURE 623 MTPA OF CO2 GLOBALLY THROUGH 2030

According to Rystad Energy, at the end of 2022, there were 65 commercial CCUS projects in operation globally capable of capturing nearly 41 million tonnes per annum (mtpa) of CO2 across various industries, including the oil & gas sector.

There are another 478 projects in various stages of development in the global pipeline that will be capable of capturing roughly another 559 mtpa. Some of these

projects are currently in various stages of development, including in the feasibility stage, while others are in the concept and construction phases (Rystad Energy, 2023).

Figure 1 breaks down global carbon capture capacity by sector. By 2030, it is estimated that nearly 500 CCUS projects could be operation worldwide, having the ability to capture 623.0 mtpa of CO2, if all projects move ahead as scheduled (see Figure 1).

In fact, between 2023 and 2030, global carbon capture capacity could grow from 43.5 mtpa to 623.0 mtpa, an increase of over 1,332 per cent.

OIL & GAS SECTOR GLOBAL CARBON CAPTURE CAPACITY WILL REACH OVER 140 MTPA BY 2030

Beyond carbon capture capacity that is still being evaluated, the sectors which are expected to experience the greatest growth between 2023 and 2030 are hydrogen production (5.5 mtpa rising to 98.7 mtpa); gas processing (24.7 mpta rising to 110.0 mtpa); and coal power generation (3.0 mtpa rising to 55.0 mtpa).

Carbon capture capacity in oil refining is anticipated to grow from 1.4 mtpa in 2023 to 30.4 mtpa in 2030, meaning that carbon capture capacity in oil refining and gas processing combined will grow from 26.1 mtpa to 140.4 mtpa (see Figure 1).

GLOBAL SPENDING ON CCUS COULD REACH OVER $256 BILLION TO DATE THROUGH 2030

Projected spending to date on CCUS is set to expand significantly between 2023 and 2030, increasing from $4.7 billion in 2023 to $37.7 billion in 2030, an increase of about 702 per cent. In fact, cumulative spending to date on CCUS between now and 2030 is projected at over $256 billion (see Figure 2).

About 52 per cent of cumulative CCUS spending to date between 2023 and 2030 (about $133 billion) will go toward the CO2 capture segment. Spending on CO2 capture rises from $2.6 billion in 2023 to $14.4 billion in 2030, an increase of nearly 4,539 per cent (see Figure 2).

Transport is the second largest segment of projected CCUS spending between 2023 and 2030, at about 28 per cent of total spending, or $72.5 billion cumulative.

The storage segment will see projected spending of 20 per cent, or $51.0 billion cumulative through 2030 (see Figure 2).

According to Rystad Energy, North America and Europe are expected to continue to dominate the global CCUS market through 2030 (see Figure 3).

IMPLICATIONS FOR CANADA

Global carbon capture capacity and worldwide spending to date trends underline the fact that the future is bright for Canadian investments in CCUS. Assuming that appropriate government policies and regulations are put in place, Canada can expect to see further project announcements and increased investment.

In fact, according to Rystad Energy, “Canada will likely emerge as a CCUS heavyweight given the prevailing policy environment and the existential need for oil sands players to decarbonize. Rystad Energy estimates that Canada alone could account for around 20 per cent of cumulative carbon capture demand between 2023 and 2030” (see Figure 4). v

This CEC Fact Sheet was compiled by Lennie Kaplan at the Canadian Energy Centre (www.canadianenergycentre.ca). The author and the Canadian Energy Centre would like to thank and acknowledge the assistance of two anonymous reviewers in reviewing the data and research.

The written content in this report was prepared by the Canadian Energy Centre (CEC) and does not represent the views of Rystad Energy. v

Capturing the wind

By Paul Adair

While the Canadian government has declared an ambitious commitment to reduce national emissions by 40 to 45 per cent below 2005 levels by 2020 and to hit Net Zero by 2050, there is a question as to how Canada can possibly achieve these lofty targets.

For some – to quote singer-songwriter Bob Dylan – the answer is blowing in the wind.

In 1978, the world’s first wind turbine was produced in Denmark, pioneering many of the wind generations technologies currently being used today. Two years later, the world’s first wind farm (20 turbines) was put online, and the recognition of wind’s value as a source of energy has only taken off since.

And it’s not hard to see why. Wind is an abundant and inexhaustible cost-effective power source and, given southern Manitoba’s geography and reputation as a windy climate, the province is seen as a prime location for wind farm development.

“Where the wind farms are built in Manitoba, the topography is good and the wind resource is strong and plentiful,” says John Windsor, Vice President, Renew-

able Generation Operations at Algonquin Power & Utilities Corp. “The province is also an attractive location because it is very supportive of wind energy given the synergies between wind farms and traditional farming.”

Manitoba also has the benefit of being a relatively low-risk economic market to do business in when compared to other many jurisdictions, especially south of the border where energy buyers and sellers tend to face significant price fluctuations.

“Developers like us are – for the most part – risk adverse organizations,” says Windsor. “If we’re able to build a project and put a 25-year power purchase agreement (PPA) in place with an AA credit worthy off-taker such as Manitoba Hydro, we would naturally look very favorable on that kind of arrangement, as would our shareholders.”

As anyone who has ever set sail would know, wind and water go hand in hand. The same can be said about wind power and hydroelectricity.

