Oil & Gas Network 2015

Publication Mail Agreement No.: 40039458

October 2015 Volume 16, Number 5 www.oilgas.net

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THE FUTURE OF TRUCK. THE FUTURE OF LEADERSHIP. The all-new 2015 F-150 wasn’t engineered with a military-grade aluminum body** to simply reduce weight by up to 700 lbs.* It was done to deliver more for your business: best-in-class maximum towing of 12,200 lbs*** and maximum payload of 3,300 lbs,*** more fuel efficiency,^ more dent and corrosion resistance, and a higher power-to-weight ratio. These are some of the many reasons why it is AJAC’s Best New Pickup for 2015. Put these numbers to work for your business. Make Ford Fleet the team behind your team. Visit www.fleet.ford.ca or contact us at 1.800.668.5515

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Vehicles may be shown with optional features. *EPA curb weight, versus predecessor model. **Class is Full-Size Pickups under 8,500 lbs. (3,856 kg) GVWR. ***When properly equipped. Max. towing of 12,200 lbs with 3.5L EcoBoost V6 4x2 Max. payloads of 3,300 lbs/3,270 lbs with 5.0L Ti-VCT V8/3.5L V6 EcoBoost 4x2 engines. Class is Full-Size Pickups under 8,500 lbs GVWR vs. 2014 competitors. ^Best in class Gas fuel efficiency with 2015 F-150 4x2 equipped with the 2.7L V6 EcoBoost® and 6-Speed SelectShift® Automatic Transmission, estimated fuel consumption ratings are 12.2L/100km city, 9.2L/100km hwy, 10.9L/100km combined, based on Government of Canada approved test methods. Actual fuel consumption will vary. Class is Full-Size Pickups under 8500 lbs (3856 kg) versus 2015 Competitors’ 5-cycle ratings. ©2015 Ford Motor Company of Canada, Limited. All rights reserved.

Coll’s Corner Contents OCTOBER 2015 Volume 16, Number 5 Publication Mail Agreement No.: 40039458 Publisher John Robertsen Editorial Associates David Coll Seema Dhawan Joni Evans Donna Gray Elizabeth Hak Joe Perraton Design & Layout amanda@oilgas.net Advertising Sales John Robertsen 403.800.1226 jrr@oilgas.net Special Projects Jim Graham jim@oilgas.net

Oil & Gas Network Suite 300, 840 6th Ave SW Calgary AB T2P 3E5 Phone: 403.800.1226

Reality is a Truly Bitter Pill

5 Reality is a Truly Bitter Pill 7 On Common Ground 9 Regulator Solicits Albertans’ Views 9 Caterpillar Launches Asset Financial Solutions for the Offshore and Marine Industries 10 Graco Launches New Line of Chemical Injection Pumps for the Oil & Natural Gas Market 10 Oilfield Operator Increases Use of Recycled Produced Water to Nearly 100 Percent with Advanced Filtration 11 DNV GL Combines Tools to Aid Operational Performance in Rotating Equipment 12 Morgan Advanced Materials Offers PGS-100 Graphite- loaded Silicon Carbon for Demanding Oil and Gas Sealing Applications 13 SIL2 Flow/Level FlexSwitch Detects Fluid Interface 14 Operator Saves USD 5.4 Million During Plug-and-Perf Operations in Less Than One Year 14 4 Ways to Boost Employee Performance and Job Satisfaction

Subscriptions and Address Changes www.oilgas.net/subscriptions.htm or email subscriptions@oilgas.net Return Undeliverable Canadian Addressed to: Oil & Gas Network Mail Suite #4, 2023 2nd Ave Se Calgary AB T2E 6K1 Oil & Gas Network is published six times a year. Reproduction in whole or in part of any material in this publication without the express written permission of the publisher is prohibited.The publisher of Oil & Gas Network is not responsible for errors or emissions printed, and retains the right to edit all copy.

