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Having problems landing casing?
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PDC Drillable – Surface and Intermediate Casing
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PDC Drillable – Ledges, Washouts and Doglegs
Fill Drill
Non Drillable – Production Casing
Sandworm
Well Cleanout Tool – Service Rigs and Coil Tubing
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XXXXXXXXXXX
Cover / Longhorn Casing Tools Inc. See story beginning on page 10.
owner & CEO Kevin Turko Kevin.Turko@LeadstoneGroup.com
10 Fill Movers Inc. – Innovative Casing Landing Solutions for Today’s Oilpatch 14 Flares for Cost Effective VOC Control for Oil and Gas Production 16 Saskatchewan Bakken Play, A Triumph of Innovation and Inspiration 24 Tervita – Your Leader in Environmental and Energy Services 06 CEO PAGE: The Frustration with Search Engine Clutter 08 Publisher’s Page: How Smiling Jack Gallagher Saved My Career 22 Your Best Friends with Benefits: Employee Attraction – Retention
Managing editor Andrea Turko Andrea.Turko@LeadstoneGroup.com Contributing editor Markham Hislop Markham@BeaconNews.ca
Subscriptions Jeannie Yip Subscriptions@OilfieldPulse.com Creative Marketing Heather Beatty Heather.Beatty@LeadstoneGroup.com Sales Manager Dave O’Connor Dave.OConnor@LeadstoneGroup.com Finance & Admin Jeannie Yip Finance_Admin@LeadstoneGroup.com Production & Printing: Unicom Graphics
28 Rules of The Road 29 DIY Editorial Cartoon 30 Zenert’s Marketing Minute: Marketing or Advertising? 36 Plains’ Perspective: A Call to Arms… A Vision for a
Publisher Jim Graham Jim.Graham@LeadstoneGroup.com
Member relations Karen Keith Karen.Keith@LeadstoneGroup.com
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Canadian copyright 2012 by Leadstone Group Inc. The entire contents of this publication are copyrighted. Any unauthorized reprint or use of this publication is prohibited. No part of this publication may be reproduced in whole or in part without the written permission of the publisher.
Stronger Canadian Manufacturing Industry
38 Jim’s Jokes
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32 Lloydminster Heavy Oil Show 34 Shear Fest Members At Large
31 Norcan Fluid Power 35 Millennium Directional Service Ltd.
Advertising Index IFC
4 15 21 23 29 37
IBC OBC
Longhorn Casing Tools Inc. Intercon Messaging Inc. Renfrew Insurance Ltd. Arizona Vacation Rentals Millennium Directional Service Ltd. Plains Fabrication Data Shapers Inc. Evolution Oil Tools Inc. Zeeco, Inc.
3 www.OilfieldPULSE.com
Product Page - Intercon Messaging The key to a successful business is communication. The faster and more efficiently communication can take place, the more productively a business can run. In an industry that never sleeps, the benefits of communication are endless. Intercon Messaging saw the need for efficient communication in the oil and gas industry and strives to serve companies with a variety of services that allow their businesses to be as productive as possible. Located in Drayton Valley, AB, Intercon Messaging does just what their logo suggests: “Interconnecting Your World.” They offer a variety of services including office messaging, oil and gas facility monitoring, working alone monitoring and emergency dispatch. Within those services, a variety of forms of communication are available, including live call, text, email, automated/voicemail check-ins, SPOT, Mike Phone, 2 Way Radio and Email. A majority of the action takes place in the Drayton Valley office, but the flexibility of telephone answering technology has allowed Intercon Messaging to have remote operators around Alberta and across Canada into Ontario. Regardless of their physical location, all Intercon operators work off of the same system and are there to answer your call. Intercon Messaging makes their clients a top priority and strives to be easy to do business with. Additionally, the industry based call center strives to provide the most up to date technology. Being one of the first buildings in Drayton Valley to have fiber optic internet emphasizes Intercon Messaging importance of reliable service for their clients. Employees at Intercon Messaging are trained in both H2S Alive and First Aid. This, along with in-house training on other aspects of the oil and gas industry, gives Intercon operators the much needed knowledge to provide Five Star Service. A majority of Intercon Messaging’s business is in Alberta, but it stretches as far as Oklahoma, Ontario and British
Columbia. As a 24/7 call center, the potential for business stretches worldwide, just like the oil and gas industry. With the ability to provide their services across the globe, Intercon Messaging takes pride in doing business in Alberta. Currently monitoring over 1200 oil and gas facilities and performing between 1800 and 3500 working alone checkins a day, the business is growing at a fast rate with no sign of slowing down. Continually, businesses are seeing the benefit to have a one stop call center to monitor working alone, alarm call out and office messaging. Businesses can be confident knowing that every phone call is answered by an operator, the facility alarms will be handled according to company policy and that employee safety is monitored while they are working alone. “Intercon Messaging has a Client Care team that is awesome. Friendly and courteous staff that care about safety,” said Todd Thomson with Harvest Energy. “Intercon Messaging has great technical skills in providing check in systems and working alone policies. They are quick to respond to any questions that may arise and are also very accommodating in making their system work for you,” said Christina Johnston, HST Administrator with Penn West. Intercon Messaging is driven to provide a five star service with the most current technology, training and knowledge that the agents have and passion for the oil and gas industry. With their experience as a benefit, Intercon Messaging continues to grow and provide faster and more efficient communication, enabling their clients to grow and productively do business. With their experience as a benefit, Intercon Messaging continues to grow and provide faster and more efficient communication, enabling their clients to grow and productively do business.
CEO Page XXXXXXXXXXX
The Frustration with
Search Engine Clutter
I don’t know if you are like me, but I just can’t help wondering who else out there finds searching for products and services over the Internet anything but frustrating! It makes me think like a kid once again looking for that elusive toy stashed at the bottom of the Alpha-Bits cereal box. No matter how much you dig for it, you just can’t seem to get your fingers on it without taking the ‘time’ to dump out the entire box! Of course once you found that little devil you were, more often than not, disappointed in the toy itself, and tossed it away because it just wasn’t what you were expecting or really wanted. All that, and you still have to take more ‘time’ to get all the cereal back into the box and clean up the mess before Mom or Dad caught you in the act! Time is our enemy! Sound familiar? So when do we do our Internet searching? Usually when we absolutely need something right now, and it always seems it is precisely when we have the least amount of time to find it! In speaking with many of our Oilfield HUB members and colleagues it is alarming how many people simply give up on an Internet search only minutes after they started! Frustration kicks in quickly, when you are confronted with thousands of search results and any notion of heading to page two is like admission of failure that you screwed up the search request in the first place. We often question all
of the search engine optimization stuff we have heard or read about and constantly feel we are being manipulated by web design experts’ sitting behind their computer screens in black Ninja suits. What about the additional challenge of sifting through the plethora of consumer goods, from beauty products to pet care, to quickly locate an industry specific search result for the energy sector. Whenever I am speaking with a potential Oilfield HUB member, I take up the torch and head over to the web and am amazed with information overload that bombards us each and every day. Sure, if I have their URL, I can find their website immediately; but the story is completely different if I am initiating the search solely from a product or service perspective. It’s not that you can’t eventually find what you are looking for if you can devote enough time. It’s just the wasted minutes that collectively turn into hours digging through search results that have nothing to do with what I am hunting for - specific search results for the oil and gas industry. Recently I was searching for something simple, oil and gas videos, and just shook my head in disbelief. I ended up at one of the search sites and of the first four paid ads, two
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By the time a man realizes that his father was right, he has a son who thinks he’s wrong.
Charles Wadsworth
had nothing to do with the oil and gas industry. Not sure who should be more upset, all of us that have to constantly look through this unrelated stuff, or the two companies that actually paid for ads targeted with key words for a completely different retail audience! Fifteen minutes later I still had not found what I was looking for, but then after another ten minutes or so, EUREKA, I found a potential site! My frustration alleviated somewhat, only to be replaced by the added time to navigate through their website to find the service I really wanted and who I needed to speak with to source it. I thought I had beaten the odds, but no such luck, the site was a bust. Foiled again! Back to the search page, frustration returns, I have to keep looking. Who has time for this? I don’t! So how do we solve the frustration we are experiencing? We are all at the mercy of the Internet, and if we had much more spare time and patience to wander around the vast and cluttered halls of the Internet we could find what we need, where to buy it and who we need to talk to. For those of us that sell for a living, we would close more sales! At Oilfield HUB we are well on our way to eliminating this frustration for our exploration and production customers who are looking for our members’ services, supplies and rentals, when they need them most, when they want to buy! Oilfield HUB goes one step further by uniting the people, the buyers and sellers in the industry, who buy and do business in Oilfield HUB every day. Get the insider track to your next deal or new customer in the HUB! One company helping us clear the clutter and the path ahead is Renfrew Insurance. We would like to welcome Dave Musgrave and his team as our newest Oilfield HUB – Community Sponsor. Dave will also be a regular contributing editor to Oilfield PULSE, in his article ‘Best Friends With Benefits’. Say what? Check out Dave’s insights on supporting your oil and gas staff on page 22, along with Renfrew’s ad on page 15.
