Saskatchewan Oil Report 2019

SASKATCHEWAN

2019

Oil Report

The voice of the oil industry in Saskatchewan.

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In this issuE index to advertisers

Message from the Premier of Saskatchewan, Scott Moe – 12 Message from the Saskatchewan Minister of Energy and Resources, Hon. Bronwyn Eyre – 14 Message from Canada’s Minister of Natural Resources, Amarjeet Sohi – 16 Message from the editor, Cindy Chan – 18 Mining for zero injuries in Saskatchewan – 20 Great Plains College makes safety training easy – 24 PTRC: New directions in its next 20 years – 26 Work, play and stay in Weyburn – 28 Cannabis legalization: Research and regulations need to catch up to legislation – 32 Why ministerial discretion does not belong in Bill C-69 – 34 New focus for Williston Basin Petroleum Conference – 36 Bluewave Energy: Your multi-fuel supplier – 38 Aboriginal communities taking charge of their future – 40 Saskatchewan Oil and Gas Supply Chain Forum: Phenomenal networking opportunities – 41 The future of reclamation monitoring – 42 Three decades and counting: Brother’s Specialized Coating Systems is there for you – 44 Big things happen at IFR Workwear Inc. – 45 Factors Western: Your factoring solution – 46 Building on 70 years – 47 A lot going on at the Goodwater Machine Shop – 48 Technology drives bit performance advances – 50 Annugas Compression Consulting Ltd..................................8 B & B Oilfield Hauling...............................................................23 Blue Wave Energy/Parkland..................................................39 Brandt Tractor Ltd....................................................................... 13 Brother’s Specialized Coating Systems Ltd...........................5 CFR Chemicals...........................................................................19 Coast Swift Current Hotel.......................................................36 Department of Economy...........................................................4 Factors Western........................................................................46 Fluor Canada Ltd................................................................... 3, 27 Goodon Industries....................................................................32 Goodwater Machine Shop (1986) Ltd.................................49 Graham Group Ltd..................................................................IFC Great Plains College................................................................25 Grimes Sales & Service Ltd...................................................... 21 IFR Workwear Inc........................................................................ 0 Integrity Oilfield Hauling Ltd...................................................23

10 Saskatchewan Oil Report 2019

Level Best Technologies Ltd....................................................36 Netzsch Canada, Inc............................................................6 & 7 Petroleum Technology Research Centre............................ 11 Pumps & Pressure.......................................................................17 Pyramid Corporation................................................................ 31 Revolution Industrial Equipment Co...................................35 Right Choice Energy Services................................................37 SIMSA.......................................................................................OBC Saskatchewan WCB..................................................................18 SaskTel...........................................................................................15 Southeast College.....................................................................27 Tingleys JCB...............................................................................30 Transcourt Tank Leasing.......................................................... 33 Varel Oil & Gas......................................................................... IBC WBPC 2019..................................................................................10 Western Heritage...................................................................... 43 Weyburn Chamber of Commerce......................................29

SASKATCHEWAN Oil Report is published by:

DEL Communications Inc. Suite 300, 6 Roslyn Road, Winnipeg, MB R3L 0G5 www.delcommunications.com President & CEO: David Langstaff Managing Editor: cindy chan cindy@delcommunications.com Advertising Sales Manager: DAYNA OULION Advertising Sales Representatives: BRIAN GEROW | COLIN JAMES ROSS JAMES | ANTHONY ROMEO Production services provided by: S.G. Bennett Marketing Services Art Director / Layout & Design: kathy cable Advertising Art: Dave bamburak | Dana jensen Cover Photo Courtesy of: Saskatchewan Workers’ Compensation Board © 2019 DEL Communications Inc. All rights reserved. Contents may not be reproduced by any means, in whole or in part, without the prior written permission of the publisher.

While every effort has been made to ensure the accuracy of the information­contained in and the reliability of the source, the publisher in no way guarantees nor warrants the information and is not responsible for errors, omissions or statements made by advertisers. Opinions and recommendations made by contributors or advertisers are not necessarily those of the publisher, its directors, officers or employees.

Publications mail agreement #40934510 Return undeliverable Canadian addresses to: DEL Communications Inc. Suite 300, 6 Roslyn Road, Winnipeg, MB R2L 0G5 Email: david@delcommunications.com PRINTED IN CANADA | 05/2019

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Message from the Premier of Saskatchewan

Scott Moe

O

n behalf of the Government of Saskatchewan, it is my pleasure to welcome you to the 2019 edition of the Saskatchewan Oil Report.

The energy sector is crucial to Saskatchewan’s­ economic and social well-being, attracting billions of dollars in investment, supporting thousands of families and contributing to quality of life across the province.

Oil and gas production accounts for an estimated 15 per cent of Saskatchewan’s $81 billion gross domestic product.

In 2018, Saskatchewan produced 489,000 barrels of oil a day, making the province the sixth largest onshore oil producing jurisdiction in Canada and the United States. Our energy sector supports more than 34,000 direct and indirect jobs in our province.

Saskatchewan is home to some of the world’s best-established oil and gas opportunities, and some of the most cost-effective in North America in terms of investment. Scotiabank’s 2018 “Playbook” Report – an extensive ranking of the investment economics of oil and gas plays across North America – states that Saskatchewan’s oil plays offer some of the strongest returns in North America. The playbook identifies our province as having three of the top 15 ranked oil and gas plays – including the top-ranked play: The Mission Canyon (Frobisher/Alida) Oil Play.

When we talk about the many investment opportunities in Saskatchewan, we often focus on resource development opportunities, particularly those in oil and gas. Saskatchewan’s initial oil-in-place is estimated at 56 billion barrels.

About 12 per cent of that total can be commercially recovered with current technology, so our government has placed a high priority on supporting the development of innovative ways to recover the remaining oil. The oil and gas industry is making great progress with new drilling and completion technologies, and also with Enhanced Oil Recovery (EOR) research.

12 Saskatchewan Oil Report 2019

New technologies are being developed to unlock more of the province’s potential in the energy sector. EOR technologies like polymer floods, carbon dioxide (CO2) injection and steam assisted gravity drainage (SAGD) have the potential to increase production in Saskatchewan. Meanwhile, we are continuing to ensure development proceeds in an environmentally sustainable manner. The Ministry of Energy and Resources has recently announced the Methane Action Plan, which is a part of our government’s climate change strategy, Prairie Resilience. This plan, developed with industry, aims to decrease greenhouse gas emissions from venting and flaring in the upstream oil and gas sector by 4.5 million tonnes per year by 2025.

In Saskatchewan, our future is bright, thanks to the hard work and ingenuity of our workers and entrepreneurs. The Government of Saskatchewan is grateful for the many contributions made by the oil and gas industry to our province’s quality of life, and for the opportunities the industry provides in our communities. It is an industry that constantly adapts and evolves to meet the challenges of today and tomorrow.

Our government will continue to support the industry by ensuring our province has a fair and competitive taxation and regulatory system. We will also stand up for the energy sector against policies – such as the federal government’s destructive, ineffective carbon tax – that threaten to drive investment and jobs out of the province. Working together, we can keep Saskatchewan’s resource sector strong.

Scott Moe Premier

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Message from the Saskatchewan Minister of Energy and Resources

hon. bronwyn eyre

O

n behalf of the Ministry of Energy and Resources, I am honoured to join Premier Scott Moe in welcoming you to the 2019 edition of the Saskatche­ wan Oil Report.

Saskatchewan’s energy sector has faced some challenges over the

past few years. One of the biggest is not being able to get our oil to tidewater via a federally built pipeline. If the current market conditions and differential between the West Texas Intermediate (WTI) price and the Western Canadian Select (WCS) price of $10 were to persist for an entire year, the impact on provincial oil royalty revenue would be approximately $100 million and could cost industry approximately $1.5 billion.

Oil and gas sector workers and their families also continue to express grave concerns over the federal carbon tax and proposed Bill C-48 and Bill C-69. We share their concerns, and have stated publicly that these pieces of legislation should be scrapped.