Opinions expressed in the editorial content of Oil & Gas Network do not necessarily reflect the views of the publisher or Oil & Gas Network.

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Cover photo courtesy of Rotating Machinery Group DNV GL

What’s next? We may feign optimism but – as the bad news piles up – I’m not sure many of us really want to know

By David Coll IN CANADA, PARTICULARLY ALBERTA, it’s been a dismal 10 months since global oil prices went into a smouldering tailspin. Likewise, the world economic picture – continued fallout from the Grecian debt fiasco, currency crisis in China, millions of new barrels from Iran, directionless energy strategy from the U.S., Obama set to put the final nail in Keystone’s coffin . . .

What’s next? We may feign optimism, but I’m not sure many of us really want to know.

Despite our vast geographic reach and tremendous natural resource endowment, Canada can only watch helplessly as the worrisome world news piles up like line items in last month’s multi-page bank statement.

Federally, the day-to-day business of governing will have been put on hold for 11 weeks as the longest election campaign in our history unfolds. In addition to being a major distraction from dealing with our growing economic woes, the weeks before the election saw the Conservatives spending like drunken sailors on shore leave. We’d better go easy on the Greeks because we’ll find ourselves in the same pair of sandals one day in the not-too-distant future if this game of spend-and-tax keeps up.

What baffles me is how a resource-rich and energy-dependent nation like Canada (this just in: it gets kind of cold here) can even function without a well-understood and multi-faceted energy strategy not firmly in place.

The one we’re finally getting, meanwhile, is predictably lame and couched in obtuse language and motherhood statements. It will do nothing to prevent internecine squabbles among the provinces and revive the unifying concept of Confederation. It won’t streamline/speed a crippling regulatory process that is crushing export opportunities and killing economic growth and employment.

And it will do nothing to improve relationships between governments and First Nations, which as Justin Trudeau opines, are as bad as they’ve ever been. That’s about the only thing Justin’s said so far that I agree with. Nice hair, though.

Here at home in Alberta, there’s another massive bill coming due, one instalment at a time. The people, presumably, want a royalty review and darned if they won’t get one. Corporation get higher taxes, businesses get hikes in the minimum wage and increased social services spending means more borrowing rather than making these services more efficient – all at a time when the province’s largest cash cow is diseased and withering.

Top it off with a climate change panel that needs a fiscal bone or two so Rachel Notley is not embarrassed in Paris this fall, and it all adds up to an astonishingly bleak picture for the energy industry looking forward.

Suffice to say: if you didn’t believe Alberta was dependent on oil before, you soon will.

And I haven’t even touched on Thomas Mulcair and what would happen to the oil sands industry and various pipeline/project approvals should he come to power or we wind up with a creepy coalition of the Liberals and NDP. So, does Harper remain the best bet where the industry is concerned? Yes, but I worry about some of the things that have occurred under his watch and the clouds of secrecy under which these decisions were unveiled.

Scary when a communist regime can acquire a Canadian company (without the true details being available), when the reverse would simply not be possible. Unnerving, when you learn that Saudi Arabia now controls 51% of the Canadian Wheat Board ‘monopoly’ Harper was determined to destroy.

And even if Harper has no guilty knowledge of the most famous 90 grand in Canadian history, the Senate scandal does not speak well regarding the attention span of the man at the wheel.

So, it’s a dreadfully bleak landscape, politically, in this country at the moment. Scorched earth.

There’s really nothing short of a gradual uptick in commodity prices for the oil and gas industry to look forward to. No one’s predicting an easy exit from the mess we’re in and any reasonable person ought to understand by now what folks in the know were insisting back in January: “It’s different this time.”

Still, there are always those who hold to the belief that we’ll get through this simply “because we always do.” Harper said as much during a recent PC gathering when he brushed off concerns about the energy sector with a line about Albertans being a resilient people. Like the pioneers.