Wind is an inherently intermittent source of energy and, as such, must be firmed and shaped so it can be brought to

market within a predictable delivery quantity and schedule. Because almost all of Manitoba’s electricity is currently hydroelectric, reservoirs can store water when the wind is blowing and release water to generate electricity when the wind is calm. A greater diversity of Manitoba Hydro’s generation capabilities in this way provides greater value for Manitoba Hydro, and ultimately, all residents of Manitoba.

With two world-class wind farms already in the province and opportunities for growth, Manitoba has positioned itself to be a leader in wind generation and the road to Net Zero.

Above and inset: Odell wind farm.

ST. LEON WIND FARM

For more than 30 years, Canada’s Algonquin Power & Utilities Corp. has been committed to delivering sustainable energy and water solutions to customers and communities across North America. The company’s growing portfolio of clean, renewable wind, solar, hydro, and thermal power generation facilities today represent more than 3.4 gigawatts (GW) of renewable generation capacity in operation spread across six provinces, 11 states in the United States, and eight deregulated U.S. power markets.

The company’s St. Leon wind farm is not only the company’s first foray into the wind power sector, but also Manitoba’s original wind generation project. Commissioned in 2006, the St. Leon wind farm is a 50,000-acre facility located on the Pembina Escarpment in the Rural Municipalities (RM) of Lorne and Pembina. Algonquin later added ten turbines to the wind farm in 2012, bringing the total to 73 Vestas 1.65 MW turbines and delivering a capacity of 120-MW – enough to meet the needs of 40,000 homes or a city the size of Brandon.

ST. JOSEPH WIND FARM

As the country’s largest operator of wind power, Pattern Energy is dedicated to the production of clean, renewable energy, by Canadians and for Canadians. The compa-

ny has more than 1,800- megawatt (MW) of installed capacity and has brought ten wind facilities to operation across four provinces, including the largest First Nation wind facility in the country.

Located approximately 100 kilometres south of Winnipeg in the RM of Montcalm, Pattern’s 30,000-acre wind farm in St. Joseph was commissioned in 2011 and harnesses a Manitoba’s wind resources to produce clean, renewable energy while also supporting the local economy with the creation of jobs and tax revenue.

The 138-megawatt (MW) wind farm consists of 60 Siemens turbines, each with a nameplate capacity of 2.3 MW. The turbines are set on towers 80 metres high, which generate power equal to the needs of about 120,000 Canadians/50,000 homes every year. Manitoba Hydro purchases St. Joseph Wind’s electricity generation under a 27-year power purchase agreement.

EVOLVING TECHNOLOGY

Wind as a source of energy is still relatively new to the Canadian market, particularly when compared to more traditional energy resources such as fossil, hydroelectric, or even nuclear. That being said, the technology and innovation surrounding wind power generation has evolved tremendously in the decades since it was first introduced.

When it comes to generating power from the wind, bigger tends to be better. Measured by the distance from the ground to the middle of the turbine’s rotor, a wind turbine’s hub height has increased significantly since 2000 and is now approximately 66 per cent taller (94 metres) than it once was. What’s more, the hub height is expected to continue growing to reach about 150 metres by 2035!

The diameter of the turbine’s rotors has also increased in size over the years to capture more energy. In 2010, turbines in the United States were 115 metres or smaller, while the average rotor diameter in 2021 was 127.5 metres – longer than a football field and 600 per cent larger than it was in 2000.

As technology advances and more fossil-based power sources are pulled from the grid, renewables like solar and wind will increasingly be called upon to fill the gap, especially when those resources can be complimented with more cutting-edge battery storage capacity that lasts for days, not hours.

“Everybody recognizes that the status quo will not get us where we need to be to achieve our environmental targets,” says Windsor. “There is a place for wind energy; we just need to figure out how to get it done and then work together to make the change.” v

St. Leon wind farm.

University of Regina to launch new Energy Systems Engineering Program in Fall 2023

Students can choose to study Petroleum Engineering, Sustainable Energy Engineering, or Energy Transportation and Storage

Starting in the fall of 2023, students will have the option of applying and enrolling into the newly created Energy Systems Engineering Program (ERSE) in the Faculty of Engineering and Applied Science. This dynamic and innovative program gives students the choice of three different areas of study: Petroleum Engineering, Sustainable Energy Engineering, and Energy Transportation and Storage.

“The energy landscape in not only this province, but nationally and even globally, is rapidly changing and as a faculty we need to be proactive in our programming to ensure our students have the skills and training they need to be successful in this increasingly demanding field,” said Dr. Phillip Choi, Dean of the Faculty of Engineering and Applied Science. “No university in Canada offers an energy-related curriculum as comprehensive as the Energy Systems Engineering program.”

The ERSE program will offer a Bachelor of Applied Science in Energy Systems Engineering degree in the student’s choice of program. Undergraduate admission to the current Petroleum Systems Engineering (PSE) program is suspended, but current PSE students will be able to continue in the program through to graduation. The PSE Program at the graduate level will remain available to Faculty of Engineering and Applied Science. In the 2023 fall semester, admission to the Energy Systems Engineering program will be open to second-year undergraduate students.

“We are very excited and proud to take the lead in educating a new shape of engineers who will contribute to the energy industry’s seamless transition into a new era of renewable resources,” said Dr. Na (Jenna) Jia, Petroleum Systems Engineering program chair. “Our graduates will play a significant role in achieving netzero emissions while eliminating the energy gap in the path of reducing the traditional use of fossil fuels. The new program helps our students respond quickly and flexibly to the fluctuating energy industry with a comprehensive understanding of the energy resources that energy companies will demand.”