If Bill C-69, for example, were passed in its current form, it would prevent the approval of any new, major Canadian energy project, in any sector, in the future. It would expand timelines, introduce new, subjective tests and lead to substantial federal overreach into provincial jurisdiction. In February, I was in Ottawa to testify before the Standing Senate Committee on Energy, the Environment and Natural Resources on behalf of the Saskatchewan energy and resource sector on the impacts of this potential, and destructive, bill.

Despite federal headwinds this past year, a total of 2,551 oil wells were drilled in Saskatchewan in 2018. Investment in new exploration and development was at $4.3 billion.

Meanwhile, the 2019-20 budget achieves the right balance for our province. The budget transferred $750,000 from an expense to a capital fund for the Integrated Resource Information System (IRIS) for continued investments. IRIS continues to provide oil and gas companies with complete, one-stop business services, and ensures that all forms of business can be completed and submitted online without backlog.

The Government of Saskatchewan also recently released regulations with the goal of reducing greenhouse gas (GHG) emissions from venting and flaring in the province’s upstream oil and gas sector by 4.5 million tonnes per year by 2025. The regulations constitute a common-sense, results-based approach, as opposed to the more prescriptive, onerous proposed federal plan, which is scheduled to come into force in 2020. In contrast, our made-in-Saskatchewan approach will meet and exceed federal expectations.

On all fronts, we will continue to represent the interests of the 34,000 people who, through direct and indirect jobs, support our oil and gas sector in Saskatchewan — a sector we are very proud of. v 14 Saskatchewan Oil Report 2019

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Message from Canada’s Minister of Natural Resources

AMARJEET SOHI

O

n behalf of the Government of Canada, I am delighted to highlight some of the ways our government is supporting the oil industry in Saskatchewan and across the country, and to thank you for your hard work.

Since day one, our government has taken action to support our oil and gas sector and the jobs it creates by making market access a priority. We know that pipelines remain the safest and most environmentally responsible way of transporting oil, which is why we approved the Line 3 replacement project. As part of that decision, we co-developed the innovative Indigenous Advisory and Monitoring Committee to oversee the project through its full lifecycle. I am pleased to note that eight of its 16 members are from Saskatchewan.

Securing access to global markets is also a priority. Last year, our government secured the single largest private sector investment in Canadian history with the LNG Canada project, and we are taking action to encourage future investments.

The proposed Trans Mountain Expansion Project also has the potential to reach nonU.S. markets. We are moving forward on significantly improved consultations with Indigenous communities, following the guidance of the Federal Court of Appeal. The government will be able to consider a decision on the project once we have fulfilled our duty to consult.

While we work on getting our resources to new markets, our government is also investing in our energy industry and its workers. In December, we announced a $1.6-billion package to support workers and boost competitiveness. This money can be used to invest in innovative technologies, address working capital needs or explore new markets.

With hundreds of major resource projects – anticipated to be worth over $500 billion in investment – planned across Canada over the next 10 years, better rules are necessary to ensure good projects can go forward. That is why we introduced new legislation for major project reviews. We continue to engage with provinces and territories, Indigenous communities and industry stakeholders to make sure we get it right.

This bill would open the way to new projects, provide greater certainty for investors, respect Indigenous rights and create good middle-class jobs.

By developing our resources in the most sustainable way, Canada can be the supplier of choice for the world. We are investing in clean tech and innovation, and also helping our industry get more value for what we produce through refining and partial upgrading. We also announced major tax incentives in the Fall Economic Statement for refiners and upgraders, and we got a good trade deal for our energy sector and workers in our oil patch with the new NAFTA. Our government looks forward to continuing to work with you to grow our economy, create good jobs and protect the environment for future generations. v 16 Saskatchewan Oil Report 2019

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Message from the editor

cindy chan

T

here is a lot going on within the Saskatchewan oil industry.

Various companies are trying to be more environmentally friendly in their work. When most people think of oil, they think “dirty” and “destructive”. However, several businesses are proving them wrong.

For example, Western Heritage has developed a new Environmental Footprint Monitoring Platform (EFMP). They recognize that monitoring reclamation areas can be challenging, so they created this new platform to address those challenges. The service measures vegetation health, aquatic health and monitors change and fragmentation of the land cover.

Safety is also at the forefront of many minds, including Fluor Canada, which celebrated a huge milestone this year.

2019 marks its 70th year in business since it was first established in 1949. While Fluor Canada had many successes in

seven decades, one of its newer initiatives celebrates strong health, safety and the environment. The initiative, Safer Together, involves taking a pledge and reinforcing a proactive safety culture at the workplace.

Great Plains College is also aboard the safety train with its safety training program. Its six locations offer courses based on regional industry demand, both on site at the campus or out in the field.

So much is changing and improving in oil. And I hope you enjoy reading about them in this issue of Saskatch­ ewan Oil Report. If you have any story ideas or comments about this issue, please feel free to reach me at cindy@delcommunications.com.

Cindy Chan @DELCommInc

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n 2008, Saskatchewan had the second worst workplace injury rate in Canada. The province’s workplace total injury rate was

10.21 per 100 workers.

In May 2008, WorkSafe Saskatchewan – the partnership between the Saskatchewan Workers’ Compensation Board (WCB) and the Ministry of Labour Relations and Workplace Safety – launched the ambitious goal of Mission: Zero. Mission: Zero is a call to action and culture change for

WorkSafe Saskatchewan continues working with

employers to reduce fatalities

leaders, employers and workers to achieve zero workplace injuries, zero fatalities and zero suffering.

“It was time to put a stop to injuries happening in the workplace and end the suffering of injured workers and their families,” says Phil Germain, the WCB’s vice-president of prevention and employer services. “All work-

20 Saskatchewan Oil Report 2019

Between 2015 and 2017, less than two per cent of serious injuries came from the mining sector.

place injuries and deaths are preventable.”

Since the launch of Mission: Zero, after a decade of safety initiatives, preventative work and messaging, training and education efforts, and thanks to the commitment from industry, leaders, employers and workers, there has been a steady decline in workplace injury claims.

“Thanks to the health, safety and prevention efforts of people around the province, 88 per cent of Saskatchewan employers achieved Mission: Zero in 2018,” says Germain. “With so many people leading by example, injuries have been prevented and lives have been saved.”

Saskatchewan’s workplace total injury rate has dropped by almost 47 per cent from 2008 to 2018. The province’s workplace total injury rate is now the fifth worst in the country.

However, the province’s 2018 total injury rate increased by 3.6 per cent from 2017. Saskatchewan’s 2018 total injury rate was 5.44 per 100 workers.

The province’s time loss injury rate – which measures the number of workers hurt badly enough to be off work for at least one day beyond the day of injury – increased to 1.99 per 100 workers.

“This is a development we must address immediately and it will mean working together to ensure our workplaces remain safe,” says Germain. “All of us – individuals, organizations and leadership – need to take part in ensuring our injury rates do not increase further.”

Most alarming in 2018 is the number of fatalities. Sadly, in 2018, there were 48 workplace fatalities, an increase of 78 per cent from 2017. Over the past 15 years, the WCB has seen an average of 38 workplace fatalities per year. In 2017, the WCB saw the

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Serious injuries represented approximately 10 per cent of all injuries in 2017 and 75 per cent of compensation days paid in 2017 for claims registered in 2017.

Over the past two years, 27 of the WCB’s 50 industry rate codes have experienced a fatality including open-pit mining, which experienced a fatality in 2018.

lowest number in the past 15 years at 27. Over the past two years, 27 of the WCB’s 50 industry rate codes have experienced a fatality, including open-pit mining, which experienced a fatality in 2018.

“This is devastating for our province. Behind every statistic is a loved one who will never come home to their family,” says Germain. “We’ve embarked on several research projects with the University of Regina and the University of Saskatchewan to understand more about our workplace fatalities.”

Evidence from the International Social Security Association indicates that a focus on serious injuries and fatalities should improve the over-

22 Saskatchewan Oil Report 2019

all level of safety in the province.

in 2019 as part of our serious injury

In 2018, the WCB developed a seri-

and fatality initiative.”

ous injury definition. This analysis

The top causes of fatalities in 2018

revealed that approximately 2,400

were from occupational diseases and

injuries meet the serious injury defi-

motor vehicle collisions. WorkSafe

nition each year. Between 2015 and

launched several resources and cam-

2017, less than two per cent of serious injuries came from the mining sector.