But reality is a truly bitter pill. It’s a whole new ballgame and the sooner we accept it for what it is – instead of burying our heads in the sand and pretending everything will work out fine – the better off we’ll be.

Decisions we take today, on any level, need to be made with the knowledge that we’re at the beginning of a prolonged slump and we may never see $100 oil again.

Until, perhaps, 85 years from now when fossil fuels are to be completely phased out. Yeah, right.

But that’s another story, for another depressing day.

Oil & Gas Network, October 2015

5

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On Common Ground PSAC, services sector finds ways to advance the industry’s relationship with First Nations communities

By Petroleum Services Association of Canada WHEN THE FEDERAL TRUTH AND RECONCILIATION COMMISSION released its recommendations earlier this year, after seven years of research and public testimony across the country (which was published as a findings report), it came in the form of a neatly bundled PDF that summed up decades’ worth of the stories of injustice the commission had heard from hundreds of residential school survivors and their families from across Canada.

In order to begin to repair those damages, the TRC set forth its recommendations, which stretch across sectors – from education to language preservation, business to provincial politics, the legal system to the mainstream media. For every aspect of what is the way of life we celebrate in Canada, the TRC suggests we have failed our aboriginal people.

The section that addresses business calls industry to “ensure that Aboriginal Peoples have equitable access to jobs, training and education opportunities in the corporate sector, and that aboriginal communities gain long-term sustainable benefits from economic development projects.”

“The natural resource sector has traditionally been an area where we haven’t necessarily participated other than as low-lying fruit in terms of jobs,” says Sheldon Wuttunee, president and CEO of the Saskatchewan First Nations Natural Resource Centre of Excellence in Saskatoon. “It’s all related to transfer agreements and the permit system, which allowed the non-First Nations population to develop an economy which we weren’t a part of, and now we’re in a phase of catch-up. With the recommendations from the TRC, education and training is at the forefront ... it’s making sure that First Nations people have a keen understanding that there is opportunity to get an education for.”

When it comes down to it, enhanced aboriginal relations programs might seem too daunting for industry to manage in the midst of running daily operations. But stakeholder and public relations are incredibly important in the oil and gas sector – companies need to work in and around remote communities, often located on indigenous land that companies need permission to work through. Without solid relationships in place business can stall, so learning to adapt First Nations values into a project’s plan is about more than just cultural sensitivity – it’s about the bottom line and ease of business.

PSAC suggests that for many service companies, it can also become a way to address the industry’s labour shortage gaps. In remote areas, aboriginal people remain an untapped source of employees.

“If you want to support aboriginal people, hire aboriginals,” says J.P. Gladu, president and CEO of the Canadian Council for Aboriginal Business. The CCAB’s mandate is to form ties between corporate Canada and aboriginal communities across the country. “You can’t build a socio-economic base without an economy, and there’s no economy without business,” says Gladu. “The TRC and the words from the AFN are about bridging that gap.”

The CCAB has been working on a third-party certification program that would assist in matching aboriginal and non-aboriginal businesses. “We can’t be leaving it to the primary producers to build relationships through things like procurement,” says Gladu. “The supply chain needs to understand the importance of aboriginal relationships because it benefits everybody in a region, in that sector and in the country.”

And it’s not only the CCAB that’s working on database solutions. The Saskatchewan First Nations Natural Resource Centre of Excellence is developing a program called EXPORT, a database where employers and potential employees alike can sign on to find each other. “When industry is moving into an area and they’ve identified local communities that are on or near a First Nation, we’re taking a proactive approach to ensure that we’re developing a portal to identify what skills are there in terms of individuals that are trained or willing to be trained,” says Wuttunee. He adds that the centre hopes that the portal will be used across industries, from oil and gas to forestry and even food services. “This is starting to build a communal approach, to be able to identify and develop a skills inventory and to know what’s needed for specific projects.” From there, users can search for jobs or, if they are employers, search the database for specific skills that they are in need of.