Students pursuing the Petroleum Engineering option will learn about the responsible extraction of underground oil and gas presently dominating the energy sector. Students in the Sustainable Energy Engineering option will be introduced to the technologies that support climate action through the development of renewable energy resources, such as solar, wind, geothermal, hydro, and

nuclear energy. The Energy Transportation and Storage option will help students develop knowledge in energy distribution, conversion, as well as the storage systems essential for sustaining the increasing energy demands. All three options will produce careerready grads prepared to take on the transition into the future market of energy.

“I congratulate the U of R for this bold and forward-thinking decision – one which still acknowledges the importance of oil and gas in the energy mix of the future, but offers a transformative view of energy for students, one based on economic need and climate change mitigation that requires sustainable energy,” said Ranjith (Ran) Narayanasamy (MENG’05 and MBA’11), president and CEO of the Petroleum Technology Research Centre. “This program and its students will help shape the energy economy of Saskatchewan.”

The U of R is committed to climate action through education and research initiatives, as well as ecological and economic sustainability through responsible stewardship of the land and resources. Through the implementation of the Energy Systems Engineering Program, students are poised to become leaders in creating a better tomorrow for future generations.

For more information about the program, contact Na (Jenna) Jia, Energy Systems Engineering, Program Chair, at na.jia@uregina.ca or 306-337-3287. v

Geothermal energy production: A renewable alternative to oil & gas well abandonment in Canada

By Tetiana Semeniutina, School of Public Policy, University of Calgary

According to the recent release from the Alberta Energy Regulator, as of December 2022, of the nearly 464,000 wells registered in the province, more than 170,000 were no longer producing but not yet fully remediated. It’s important to understand that after decades of fossil fuel production, the number of suspended (inactive), orphaned, and abandoned (decommissioned but not fully reclaimed) wells will only increase every year in Canada.

Currently, most of the conventional oil wells in Alberta produce less than 25 barrels per day from mature fields. Hundreds of thousands of oil & gas wells across Canada have reached their end of economic life, often due to low hydrocarbon production combined with high water cuts, mak-

ing continued production uneconomic. In some of these wells, high bottom hole temperatures are responsible for the steam generation to be hot enough for use in geothermal energy solutions. Capturing this heat to produce geothermal energy as an additional value stream helps make continued hydrocarbon production feasible. Although abandoned wells are plugged and considered relatively safe by regulators, they can act as subsurface leakage pathways that connect oil & gas reservoirs to groundwater aquifers and the atmosphere, contributing to soil, water, and air quality degradations and climate change. Significant costs are imposed on energy companies and governments for decommissioning no-longer-producing

wells. However, an alternative is for the oil & gas industry to take advantage of these wells and use them for geothermal energy production.

Geothermal is a renewable source of energy that has a minimal carbon footprint and can be used for both power generation and heating. Geothermal involves extracting hot water or steam from underground reservoirs and using that resource to produce electricity or by utilizing the heat. Unlike solar and wind power, geothermal power plants can generate electricity consistently, constantly, and regardless of weather conditions. In North America, geothermal energy is produced primarily from deep, hot, volcanic rocks, using steam or hot water, mostly extracted from

Figure 1: Global levelized cost of renewable energy by technology, and capacity factor for geothermal

hydraulic fracturing systems. Conventional geothermal development requires drilling deep, high-temperature wells, which can be expensive and risky.

Figure 1 shows global levelized cost of renewable energy by technology, including geothermal, and operational capacity factors for geothermal from 2010 to 2021. Currently, geothermal production has higher installed costs, operation, and maintenance costs than hydropower, solar PV, and onshore wind projects. But geothermal power plants have a high-capacity factor, averaging greater than 75 per cent – meaning that they can operate nearly all the time, helping to offset higher capital and operating costs. These factors suggest that geothermal can balance intermittent sources of energy like wind and solar, making it an essential part of Canada’s renewable energy mix.

As a rule, at least a quarter of the costs for harvesting geothermal energy is drilling, and approximately one-third of the costs is completions. A promising solution is partially avoiding these costs by repurposing existing oil & gas wells to generate geothermal power at the end of their economic production life. Mature wells can provide plenty of valuable data, such as lithological characterization of the reservoir, borehole temperature, petrophysical logs, porosity, and permeability. Another advantage, given federal

and provincial methane regulations and carbon pricing, is that geothermal systems can detect potential methane emissions from wells (any venting would instantly cause a change of pressure in a geothermal system), and methane capture technology can neutralize it. But all these benefits may be achieved when appropriate wells are selected at the right time for repurposing. A monitoring system should be developed to identify late-stage wells best suited for repurposing, taking into account geology, reservoir characteristics, well integrity, infrastructure, engineering and economic aspects, etc.

It should be noted that inactive and suspended wells are more economically feasible for repurposing than abandoned wells. In the case of fully abandoned wells, instead of offsetting abandonment costs, it’s necessary to drill through their second cement plug, followed by a wireline checking for obstacles and measuring the temperature gradient, and pressure testing to confirm the casing integrity, which will incur additional costs.

According to NRCan Geological Survey and CanGEA reports, Canada has enormous geothermal energy resources that are broadly distributed across the country. Heat flow in the Canadian Cordillera is similar to the western USA Basin and Range (the region producing the most geothermal power in the world).