Serious injuries represented approximately 10 per cent of all injuries in 2017 and 75 per cent of compensation days paid in 2017 for claims registered in 2017.

paigns in 2018 targeting the highest causes of workplace injuries and deaths.

WorkSafe offers resources, awareness campaigns, education, training and targeted initiatives to help eliminate workplace injuries and fatalities.

For resources on how to prevent

“Focusing on serious injuries and

work­ place injuries, employers and

fatalities could get us closer to Mis-

workers can reach out to their industry

sion: Zero,” says Germain. “We will

safety association or visit WorkSafe’s

continue to make this a top priority

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reat Plains College truly believes safety training doesn’t cost…it pays.

Proper safety training helps keep workers safe and companies productive, but finding time for all the required courses and certifications amongst a busy work environment can be a challenge.

That’s where Great Plains College comes in. As a trusted partner in safety training, the college prides itself on working alongside industry to ensure quality safety training opportunities are readily available so that all jobs can get done safely.

“We understand the importance of safety training to our clients, and also know they’re often faced with time and geographic challenges, particularly those in the energy industry.

Our goal as a training provider is to

help them overcome those challenges by delivering quality courses that are accessible for everyone,” says Lyla Cooper, safety training co-ordinator at Great Plains College. “We pride ourselves on being responsive and accommodating to our industry partners, helping keep them and their staff trained and safe on the job,” Throughout its six locations in Biggar, Kindersley, Maple Creek, Rosetown, Swift Current and Warman, courses are scheduled based on regional industry demand, and training can be done at the campus or on site at the workplace, offering companies and individuals a chance to choose the most convenient option for them.

The college also recognizes the specialty course needs of the energy

industry in southwest Saskatchewan and works to ensure classes are available in unison with industry’s cycles.

“While most of our classes are scheduled regularly throughout the year, we make sure to schedule energy industry-specific courses during spring break so people don’t have to take time off the job site to get their training,” adds Cooper. “We know this industry faces so many challenges, and we don’t want safety training to be seen as another one of them.”

Great Plains College is also proud to be one of the few centres to offer quantitative fit testing.

“We just invested in new equipment to do fit testing, and we’re happy to have people come to any of our locations, or to phone us and we can come to you,” says Cooper.

Some regularly scheduled safety training options available at the college include ATV and UTV training, Chainsaw Safety, Confined Space Entry and Rescue, Fall Protection for Rig Work and Rig Rescue, Fire Extinguisher, First Aid/CPR, Global Ground Disturbance Levels 1 and 2, H2S Alive, Power Mobile Equipment (Forklift, Scissorlift, Skidsteer, Telehandler and Articulating Manlift), Special Oilfield Boiler Operator and Workplace Fall Protection. A full listing of course options and a safety training calendar is available online at greatplainscollege.ca/safety-training.

Great Plains College also offers custom training options for special course needs. To arrange specialty courses, please contact the college at 1 (866) 296-2472 to speak with one of the safety training co-ordinators.

“We’re grateful to work with so many great clients, helping them feel confident and able to handle their jobs in the safest way possible. If we can help you or your company meet your safety training needs, we’d love

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to hear from you.” v Saskatchewan Oil Report 2019 25

PTRC: New directions in its next 20 years

2

018 marked a 20-year milestone for the Petroleum Technology Research Centre in Regina.

Founded in 1998 to improve recovery rates from Saskatchewan’s difficult-to-access oil resources, the PTRC has managed research, development and deployment of new technologies

PTRC helped to de-risk CO2 storage in its Weyburn-Midale CO2 Monitoring and Storage Project.

26 Saskatchewan Oil Report 2019

for the oil industry that help improve recovery rates while also lessening environmental impacts like emissions, water use and land disturbance.

Recent strategic discussions between PTRC and its industry and government partners are leading the company in new directions.

“PTRC has been supporting fundamental and field research for years in such important areas as CO2-enhanced oil recovery and solvent vapour extraction,” notes CEO Dan MacLean. “That research bore important fruit in areas like de-risking the use of solvents in oil field operations, and in providing regulators and companies with valuable data to help establish operational and regulatory processes around their use.”

At recent meetings in Calgary, the PTRC identified – through a strategic session with key industry players operating in Saskatchewan – new research that could be beneficial to improving field recovery rates in a period of intense financial and environmental pressures.

“Both industry and our researchers at such institutions as the Saskatchewan Research Council (SRC) and the Universities of Regina and Saskatchewan have recognized that the challenges faced in the province are being driven by the difficult technical aspects of reservoirs and by a need to reduce greenhouse gas emissions, water use and phantom methane emissions in the oil patch,” says MacLean.

Dan McLean.

PTRC is moving forward with new research projects that will focus on technologies such as cyclic solvent injection (which reduces the reliance on heat and water in heavy oil extraction) and the company recently agreed to fund tight oil research as part of SRC’s Viking research consortium. Both research areas will be working to take R&D to the field as expeditiously as possible.

“In Canada, we need to understand the importance of this industry to our economy and our livelihoods. Focusing on our main goals of improving the efficiency and effectiveness of recovery in this province will help the industry sustain jobs and royalties, while also addressing key environmental concerns.”

PTRC is also looking at co-ordinating with researchers in Alberta on phantom methane emissions, and has begun preliminary discussion about funding projects in pipeline/flow line integrity and the application of different kinds of artificial intelligence in field operations.

“We’re particularly excited by what AI might offer the industry in areas of monitoring and safety. We think the future is bright.”

For more information about the PTRC, visit https://ptrc.ca, or follow us on both Facebook and Twitter at @PTRC_sk. v

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Work, play and stay in Weyburn

T

he City of Weyburn is a dynamic community that has both a strong and diverse economic base.

Weyburn has long been established as a central figure for the upstream oil industry in Saskatchewan.

Weyburn sits geographically atop the Bakken Oil Formation, one of the most prolific oil producing patches in the world.

Not surprising that you will find corporations such as Whitecap Resources, Crescent Point Energy and Enerplus calling our community home in terms of headquarter locations.

Agriculture continues to be the backbone of the community. As the world looks to farmers to meet an ever-increasing need for food supply, Weyburn’s position as one the of the largest inland grain gathering points in North America makes it a vital contributor to a global challenge. Agribusiness, agri-food companies and major farm implement dealers continue to thrive and expand into our community.

As the central community in Southeast Saskatchewan, Weyburn is the preferred locale for the public sector and professional regional head offices, contributing an enduring inventory of stable employment opportunities. Among the several key professional and public sector regional headquarters in Weyburn include SaskPower Regional Distribution Centre, South East Cornerstone School Division, Southeast College Administrative Offices and Campus and Southeast Regional Library.

28 Saskatchewan Oil Report 2019

“Weyburn prides itself on being the location of choice for many companies and public sector services head offices.

This translates into stable employment opportunities and a thriving business atmosphere,” states Twila Walkeden, executive director for Weyburn Regional Economic Development.

Convenient access to Weyburn is never a problem, not with three major highways intersecting the city. Highway 13, stretching from Lethbridge, Alta. to Winnipeg, Man. is named the Red Coat Trail. Much of its length follows the route of the original historic path taken in 1874 by the North-West Mounted Police in their quest to bring law and order to the Canadian West. Highway 39 is one of Canada’s busiest highways and provides a major trucking and tourism route between the United States and Western Canada.

Lastly, Highway 35 (the CanAm Highway) connects the U.S. border to vast untouched lakes and rivers in Northern Saskatchewan, popular to nature seekers, hunters and anglers.

Weyburn’s proximity to Regina offers access to a wide range of support and services. Whether moving goods, services or people, Weyburn companies enjoy access to an extensive transportation network with global reach.

Weyburn is located only an hour from the Global Transportation Hub (GTH), which is Canada’s only autonomous and self-governing Inland Port Authority. The GTH provides

CREATING OPPORTUNITIES WEYBURN, SASKATCHEWAN ABOUT US Potential investors are knocking on Weyburn’s door and for good reason: for two consecutive years, Weyburn is the Best Place to Live in the Prairies (Money Sense Magazine). With a young workforce, high median income, and estimated annual household spending nearing $300 million, Weyburn is the perfect place to live and invest.