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Professional Services Today To Guarantee We Are Back Tomorrow
Tel: 780-882-6220 PRODUCTS & SERVICES - INSPECTION • NDT • Pipeline and Facility Welding Inspection • Pipeline and Facility Erosion Survey • Customized Reports to Suit Clients Requirements HUB SEARCH:
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A Full Service Land Company Serving North America
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Kevin Turko, CEO Leadstone Group
Elexco
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PUBLISHER’s Page
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4 5
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How Smiling Jack Gallagher
Saved My Career
7 9 8
Like most people with advertising in their lives, or their pasts, I am a fan of the series Mad Men. Its early sixties setting resonates with me because it takes me back to Calgary in an era of oil companies like Hudson Bay Oil & Gas, California Standard, Panarctic Petroleums, Royalite Oil and larger than life characters like Bobbie Brown of Home Oil, Eddie Laborde of LaBorde Petroleum, Jerry D’Arcy of Can-Tex Drilling, Peter Bawden of Peter Bawden Drilling and Jack Gallagher of Dome Petroleum.
The contemporary office settings in Mad Men (season three on) feature modern, aluminum framed vinyl-clad partitions with frosted glass sidelights. In 1966 I was hired by a company to sell that style of engineered system to oil company offices in Calgary. The company manufactured compressed straw panels in Innisfail, Alberta, and sold them as roof decking. As the panel also lent itself to other applications, the company decided to utilize the panels, clad in vinyl, in a modern framing system and market them as office partitions, much like the ones featured on Mad Men. Introducing a new system to interior designers, architects and building managers, who were content with the status quo, proved to be tougher than I expected and my sales efforts came up short. Our Edmonton head office gave me an ultimatum: one week to make a sale or… well, you know what. Anyhow… it’s minus forty on the Monday morning of my make-or-break week and, as I exited my ’64 Chevy Biscayne at the east end of downtown in front of the (since demolished) Summit Hotel, I inhaled the frigid outside air
1960’s Calgary and Edmonton Cold Calling Protocol - Pre Global Warming
Fedora, complete with ear flaps Eyeglasses c/w wipers Red Nose (optional). Snowshoes (Edmonton only). Knit scarf (by Mom). All-Weather coat (with zip-in lining) over two sweaters and a suit coat Mittens (Mom again). Felt-lined galoshes complete with crampons Visual evidence of recent brass monkey visitation and my first reaction was to jump back into the car, go home and sob on my wife’s shoulder. Well, I didn’t give in. I spent several hours going from prospect to prospect, receiving courteous attention - a Calgary tradition - but no closed deals. At eleven AM, as I was exiting the Home Oil Building, I looked westward to the next call, three blocks away: Dome Petroleum.
8 www.OilfieldPULSE.com
I hope that after I die, people will say of me: ‘That guy sure owed me a lot of money. Jack Handy
Based upon my success rate with previous calls, I was about to call it a day and call it quits, but something compelled me to continue. I spent thirty minutes with building manager Rex Meville. He politely told me that they had a movable partition system and weren’t looking for another. I left him several brochures and went back out into the weather and headed back to my car. I stopped to have a coffee in the Summit Hotel, bought a newspaper and perused the help wanted ads. As I left through the lobby, I spotted the pay phone and dialed home to apprise my wife of my decision to find another career. Before I had a chance to explain myself, she told me that the office had been frantically trying to get a hold of me. When I contacted them I was advised to get over to Dome Petroleum as soon as possible. When I arrived at Dome, Rex told me that “J.P.” wanted to see me ASAP. “J.P.” I soon found out, was what Jack Gallagher’s staff called him. I was ushered into Jack’s office, where he sat looking at one of the brochures from my previous visit. It turned out that, while I was speaking to Rex, J.P. was looking unhappily at an invoice for rearranging the heavy steel partitions in his engineering department. He immediately authorized a purchase order for a small partition layout on the second floor. Well, that was the beginning of a long and prosperous business association with Dome Petroleum. My standing with my employer went from bum to hero and I learned one important thing: always make that last call! Over the years, I morphed from a salesman of partition systems and roof deck to selling advertising and learning the magazine business. Now I am involved with a newmillennium system, which includes the magazine you are reading and its counterpart, Oilfield HUB, an online community, which works tirelessly to place small to medium size service companies on the preferred vendor list of producers, logistics companies and project managers.
Member annouNcements XXXXXXXXXXX To easily locate our members in OilfieldHUB.com, enter their HUB Search Name in the Oilfield HUB Search Engine
Tel: 403-815-2016 PRODUCTS & SERVICES • Brokerage • Reconditioning Shop • New and Used Equipment Sales • Facility Commissioning/De-Commisioning • Land Sales HUB SEaRCH:
Ea
Experienced Personnel Providing Downhole Tool Solutions.
Tel: 403-243-1442 PRODUCTS & SERVICES • Artificial Lift (Anchors, Rotators, Separators) • Flow Control (Sleeves, Nipples, Plugs) • Completions (Packers, Anchors, Bridge Plugs) • Protective Coatings (HARD KOTE, TEF KOTE) HUB SEARCH:
EOTools We Provide Tax SMART Solutions For Small Business.
Tel: 403-256-3306 PRODUCTS & SERVICES • Life Insurance to Fund Buy / Sell Agreements • Key Person Insurance • Employee Health and Dental Plans • Tax Efficient Investment Strategies • Disability Insurance HUB SEARCH:
LightHouse Casing Landing and Wellbore Cleanout Solutions
Tel: 877-513-7455 PRODUCTS & SERVICES • Casing Landing Tools - Production • Casing Landing Tools - PDC Drillable • SmartBit Casing Reaming Shoes • Wellbore Cleanout Solutions • Field Service and Equipment Training HUB SEaRCH:
Jim Graham Publisher of Oilfield PULSE
FillMovers
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Lorem ipsum dolor sit amet, consectetur adipisicing elit
Fill Movers Inc. Innovative Casing Landing solutions for Today’s Oilpatch
Imagine, how hard is it to drill around a corner a mile or two under the earth’s surface, then run and land steel casing in the proper place? It’s pretty hard, as it turns out, which created the opportunity for Fill Movers Inc. to develop new down-hole tools that are simple, costeffective and successfully land casing close to one hundred per cent of the time. The Calgary-based company was founded in 2010 by managing director Randy Gosselin, an oil patch veteran who knew about the problems associated with casing horizontal wells, and had a few ideas about how to fix them. The spring of that year was spent developing and testing a prototype of the first casing landing tool, which was ready for down-hole work by mid-year. “The challenge that we had to address is that you can’t typically rotate the casing string because of torque issues commonly associated with horizontal well bores. If you’re rotating at surface, you create torque build-up in the build section of the horizontal, and that can cause casing thread damage, potentially causing the casing string to separate,” said Trevor Montgomery, VP Administration at Fill Movers Inc.
Damaging or separating casing strings can be a very expensive problem. Fishing casing strings can take a rig and crew days or weeks to retrieve a string. In some instances they have to plug back and re-drill the section of the wellbore, which is called side-tracking, where the crew drills out around the problem area. Furthermore, if you can’t get casing strings to the targeted depth, you may have to pull it back out of the hole, incurring thread damage, inspection charges, and potential safety issues for personnel. “Just by being able to induce rotation at the leading end of the casing string, by creating rotation through reciprocation of the casing string, instead of at surface at the rig, our tool cuts down time spent dealing with problems or eliminate them altogether,” Montgomery said. “And lost time on the rigs is very expensive.” The push-pull mechanical action of
10 www.OilfieldPULSE.com
I didn’t fall. The floor just needed a hug.
the Fill Drill combined with internal hydraulic pressure from the rig’s mud pumps causes the casing bit to rotate to the right on the down-stroke and to the left on the up-stroke, which also helps keep cuttings suspended. Montgomery says the geology of the area where the wellbore is being drilled is an important factor in determining if the drilling rig will run into problems. Coal seams, for instance, can be a real problem because they’re fragile, and once drilled through with a drill bit, continuously shift and fall in, causing bridges, regardless of the number of wiper or reamer trips the rig runs. These bridges can slow or stop a casing run from reaching the target depth. Shale plays like the Bakken formation in southeast Saskatchewan are where the action is these days, but shale is porous and can be difficult to drill. Sometimes the drilling fluid causes the formation to swell, restricting or closing the wellbore. The Fill Movers lines of products are designed to ream these swelling formations on the way in, allowing the casing string to advance unimpeded. In fact, it’s likely the casing tool is working the whole way in, without the operator ever knowing it. Prolonged pumping of the drilling fluid can cause washouts in the wellbore that can increase the outside diameter of the hole, and create ledges that cause issues when the crew tries to advance the string. Doglegs, or extreme changes in the direction of the well bore, create similar issues. By using circulation, rotation, and bit shape, the casing landing tools can help overcome these obstacles. “Combined with tapered and eccentric bit profiles, the rotation from our equipment can help deal with ledges, washouts and doglegs by orienting the profile of the bit toward the open hole, acting as a guide to help the casing string pass the obstruction,” said Montgomery. “In some areas it may not be likely to happen (to have a problem drilling or landing casing), but in other areas it may be quite likely,” said Montgomery. “One of our customers had just a 60 per cent success rate landing their casing in specific areas.” Montgomery says that the majority of customers use his company’s tools on wells they expect to be difficult. “Recently, we are starting to see a shift in this way of thinking, though. Customers are starting to see our equipment as an affordable insurance, with savings and benefits when applied on a larger scale. As one customer put it, they felt that if they ran the tool on 10 wells, and it saved
them from pulling the casing string just once, it would pay for all of the tool costs and save them money, headaches, and lost time.”