The highest heat flow values measured in Canada occur in the Garibaldi volcanic belt (>200 mW/m2 ). Other regions of very high heat flow occur in parts of western Canada, particularly in northwestern Alberta, northeastern British Columbia, southwestern Northwest Territories, and southern Yukon. However, Canada currently has no geothermal electrical production on a commercial scale. In 2023, Saskatchewan’s Deep Earth Energy Production Corp. began construction of Canada’s first large-scale facility for producing electricity from geothermal heat. Clear policy signals demonstrating government support in the long term are critical for business decisions to invest in geothermal technologies and infrastructure.

Hence, repurposing existing oil & gas wells partially avoids expensive drilling costs for new geothermal wells. It can also defer the need for costly plugging and abandonment, while continuing to provide useful energy in an environmentally responsible manner and supporting Canada’s energy transition. Geothermal power releases greenhouse gases at rates far lower than gas- or coal-fired power plants, and binary (closed-loop systems) power plants are considered greenhouse gas free. This source of energy may strengthen Canada’s domestic energy supply and increase energy exports to markets demanding clean, renewable energy. v

New project supports workforce development in Canada’s energy industry

By John Ludwick

It’s no secret that Canada’s energy industry is changing, and as it does, the nature of its workforce changes too.

The energy industry is expanding to include sectors like liquefied natural gas (LNG) and hydrogen, and while this presents many new challenges, one thing is clear: employment opportunities will abound. Careers in Energy (CIE), a division of Energy Safety Canada, has launched a project to support the development of a skilled workforce in Canada’s oil and natural gas and emerging low-carbon energy sectors.

The project, named “Building a Workforce for Canada’s Energy Future,” aims to address the gaps in labour market forecasting, workforce planning, career information, and training and upskilling opportunities.

OPPORTUNITIES TO LEVERAGE SKILLS

Canada’s oil & gas producers, the pipeline sector, and oilfield services companies are upping their environmental game and investing in lower-carbon energy. This is opening opportunities for workers to leverage their existing skills to be part of the emerging clean energy sectors.

The LNG sector offers a tremendous opportunity for Canada to feed markets hungry for greener energy from reliable sources. Abundant natural gas from Western Canada can offset higher-carbon fossil fuels such as coal, especially in Asian markets located closer to our shores than to other producing countries.

Carbon capture, utilization, and storage (CCUS) will play a vital part in achieving Canada’s net-zero emissions goals. Energy com-

IMAGE 1: PHOTO COLLAGE WITH LOGO

IMAGE 2: PHOTO COLLAGE – NO LOGO (logo supplied as a separate file)

panies and other industries capture, transport, and store carbon dioxide in geological formations or use the carbon for other applications such as strengthening concrete and steel.

Meanwhile, the federal and many provincial governments have announced strategies and incentives to spur the development of Canada’s emerging hydrogen industry, with an estimated potential of $1 billion.

Canada’s geothermal energy industry could create numerous jobs for drilling contractors and oilfield service workers, as many of the skills are directly transferable.

Many of the skills oil & gas workers possess are transferable to these and other clean energy sectors. Canada is known as an experienced and responsible energy producer underpinned by a highly skilled workforce, allowing us to not only contribute to emerging energy sectors but also to lead them.

PLANNING YOUR CAREER

CIE’s website offers abundant resources for people seeking jobs in various energy sectors, allowing them to determine which careers are within reach and which ones require additional training or reskilling. They can also explore more than 170 career profiles to find the one that best matches their interests and skill set.

The Assess Your Career Change tool helps energy workers evaluate their skills to transfer to other careers in energy. CIE defines three transferability pathways: direct, refocus, and reboot.

“Direct” means jobs with the same core qualifications, technical knowledge, skills, and work environment with a high likelihood of recruitment and retention in the sector. “Refocus” refers to similar work but with some skill or knowledge upgrading required to increase the chance of a successful transition. Finally, “reboot” denotes that the job requires the worker to undertake additional education or gain new skills to be successful.

On CIE’s Explore Careers page, job seekers can search for careers that align with their skills, qualifications and preferences. This resource allows the user to filter by field of work (e.g., engineers, operators, geoscience professions), working environment, level of education, or keyword. Results are organized into sector categories such as oil & gas, cleantech, renewables, etc.

For people who prefer to learn from someone else’s experience, CIE has amassed dozens of real stories from real people who work in the energy industry via its “Day in the Life” profiles. For others who’d rather kick back on the sofa with their headphones, CIE offers a podcast – Not Your Grandpa’s Industry. Each podcast series focuses on a particular topic or area such as working in the energy services sector; pivoting your career within or into energy; and diversity, equity, and inclusion in the energy industry. Listen or subscribe wherever you enjoy your podcasts.

FREE TRAINING

What’s more, CIE provides training opportunities through a trio of providers. And the best part? Participating in these programs will be free.

geoLOGIC systems offers a micro-credential program focused on basic knowledge in sustainability and environment, social, and governance (ESG). Lighthouse Labs provides digital reskilling and upskilling programs to help participants expand their career opportunities in a more digitized energy industry. Higher Landing supports a career transition program where people from across Canada can learn about opportunities in the clean-energy economy.

Interested in learning more? Whether you’re starting a new career or already have roots in the sector, visit CareersinEnergy.ca to plan your future in energy. v

For people who prefer to learn from someone else’s experience, CIE has amassed dozens of real stories from real people who work in the energy industry via its “Day in the Life” profiles.