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rail access to all major Canadian ports, Gulf Coast ports and mid-western U.S. trans-shipment points and trucking connections to all major networks. Walkeden points out that “the ability to efficiently move goods makes Weyburn the ideal location for major manufacturing firms.”

Weyburn is well-defined by being a safe, friendly, healthy balanced lifestyle. A close-knit neighbourhood community with low crime rates and economic strength makes Weyburn a great place for a family to live. MoneySense has named Weyburn as the best place to live in the prairies for two consecutive years.

“More evidence that Weyburn is a great place to live, work and play,” points out Walkeden. Residents and visitors alike enjoy beautiful rural surroundings including lakes, parks, and connection to the agricultural lifestyle.

Weyburn’s stable economic base, its transportation accessibility and its attractive labour force are why businesses are attracted to Weyburn. While enjoying the luxuries of small city life, Weyburn’s central location in the Southeast Saskatchewan maintains easy access to the convenience and services of larger centres. v

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Cannabis

legalization: Research and regulations need to catch up to legislation

By Murray Elliott, president and CEO of Energy Safety Canada

O

ur industry is inherently risk-sensitive. Our fundamental view is that impairment in a workplace with high-risk activities, whether from a legal or illegal substance, has always been unacceptable and will continue to unacceptable. Over the last decade, the use of alcohol and drugs in the oil and gas industry has been a pressing safety concern.

As the national safety association of the oil and gas industry, Energy Safety Canada has spent the past several years engaged in conversations with government and industry about the legalization of cannabis and how it will affect safety-sensitive work environments. The concerns we heard when speaking to industry were that legalization might lead to increased use of cannabis. With increased use, there is a

greater potential for workers to be impaired at work.

Now, as we move into this new era of cannabis legalization, further research and data is required to determine whether cannabis use has increased, and if so, whether there are more near misses or incidents reported as a result of employees being impaired at work.

Presently, owners and operators are prepared as best they can be. Employers have a responsibility to ensure a safe workplace by preventing workers who may be unfit for duty from engaging in activities that could have devastating consequences — this has not changed with the legalization of cannabis.

Many employers have alcohol and drug policies in place that forbid any drugs or alcohol in the workplace. Policies

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include reporting mechanisms for employees who believe a co-worker may be intoxicated or impaired, training for managers on how to look for signs of suspected impairment and investigation protocols if impairment is suspected or a near miss occurs.

If employers did not already have such policies in place, it was recommended by the legal community that companies revise their internal policies and procedures prior to Oct. 17.

To that end, the Construction Owners Association of Alberta (COAA) and Energy Safety Canada jointly released an updated alcohol and drug policy model, The Canadian Model for Providing a Safe Workplace, Version 6.0. The Model is a detailed cross-industry guideline to support companies with updating their workplace impairment policies.

Energy Safety Canada also recently released one of its first industry-accepted standards: Life Saving Rules. The Life Saving Rules provide a consistent approach in the prevention of serious injuries and fatalities for our industry. One of the rules, Fit for Duty, speaks to being in a state to perform work safely — an important factor when considering the potential implications of cannabis legalization.

Despite these tools and resources, however, where all companies continue to be limited is testing. Energy Safety

Canada believes employers should be permitted to test workers in safety-sensitive roles on both a pre-employment and random basis. With the right controls, legal framework and legislative certainty in place, the application of random testing would improve an employer’s ability to manage the risk to workers and the public.

Currently, there are no tests for impairment, only presence and likely impairment. This presents a significant concern to employers who are legally required to keep employees safe while at work. Energy Safety Canada believes further research is required around a standard approach to impairment testing in the workplace.

Energy Safety Canada is committed to continued engagement with government and industry around the need for proactive, standard regulations around testing in safety-sensitive work environments. We believe a tragic event should not have to be the trigger for these important regulation changes.

Cannabis in the Workplace Resources: http://www.saskatchewan.ca/cannabis http://www.worksafesask.ca/cannabis https://www.canada.ca/cannabis v

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Saskatchewan Oil Report 2019 33

Why ministerial discretion does not belong in Bill C-69

By Gary G. Mar, Q.C., President and CEO Petroleum Services Association of Canada (PSAC) On March 22, 2019, my board chairman and I represented the Petroleum Services Association of Canada (PSAC) before the Standing Senate Committee on Energy, the Environment and Natural Resources. We were testifying on behalf of PSAC member companies, offering their views and perspectives on Bill C-69, which would enact the Impact Assessment Act and the Canadian Energy Regulator Act, as well as amend the Navigation Protection Act and a number of other acts. In short, Bill C-69 is the federal government’s attempt to impose new “environmental assessment” measures on Canada’s resource sector. It has been widely criticized as likely to further delay and discourage investment in Canadian pipelines, mines and other resource infrastructure. Its “green agenda” threatens to trump economic considerations while adding new layers of bureaucracy, higher costs, longer delays and more uncertainty on Canada’s resource sector.

In preparing to appear before the Committee, we struggled with what we could present that hadn’t already been said many times before by other parties as deeply distressed as we are with the disastrous consequences this bill portends. Nevertheless, we felt it necessary to reiterate the issues of deep concern that had also come to the fore in our own assessment of the bill’s likely impact.

We pointed out that what began in 2014 as a downturn due to low commodity prices, a situation outside of the control of a federal or provincial government, has escalated into a dramatic flight of capital from Canada in response to factors that are within the control of governments. These include competitiveness, regulatory uncertainty, the tanker moratorium, the clean fuel standard, methane emissions reduction regulations, carbon taxes and, finally, Bill C-69. At a time when investors are looking for regulatory certainty and firm timelines, Bill C-69 in its current form threatens the opposite. Canada will continue to sacrifice billions of dollars of economic prosperity and growth even as jobs continue their flight to other countries.

One of the biggest problems with Bill C-69 is that it would give the federal Environment Minister added discretionary power on deciding whether a project goes ahead or not. This politicization of the process has been roundly criticized by numerous thoughtful commentators, including the four Atlantic Premiers (including three Liberals) who told the Prime Minister that Bill C-69 in its current form “will not meet the dual objectives of environmental protection and economic growth”. They went 34 Saskatchewan Oil Report 2019

on to say that a particular concern is that the bill “places final decision-making power in the hands of the Minister or Governor in Council and provides the opportunity to veto the results of thorough scientific assessment and review of evidence”.

Telling the Committee that PSAC shares this concern added nothing new to the debate. What is new is a key lesson coming out of the ongoing SNC-Lavalin saga.

In that regard, we reminded the Committee that one of the purposes of administrative law is to take political decisions out of the hands of politicians and place it in the hands of subject experts. That’s what we seek: subject experts able to move the process forward in an objective manner.

Legislators have the key responsibility of establishing the parameters within which such quasi-judicial administrative bodies exercise their authority. They then need to stand out of the way and let their handiwork prove itself. The problem with politicizing the process by adding a ministerial override is that you will invariably have other ministers, MPs and others with agendas lobbying the minister in question to exercise his or her discretion in a certain way. The clear danger is that issues of national interest may be forced to take a back seat to those of political interest.

Our advice to the Committee? If you don’t want the PMO, ministers or others exercising undue pressure upon an individual minister, then take away that possibility. The process must not be politicized.

Let’s take to heart what the PM himself said about the SNCLavalin affair: “We will stand up and defend and create jobs, and we will always defend our institutions and rule of law.” By all means, create new and better institutions and laws as they deal with resource development, but then stand out of the way and let them work with certainty, objectivity and timeliness to restore investor confidence and bring back those jobs for Canadians.

Association profile The Petroleum Services Association of Canada (PSAC) is the national trade association representing the service, supply and manufacturing sectors within the upstream petroleum industry. PSAC is working energy and, as the voice of this sector, advocates for its members to enable the continued innovation, technological advancement and in-the-field experience they supply to energy explorers and producers in Canada and internationally, helping to increase efficiency, ensure safety and protect the environment. v

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New focus for Williston Basin Petroleum Conference Brad Wall.

T

he Williston Basin Petroleum Conference kicks off its 27th year on May 27 to 30, 2019, and event organizers have completely reimagined its purpose and intent.