It hasn’t always been easy, to get projects and the CCAB certification program up and running, and there has been a bit of “chicken or the egg” syndrome to contend with – “When people log in they want jobs, but industry wants people,” says Wuttunee. “We’re trying to do both simultaneously.”

That’s not to say there are no industry success stories to work from. A PSAC member that’s excelled in spearheading various First Nations initiatives is Black Diamond Group. The company owns large housing facilities that service resource projects in remote areas, often working with local communities through contractors. “We have equity-based relationships with First Nations in the areas,” says Trevor Haynes, Black Diamond’s president and CEO. “Through our services, we can be that transom between producers and First Nations.”

Jonathan Stringer, the company’s general manager of aboriginal relations, notes that when Black Diamond is in discussion with aboriginal partners, employment and training is a significant factor in the relationship. Much of the First Nations engagement comes through catering and service roles in camp. “In the procurement and tender process in which we select our caterers, we look at what their local engagement and training strategy is,” says Stringer. “It’s a skill set that can be readily trained and engaged, from food services to hotel services to maintenance.”

Black Diamond has also noted that training needs to be considered in new and creative ways when working with First Nations people. “We know it’s difficult to convince people to come to Calgary for

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OGN News

Regulator Solicits Albertans’ Views Water use, aging infrastructure and protection of soil and water are among the issues of high concern EACH YEAR, THE ALBERTA ENERGY REGULATOR (AER) conducts annual public opinion research to measure its progress in increasing awareness and confidence among Albertans, First Nations and Métis communities and other stakeholder groups. The data is used to measure public opinion and perceptions about how the oil and gas industry is regulated in Alberta and is key means of identifying and prioritizing issues of concern to support its engagement efforts.

This year’s survey of Albertans included more than 1,000 random telephone interviews of Albertans aged 18 and over between Feb. 12 and March 1, with the results published in a July report entitled AER Survey of Albertans and Stakeholders. In addition, 200 stakeholders – including First Nations and Métis, rural landowners, environmental nongovernment organizations, municipalities, and industry – were interviewed by phone between March 23, 2015, and April 9. Groups interviewed included.

Here are the key findings, from the report’s Executive Summary While unaided awareness of the AER is low (8%), total awareness of the regulator and its role in regulating energy development (aided and unaided) is at 41%, an increase of 9% since July 2014. Certain areas of the province reported concerns with oil and gas development, howverAlbertans are generally supportive, with 60% saying there is the “right amount of development” in the province and 13% (down from 17% in 2014) saying there is not enough. The number of Albertans who felt there is too much oil and gas development increased from 16% in 2014 to 21% in 2015.

When it comes to oil and gas development issues and what Albertans expect from the AER, Albertans remain concerned about the protection of water and soil (87%), human and animal health (73%), and water use by the oil and gas industry. Stakeholders have similar concerns although they rank them differently, with water use (84%) and aging infrastructure (84%) being of highest concern and protection of water and soil (82%) also a high concern. Concerns vary among stakeholder groups, with First Nations expressing higher levels of concern on environmental issues.

Ensuring public safety (89%) and enforcing the rules (85%) remain top priorities for Albertans when asked about importance of AER functions. In 2014, ensuring appropriate incident response

CATERPILLAR OIL & GAS announced the introduction of Asset Financial Solutions, an innovative financial product that provides 100% financing new offshore or marine assets. The new solution enables Caterpillar to offer customers a tailored solution to optimize their business and expand their fleets without raising additional capital or taking on project construction risk.

“Our message is clear: we have a proprietary new financing model for the offshore industry that can help our customers succeed and grow despite down cycle market conditions,” Antti Ekqvist, Caterpillar Oil & Gas global offshore manager said. “The Asset Financial Solution was developed to be a simple, succinct financing source

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Caterpillar Launches Asset Financial Solutions for the Offshore and Marine Industries

tracked very high at 88% and has again been highlighted with 84% of Albertans indicating it as a high priority. Environmental protection also remained high with 82% of Albertans giving it high importance.