Fill Movers’ first tool was the Fill Drill, developed as a prototype in June 2010, with the first trial run with Encana on August 17. Since then the company has undertaken over 200 runs in Canada and abroad, achieving an impressive 98 per cent success rate landing casing at the desired depth. FMI offers a wide range of tools and bits all casing landing applications. In fact, FMI will work with the customer to develop custom solutions not addressed by their current selection. The Stubby PDC drillable version for surface and intermediate casing strings has rapidly become FMI’s most popular tool, with more than 140 runs and a 98 per cent success rate in sand, swelling shales, coal seams, ledges and washouts in difficult environments all over the world. When the concept was developed, there was a lot of Research and Development applied to making the concept sound. “It was never a question of being able to get the casing string to the target depth; the initial issues we had centred around drilling out the tool. Initially, around 1 in 15 runs experienced issues with drill out; for example, chipped cutters on the PDC drill bit, nominal material left in hole after drillout, or binding the drill string while pulling out of hole. While issues were rare, the initial design needed to be refined. “The problem with product and concept testing is that you can’t accurately simulate downhole conditions at surface; changes had to be addressed when issues were experienced, and a proper post run analysis could be made. In the first 6 months of development and production, we had made minor modifications to the original design several times in order to make the drill outs more reliable. Since January 2012, we have run in excess of 70 drillable tools in Canada, and are proud to report no drill out issues have been experienced in that time.”
11 How do you tell when you run out of invisible ink?
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The Auto-Set was designed for SAG-D, where slotted liners make it impossible to use hydraulic pressure to open the tool. The solution? Incorporate a high tensile steel spring to reset the tool by simply removing weight from the bit, which causes the tool to rotate backward into the open position. The Auto-set also works particularly well when running finicky multi-stage packer assemblies, which can be prematurely set due to internal pressure spikes. Once set, these expensive assemblies are immovable. With the Autoset tool, low volume circulation can be used intermittently to remove cuttings away from the bit, but is not necessary to operate the tool. And in the Saskatchewan Bakken, where wells are drilled quickly and less expensively, the industry needed a really cost-effective version of the tool. The Ledgemaster, which is a shorter PDC drillable version of the Stubby, uses an eccentric bit which allows the tool to roll off washouts, doglegs, and ledges. Using rotation provided by the tool, it becomes basically a self-aligning guide shoe. For producing wells, the Sandworm is designed to clean out sand and paraffins. It can be used on a service rig by reciprocating the tubing, or with coil tubing to take advantage of the increased hydraulic pressure to auger into the fill. Due to its mechanical action, the tool doesn’t stall or lose power like other equipment on the market, often cleaning deeper and quicker.
Company representatives recently returned from the American side of the Bakken, which is producing around 750,000 barrels a day of light oil, compared to 60,000 for Saskatchewan. North Dakota and Montana are experiencing an oil boom the likes of which the United States hasn’t seen for decades. “At operators requests, we are currently moving men and equipment to facilitate the US market. Over the past few months, we have been canvasing oil and gas operators to get a feel for the casing landing issues they have been experiencing. We have had an overwhelming reception so far, and initial runs with several companies are imminent,” Montgomery said.
Stubby PDC drillable being rigged in for FMI’s first well in Colombia
The International Energy Agency recently released their World Energy Outlook forecasts, and oil output in the Continental US is expected to surpass that of Saudi Arabia by 2020, peaking at 11.1 million barrels a day. Traditional producing areas like the Permian Basin and California heavy oil are running flat out, and new plays like the Eagleford shale in Texas are coming on strong. With that kind of opportunity right in the Calgary-based company’s backyard, it only makes sense to market aggressively to American producers, says Montgomery. Like many Alberta service companies, though, FMI got its start at home. “We made a name for ourselves around the Edson area. That’s where they have a lot of coal seams and other tough geology for drilling. That’s where we were able to prove the value of our tools in some extremely challenging conditions,” he said. But the majority of the company’s foreign sales to date have come from overseas markets like Colombia, Azerbaijan, Libya, Egypt, and Saudi Arabia. Montgomery says sales outside Canada developed organically by word of mouth. “The opportunities came to us when we were just beginning to look at working overseas. A lot of the international jobs are called out of Calgary, where the customers have head offices. Because we’ve been growing our reputation here,
12 www.OilfieldPULSE.com
Never go to a doctor whose office plants have died.
Erma Bombeck
The Libyan Desert at Dusk, the site of Wildcat OS’ First Run
these opportunities presented themselves to us,” explains Montgomery, who notes that FMI plans to develop more focused marketing efforts in the near future and to introduce the company’s technology to new markets. When it launched in 2010, FMI ran into a familiar problem for start-ups in the oil patch: no one wants to be the guinea pig for new technology. Fortunately for the home-grown entrepreneurs, energy giants Encana and Conoco Phillips stepped up to the plate early. As Montgomery says, “it started with a drop and ended in a flood,” for the local market. But the international sales cycle can be much longer. In the Middle East and North Africa, Fill Movers has teamed up with Wildcat OS, a well-respected distributor and agent of oilfield technology in the MENA market. Wildcat is currently talking to Saudi Aramco and other Oil Majors in 16 countries, and have been able to fast track the initial trials for the casing landing tool overseas. FMI’s tools have accumulated more than 200 runs in a wide variety of conditions and formations. To stay on top of the challenges specific to certain geographical areas, the company maintains a database that tracks problem areas, problem zones and issues that customers run into regularly.
FMI is providing an alternative to the way oil companies think about casing their wellbores. FMI employs a team of experienced technical field personnel to conduct training at the field level. After a couple of runs, the rig crew and consultant have a good understanding of operating procedures and are able to run future jobs themselves if they desire. Innovative mechanical technology that is simple to use, saves customers a lot of money, and is backed up by a solid service program has turned out to be a winning formula for the Alberta company. Montgomery says he and his colleagues know they have a good thing and they plan to make as much hay as possible while the sun is shining. Barring a meltdown of the global economy, oil prices are forecast to remain high, well over the $100 a barrel, and energy demand is expected to rise by 35 per cent over the next two to three decades. If they can help a customer successfully land casing two miles underground, 98 per cent of the time, cracking new markets and growing a world class company seems like an easy thing to do for the solution-oriented folks at Fill Movers Inc. Markham Hislop, Contributing Editor
“This data is shared with clients, assisting in tool and bit selection to build a customized solution with the best chance for successful operations,” said Montgomery.
13 For Sale: Wedding dress, size 12, worn once by mistake.
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Flares for Cost Effective VOC Control for Oil and Gas Production On April 17, 2012, the United States Environmental Protection Agency (EPA), as part of the Clean Air Act (CAA) Requirement, released the first federal air standards for oil and gas production, transmission, and storage facilities. The National Emissions Standards for Hazardous Air Pollutants (NESHAP) 40 CFR 63 subpart HH/HHH has been revised, affecting existing and new/ modified facilities. In addition, the newly developed New Source Performance Standards (NSPS) 40 CFR 60 Subpart OOOO (Quad O), applies to new and modified affected facilities; significant staff increases are anticipated as a result of these broad reaching emission reduction rulings. The goal of these new regulations is a 95% Volatile Organic Compound (VOC) reduction. VOCs in the presence of sunlight lead to the development of grade-level ozone (smog). According the U.S. EPA, approximately 40% of all US VOC emissions are from the oil and gas production and processing segments. While utilization of a flare as the control device produces CO2 as a product of combustion, carbon dioxide has a much lower (20X factor) environmental impact than current methane venting.
American Petroleum Institute (API) Method 22), there is no performance test required, saving additional cost for compliance. A properly designed Engineered Flare can also be designed to combine the low pressure tank vents and the high pressure separator vents into one system (Dual Flare) to save capital cost.