In a period of profound challenges faced by industry – pipeline and transport capacity issues, emerging new methane emissions standards in Can-

ada, water use, rapidly falling recovery rates alongside high drilling costs and CO2 use and availability – conference organizers began to look at developing a conference and technical trade show less focused on sales and equipment, and more focused on business development, emerging technologies and company innovation.

“Saskatchewan already has two

substantive trade shows – in Weyburn in June and in Lloydminster in September – that deal with the suppliers and distributors,” notes Dan MacLean, the CEO of the Petroleum Technology Research Centre, which directs the Williston Basin Conference. “It’s one of the differences between Regina and Bismarck when the Williston Basin is hosted north of the border. On even number years, when the conference

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is in North Dakota, the trade component is enormous. We’ve come to realize that the event in Canada needs to be more business- and technologydirected.”

Norm Sacuta, the director of communications at the PTRC, agrees. He’s seen the conference evolve in Canada over the last 10 years.

“We will still have an important trade show component at Williston Basin.

That will never change,” says Sacuta. “But a preference will be given to companies that have innovative technologies that will address current and future challenges of the oil industry in Saskatchewan. The conference will focus on Saskatchewan’s heavy and light oil challenges, and on the rising importance of CO2 availability and use in tight, light and heavy oil operations.”

The reinvigorated focus will in-

coasthotels.com 800.663.1144

clude discussions and presentations on pressing issues like flow line and pipeline integrity, CO2 availability and use in tight formations, artificial intelligence and block chain use in oil and gas, managing methane emissions – all are planned in presentations and panel discussions.

36 Saskatchewan Oil Report 2019

An exciting new component to Wil-

says MacLean. “We have several more

that will be of particular interest for in-

liston Basin 2019 will be a one-day

high-level speakers from Calgary-

dustry participants. It is hosted by the

business conference on May 28 that

based investment firms, our own Min-

Saskatchewan Geological Society.

will include high-level panels and dis-

ister of Energy and Resources, Bron-

cussions that include speakers from

wyn Eyre, and executives from the oil

important

industry, banking, government, regu-

and gas industry.”

heavy oil fields in Saskatchewan, to

latory bodies and politics.

The technical conference includes research

applicable

to

The conference will again kick off

tight/light formation in the Bakken and

“We are very excited to have the

with two sessions of the Core Work-

Viking and will include work by such

former Premier of Saskatchewan,

shop on May 27 providing scientific

groups as North Dakota’s Energy and

Brad Wall, for a question-and-answer

and geological analyses of drilling

Environmental Research Centre and

session at the business conference,”

cores from Southeast Saskatchewan

the Saskatchewan Research Council.v

Details on registration for the conference can be found at

www.wbpc.ca.

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Bluewave Energy: Your multi-fuel supplier

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luewave Energy is pleased to now offer top-quality propane service, delivery and supply in the Kindersley, Sask. area. This recent branch opening better enables Bluewave Energy to serve commercial and residential customers throughout Alberta, Northern British Columbia, Southern Manitoba, Saskatchewan, the Northwest Territories and the Yukon with their complete multi-fuel requirements.

With 32 local branches and a network of 23 cardlocks, Bluewave Energy is Western Canada’s leading multi-fuel supplier that specializes in fuel, propane and lubricants. Bluewave Energy strives to provide personal service and local customer care excellence that is built on its framework of outstanding supply security, delivery and distribution.

“With Bluewave Energy, not only do you gain the advantage of an all-access pass to our branch and cardlock

38 Saskatchewan Oil Report 2019

network across Western Canada, we also actively strive to deliver our very best to our customers every day,” says Dave Young, general manager. “We understand and speak the oil and gas language. Our knowledgeable, locally situated employees are product experts that truly deliver more for you every day.”

There is an increasing demand for high-quality propane service and supply in the oil and gas, agriculture, construction and residential sectors in Central and Western

Saskatchewan. As a highly established Western Canadian multi-fuel supplier, Bluewave Energy recognized the opportunity to expand their geographic footprint in the area. Catering to local demand, the new Kindersley branch specializes specifically in propane – with the potential to expand their multi-product offering in the future.

About Bluewave Energy Bluewave Energy, the largest petroleum distribution leader in Western Canada, specializes in delivering high-quality fuel, propane, lubricants and equipment to a growing number of businesses, industries and homeowners throughout Alberta, Northern British Columbia, Southern Manitoba, Saskatchewan, the Northwest Territories and the Yukon.

We proudly service Saskatchewan with our local branches in Estevan, Kindersley, La Ronge, Oxbow, Saskatoon and Weyburn.

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Aboriginal communities taking charge of their future

K Ken Coates.

“ For a long time, we’ve had the public commentary focused on the simple notion that Indigenous people oppose pipelines; there’s a fundamental conflict between those two groups. Well, it doesn’t hold anymore.

Here, you have a situation where a lot of First Nations are in support of pipelines, but some are opposed.”

40 Saskatchewan Oil Report 2019

en Coates has been collaborating with First Nations peoples for as long as he can remember.

Coates is the Canada Research Chair in Regional Innovation at the Johnson-Shoyama Graduate School of Public Policy at the University of Saskatchewan. Coates says he started out doing research on northern work, issues with pipelines and Indigenous involvement in mining.

“It’s been interesting following all of the developments going on,” Coates says.

In his role, Coates aims to help Aboriginal people capitalize on their legal and treaty rights. Over the last several years, there has been an increase in Indigenous participation and employment, leading to a far more complex and positive relationship than in the past.

“Aboriginal people are far more eager for opportunities for prosperity in their own communities through the oil and gas sector,” Coates says. “We’re really trying to work with industry, the government and the Indigenous communities to figure out what the best policies and best procedures are going forward.”

Coates isn’t exactly on the frontlines of these meetings; however, he focuses on policy questions and what policies are being developed.

“Are they pursuing the right policies? Are companies able to proceed?”

Coates lists. “The general issue is whether Aboriginal people are getting a fair opportunity to participate in the oil and gas economy.”

Coates says for the longest time, there has been a lot of Indigenous interest in “small” things, such as setting up construction companies and welding firms. However, recently, the Indigenous participation has increased to include major projects.

“We’ve seen a major shift to equity involvement,” Coates says. For example, Suncor Energy was a game-changer in terms of how people view Indigenous participation.

“For a long time, we’ve had the public commentary focused on the simple notion that Indigenous people oppose pipelines; there’s a fundamental conflict between those two groups. Well, it doesn’t hold anymore,” Coates says. “Here, you have a situation where a lot of First Nations are in support of pipelines, but some are opposed.”

Resource companies are now working closely with Aboriginal communities, and Coates says it is fascinating to see because it has caught the country unaware.

“It’s a game-changer in terms of how people understand the role Indigenous people see for themselves in the future economy. The irony is that’s not a new perspective,” Coates explains. “They have been involved in resource development, they’ve wanted to get involved. We’re seeing a huge shift in the way the public and the government have to deal with Aboriginal aspirations. I think it’s a positive thing for them. They can decide for themselves when and where they can get involved.” v

Saskatchewan Oil and Gas Supply Chain Forum:

Phenomenal networking opportunities

T

he Saskatchewan Oil and Gas Supply Chain Forum is about salesmen talking to buyers, not salesmen talking to salesmen; a who’s who of Saskatchewan’s oil sector will attend the fifth annual event on Oct. 3, 2019 in Regina.

The 2018 event saw the supply chain hear from and meet with the procurement staff and executives from Enbridge, Crescent Point, Federated Co-op, Husky, Schlumberger, Stantec, Teine and TransCanada. The 2019 event will be similar.

The Forum is presented by the Saskatchewan Ministry of Trade and Export Development and the Saskatchewan Industrial and Mining Suppliers Association (SIMSA). Last year’s event drew over 280 people with a trade show double the size of the previous year. Even in a time of depressed oil prices, the trade show and sponsorship of the event were both sold-out well in advance.

In an online post-event survey, 98 per cent of attendees answered they would come back next year, with 86 per cent stating they found the speakers and topics to be either very good or excellent.

SIMSA’s executive director, Eric Anderson, attributes the success to “putting the buyers and sellers together in the same room” and “keeping costs low.” As he put it, “we make money for our members, not from them.”