When asked to choose one “most important” function, however, the order changes slightly with ensuring public safety at 36% followed by environmental protection (25%) and enforcement (12%).

Overall perceptions of the AER are positive with 78% of the public holding positive views of the AER and 75% of stakeholders viewing the AER in a positive manner in 2015 (based on a score of 5–10 out of 10). Albertans and stakeholders rate AER performance favourably across several key areas, with the highest scores (agree somewhat or strongly) in incident response (82% Albertans; 82% stakeholders) and enforcement (77% Albertans; 78% stakeholders) and the lowest scores in transparent communications (55% Albertans; 71% stakeholders).

With respect to stakeholder satisfaction with AER interaction, municipalities reported the highest level of satisfaction at 96%, with ENGOs (77%) and industry (76%) also reporting high levels of satisfaction. Satisfaction rates were lower among landowners (63%) and First Nations and Métis (44%). Generally, high satisfaction levels were attributed to the regulator’s proactive communications and timely responses to concerns while lower rankings were related to longer response times. When asked about quality of interactions with AER staff, stakeholders indicated high levels of satisfaction, most notably with the level of professionalism and knowledge of AER employees.

In 2015, 26% of Albertans recall having seen, read, or heard mention of the AER in the media, an increase of 19% over 2014 and 2013. Among Albertans exposed to media, most recall traditional media sources such as newspaper articles (34%), TV coverage (27%), and radio (15%). Online sources continue to provide opportunities for Albertans to learn about the AER, with 16% of media recall.

Most Albertans (77%) and stakeholders (74%) express confidence in the AER’s ability to deliver on its mandate. Among stakeholders, industry (90%) and municipalities (87%) are more likely to express confidence levels of 5–10 than are First Nations and Métis (52%), ENGOs (63%), or landowners (65%).

PETROLEUM SERVICES ASSOCIATION OF CANADA

Continues from page 7 training,” he says. “So if you can train closer to, or on the job, you get much more effective retention throughout. It pulls the community into the work that’s being done.”

The last TRC recommendation to business suggests “education for management staff on the history of aboriginal peoples, including the history and influence of residential schools. This will require skills-based training in intercultural competency, conflict resolution, human rights and anti-racism.” This is perhaps the most challenging, and surprising, item. It requires fundamental change at the boardroom table.

Tamara Nelson, director of human resources at Summit Liability Solutions, is one of those people working for change at executive levels. Nelson says that service companies can make a difference by developing programs alongside First Nations leadership, rather than trying to push legislation towards them. “There’s no way that you can get anything through, to the benefit of the company or not, without sitting down and being a true partner,” she says. Summit Liability has developed a phase-based training program that is adaptable to each individual First Nation, because “every band is different,” says Nelson. “They are like any family; they come with their own challenges and successes.”

Nelson calls the training system a “work of art” that has gone through 14 to 15 iterations in its lifespan and is constantly changing. The basic program takes inexperienced workers and trains them on the job, partnering them with another First Nations person that is already on staff. “You can’t just helicopter in a First Nations person alone – in fact, you wouldn’t do that with someone from a rural area, either. They need to be in the spirit of community. This is long-term thinking with a competitive advantage.”

Nelson acknowledges that a lot of the phrasing that surrounds doing business with First Nations is confusing – “Although many will assert that all you need to do is ask, not every door is open if you yourself are not First Nations or you don’t come in with a base of knowledge,” she confirms. “You have to be in it for the long haul, rather than coming in for the quick sale.” She says the important thing is to keep knocking on doors, to embrace the “long trudge. You meet some amazing people.”