Micro-credentials offer energy- efficient education

Provided by RRC Polytech

Every dollar counts in a world where rising costs are unavoidable, so energy efficiency is an investment worth making for budget conscious home and building owners everywhere. Of course, maximizing your long-term savings is often dependent on the knowledge of a registered Energy Advisor (EA) to identify problem areas where valuable energy is being lost and to provide proper solutions so that a structure can function at its highest possible efficiency.

This shift in consumer priority combined with the Government of Canada’s Greener Homes Initiatives including grants of up to $600 toward the cost of pre- and post-retrofit EnerGuide evaluations, created an opportunity for employment in the sector – and for Red River College Polytechnic to highlight its strength of agility to respond to industry needs and ensure the necessary training is readily available in Manitoba.

“The ability to create and offer microcredential courses helps us to tackle disruption and adapt in real time to the needs of our partners in industry and the community at large,” says Jamie Wilson, Vice President, Indigenous Strategy, Research

and Business Development at RRC Polytech. “Students, employees, and entrepreneurs use these experiential learning programs to level up specific practical skills in just hours, days, or weeks to improve their marketability and open up career options.”

Developed in partnership with Manitoba Environmental Industries Association (MEIA), Efficiency Manitoba, and the RRC Polytech Building Efficiency Technology Access Centre (BETAC), the college has created a six-month micro-credential program that prepares students to become a registered Energy Advisor. The program is the only training of its kind provided by a Canadian post-secondary institution.

Expert instructors convey the knowledge of construction and renovation, building science, building envelope, heating, ventilation, air tightness testing, air conditioning and house energy computer modelling that is required to pass the Natural Resources Canada examinations to become a registered Energy Advisor – and thanks to RRC Polytech’s dynamic applied research facilities as well as the program’s work-integrated learning component, graduates leave with the practical experi-

ence they need to enter the workforce with confidence.

“The Energy Advisor program introduced me to using the HOT2000 software and prepared me for a rewarding mix of in-the-field and office work,” says Andrew Koch, RRC Polytech alumnus and EA subcontractor for prairieHOUSE Performance Inc. “Determining a site’s level of energy usage and efficiency requires critical thinking, but with proper measuring, reporting, inspecting of equipment, and energy modelling you can always find solutions that save real money for clients.”

Providing value to both prospective employees and employers, the EA microcredential program is just one example of the customized training solutions that Manitoba’s polytechnic makes possible. Through its traditional catalogue of available programs and the continuous development of specialized accredited training, RRC Polytech’s responsive team is eager to support business growth and prosperity ensuring Manitoba remains competitive across all sectors in local and global markets.

Learn more about RRC Polytech’s Energy Advisor micro-credential program. v

On the Bakken’s doorstep

By Sandy Trudel, Director of Economic Development, City of Brandon

Brandon’s proximity to southwest Manitoba’s oil fields makes us close enough to be home, especially with WestJet’s daily direct flights to and from Calgary. Brandon is the second-largest city in Manitoba offering development opportunities, services, education, entertainment, and jobs expected from the full-service urban centre that we are. Despite our size, the community has successfully retained smalltown connectivity at both a professional and personal level and the warmth and friendliness typically synonymous with small rural communities. Oilfield employees have an easy commute to work, and they and their families enjoy an excellent quality of life.

Brandon benefits from many positive locational factors, including:

• A one-hour drive to the field

• Full-service urban centre

• A skilled and semi-skilled workforce of approximately 58,000

• A responsive community college

• Excellent transportation infrastructure for ground and rail movement of materials east-west and north-south

• Reliable supply of affordable electricity and natural gas

• Available industrial land, both serviced and unserviced

• A state-of-the-art wastewater treatment facility and potable water supply

• An Economic Development team of professionals to help however we can. Whether it be navigating the development process, sourcing a site for your operations, connecting with labour and/ or suppliers, helping your employees settle, we are ready to assist.

Located only an hour’s drive from the Bakken, the oil & gas

sector continues to be an important economic driver within Brandon’s economy. Local consulting firms, contractors, manufacturers, and trucking firms have adapted their business model to meet the needs of the nearby oil industry. Assiniboine Community College has demonstrated their willingness and ability to provide training the oil sector requires.

Workforce is key to operational success and Brandon boasts amenities, services, educational, and employment opportunities that make the area attractive to oil sector employees and their families. As a medical referral centre for Southwestern Manitoba, the medical services available in Brandon are extensive. For nonteaching hospitals in Manitoba, Brandon Regional Health Center offers the widest range of specialized services.

A low crime rate, a wide variety of housing choices, educational excellence, and abundant recreation and cultural opportunities create an enviable quality of life for residents. Brandon is consistently ranked in the top 10 as one of the best places to live in Canada.

Brandon is a sports-oriented city full of top-notch recreation facilities offering multiple golf courses, skiing, soccer, equestrian sports, and everything in between. Multiple indoor fitness centres offering a full range of services and equipment as well as personalized trainers are found throughout the city. Several racquetball and squash courts, an outdoor and indoor running track and numerous indoor and outdoor swimming pools and water slides are readily available in the city. For those that are a little more adventurous, there are a variety of challenging recreational opportunities offered in Brandon; pilot lessons, parachute jumping and rock-climbing walls to name a few.

With the Assiniboine River winding 17 kilometres through the heart of Brandon and 44 kilometres of paved walking and hiking trails, the city is an oasis for outdoor enthusiasts. Hiking and cycling are extremely popular in Brandon and the nearby Brandon Hills. Brandon offers a nice mix of man-made and natural scenic trails perfect for walking, hiking, biking, rollerblading, horseback riding, skiing, and snowshoeing. Cottage country is as close as 25 minutes.