However, he was quick to note that “none of this would have happened without the gracious support of the oil producers, movers and engineers.”

Every year, the event includes a “speed-networking event” which sees suppliers having five-minute meetings with the procurement staff in attendance. The buyers are seated around

The opening remarks session. the perimeter of the room at individual stations, then the sellers are cycled through, one at a time, having the five-minute meetings. A strict eye on the clock was kept by an MC to make sure everybody met with whom they wanted.

Speed 2018 networking participating companies were Husky Energy, Teine Energy, TransCanada, Crescent Point Energy Corp., Federated Co-operatives Limited (upstream and refinery), Enbridge and Stantec. The 2019 event will be similar.

SIMSA also holds a similar annual speed-networking event at the Global Petroleum Show for its members.

SIMSA has recently launched the Saskatchewan Suppliers Database, which is a tool for major resource producers to find and shortlist suppliers.

This SIMSA members-only tool was designed and completely paid for by BHP, Husky, Mosaic, Nutrien, SaskPower, TransCanada, SaskEnergy and the Government of Saskatchewan.

SIMSA represents over 180 Saskatchewan suppliers to Saskatchewan’s mining, energy and industrial sector; this group of companies represents over 20,000 employees and over $10 billion in revenues.

To be a SIMSA member, a company must have at least three employees in the province, have a permanent bricks and mortar location in the province, be PST- and WCB-registered in the province, have an interest in the promotion and growth of the Saskatchewan-based supply chain and may also have the opportunity to run for a SIMSA board position, only if their company’s global corporate head office is located in Saskatchewan. In short, they represent Saskatchewan suppliers.

SIMSA has grown substantially over the past two years. Their events bring the supply chain face-to-face with the procurement staff of the major mining, oil and industrial companies operating in Saskatchewan, as well as provide educational items. SIMSA’s unprecedented work with and access to them stems from SIMSA’s core values: (1) never asking them to “shop local”; instead SIMSA asks the producers to keep their members informed of what they are planning, help them understand what their needs are and let them know how they can be better; and (2) supporting the sectors’ activities to the public; if they do not do well, neither do SIMSA’s members. v Saskatchewan Oil Report 2019 41

The future of

reclamation monitoring

Above: Thirty-centimetre resolution imagery provides a detailed view of operations and reclamation.

Right: Online management platform showing current and historical land use and land cover.

M

onitoring environmental health and tracking change during reclamation and remediation is something that is important to every operation in the resource development sector, but is especially so for oil and gas operations. Oil and gas organizations often have footprints that cover large areas, they often utilize chemicals and processes with the potential for adverse environmental effects and some operations can have lifetimes spanning decades.

The challenges they face when monitoring reclamation areas can be numerous. Areas that began operations decades ago often lack full information about the environmental conditions that existed before development. In addition, the ground testing required for monitoring can be very time-consuming and expensive. Getting quality information about past and current environmental health in an efficient and cost-effective manner can be difficult.

In order to address these challenges, Western Heritage has developed the Environmental Footprint Monitoring Platform (EFMP). This platform uses 30-centimetre, highresolution satellite imagery to extract important information about environmental health and delivers it to managers through an easy-to-access online platform. The platform identifies land use types defined by the client, and monitors change and fragmentation of the land cover. It measures vegetation health based on vegetation greenness and productivity or the change in biomass. It also measures aquatic health and change based on surface water depth, volume, salinity and turbidity. These indices are well-suited to the 42 Saskatchewan Oil Report 2019

needs of oil and gas producers, and the platform has been designed to accept any other relevant data.

Using 30-centimetre, high-resolution satellite imagery to monitor reclamation activities has a few key advantages. One of these is the ability to look back using archival imagery to assess environmental conditions prior to or early on in the project’s lifecycle. Imagery is available from the early 1970s forward, and this can be used to more accurately assess baselines for reclamation and investigate the source of past and current environmental conditions. Another advantage is the ability to monitor the entire project footprint at once. This allows managers to identify areas of potential concern and schedule ground testing or further analysis. This creates efficiencies in applying company resources, making sure that time and money is used as effectively as possible and minimizes the risk of having staff in the field.

Because the EFMP uses satellite imagery, Western Heritage Geomatics has had to be creative in ways to identify indices. An example is measuring salinity. Salinity does not naturally alter the reflectance of water and, therefore, there is no way to directly detect saline water. Knowing the importance of this information to our customers, we had to find contextual clues to detect saline bodies of water. Salinity does alter the vegetation communities near the water; based on this, we have been able to map salinity in their project areas.

As technology changes, the way we look at the world is also changing. Reclamation monitoring using satellite imagery has the potential to save time and money and ensure the best possible information is available to decision-makers. v

The Future of Reclamation Monitoring

Interactive map of surface water depth. Users can click on any point to query depth.

The Environmental Footprint Monitoring Platform is ideal for managing oil and gas reclamation activities.

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Three decades and counting: Brother’s Specialized Coating Systems is there for you

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ocated in Edmonton, Brother’s Specialized Coating Systems Ltd. is Western Canada’s most trusted provider of high-quality protective coating systems, designed to ensure your investment remains protected from corrosion, erosion and harsh environmental conditions.

For over 30 years, we have specialized in internal lining systems of pipe, tanks and vessels. We are committed to providing the best possible outcome. We don’t just say we do it; we actually do it.

“We have a proven record of doing what we say and never shy away from telling our clients what they need to know — even when it may not be what they want to hear. To us, making sure you have the right information and best solution is all that matters — customer satisfaction is our priority,” Brian Payne, general manager for Brother’s Specialized Coating Systems Ltd., says.

Brother’s Specialized Coating Systems Ltd. primarily serves the oil and gas industry. The services we provide also benefit those companies working in other industries, such as water treatment, wastewater and mining.

44 Saskatchewan Oil Report 2019

While there are similarities between the various industries, each one has their own unique challenges to overcome.

Brother’s can apply a complete

Making sure your equipment remains free of corrosion is why we’re around, so it’s safe to say we take quality assurance extremely seriously.

Before anything leaves our hands, we

aspects of a successful job being com-

scrutinize every square inch. As an organization dedicated to high quality, Brother’s follows industry-standard protocols set out by two main organizations, NACE and SSPC. Having our own in-house NACE Level 3 Inspectors and SSPC Train the Trainer, this enables us to maintain the high level of quality that our customers have come to expect from us over the years. This quality is also achieved through welltrained, long-term staff that provides the same consistent output each time, allowing the quality to stay the same with each job we do.

“Brother’s provides specialized, internal and external applications for equipment such as fabricated pipe spools, pipelines, pressure vessels and tanks. Whether it’s an internal lining system or external coating application, our specialists can assist you in meeting your goals of a well perform-

pleted at Brother’s.

ing coating system,” Payne says. v

range of internal and external spray on coatings. When putting together a coating specification each coating has a chemical, temperature, pressure and abrasion resistance that must be considered for the specified service.

Our experts can assist in design applications by providing input for lengths, configuration and access to various pieces of equipment.

Our experienced staff can assist in determining the best system to protect your investment. We pride ourselves on a high level of customer service and believe that effective levels of communication are key to making the jobs go smoothly. If that means providing the best possible solutions to your inquiry, discussing the design parameters or keeping you updated along the way on the delivery schedule, we feel these are all important

Big things happen at IFR Workwear Inc.

I

FR Workwear Inc. is an Aboriginal-owned company, founded in 2005 in Red Deer, Alta. by Reg Radford and Erin Buckland. Our company has an unsurpassed professional team, which makes it easy to continually serve our customers with consistent quality service and products.

We manufacture high-quality, trusted products, offering our customers comprehensive options for safety and comfort, through our full line of protective workwear, which includes coveralls, insulated coveralls, parkas, insulated bib overalls, fleecewear, vests, headwear, hard hat liners and more for industries such as oil and gas, petrochemical, mining, electrical, construction, railroad and others. All of our products are manufactured in North America and sold through distribution partners across Canada and parts of the United States.