Tuesday, November 3, 2015 TELUS Convention Centre Calgary, AB | 2:30 pm – 9:30 pm Visit PSAC.CA for more information

Join us for the 2016 Industry Forecast Keynote Speaker Dinner Reception Networking Opportunities

Analysts include: Adam Gil, CFA, Institutional Equity Research, CIBC World Markets – E&P

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Ben Brunner, Manager, Fiscal & Economic Policy Canadian Association of Petroleum Producers

PSAC is pleased to announce our keynote speaker, Vivian Krause, for this year’s dinner.

At the Financial Post, they called her “the girl who played with tax data.”

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Continues on page 14 Oil & Gas Network, October 2015

9

Graco Launches New Line of Chemical Injection Pumps for the Oil & Natural Gas Market

Oilfield Operator Increases Use of Recycled Produced Water to Nearly 100 Percent with Advanced Filtration

Internal Development of New Chemical Injectors Builds on Recent Acquisition Activity in the Oil and Natural Gas Market

TEQUATIC™ PLUS Filters economically reduce suspended solids and cut water-related operating costs by 60 percent

GRACO INC. ANNOUNCED that it is launching a new line of chemical injection equipment for use in the midstream and upstream sectors of the Oil & Natural Gas markets. This new, internally designed and developed product line includes highly durable pumps, technologically advanced controllers, and accessories to dispense, control, and monitor numerous chemical fluids used to keep oil and natural gas pipelines and wellheads flowing freely in most operating and weather conditions.

“Graco’s line of chemical injection equipment is the next phase in the company’s strategic plan to expand its presence in the Oil & Natural Gas market space,” said Chuck Rescorla, Vice President of Corporate Manufacturing and Corporate Development.

The AC & DC Wolverine TM pump line includes hundreds of variations of solar-operated and electrically-operated pumps and packages to meet the needs of operators primarily in the upstream and midstream oil exploration markets. Wolverine chemical injection pumps reduce atmospheric emissions while providing a greater level of flow control when used with Graco injection rate controllers. Designed with durability in mind, these injection pumps feature newly designed pump lowers whose sealing capability can last up to 25 times longer than many other designs on the market.

The pneumatically operated Python TM line-up of chemical injection pumps includes numerous configurations of models to accommodate the pressure and volume requirements often experienced in the upstream and midstream industry. Python pumps are ideal for applications in tough environments and can operate from regulated natural gas or compressed air. The Python line offers lower costs of ownership, they are easy to operate, and use half the air consumption of many other comparable pumps in the market. They feature extremely rugged internal components and timing valves designed for years of operation before replacement.

Graco’s Harrier TM line of controllers offer new capabilities to monitor chemical injection pump units in the field from remote locations. Among their many advantages, the Harrier line provides substantial operational cost savings as well as access to accurate and immediate operational data. The new Harrier controllers are affordable and will work with Graco’s new chemical injection pumps as well as competitive offerings, providing the end user an opportunity to upgrade existing systems already in the field.

Graco recently acquired two well-known international brands in the Oil & Natural Gas market – Alco Valves Group and High Pressure Equipment company. Combined with its organically developed offerings such as the chemical injector suite of products, Graco now has a well-rounded product portfolio to serve the needs of Oil & Natural Gas customers worldwide.

For additional information, please visit the Graco website at www.graco.com and view current support materials and literature, or email us at oilandgas@graco.com , or call 1-886-552-1868.

AN OILFIELD WATER SERVICE PROVIDER is helping a Colorado oilfield operator cut water sourcing and hauling costs for hydraulic fracturing by integrating self-cleaning TEQUATIC™ PLUS F-75 Filters into a water treatment plant, more than tripling the use of recycled produced water for its customer to nearly 100 percent.

The service provider, BNN Energy, assessed the ability of bag filters, dissolved air flotation (DAF), and TEQUATIC™ PLUS Filters to remove high, oily total suspended solids (TSS) in produced water prior to recycling. The 100-micron bag filters used in the customer’s existing system, however, required excessive maintenance and filter changes. In addition, only 30 percent of the produced water could be recycled due to microbial growth issues during storage. Continuing to treat the water with bleach was expensive and, consequently, most of the produced water was hauled away. Similarly, the operator determined that DAF was over-engineered for the application, requiring chemicals and continuous, cost-prohibitive monitoring.