The city is home to a variety of art and cultural offerings, featuring visual exhibits, drama, and musical performances in a variety of genres. A diverse offering of concerts and performances are

available at the Western Manitoba Centennial Auditorium. The Art Gallery of Southwestern Manitoba features national and international exhibitions and works by regional artists and is home to a comprehensive art school facility. Their ceramic facility is unmatched by any art gallery in Canada with many people using the ceramic facility as a studio for their own hobby or art practice. At the end of the day, Brandon’s greatest asset is the balance between profit and personal reward. Please visit www.economicdevelopmentbrandon.com or www.tourism.brandon.com to further explore Brandon’s business opportunities and quality of life attributes. You Belong in Brandon! v

Call (or click) before you dig

Tundra Oil & Gas is raising public awareness of underground safety hazards

Safety plays a big role in everything Tundra does, and communicating with stakeholders proactively supports the safety and wellbeing of the communities where its employees live and work.

As part of this ongoing dialogue, the company is rolling out another spring campaign to raise public awareness of the dangers presented by underground hazards and what stakeholders can do to safely work around them. This effort is also repeated every fall and includes local newspaper and radio ads.

“Whether conducting oilfield or farming operations, digging a flower bed or a fence line, it is essential that everyone knows what is directly below them before they begin any activity that disturbs the ground,” says Charlie Flannery, QA/QC Technician with Tundra’s Operations Engineering and Maintenance Department.

He explains that Tundra has assets across southeast Saskatchewan and southwest Manitoba, including an extensive network of approximately 5,500 kilometres of active, suspended, or abandoned flowline pipe used to transport emulsion, oil, gas, water and CO2. This network also includes over 1,500 kilometres of electrical line.

“That’s why, to ensure the safety of everyone working at or around our facilities, we recommend people contact Click Before You Dig Manitoba or Saskatchewan

1st Call before starting any project that involves ground disturbance,” Flannery says. This service provides underground asset (also known as “buried facilities”) screening and notification for safe excavation to any party intending to disturb the ground.

“When a call or click does not occur before these activities begin, potentially serious incidents – or worse, line strikes – are more likely to occur, with the most serious consequences being potential loss of life, injury, or environmental impacts.”

SITE VISITS AND LOCATE SERVICES WORK IN CONJUNCTION

Between Manitoba and Saskatchewan Common Ground Alliances’ click/call programs, Tundra logged 414 service tickets in 2022. Of these, 90 per cent required at least one site visit, which can involve a variety of disciplines and protective measures depending on each unique case.

Members of Tundra’s Click/Call Before You Dig (CBYD) team are expected to respond to a standard ticket within three working days, but requests typically receive a response within 24 hours of receiving them. In the case of an emergency locate, requests in rural areas are immediately promoted to a two-hour response, or one hour if the call is within an urban area.

“During a site visit, Tundra will confirm the proposed work area, identify potential

mapping errors or omissions, highlight safety hazards and potential mitigation, as well as look for any evidence of recent ground disturbance in the vicinity,” Flannery says.

“In addition, we will identify any ground condition concerns, determine whether hydro-vac services are required, and outline any upcoming company activities such as drilling, lease construction or a rig move that might impact the proposed ground disturbance work.”

In conjunction with a site visit, underground utility locate services will be onsite to find, paint and/or stake any Tundraowned assets near the proposed work area. To do this, maps and historical records are reviewed, and the site is assessed for potential safety hazards.

EDUCATION, AWARENESS KEY TO PREVENTING THIRD-PARTY LINE STRIKES

Once locate services are completed, the stakeholder will be provided with a site drawing which outlines the underground facilities along with evidence of any other potential hazards, and documentation outlining Tundra’s requirements and policies. Prior to work commencing, Tundra will meet with the stakeholder once again to ensure that the scope is unchanged and the location markings are still visible.

Tundra’s Operations personnel are notified of the proposed project to ensure all parties working in the area are made aware of planned activities. If the work to be undertaken is located on – or especially close to a buried facility – Tundra will supervise the work to ensure its assets are protected.

Tundra’s Operations Department and aerial surveillance play large roles in the

“Click or call before you dig is a very easy process. I simply call in and sometimes, even the next day, my locate is done. It’s not worth the risk doing it any other way.”

— Landowner, near Sinclair, MB

Click/Call Before You Dig (CBYD) utility locate services are free, convenient and effective to use. While all stakeholders share responsibility for preventing damage to buried facilities, it is the primary responsibility of the party proposing the ground disturbance project to use CBYD services to determine if facilities are present underground before any activity takes place.

Utilizing a CBYD service will notify Tundra directly, ensuring they can support the safe execution of the proposed work while protecting their assets. This exchange of accurate and timely information during the CBYD process, together with a genuine interest by all stakeholders for a successful outcome, is essential to protecting people and land.

detection and notification of any alleged ground disturbance activities that may be outside the CBYD process. These important functions can prevent a potentially serious incident or a line strike should a potentially serious incident have already occurred by the time it has been discovered.

“We try to take every step possible to safeguard anyone planning to conduct activity in close proximity to Tundra’s assets,” Flannery says. “It also helps us to meet our goal of zero third-party line strikes, a goal we have met successfully every year since we began tracking this data in 2018.”