In order to provide consistent quality, we only use proven and tested fabrics like DuPont™ Nomex®IIIA, Westex™ UltraSoft®, Indura®, DH and components made in North America. 3M™ Scotchlite™ reflective striping is used on all the garments to meet or exceed reflective visibility requirements of industry.

In Red Deer, IFR Workwear carries a large inventory of six different fabrics and eight different colours for quick delivery. All garment materials meet safety standards and comply with industry standards controlled by the CGSB (Canadian General Standards Board), the CSA (Canadian Standards Association), the NFPA (National Fire Protection Association), the ASTM (American Society for Testing and Materials International) and the OSHA (Occupational Safety and Health Administration). We provide workers with premium safety protection, increasing productivity and overall satisfaction through excellent fit guaranteed by a large range of sizes from 34 to 70 tall, customizations, fabrics and styles.

In December of 2013, IFR Workwear moved into a new, state-of-the-art 31,000-square-foot distribution centre in the Queen’s Business Park in northwest Red Deer. There, more equipment was added to the in-house embroidery and sewing department to enable us to keep the goods shipping out quickly and efficiently. We can embroider company logos, install nametags and do any repairs or adjustments in our Red Deer facility.

We are working on developing new, innovative workwear all the time. This past year we launched a line dedicated exclusively to women, including cargo pants, a work shirt and fleece jacket. Our new Westex® DH Antistat Coverall and a three-in-one High-Vis Parka were also introduced in early 2019. Our industry breakthrough product, the two-piece “Suit-All” Coverall, exclusive to IFR Workwear, provides a custom fit especially for women through a range of sizing pairing options. These coveralls are not only more comfortable to wear in the field, but also safer. Avenger by IFR was introduced in 2016. Avenger is price-competitive and includes flame-resistant coveralls that meet CZA Z96-18 compliance, made entirely from North American fabric and components. In late 2019, watch for IFR Basewear, a new line of thermal FR underwear. We encourage you to check our website often for new products and updates at www.ifrworkwear.ca.

We encourage any comments and suggestions that can help us develop new products or improve upon ones we already offer. We are easy to connect with through our website contact form or phone line, where you will be pleased to discover a real person answering your call. We pride ourselves on superior customer service and premium products. Safety should settle for nothing less. v Saskatchewan Oil Report 2019 45

Factors Western: Your factoring solution

F

actors Western is a well-established, family-owned business with headquarters in Calgary, Alta. The company has been operating since 1985, with a primary focus on Western Canada and the oil and gas industry.

Greg Smith, president of Factors Western, has answers to a few common questions about factoring.

What is factoring and how does it work?

Factoring provides working capital or cash for invoices immediately, rather than waiting 30, 60 or even 90 days to get paid. We purchase qualified receivables on a regular and reliable basis providing the business with continuous cash flow without creating debt.

What type of businesses or situations can factoring help?

In many cases, factoring is a solution for rapid growth or accepting large contracts. Mobilization and project startup costs can quickly deplete cash flow while waiting for the first payment. Factoring can bridge that gap and help ensure the project is successful. In some cases, a business may be new or unable to qualify for extended credit to meet the highs and lows associated with the oil and gas industry.

What has your experience with factoring in the oil and gas sector taught you?

Over the years, we have come to realize that the relationship between our client and their client (the one paying the invoice) is critical, and ensuring a simple and effective process that fits everyone involved is key. We also recognize the seasonal variations common in the industry throughout the year, such as the effects of breakup and short-term projects that can lead to cash flow shortages. Our experience allows us to respond quickly with the ability to customize specific situations.

This allows clients to take advantage of opportunities such as contracts that were previously beyond their financial means.

What makes Factors Western different from other factoring companies?

Factors Western’s experience in the oil and gas industry and our history of quick decision-making on a local level have been among the strengths that set us apart from others in the industry. We take pride in being available and responsive to our clients on a timely basis. Customers are not normally committed to contracts, allowing them to choose which invoices to factor.

We have no monthly minimum or maximum requirements. v

ARE YOU TIRED OF WAITING TO GET PAID FOR YOUR INVOICES? LET US HELP YOU IMPROVE YOUR CASH FLOW! WE CAN QUICK PAY YOUR INVOICES Corporate Head Office:

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The Advantage

• Factoring converts your invoices to cash immediately allowing you to meet and exceed current cash flow needs giving you opportunity to take on more business.

www.factorswestern.com 46 Saskatchewan Oil Report 2019

Building on 70 years

T

his year, Fluor celebrates a remarkable 70 years in Canada.

Since first establishing a Canadian presence in 1949, Fluor has been involved in the engineering, procurement, fabrication, construction and maintenance (EPFCM) of a wide range of projects across multiple industries.

Today, Fluor Canada is proud to be a national leader in the delivery of integrated EPFCM solutions.

From its first project in Canada in the 1940s (a refinery in British Columbia), to some of its latest ventures (including a joint venture to provide EPFC for a liquefied natural gas export facility in British Columbia, and the construction of an international bridge between Ontario and Michigan), Fluor continues to be at the forefront of some of this country’s most prominent developments.

“On the anniversary of our 70 years in Canada, I believe our employees are proud of where we are now and where we are headed. 2019 will be a year of building prosperity and empowering progress. With our core value of safety combined with our commitment to building strong relationships in our industries and communities, I am confident we are well positioned to meet today’s industry challenges,” says general manager and vice-president Mark Brown.

Fluor’s suite of expertise and portfolio of capabilities extend from sustaining capital projects to the traditional

large-scale capital project. The company’s legacy includes safety focused and cost-efficient projects across many facets of industry including refineries, oil sands and heavy oil upgraders, steamassisted gravity drainage recovery, petrochemicals, chemicals, gas processing, power, mining, pipelines, utilities and off-sites, infrastructure, sustaining capital, maintenance, facility revamps and more.

we reward and celebrate safe behaviour,” says Jay Simpson, Fluor’s Canadian HSE regional director.

To help employees keep safety top of mind and demonstrate the organization’s commitment, Fluor’s Calgary office has displayed a Safer Together pledge in the lobby of the building. At the beginning of 2019, employees demonstrated their commitment by placing their signatures on the pledge.

Safer together

Indigenous relations

While Fluor Canada has executed some of the country’s most significant capital projects, the individuals behind the projects and the culture at Fluor is what’s paramount.

In 2018, the company rolled out Safer Together, a model designed to take Fluor’s already strong health, safety and environment (HSE) culture even further. Safer Together reinforces a proactive safety culture that reflects a commitment to developing caring, preventative safety practices across the organization.

Employees are actively encouraged to look out for one another and to promote the importance of safety – not just on site, but around the office as well.

“Safety is the backbone of our organization and we’re all held accountable to encourage safe behaviour. If we see something we would deem unsafe, we are not afraid to speak out about it; we don’t take shortcuts. As a community,

Fluor is a member of the Canadian Council for Aboriginal Business (CCAB) and is currently pursuing a Progressive Aboriginal Relations (PAR) certification.

Fluor has an ongoing commitment to Indigenous communities and, through these relationships, Fluor employees and contractors are gaining a greater cultural understanding of what it means to be Indigenous. The Indigenous Relations Strategy is designed to be transparent, with the intent to instill a deep sense of respect for the individuals, communities and businesses that we work with.

Looking forward Fluor has built a 70-year legacy that stretches from British Columbia to Newfoundland and Labrador. As an industry leader and one of the world’s largest EPFCM companies, Fluor will continue to meet and exceed client needs through the delivery of safe and capital efficient integrated solutions. v Saskatchewan Oil Report 2019 47

A lot going on at the Goodwater Machine Shop

T

he Goodwater Machine Shop has an extensive

owners to help kickstart their machine shop business.

history in the RM Lomond No. 37, located in the

The Wanners have instilled hard work ethics with their

village of Goodwater, Sask., just 25 minutes south

three children, Kevin, Terrance and Michelle, getting their

of Weyburn and 45 minutes northwest of Estevan.