With new, updated regulations in place for US oil and gas production and processing facilities, there is potential for the regulations to spill over into neighboring sites. Some operating companies already have new standards in place based on the EPA guidelines even though the site they are operating on may not be under the EPA mandate. As of October 15, 2012, NSPS Quad O requires gases that would otherwise be vented during periods of flowback be routed to a Completion Control Device (CCD) instead. The CCD must achieve a minimum of 95% VOC reduction. A properly designed Engineered Flare will achieve greater than 98% VOC reduction. Storage tanks are subject to both the revised NESHAP and the new NSPS standards and affected sites must achieve a 95% VOC reduction. Affected sources include sites with VOC emission rates of 6 TPY or greater. A properly designed Engineered Flare System will achieve greater than a 98% VOC reduction, meeting compliance targets. There are three typical options for storage tank VOC control: 1) Enclosed Combustion Device, 2) Vapor Recovery Unit, and 3) Engineered Flare System. The open flare system is the lowest cost option, and when properly designed and operated per 40 CFR 60.18 with no visible emissions (per
The Zeeco MJ Wellhead Flare System is available trailer-mounted or preassembled on two small skids. It smokelessly flares both high pressure and low pressure gasses while meeting 98% destruction of VOCs.
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Why do psychics have to ask you for your name?
In urban locations, enclosed flares (sometimes incorrectly called “incinerators” or “combustors”) are sometimes preferred as a “good neighbour” investment. Enclosed flares can be designed for multiple streams within the same unit to save on overall capital costs. In addition to the NESHAP and NSPS for the oil and gas production sites, new flare assist media regulations are forthcoming, targeting steam and air assist flares. Other affected equipment includes glycol dehydration vents, wet seal compressor vents, and compressor station storage tanks. The new EPA regulations will target Combustion Zone Net Heating Value (CZNHV), to reduce “over steaming” or “over airing” flares. The amount of steam/air (via low pressure air blower) will have to be controlled in relationship to the amount of hydrocarbon being sent to the flare. When evaluating an Engineered Flare, seek a robust design that includes temperature-resistant construction for heataffected components to ensure long-term life expectancy of the flare tip and pilot. Utilization of investment castings for the critical components in the heat-affected zones minimizes
Each Zeeco MJ Wellhead Flare is equipped with a HighStability Low-Flow (HSLF) pilot proven to withstand hurricane force conditions without flame failure.
the potential for field failure. Requiring a continuous, monitored pilot that meets the API 537 performance design criteria (150 mph wind and 10” rain/hr) means less operations and maintenance nuisance issues in the field and ensures environmental performance for VOC reduction. Scott D. Reed, Vice President, Zeeco, Inc.
YOUR BEST FRIENDS WITH BENEFITS Unlike other Benefits Brokerages, we partner with our clients to find industry specific creative solutions. Whether its benefit programs, education, communication tools for employees, or financial analysis our advocacy and diligent service is unparalleled. DAVE F. MUSGRAVE. B.A. Senior Employee Benefits Specialist, Partner DIRECT DIAL 403-299-2853 TOLL FREE 1-888-390-6333 EMAIL dmusgrave@renfrew-insurance.com
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Saskatchewan Bakken Play
A Triumph of Innovation and Inspiration
About the time economists and Wall Street bankers were debating Peak Oil, just before the Great Recession of 2008, oil companies in southeast Saskatchewan were drilling wells as fast as they could into the largest reservoir of hydrocarbons discovered in Western Canada since the 1950s: the Bakken Formation.
It’s hard to believe that only a few short years ago the notion that the world would soon run out of oil was all the rage. Books, magazine articles and even documentary films all chronicled the inevitable decline of oil production worldwide. The idea was simple: the global economy had reached the maximum amount of oil it could produce. In a few years, as reservoirs tapered off, the yield curve for oil production would inevitably drop off, and the world would face an energy shortage.
What the experts didn’t count on was new technology. Beneath southeast Saskatchewan, southwest Manitoba, North Dakota and Montana lies a 200,000 square mile pool of what is known as “tight oil.” The shale in the Bakken formation has a very low permeability, which means oil doesn’t flow well through it. Scientists and oil men have known for 60 years that billions of barrels of light crude lay
waiting several miles beneath the surface - estimates ranged as high as 400 billion barrels, but the consensus now seems to be 24 billion barrels of recoverable crude - they just didn’t know how to produce it.
Technology to the rescue. Horizontal drilling and hydraulic fracturing had been used successfully in American tight shale gas plays like the Barnett Shale field in Texas during the late 1990s. A few years later, producers decided to give it a try in the Bakken. One of the original forward thinkers was Dick Findlay, a veteran geologist based out of Billings, Montana. In 1995, Findlay was drilling a deep well when he hit a “drilling break” and plenty of gas in the middle formation of the Bakken shales, which convinced him that the oil was not in the upper shale after all. He brought in giant energy services company Halliburton to help.
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Finally, near the end of 2006, several oil companies in the Bakken agreed to test the company’s StacFRAC system. “When we started you could do five fracs. Our StarFRAC brought that up to 20 and now we have technology that can do 60,” Themig said. Themig says even now not all companies in the Canadian oil patch accept the Bakken as a credible oil play. Medium-sized companies, in particular, tend to be risk-averse and shy away from fields that are capital and technology-intensive; the cost of failure is more than they are willing to bear.
For the companies that have staked a claim in the Bakken, however, the risk has been richly rewarded.
“That is when we started thinking about the horizontal drilling and the fracture stimulation of the horizontal well bore, and that is really new technology,” Findley told the Financial Post. Horizontal drilling and fracking soon caught on in the Bakken. Not surprisingly, much of the technology fueling the Bakken’s growth was developed in Western Canada. For instance, a prominent company in Estevan, the epicentre for southeast Saskatchewan’s oil industry, is Packers Plus Energy Services, often credited with introducing the packer technology that allows multiple fractures of horizontal wells. The company was started in Calgary in 2000 by three partners: Dan Themig, Ken Paltzat and Peter Krabben.
Take Crescent Point Energy Corp., which started life in 2003 with the merger of two small junior oil and gas companies. The next year it began acquiring more property in southeast Saskatchewan and within five short years, thanks to a savvy combination of acquisitions and drilling, had emerged as a major player in the Bakken. According to the Oil and Gas Inquirer, Crescent Point has over 1,100 net sections of development land, a drilling inventory of 3,800 wells, and could deliver as much as 300 million barrels in reserves, with production peaking as high as 266,000 barrels of oil equivalent per day. But increased production from the Bakken, by both Canadian and American producers, comes with its own set of headaches, most notably transportation infrastructure. Producing the oil is now relatively easy, getting it to market, not so much.
“When we started the company we saw the need for highend fracturing completions technology. There was horizontal drilling going on, but nobody was fracking,” Themig told Canadian Oilpatch Technology Guidebook.
All that Bakken oil headed to market has flooded the Cushing, OK hub and lowered prices for Canadian producers. It’s also filled up much of the existing pipeline capacity. Operators like TransCanada Corp. are busy planning and building new pipelines, but some are hitting political and regulatory snags (like the Keystone XL leg across the Canada-U.S. border), while others take time to construct (the Gulf Coast project, which will relieve congestion at Cushing).
The first innovations came in 2001 for a client operating out of the Permian Basin in Midland, Texas. But it took five long years to be accepted in Canada.
One company’s problems are another’s opportunity - at least as far as CP Rail is concerned. The iconic Calgary-based railroad built a new transload facility in Estevan that will be
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The epicentre of the Saskatchewan Bakken play is Estevan, which used to be a quiet little town that billed itself as the Energy Capital of Saskatchewan and today is a bustling and hustling city of 13,500 - which is 2,500 more than listed in the 2011 census that locals say is already way out of date.
operated by Bulk Plus Logistics and is also moving oil from its Dollard facility on the Great Western Railway, a short-line partner of CP. “To move the crude by rail, CP will take what it has learned and apply it in the emerging Saskatchewan and Alberta Bakken markets. The model we developed in North Dakota is proven and we’re now bringing that north,” Energy and Merchandise VP Tracy Robinson told the Oil and Gas Inquirer. CP announced in August that it will be investing $90 million to build a logistics hub serving its North Dakota network. The high-capacity facility will service 15 to 17 crude oil unit trains (trains of up to 104 cars that remain together until arriving at the destination). Up to 30 unit trains per month will be accommodated once the terminal is fully developed. “These investments expand network capacity and enhance our proven oil-by-rail service model in order to meet increased traffic demands from the Bakken play and the input growth it will drive for inbound materials such as frac sand and pipes,” said Jane O’Hagan, CP executive VP and chief marketing officer in a press release.
“By taking advantage of our network to the Northeast U.S. and through our Kansas City gateway to the U.S. Gulf Coast, Canadian Pacific is able to partner with the energy industry to facilitate further growth in moving oil and energy-related materials.”