Continued education, awareness, and frequent promotion of CBYD is also key to preventing third-party line strikes, which is why Tundra ensures stakeholders receive important safety messaging as part of routine interactions with company representatives. Direct emails and promotional materials about the CBYD process are delivered to members of the community, supported by reminders in the newspaper or heard on the radio while commuting to and from work, the field, the grocery store, or the local ice rink.

“The goal is simple but is of critical importance: to raise the awareness of underground infrastructure, and the teamwork process to work safely around it.” v

NYC billboards featured message about importance of Canada’s energy to reconciliation

Partnerships with Canada’s energy sector offer an incredible opportunity to pull our next generation out of poverty

A Canadian Indigenous leader lent his voice to a Manhattan billboard campaign this past September, hoping it will bring global understanding that the country’s energy industry is playing an important role in bettering the standard of living of many First Nations People in Canada.

“Partnerships with Canada’s energy sector offer an incredible opportunity to pull

our next generation out of poverty,” said Dale Swampy, president of the National Coalition of Chiefs. “These partnerships advance the path of Reconciliation.”

Swampy, whose organization represents about 80 First Nations communities across Canada, hopes his message during New York’s Climate Week – one of the largest environment-focused events in the world

By CEC staff

– helps shine a light on the strong relationship many Indigenous communities have with Canada’s oil & gas and cleantech industries and the role economic and environmental partnerships have in the pursuit of Reconciliation.

“It’s important people also understand that the oil & gas industry is taking its commitment to tackle climate change se-

A billboard featuring Canadian Indigenous leader Dale Swampy during climate week in New York City on September 20, 2022. Supplied photo.

Quick facts:

• The oil & gas and mining sectors represent eight of the top 10 highest-paying occupations for Indigenous peoples for Canada, according to a report by the Macdonald Laurier Institute.

• Indigenous women earned three to four times more in wages from occupations in oil & gas than from median wages across all industries, according to the same report. In fact, oil & gas-related occupations represent the top six highest paying occupations for Indigenous women in Canada, with pipeline transportation the highest.

• The Trans Mountain Expansion Project from Alberta to the British Columbia coast has signed mutual benefit agreements with 69 First Nations valued at over $600 million.

• The project has spent more than $3.2 billion with Indigenous-owned businesses ($1.3 billion in 2021 alone) and employed more than 2,100 Indigenous workers.

• Indigenous groups are seeking an ownership stake in Trans Mountain when the expansion is completed.

• Also in B.C., all 20 elected First Nations along the Coastal GasLink pipeline have signed project agreements. And 16 BC indigenous communities signed an historic agreement to become equity owners in the Coastal GasLink pipeline, once it’s up and running.

• Together the LNG Canada project and Coastal GasLink have spent more than $5.1 billion with Indigenous and local businesses.

riously and that the inherent relationship our people have with the environment is helping projects to be developed more responsibly,” said Swampy.

Canada ranks number one among the world’s top oil reserve holders in all three areas of ESG – environmental protection, social progress, and governance – according to international third-party assessments – and oil & gas employs more Indigenous people than any other industry in the country.

In fact, overall Indigenous representation in the oil & gas sector was more than six per cent in 2019, according to Statistics Canada. For comparison, Indigenous peoples make up about 3.3 per cent of Canada’s total workforce.

More and more First Nations communities and businesses are entering into equity partnerships and mutual benefit

• The Haisla Nation on B.C.’s north coast is approximately 50 per cent owner of Cedar LNG, a proposed $2.4-billion floating export terminal that if built will be the largest First Nations-owned infrastructure project in Canada.

• Ksi Lisims LNGis a $10-billion proposed new Canadian natural gas export project near the Alaska border on the B.C. north coast owned jointly by the Nisga’a Nation, Rockies LNG and Western LNG.

• The B.C.-based First Nations Major Projects Coalition and Miawpukek First Nation on Canada’s East Coast are working together on the first-ever Indigenous equity participation in an Atlantic offshore project, called LNG Newfoundland and Labrador.

• Canada receives number-one rankings in all three areas of environmental protection, social progress and governance among the world’s top oil reserve holders – according to assessments of reputable third-party performance indexes including the Yale Environmental Performance Index, Social Progress Imperative Index, and World Bank Worldwide Governance Indicators.

More examples of equity partnerships with First Nations communities can be found at the campaign website at responsiblecanadianenergy.com.

Republished with permission from the Canadian Energy Centre.

agreements on major pipeline and energy infrastructure projects. And Canada’s oil sands producers have spent $15 billion with Indigenous businesses since 2012, reaching a record $2.4 billion in 2019, according to the Canadian Association of Petroleum Producers.

“Yet unfortunately there are some coordinated groups who are preying on the desperation of some of our people to turn world opinion against Canada’s oil & gas industry,” said Swampy, a member of the Samson Cree Nation.

As a result, Indigenous communities lost out as governments have in the past bowed to extremist pressure and denied projects such as the Keystone XL and Northern Gateway pipelines, which would have brought hundreds of millions of dollars of economic growth to communities, he said.

The $65,000 campaign, sponsored by the Canadian Energy Centre (CEC), features Swampy and the simple message “Indigenous partnerships with oil & gas advance the path of Reconciliation.”

The campaign ran Sept. 20 to 25 on three large outdoor electronic billboards in high traffic New York locations at Times Center, targeting Climate Week speakers, delegates and media.