“feet wet” by doing odd jobs in the business. Their oldest

The Goodwater Machine Shop has been serving the area’s

son Kevin achieved his welding certificate and currently

agriculture industry since the early 1920s and the oil in-

has 25 years’ experience with the now third-generation

dustry in 1953 when the first light oil wells were drilled in

family company. In recent years, he has acquired his ‘B’

the local area.

pressure welder certificate. Their second son Terrance

The Wanners branched out from their grain and cattle

worked to achieve his third-year apprentice machinist

farm in 1986 when Lionel and his wife Donna purchased

training and also worked with his parents and brother in

the business from Frank and Louise Bird. Lionel’s uncle

the business for several years. He is currently working as

Philip Wanner and his wife Ada owned the business previ-

landman on the L3R Project with Enbridge Pipelines Inc. in

ously and later sold to the Birds. Ada was also a machinist

southern Saskatchewan.

in Moose Jaw and worked for the Second World War war-

The Goodwater Machine Shop offers a diversified port-

time efforts there. The two of them had years of machin-

folio of agriculture and oilfield services: certified quality

ing experience and repair knowledge. In the early 1970s,

control program and weld procedures, licensed contrac-

Philip assisted with the development of the Saskatchewan

tor and consulting services, certified pressure welders,

colleges’ apprentice training program for the machinist

stainless welding, in-shop and in-field welding services,

trade. Phil returned in 1986 to share some of his extensive

custom fabrications and design, lease builds and reclama-

repair and machining knowledge with the young business

tions, lease maintenance including snow blowing, dozing,

The Wanners have instilled hard work ethics with their three children, Kevin, Terrance and Michelle, getting their “feet wet” by doing odd jobs in the business.

48 Saskatchewan Oil Report 2019

and lease mowing, field service crews, pump jack repairs and maintenance including inspections, greasing program, a fully equipped machine shop, custom fabrication and metal works. They are SECOR compliant and ISNetworld and ComplyWorks members.

Some of the many retail sales and services include tex gates, portable and stackable tex fence, heavy duty portable cattle panels, gate sales and installation services, cattle-handling systems, equipment rental outlet for A-1 Rent-Alls of Regina, popular pipe fence clamp fasteners available at the machine shop or Cowtown Weyburn.

Sales and installation services have taken place for several years as the south Saskatchewan retail sales outlet for Stampede Steel of Linden, Alta., doing installations of custom cattle and livestock handling systems installations for companies such as XL Food Inc. of Calgary in southern Saskatchewan, Weyburn Livestock Exchange in Weyburn, Sask. and Assiniboia Livestock Exchange in Assiniboia, Sask.

Custom fabrications and cattle handling system installations include Soo Line Cattle Company in Midale, Sask., Tica Horse Stalls in Midale, Sask., Summerhill Feeders in Wolseley, Sask. and Nilsson Bros in Calgary and Moose Jaw. Custom fabrications and installations of landings and walkways took place at Gibson Energy, Palko Environment, Tervita, NewAlta, Crescent Point Energy.

The Goodwater Machine Shop also fundraised for Stars Air Ambulance, Goodwater Community Centre, Goodwater Rink, as well as sponsorship of Weyburn, Midale and Radville Rodeo Associations, local 4-H clubs, minor sports and youth programs in Weyburn, Estevan and surrounding areas, Ducks Unlimited and Bird Doggin’ Classic. v

Ag & Oilfield Pressure Welding, Repairs & Services • • • • • • • • •

QC Program & Weld Procedures Licenced Contractor Consulting Shop & Mobile Welding Lease Maintenance Pumpjack Repairs & Maintenance Tex Gates & Fence Panels Full Machine Shop Services Certified ‘B’ Pressure Welding

• Custom Fabricating & Design • Isnetworld & Complyworks Members • Field Service Crews • Pumpjack Inspections • Snow Dozing & Plowing • Lease Mowing & Maintenance • Equipment Rental • Ag Equipment Repairs

306-456-2560 Located in Weyburn Oilfield – Highway 35 South Box 28, Goodwater, SK S0C 1E0 goodwatermachine@sasktel.net www.goodwatermachine.ca Saskatchewan Oil Report 2019 49

Technology drives bit performance advances

V

arel Oil & Gas Drill Bits manufactures and services application-specific roller cone and fixed cutter drill bits for a diverse set of applications.

Bit performance is optimized across a diverse set of drilling applications with advanced technology that inteAbove: HYDRA / FANG products are driven by advanced technology in design, grates design, modelling and simulamodeling, simulation, and real-world tion with real-world laboratory testing laboratory testing. Below: Hybrid SLIPSTREAM and field expertise. The process procutting structure is design for unique vides answers to long-standing indusdemands of frac plug drillout. try challenges such as bit balling and improving footage and ROP, as well as new demands presented by frac plug drillout.

FANG FANG scribe cutters have a pointed geometry that improves drilling efficiency by pre-fracturing a smaller contact area. The scribe cutters are included in a suite of shaped cutters that use raised ridges, concave faces and other non-standard geometries to fine-tune the bit’s interaction with the rock. FANG cutters are placed on the bit in a patented, interruptive secondary position on either side of the standard cutting path. The resulting fracture and sweep action removes a higher volume of rock per bit rotation than conventional configurations.

In an Oklahoma STACK well, the design was used to improve the ROP of an existing bit design. An 8.75-inch, six-blade Voyager bit with the FANG scribe cutter configuration was run in the lateral section of the high compressive strength lower Meramec formation. It achieved a 32.3 per cent gain in average footage and 52.8 per cent higher ROP.

HYDRA The HYDRA hydraulics optimization program addresses long-standing 50 Saskatchewan Oil Report 2019

PDC challenges, including bit balling, coring and plugged nozzles, without affecting rig hydraulics. It uses computational fluid dynamics (CFD) to study the complex interaction between various design elements and inform specification of optimal bit characteristics for the particular application.

Curved nozzles improve cleaning and cooling by directing fluid flow to the cutter surface. The nozzles improve bit stability and reduce formation erosion by limiting the fluid stream’s impact on the formation. This limits coring and other problems to extend bit life and drill longer runs.

Webbed blades block fluid flow to adjacent junk slots to prevent cuttings recirculation. The configuration also eliminates fluid entrainment by adjacent nozzles to maximize nozzle efficiency. The unique junk slot geometry results in more efficient cleaning for greater cuttings removal and volume.

The hydraulically optimized bits are yielding significant footage and ROP

gains in historically challenging drilling applications. In the Permian Basin, a HYDRA optimized bit drilled a 7,001foot vertical section at 133 feet per hour compared an offset average of only 6,579 feet drilled at 106 feet per hour.

SLIPSTREAM SLIPSTREAM roller cone bits are designed for the unique challenges of frac plug drillout in multi-zone completions. The bits directly address drilling and cleanout problems presented by metal, composite and elastomer plug components to increase efficiency and reduce wear.

The hybrid cutting structure has steel teeth to drilling the composite materials typically found in the centre of the frac plug, and tungsten carbide inserts on the gauge area to drill out cast iron and ceramic components.

Extended runs in motor and standard rotary applications are supported by an advanced bearing package, special lubrication, tooth hardfacing and reinforced shirttail protection.

The SLIPSTREAM bits drill significantly more plugs at higher rates and stay in the hole longer while producing smaller cuttings that are more easily circulated out of the wellbore.

In a recent Ohio well, a record 144 plugs were drilled out in a single, 197hour run at an average of just 10 minutes per plug.

A 57-well Eagle Ford shale study determined the bits drilled frac plugs 13.6 per cent faster than standard tooth bits and averaged 3.3 more plugs per use.

While standard bits drilled an average 17.18 plugs per well with an average 9.66-minute drillout time per plug, the hybrid bits drilled an averaged 20.36 plugs per well with an average drillout time per plug of 8.31 minutes. v

Feel the Force of HYDRA! FANG Shaped Cutter Technology Optimized Hydraulics Premium Performance

Pump up your business profile with a SIMSA membership.

The Saskatchewan Industrial and Mining Suppliers Association (SIMSA) helps global resource companies in the industrial, mining, and energy sectors make their supply chains better, more responsive, and smarter.

Could your company benefit from having its profile listed on our supplier database? Visit www.sksd.ca and find out how you can join the more than 180 Saskatchewan-based suppliers who already enjoy the many advantages of a SIMSA membership.

Our Saskatchewan Supplier Database is a tool that helps link resource companies in need with qualified, capable Saskatchewan-based suppliers so that they can connect, innovate and grow together.

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