Speaking of all that oil, by 2012 the Saskatchewan Bakken production had reached 60,000 barrels a day from 2,200 wells (13 per cent of provincial output and a third of production from southeast Saskatchewan), which is where it sits today, according to Mike Serguson, director of petroleum royalties for the Saskatchewan government. Serguson says production might increase to 70,000 or 80,000 barrels a day, but it will never reach the levels of the American fields. North Dakota Bakken production reached 660,000 barrels a day from 4,141 wells according
18 www.OilfieldPULSE.com
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to an August 2012 report from the U.S. Energy Information Administration, while Montana production is about 10 per cent of its neighboring state. While the Saskatchewan output may be less than across the line in North Dakota, that doesn’t mean it’s any less important to the provincial oil industry. Last year the region saw 2,500 new wells drilled in the Bakken and this year that number will be higher.
As the chief cheerleader for the business community, Cyrenne has a lot to promote. He points out the newly completed Spectra Place, a multipurpose entertainment and sports facility that opened last year with a concert by Canadian rock stars Tom Cochrane and Kim Mitchell. The Local Jr. A club, the Estevan Bruins have been entertaining fans for 55 years, but now they get to do it in a swanky new arena, which was desperately needed because of the rapidly growing youth population.
“The Bakken oil play is very important to Saskatchewan. It contributed largely to investment, employment and in the province starting back in 2006,” said Serguson.
Even with the swelling population, Estevan has 1,200 jobs it can’t fill. Cyrenne estimates about 40 per cent of those positions are with local businesses that have expanded to take advantage of the extra money in everyone’s pocket. But even with above average wages, many of the restaurants and retail stores can’t find enough workers.
Saskatchewan Premier Brad Wall’s government is pleased with the development of the Bakken and plans to maintain a competitive regulatory regime to support continued development of the industry.
“There’s help wanted signs everywhere you look,” said Cyrenne. “When it comes to service, retail, restaurants, accommodation - it’s been a struggle for them.”
“We’re pretty happy with the way things have progressed in the Bakken development,” said Serguson. “Our regulatory structure is certainly sound. We feel our fiscal structure is working very well. Industry looks for stability, they look for predictability, and they look for competitiveness, and we provide all of that.” The epicenter of the Saskatchewan Bakken play is Estevan, which used to be a quiet little town that billed itself as the Energy Capital of Saskatchewan and today is a bustling and hustling city of 13,500 - which is 2,500 more than listed in the 2011 census that locals say is already way out of date. Estevan is home to SaskPower Corporation’s Boundary Dam and Shand coal-fired power plants. But these days all the action is fueled by oil. Business is booming and workers are flocking in to the city located just 11 miles north of the American border. Michel Cyrenne is the executive director of the Estevan Chamber of Commerce. He moved his family from Swift Current, across the province along the border with Alberta, because he was attracted to the small town atmosphere and a prosperous economy. “It’s a city with a strong sense of community,” he says. “The people here are some of the nicest you’ll ever meet.”
One of the pleasant surprises is that the increased prosperity has allowed the new big box stores and national chains to move into town without hurting local businesses. “Now they can do more comparative shopping in Estevan, they’ve got more choices. They can shop at a national chain they otherwise would have gone to Regina to shop at and that keeps them spending in the local economy, which benefits the smaller mom and pop stores,” he said. One of the biggest headaches is finding housing for all the new residents. “We have to tell people we can’t promise them housing, which is too bad. We’d love to say, ‘Hey, come west, we’ve got jobs for you,’” Mayor Gary St. Onge told the Regina Leader-Post. Saskatchewan has been setting records for new housing starts in 2012 and many of them are in Estevan. A subdivision near the hospital will accommodate 3,800 people when it’s completed. Many of the houses popping up in Estevan’s newest neighborhoods can compete with Calgary or Regina because workers are making above average wages, says Cyrenne. And oil field workers, especially if they’re highly trained and skilled, make excellent money.
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“We’ve established a new industrial park, with a new facility, the Energy Training Institute that is completely dedicated to training people in the energy sector,” Cyrenne said.
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Alberta-based service companies have been quick to set up in Estevan and the surrounding municipalities, but Saskatchewan entrepreneurs are no slouches when it comes to spotting a chance to cash in on the Bakken boom.
Tel: 647-881-0380 PRODUCTS & SERVICES • Proven equipment reliability additive technology • Fuel efficiency/performance improvement technology • Non-toxic environmental impact additives • Fuel engineering expertise to drive down cost
“The local people that have been working in the field for a number of years, they see the opportunity, too,” according to Cyrenne. “We’ve had a number of local business start ups by people who worked for larger companies, then struck out on their own.”
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Entrepreneurship, hard work and technical innovation have proven to be the solution to the predicted global energy shortage, and nowhere are those qualities more on display than in the Saskatchewan Bakken play.
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Employee Attraction - Retention Employee attraction and retention is one of the foremost business challenges Western Canadian employers face today! Added to that is the common employee perception that their employer is not engaged with them. This perception can be toxic, particularly in such a competitive market to attract and retain employees. But what can an employer do? One of the most common current practices has been to offer compensation greater than your competitors. This may generate new employees, but based on the higher pay foundation it creates a shaky basis for a long term employer/employee relationship. This environment is not new to Western Canada. In the recent past there was a surge of employment opportunities and a scarce supply of qualified employees. For a time we experienced a retraction in this scenario. But here we are
again. The economic forecast lends itself to the opinion that the current employee scarcity is going to continue for several years. What are you currently doing to facilitate your need for new employees and retaining the ones you have? If you have done the research, or even just perused any of the various publications on the matter you will have learnt that there are a number of items that should be considered to remedy this problem. The unfortunate part is, in most cases, both business culture and practices must be altered first. For attracting employees, the days of simply placing an ad on this job board or that website are gone. Employers now have to invest in marketing to attain the employees they want. Innovation is required to “reach out” to your potential employee in a format that will speak to them. Although social media might seem foreign, checking LinkedIn and Facebook are daily activity for many young
22 www.OilfieldPULSE.com
Just when you think you’ve hit bottom, someone tosses you a shovel.
potential hires. Website marketing and traditional want ad marketing compliment your other efforts. Placement or recruitment agencies can be effective, but be aware of the costs. Unconventional marketing might include generating a presence in places or forums where your potential employees might be. For example, if your employees tend to be “hockey dads/moms” look to advertising in some of the local hockey publications. Finally, one of the best sources of new hires is your current employees. Initiate an employee referral program where recognition and remuneration occur. Numerous employee surveys indicate that a high percentage of employees consider their employer as both unengaged and apathetic. Retaining employees amidst this reality requires an entirely different set of “marketing” practices. The cost of losing an employee differs from employer to employer but there are some general similarities. Production loss is likely the most common followed by, of course, profit. The actual cost to replace a position is between 50 and 200% of that position’s annual salary, with 125% being the average. With this in mind it’s a great deal to “invest” in keeping your employee and the solution to retain employees is actually easier to define than one might think. Here are a few strategies that may help:
1. Hire the right person for the job. Qualifications and
2.
experience are valuable, but so to is the individual’s capacity to fit into your vision. Are they the type of employee you could grow to trust? What makes them tick? Do any of their goals and objectives coincide with your firm’s values? Listen to what your potential “new hires” are saying, particularly their goals and objectives. Are there similarities? If there are, use this new information in your future relations with employees.
3. Accept that in our current environment, employees
4.
move around a great deal more than they did several years ago. With that, if there’s an opportunity to learn from the departing employee this information could be invaluable. Use workplace marketing. HR departments at larger firms spend a good deal of their resources communicating with employees. Employer engagement creates an environment that fosters employee retention. If you listen to the employee they will, in turn, listen to you. One of most common requests made by employees is for scheduling flexibility. Compensation is number two.
Compensation can include an employee’s salary or wage, but also includes items such as Employee Benefits, Group Retirement Offerings, Employee Assistance Plans and Wellness Programs. Regular communications via channels that appeal to your employees (e.g. print, email, website, text etc.) should be a standard practice. Attracting and retaining employees is likely one of the largest challenges for your business, presently and in the future. Educating yourself is critical to your company’s success. Although it may seem like a huge project, creating Attraction / Retention Programs is part of building success, as the employees are the foundation of your business’ potential and is well worth the effort.