CEC President and CEO Tom Olsen said Swampy has been an integral voice for Canadian First Nations involvement in beneficial equity partnerships.

“Dale has been a courageous voice for many years now on the important role First Nations leaders, businesses, and monitors can play in supporting stronger and more sustainable projects,” said Olsen.

“It’s time the world gained that understanding too.” v

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 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 known to man 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 neighbors 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.

Apart from 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 under-

takes 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 marine-grade 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 full-framed 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 center of gravity, and ergonomic side mount or top-mount pump control configurations. While our Crusader tankers are designed for optimum performance and maneuverability also constructed with a form-framed body structure. At any scene, one crucial element is the availability of water, 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

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.

Top three challenges facing downhole tool owners

By Craig Johns, SVP, Gallagher Energy

Oilfield equipment is expensive, and ensuring that your tools are functioning well is vital to keeping a project on time and on budget. But sometimes equipment breakdowns are unavoidable. If you have a tool downhole that is stuck, are you prepared for what comes next? Are you doing everything possible to protect your organization from delays, insurance issues, and lengthy legal battles?

With a significant list of potential complications, directionaldrilling contractors, tool rental companies, and wireline/coiled tubing contractors, consultants and operators need to understand the challenges and risks they face daily.

1. BROKEN SIGHTLINES AND LACK OF UPFRONT COMMUNICATION LEADING TO DELAYS IN RECOVERY

Misplaced loss—owners place their trust in operators, but should they?

Tool owners/contractors often contractually put the risk of loss on operators but don’t actually check that the contract is being upheld. Often, the specifics of what the operator purchases aren’t passed along in a clear and meaningful way; instead, they are baked into the cost of the authorization for expenditure (AFE) costs. It’s vital that the equipment owner (specifically their finance and risk management teams) has a line of sight and solid understanding of what the drilling/operations team is purchasing so they aren’t leaving themselves open to risks they’re not comfortable taking – simply because they don’t realize they’re taking the risk in the first place.

Without adequate insurance, this could lead to significant issues and delays with the project, as well as legal battles between various parties working on the well.

Ownership of a reasonable attempt

In the case of a loss, most insurance policies require the policyholder to make two “reasonable attempts” at recovery. Unfortunately, policy wording rarely indicates the definition of a reasonable attempt. This puts huge pressure on the owner or operator to make a call that could be contentious, which they may not be comfortable handling if they haven’t dealt with insurance companies on the issue before.

When the owner and operator are hesitant to confirm that a reasonable attempt has been made to recover the tools, they

may look to their insurance brokerage for guidance. The energy insurance broker who placed your policy has been through the process before and can help work with the operator, fishing company, and other relevant parties to determine when a reasonable attempt has been made.

2. INSURANCE COSTS ARE CREEPING (OR SKYROCKETING) UP

Generally speaking, limits are reducing, deductibles are creeping up, costs are increasing, and there’s a pinch on all aspects of coverage. As a result, it can be difficult to find and buy enough limit for large wells/bottom hole assemblies (BHAs).

Finding and purchasing adequate insurance coverage reduces the financial risk exposure to those who would bear the cost, which typically falls on the exploration and production (E&P) company unless contractually moved to the consultant or downhole tool provider.

3. HOLE INTEGRITY FOR LOSS OF A TOOL

If a tool is lost downhole, hole integrity is a significant concern. Knowing there’s adequate protection for the tool can make decision-making easier regarding next steps to ensure the well is brought back online as quickly as possible.

GALLAGHER’S UNIQUE INSURANCE SOLUTION

We know that some risk is inevitable and, with the growing challenge of finding coverage for downhole tools, Gallagher has created a solution that lets you select the coverages you want so you can have a truly custom solution that fits your needs.

Our solution allows you to pick and choose the tools/BHAs we want to insure, including vertical, build, lateral, logging, drill stem test (DST), pipe, etc., and buy insurance for one well or several. In addition, our solution offers lower deductibles than those of our competitors.

Want to learn more about our program? Find out more: www.ajg.com/ca/get-a-policy-specifically-built-for-downholetools/ v

New learning program provides specialized sustainability and ESG skills development for Canadian energy industry workers

A new skills development program is underway to help Canadian energy industry employees integrate sustainability and best practices related to Environment, Social & Governance (ESG) into the daily workplace.

The Sustainability in Energy Micro-Credential is a highly flexible, interactive, professional development program delivered by geoLOGIC systems ltd. in partnership with Careers in Energy, a division of Energy Safety Canada (ESC).

The program started in April and is free of charge to participants and funded by the Government of Canada’s Sectoral Workforce Solutions Program. Delivery is online and via webinars over a 12-month period. The total time commitment is expected to be 45-50 hours.

The program is designed to complement existing energy industry qualifications. A series of 12 modules examine greenhouse gas emissions measurement and reduction, the role of new technologies, ESG reporting standards, water and land management, and best practices related to corporate governance and Indigenous engagement.

The micro-credential is ideal for:

• Early to mid-career energy professionals

• Engineers, geoscientists, and other technical roles

• Operations and maintenance specialists

• Corporate services employees

• Business developers and salespeople

“The curriculum includes industry-specific case studies designed to help integrate sustainability and ESG into the daily workplace,” says Bemal Mehta, Managing Director, Energy Intelligence, at geoLOGIC. “The interactive online approach creates a high flexible learning environment suitable for a wide range of energy professionals.”

For further details and to apply, visit: https://energysustainability.ca. v