Dave F. Musgrave, B.A. Senior Employee Benefits Specialist Renfrew Insurance
23 Ever wonder what the speed of lightning would be if it didn’t zigzag?
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Tervita
Your Leader in Environmental
and Energy Services Innovation is a constant in the oil patch, and the newly named and re-organized Tervita has been innovating from its humble beginnings in 1984 as a one rig service company. In fact, innovation is such an important part of the company’s DNA that it was recently named Oilweek Magazine’s 2012 Supplier of the Year. The prestigious award is bestowed annually to a company that shows innovative leadership and excels in the Canadian energy service and supply industry. In an online poll among five service companies selected by Oilweek’s editorial team, Tervita received more than 5,400 votes, 62 percent of the vote. “We are honoured and humbled by the selection of Tervita as Supplier of the Year,” said John Gibson, Tervita president and CEO. “We are blessed to work with a community of customers who are dedicated to responsible and ethical operations. We further benefit from a cadre of employees who are diligent and committed to meeting the needs of those customers. Thank you to our employees and customers for taking the time to vote and support Tervita.” “Tervita’s selection as Supplier of the Year, I think, is a testament to the important work being done by the company, and by others like it, in the environmental services sector, particularly in relation to upstream oil and gas activities in western Canada,” said Dale Lunan, Oilweek Magazine editor. Innovative technology introduced by Tervita in 2012 alone includes:
1. Green Rig Tervita’s green rig uses patented rack and pinion technology that allows the rig to push and pull. Automation technology means the rig needs only three workers instead of the usual five, which is
important in tight labour markets like Western Canada, and it keeps those workers at a safer distance. Power is provided by diesel or, for SAGD customers, power from onsite steam plants. “This is a pivotal moment for the service rig industry,” said Gibson. “In the last 30 years, there have been no real significant changes to service rigs. We feel the move to the rack and pinion technology will provide greater automation and the increased benefit to safety and the environment represents the future of the industry.”
2. Abandonment Technology Tervita acquired an exclusive patent for Direxit, a chemical that more effectively seals wells with surface casing vent flow or gas migration problems. GM, SCVFs and casing leaks are problems that have been solved by Direxit where no other material succeeded. The low viscosity water-like solution allows it to penetrate the pore space and block pressure losses up to 170 MPa/ meter of core (7,500 psi/ft).
3. Blowdown/Concentrate Treatment Tervita licensed a new product from Veolia Water Solutions and Technologies of Plainfield, Illinois that removes silica from produced water and provides more disposal options. The focus will be on the blowdown/ concentrate from first generation or older produced
24 www.OilfieldPULSE.com
I’d kill for a Nobel Peace Prize.
Steven Wright
revenue of the combined companies is over $5 billion, which makes Tervita a major player in the oil and gas services sector. “By joining together our individual expertise, experience, assets and services, we will be uniquely positioned to develop integrated project management solutions and provide our customers easier access to our comprehensive range of services,” said CEO John Gibson in March when the amalgamation was announced. What does the new and improved Tervita offer to the oil patch? According to Gibson, a comprehensive suite of services covering every stage of the production lifecycle, from development to reclamation - fluids services, solids services, production services, energy marketing and reclamation. Until recently Tervita was 13 separate companies, many of them familiar to oil patch veterans - HAZCO, CCS Corporation, Concord, Beck, HMI, Prodrill.
water evaporation systems, which typically required disposal in salt caverns.
4. Bioremediation of Oil Sands Mine Tailings and Hydrocarbon – Contaminated Soils Tervita is helping to pioneer biological treatment systems oil sands tailings ponds and contaminated soils. The partnership of Tervita and the universities of Alberta and Calgary, and the Biorefining Research Institute at Lakehead University, are developing advanced microbial consortia (two or more different microbial groups living cooperatively) with the ability to degrade mixed organic and inorganic wastes. Initial research has demonstrated promising results, and with the potential to produce secondary valuable products. David Werklund and Gordon Vivian’s little oil patch engine that could now has 4,600 employees, offices around the world, and is a leading integrated energy and environment company. The company is active in Saskatchewan (it recently opened a regional office in Saskatoon), especially in the Bakken, where it expects to ramp up its presence in the near future.
“Our vision is to create a better future by growing our global leadership in environmental and energy solutions,” Gibson said. “We’re developing new technologies and processes to address today’s challenges such as water treatment, tailings management and reclamation.” In 1984, Werklund and Vivian bought one service rig and started a company called Concord Well Servicing. Five years later they invested in Canadian Crude Separators, which opened a facility in Laglace, Alberta to treat oil waste. From that humble beginning, the company grew rapidly, acquiring other companies along the way, especially during the boom in the middle of last decade, when the industry was flush with cash and expanding as the price of oil headed for the stratosphere. Now the various companies are combined under one roof and ready to grow and expand. One part of the oil patch that looks pretty promising these days is Saskatchewan, especially the Bakken play down in the southeast corner near Estevan and Weyburn. North Dakota and Montana are the big players in the Bakken and together they produce over 750,000 barrels of light sweet crude. American Bakken production has expanded so rapidly it threatens to overwhelm the pipeline
Until recently Tervita was 13 separate companies, many of them familiar to oil patch veterans - HAZCO, CCS Corporation, Concord, Beck, HMI, Prodrill. The annual
25 Always borrow money from a pessimist. He won’t expect it back.
Oscar
Wilde
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TERVITA OFFERS A COMPREHENSIVE SUITE OF SERVICES COVERING EVERY STAGE OF THE PRODUCTION LIFECYCLE, FROM DEVELOPMENT TO RECLAMATION - FLUIDS SERVICES, SOLIDS SERVICES, PRODUCTION SERVICES, ENERGY MARKETING AND RECLAMATION.
and transportation infrastructure. Fingers are crossed hoping Calgary-based pipeline giant TransCanada Corp. gets the green light from the State Department early next year to build the Keystone XL pipeline, which will ship both Canadian oil sands dilbit and Bakken crude to refineries on the Gulf Coast. Tervita has already set up shop on the American side of the 49th Parallel. For instance, the company has a number of closed loop systems for drilling rigs working in North Dakota that help operators reduce their development footprints by up to 30 per cent.
The Canadian portion of the Bakken pumps about 60,000 barrels a day and accounts for a third of the provincial output, according to the Saskatchewan government. Derek J Yockey, Tervita Regional Manager - South Saskatchewan, Waste Processing division, says the company already has a solid base in the area that includes a salt water disposal facility at Arcola, an industrial landfill at Lomond, a bioremediation plant in Regina and a field office in Weyburn. “The Bakken has been a great emerging market for the province of Saskatchewan and we’re always looking for opportunities to expand,” said Yockey. “Watch for Tervita in the Bakken play, that’s for sure.”
Don’t expect do drop off your old sofa at the Lomond landfill, located south of Weyburn. Yockey says the facility is permitted by Saskatchewan Environment strictly for contaminated industrial solids. In fact, a casual observer of the site would only notice piles and piles of dirt. If a pipeline has a small release, for instance, Yockey says Tervita’s waste services division or third party consultant samples the soil and determines if the chemical parameters meet the landfill’s operating permit. If it does, then a waste confirmation report is issued and the material begins to move into the landfill. “Every load is predominately contaminated with crude oil or salt water. Every load has been pre-screened for a set of criteria with the Ministry of Environment. So nothing just shows up haphazardly,” he said. Tervita landfills are “engineered structures” that are doublelined with a geo-synthetic clay liner and a high density polyethylene liner. Yockey compares the liners to a coffee maker filter: nothing happens with the grounds while they’re dry, but the instant you add water, you have coffee. Or, in the case of contaminated soil, leachate. Whatever contaminated the soil in the first place has now migrated to the leachate, which has become motile and could contaminate soil in the landfill if not properly cared for.
26 www.OilfieldPULSE.com
I hope that after I die, people will say of me: ‘That guy sure owed me a lot of money’. Jack Handy
Tervita regularly draws down the leachate and disposes of it in the Arcola facility. “We basically remove the risk for the generator (of the contaminated soil). That’s why Tervita is superior. We protect the long-term liability of our customer,” said Yockey, who notes that industry, especially oil and gas, has become more sensitive to protecting the environment from industrial operations. “The oil and gas industry is very cognizant of the need for long-term risk mitigation and the need for facilities like Tervita’s, with the people on the ground to respond to incidents as they occur and minimize the risk to the environment, minimize the risk to people,” he added. Yockey says Tervita acquired the assets of several small companies in the Arcola and Stoughton area because management believed that part of the Bakken was likely to be the most active in coming years. The company drilled and completed one disposal well in Viewfield, a half hour south of Stoughton. The water disposal facility in Arcola, which is an hour’s drive northeast of Estevan, is also strictly regulated by Saskatchewan Energy and Resources, according to Yockey. The reservoir has to be isolated from other producing zones. The well is deeper than a regular oil well and protected with a full cement bond from the surface casing down to the production casing, which gives Tervita the ability to put that water into the exact zone it’s licensed for. Tervita has to ensure no hydrocarbons are being injected into the reservoir, so it employs a simple “fill, settle, ship” process: fill a tank, apply heat, and the light oil naturally separates. “Annually you have to provide to the Saskatchewan government hydraulic isolation logs, as well demonstrate that the packer isolating your production tubing from any other zone is where it is supposed to be and is holding pressure,” said Yockey. Understanding environmental regulations and having the staff, technology and facilities to help customers meet or exceed government standards is an important part of the Tervita business model. The company prides itself on its commitment to protecting the environment. When management decided to amalgamate the old CCS companies under one roof, choosing a new name was important. Tervita comes from the Latin words terra, meaning earth, and vita, meaning life. The name is a
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Your Industrial, Mobile, & Marine Hydraulic Specialists Tel: 780-955-7450 PRODUCTS & SERVICES • Hydraulic Pumps, Motors & Cylinders • Power Packs • Directional & Pressure Control Valves • Gear Reducers • Filtration Systems HUB SEaRCH:
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The Tervita Manifesto
reflection of the company’s commitment to the earth’s energy and its environment.
We take from the earth because we need to. But we also give back to the earth, because we need to.
Yockey says environmental performance is important to Tervita. The company has built its success on a deep understanding of environmental regulations and a comprehensive environmental management system that promotes environmental leadership beyond compliance requirements. Tervita’s extensive compliance program includes regular third party and internal reviews of facilities, audits to meet regulatory approval, and technologically advanced facility design to mitigate potential environmental impacts.
We work to minimize the impact of our quest for energy. We work to reclaim the earth. Partly because it’s the right thing to do. For today. For the future. And partly because - more and more cleaning up after ourselves is just good business. And failing to take care of the earth can have serious consequences, both financial and otherwise.
Saskatchewan, the Bakken play in particular, is part of Tervita’s expansion plans.
We are Tervita, a North American leader in environmental and energy services. We support responsible development.
“We plan to be in the Bakken long-term. We see it as being very similar to the business model in other areas. As the wells are brought on to production, we see the water to oil ratio increase and therefore the need for Tervita’s services,” Yockey said.
Preserving the earth from start to finish. Preserving our client’s reputations and bottom lines at the same time. What we do matters. Because earth matters.
Did you hear about the guy who decided to procrastinate, but never got around to it? Procrastination is a deadly habit in a sales environment where the early bird gets the worm. The ‘slack-off today – give ‘er hell tomorrow’ crowd enjoys the present but suffers the future because, in most cases, they didn’t act in time to follow up on a lead or present a proposal or a quotation and allowed the competition to win the day. Remember (just one more hackneyed cliché. Honest.) Never put off until tomorrow what you can do today.
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Rules of the Road
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A bargain is something you don’t need at a price you can’t resist.
Franklin Jones
What’s Biting You? What’s your problem? The government, politicians, under performing hockey teams, bad highways, banks, bosses, taxes, traffic, gas prices? Tell us what’s biting you and we will transform your complaint into an editorial cartoon, which will run in Oilfield PULSE (attributed to you) and be entered into a competition for “Best Cartoon of the Year.” Email your cartoon ideas to Jim Graham at Jim.Graham@LeadstoneGroup.com www.OilfieldPULSE.com
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These days marketing is a hot buzzword in the business community. Everyone is talking about marketing plans, social media marketing, direct marketing, search engine marketing, and on and on. What happened to simply putting an advertisement in the yellow pages and that was the extent of your marketing efforts? Can a business still survive with just advertising, or is it now necessary to add a marketing department to your business operations? Seth Godin states that “advertising is just a symptom, a tactic. Marketing is about far more than that.” Traditional media advertising still can work, and I am not going to tell you to stop if you are using it effectively. But the difference is that technology has changed the way people get information. Traditional media (TV, radio, newspaper) is no longer the main source of entertainment. Physical directories (yellow pages, trade journals) are no longer the predominant source of company listings. Technologies such as the Internet, smart phones, iPads and low cost data packages have changed things immensely. The biggest difference is not the type of media. If all the people had simply switched from one media to another, or even added a media - then we could simply go about advertising - we would just learn the new media and keep using the same strategies that we always have, only with the new media rather than the old. The problem is that there are just so many alternatives, so now we need a plan. We need to study our customers – our best customers – and see how they behave. We need to
examine how they make buying decisions, find out what influences them to make a purchase, and examine what ways they get the information needed to make that purchase. From there we then need to create the right message, transmit that message through the most effective medium, and then we need to carefully gauge the response. If it works we keep doing it, even do more and better. If it doesn’t work we find a new way that does. And remember – as David Olgilvy stated, “The more informative your advertising, the more persuasive it will be.”
So what it means is that marketing is more work than it ever was. I am sorry to say that simply putting a basic advertisement in the yellow pages is not going to cut it. Nor is simply putting up a basic website. If you want to get your message in front of your best customer – to optimize your sales and increase your revenue – you need an effective marketing plan. Therefore, you need to add a marketing department to your business. Whether you outsource that part of your business or bring in someone internally, that is up to you. But make sure you are doing an effective job of marketing, as it is the key to sustainability in your business. Jack Zenert, VP Sales and Marketing, Beacon News
30 www.OilfieldPULSE.com
I have enough money to last me the rest of my life, unless I buy something.
Jackie Mason
t
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Member at large
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Norcan Fluid Power, Western Canada’s premier fluid power company, has been providing hydraulic products and services to our customers since 1974. With seven locations, in Nisku, Red Deer, Calgary, Saskatoon SK, Prince George BC, Kamloops BC, and Richmond BC, and with $7 million in inventory we are well positioned to offer our customers outstanding service.
with engineering CAD support that provides drawings and schematics for each project or system. As well as the actual hydraulic system design, we also specialize in the design, programming and integration of the electronic control systems using the Sauer Danfoss Plus 1 Controls. This allows us to take turn-key responsibility for the entire package.
Typically, our business is conducted in three different interconnected areas: distribution of hydraulic components; service, including in-shop repair, testing, field service, and fabrication; as well as design and engineering. Norcan has been active in the oil patch in Alberta and Saskatchewan since the late 90’s, but our employees have years of experience behind them from working in Nisku and Calgary in the fluid power industry for the last 30 years. We offer some of the best hydraulic products on the market today including Sauer – Danfoss, Atos, Parker, Olaer, ASA, MP Filtri, and Auburn Gear. These products and the factory support allows us to offer our customers the best available products and systems for their applications.
Norcan has been involved in system design on virtually any and all oilfield equipment from service rigs to snubbing units, including catwalks, drilling rigs, vac trucks, pressure test trucks, coil tubing, cementers, and frac units. We are not limited to only mobile equipment, either. We have numerous industrial customers ranging from pipe fabrication to pipe coating, and many other industries as well. 603-15th Avenue Nisku, AB Norcan Fluid Power has recently introduced a T9E 7M6 QA/QC program which will help improve our PH: 780-955-7450 own internal processes as well as providing FAX: 780-955-7451 customers better documentation of the goods and services provided.
Our sales and engineering departments focus on system design and integration, working hand in hand with our customers to meet their needs. This service is backed up
Like many companies in Western Canada, our true strength begins and ends with our skilled and dedicated employees. We have approximately 200 employees in our seven locations and our primary focus is continuous training on the products and services we provide.
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Lloydminster Heavy Oil Show Leadstone Group was on hand to lend support to our Oilfield HUB members at the Lloydminster Heavy Oil Show in September. Advantage Products Inc. was the focus, with a spectacular front cover of Oilfield PULSE that was popular with attendees and fellow exhibitors at this sold out show. The Lloydminster Heavy Oil Show is the world’s premier showcase for Heavy Oil Knowledge and Technology. Uniquely situated on the border between the provinces of Alberta and Saskatchewan, the Lloydminster Heavy Oil show is surrounded by thousands of producing heavy oil wells of both cold and thermal production. This leading edge technology exhibition is a great opportunity for visitors to discover the substantial knowledge base that the show’s participants have and network with the exhibitors who attend the show. For businesses, this show is an excellent format to demonstrate to Canada and the world how heavy oil can be produced in a manageable and profitable manner.
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If at first you don’t succeed, skydiving is not for you!
Henny Youngman
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There are many excellent print magazines serving the oil and gas industry. But, Oilfield PULSE is not just a trade magazine; it is a also the public face of a cutting edge marketing entity known as the Leadstone Group. Leadstone offers the energy industry a multi-faceted range of products that include Oilfield PULSE and a new millennium marketing tool called Oilfield HUB, a 24/7 online service that constantly works at uniting buyers and sellers in the energy industry. Leadstone also offers; lead generation, creative marketing and design services, as well as video production to the members of Oilfield HUB. For information regarding subscribing or advertising, visit us at www.OilfieldPULSE.com
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This October 18th, we celebrated ShearFest, SHEAR BITS’ annual customer appreciation get together in downtown Calgary. The event was packed with approximately 200 customers mingling around a large display of the latest & greatest PDC bits from SHEAR BITS’ arsenal.
34 www.OilfieldPULSE.com
A computer once beat me at chess, but it was no match for me at kick boxing.
Emo Philips
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Millennium Directional Service Ltd. was founded in 2005 in response to demand for quality, reliable Directional Drilling services in the Williston Basin area of SE Saskatchewan. Based in Carlyle SK, with a sales office in Calgary, the company is now the provider of choice for many of the largest and fastest growing Oil & Gas companies in western Canada and North Dakota and can provide services on 12 separate drilling operations at any given time. “The potential for directional and horizontal wells in the Western Canadian Basin was significant at start up. The number of horizontal wells drilled in Western Canada was steadily increasing. Our focus on directional grassroots and horizontal wells in southeast Saskatchewan provided an excellent business opportunity,” says company President Dan Eddy.
Clients First Local companies were Millennium’s initial focus. By providing directional drilling tools in a timely fashion with superior performance and service standards, this group became the company’s loyal client base.
“By combining the latest advances in directional drilling technology and the expertise of reliable, proven manufactures, we stay at the forefront of current industry trends. We work closely with our clients and suppliers to ensure all equipment issues are addressed and all technical requirements are met, in order to achieve performance goals and maximize our client’s drilling potential. “That’s what really sets Millennium apart from our competitors, the reliability of our tools and the experience of our personnel,” says Mr. Eddy. “We designed our MWD system specifically for the conditions experienced in SE Saskatchewan and North Dakota; and regularly see upwards of 2500+ hours MTBF. “Also, clients can pick and choose basically any motor configuration to suit the particular area, or formation they are drilling. We work with 3 suppliers, National, Dynomax and Shamrock which enables us to provide clients a large variety of top of the line mud motors; and we are always happy to offer a recommendation of what has worked best in a certain area in the past.”
“We are committed to the development of long-term relationships with our clients based on personal service and professional performance. Our goal is to provide clients with the most reliable equipment, combined with highly skilled and experienced field personnel in order to optimize drilling operations.”
Tools & Technology Millennium’s high service standards, and state of the art equipment, coupled with consistent reliability and costefficiency, maximize economic benefits to clients. This has served the company well and allowed it to surpass original business goals and objectives.
Experienced Personnel The company has made impressive gains while remaining true to its original goals and objectives. According to Dan Eddy, Millennium’s personnel play the biggest roll in the success of the company. “We are privileged to count among our employees some of the most experienced and skilled Directional Drillers and MWD Operators in the business who have shown their commitment to superior service. All of our personnel are well versed in teamwork and the rolls of others that combine to plan and execute a successful drilling venture.”
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COMMUNITY
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A Call to Arms…
A Vision for a Stronger Canadian Manufacturing Industry Plains Fabrication believes strongly that Canadian manufacturing companies must work collectively through established industrial associations and come together to share collective experiences. We, at Plains, maintain an open door policy and welcome individuals from any industry to come and inspect our facilities. We believe that as a company and as a country we will only compete with foreign competitors by sharing our expertise. Our committed belief is echoed in our motto “where customers and suppliers become partners in success.” We not only believe in team work with other companies, but within Plains as well. The team concept at Plains is integral to how we operate. It flows within our company, and it continues beyond to our associations with great organizations like CME, MARIOS, MAC Committee, APVMA, Productivity Alberta, Careers: Next Generation, and a number of others. We invite you to join us to help meet the multitude of challenges that face us as a nation: a nation that needs manufacturing and the hundreds of thousands of jobs it supplies to our economy; a nation that is surviving the economic crises, in part, because of the strong and growing need for products made in Canada. The Canadian Manufacturing industry meets this need without government subsidies and by paying fair wages and benefits. There are no shortcuts to our success, and we share a list of issues that require our attention. If we
combine our voices and come together we can learn from each other, and with a unified voice we can secure a strong and healthy manufacturing industry that will compete worldwide. With the ever-growing competition Canadian Manufacturers face from other countries, we need to find new ways of streamlining production, improving workflow, and ultimately increasing production without degrading the quality products we are known for throughout the world. In fact, in recent times our quality has brought our manufacturing companies customers from China and India. These are the countries we find ourselves competing with, but even now they are looking to us because of what we bring to the table. It is something to be proud of, and something we must work hard to promote and foster.
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People who think they know everything are a great annoyance to those of us who do.
Isaac Asimov
Drilling
It is our sincere belief that we will not do this as individual companies. The continuation of our industry can only be accomplished through a combined effort. So with that thought, we would invite you to join us in great industry related organizations such as CME. By continuing to focus only internally on our businesses we end up like the firefighter who is trying to put out a fire in a trash can. As the fire is extinguished he steps back to admire a job well done and realizes the rest of the building is burning down around him, we miss the big picture. Our focus must be broad and the team must be strong, and Canada is filled with great entrepreneurs. If that group unites, we will be unstoppable.
Giant Power Tongs Zeeco, Inc. Millennium Directional Service Ltd.
If you would like more information of any association that Plains is part of, please feel free to contact them and they would be happy to supply you the information you need. We look forward to working with your organization and invite you all to join the team. Tom McCaffery, General Manager Plains Fabrication
Custom Software Applications for the Oil and Gas Industry From Concept to Next Generation
“CKR Global has been working with Data Shapers since late 2007. Our clients require a high level of confidence in the stability and security of our applications and Data Shapers has been able to accommodate our requirements and our client’s professionally and effectively throughout the years.” Community SponSor
Phone: 403-537-6560 Toll Free: 1-866-883-8848
www.DataShapers.com
37 You know you are over-the-hill when you’re just too tired to climb one!
www.OilfieldPULSE.com
The next day the sweeper returned with the same complaint, “The heid’s come off a ma brush.” “Here’s another,” said the foreman.” But, if it happens again. You’re fired.” When the sweeper approached him the next day, the foreman said, “Has the head come off of the brush?” “No,” said the sweeper. “The handle’s come off the brush.” Contributed by Roberta and Jim Colguhoun
JIM’S JOKES
A man went
The local news station was interviewing an 80-year-old lady because she had just gotten married for the fourth time. The interviewer asked her questions about her life, about what it felt like to be marrying again at 80, and then about her new husband’s occupation. “He’s a funeral director,” she answered. “Interesting,” the newsman thought. He then asked her if she wouldn’t mind telling him a little about her first three husbands and what they did for a living. She paused for a few moments, needing time to reflect on all those years. After a short time, a smile came to her face and she answered proudly, explaining that she had first married a banker when she was in her 20’s, then a circus ringmaster when in her 40’s, and a preacher when in her 60’s, and now - in her 80’s - a funeral director. The interviewer looked at her, quite astonished, and asked why she had married four men with such diverse careers. …. She smiled and explained, “I married one for the money, two for the show, three to get ready, and four to go.” Contributed by Jeannie Yip
into a hardware store to buy some insecticide. He asked the clerk, “Is this good for beetles?” “No,” said the clerk. “It’ll kill them.”
The teacher hesitated when Little Johnny raised his hand – he had burned her many times before – but she decided that there was no way he could twist the word “fascinate” into something off-colour so she asked him to use the word in a sentence. “My Aunt Gina,” Johnny grinned, “has a sweater with ten buttons, but… her chest is so big she can only fasten eight.” The teacher sat down and cried.
Industry
Beacon News Good to Go Oilfield Services MCI Solutions
Scottish Humour
A fishing boat searching for Moby Dick encounters a small dinghy. Ahab, the skipper, shouts across, “Hello wee man in the dinghy. Have you seen Moby Dick?” “What’s that you say?” replies the wee man. “I say, have you seen Moby Dick, wee man?” “No,” replies the wee man. “But I’ve seen The Sound of Music.”
A man was working for the town council, sweeping the streets. On the first day the sweeper went up to the foreman and said, “The heid’s come off ma brush.” “Right,” said the foreman. “Here’s another one.”
38 www.OilfieldPULSE.com
To Err is human, to blame it on somebody else shows management potential.
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volution Oil Tools Knowledgeable Personnel Providing and Developing Quality Products and Timely Solutions to the Oil & Gas Industry
We are a group of people that were brought together to form Evolution in order to meet your completion and subsurface tool needs. We provide wholesale products to accommodate your completion / service requirements from four product groups that we offer:
ZEECO: smokeless, reliable well-site flaring
At Zeeco, we understand the everyday realities of the oil and gas production fields. Our engineered flares meet the strictest regulations and operate safely, smokelessly, and with fewer service issues. Choose an engineered flare company with more than 30 years of combustion and flare experience to back you up. Choose a company where humans answer the phone and where deadlines mean something. Choose Zeeco.
open • enclosed • high / low pressure • rentals
Zeeco, Inc. 22151 E 91st St., Broken Arrow, OK 74014 USA ZEECO® is a registered trademark of Zeeco, Inc. in the U.S. ©Zeeco, Inc. 2012
+1-918-258-8551 sales@zeeco.com zeeco.com