TEQUATIC PLUS Filters were ultimately chosen due to their simple and economical operation, and their ability to consistently treat high-solids, oily water with minimal maintenance, filter changes and chemicals. BNN installed five TEQUATIC PLUS Filters into the new water treatment plant in December 2014 and, consequently, was able to recycle nearly 100 percent of produced water – more efficiently than traditional technologies can deliver for this application.

“To solve the growing issue of water scarcity, we need to reduce consumption, be more efficient and recycle water wherever possible,” said Larry Ryan

BNN expects to save about two dollars per barrel of water for its customer, ultimately reducing waterrelated operating costs by about 60 percent.[1] “Because TEQUATIC PLUS Filters can filter out very fine particles – in this case, down to 20 microns – the recycled water in storage tanks is much less susceptible to microbial growth,” said Rom Ginzburg, global strategic marketing manager for Oilfield Water, Dow Energy & Water Solutions. “Finer filtration also enables higher blend rates of recycled produced water used in additional fracking jobs, which reduces the cost of maintenance, consumables, water sourcing and water treatment. At the same time, it improves operator safety due to less handling and chemical exposure.”

BNN also looked to the operational flexibility of TEQUATIC PLUS filters, including their ability to be easily mounted on mobile platforms and remotely monitored off site. Remote monitoring enables staff to adjust the system to varying frack water conditions via mobile device —another source of convenience and savings. Furthermore, because more water can be recycled and reused than ever before, there are fewer issues related to securing fresh water, a growing concern as water becomes scarcer due to MCCOY GLOBAL IS THE LEADING GLOBAL SUPPLIER of tubular handling and make-up equipment for the energy industry. Our comprehensive fleet drought and population growth, among other considerations. of power tongs and bucking units will consistently make-up/break-out any types of API and premium connections to the required torque. Our latest “To solve the growing issue of water scarcity, we need to offering in these lines is the new weBUCK™ electric bucking unit. For data acquisition and control on connections, we offer the weVERIFY™ torque calibration bar, weCATT™ wireless torque sub and the WINCATT® torque/turn monitoring system. We provide life cycle support of our products, reduce consumption, be more efficient and recycle water wheroffering a full range of dies, inserts and spare parts. ever possible,” said Larry Ryan, business president for Dow Energy and Water Solutions. “By re-evaluating current water treatment systems and implementing advanced technologies weCATT wherever possible, we all play a role in protecting and extending our water resources.”

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DNV GL Combines Tools to Aid Operational Performance in Rotating Equipment MANY PIECES OF ROTATING EQUIPMENT are operating below optimum capacity, affecting production costs, revenues and resulting in unexpected down time. DNV GL has been working together with operators to help unlock the potential of their existing rotating equipment.

Chris Dagnall, Manager, Rotating Machinery Group, DNV GL says “Rotating equipment can be attributed to 90% of production losses. Typically, those losses can affect 5-10% of production. Assuming production averages 50-150 million barrels of oil per annum and an average cost per barrel is $53. The average loss would be $140-$420 million per year, a saving of just 1% in this area would be in the order of $1.4 – 4.2 million, the size of the prize is considerable.”

and delivers critical information which is an enabler in planning and control of the asset.

Liv Hovem, Director of Division Europe & Africa at DNV GL says “The opportunity is there, in these challenging times to introduce new technology, new ideas and smart standardisation which gives predictability and flexibility. This enhances quality, reliability and profitability. A lot of the technologies, tools and arenas for collaboration exist,

we just need to start using them effectively. Condition Based Monitoring, combined with RAM analysis is essentially a strategy that uses the actual condition of the asset to decide what maintenance needs to be done. This method dictates that maintenance should be performed when certain indicators show signs of decreasing performance or upcoming failure. Essentially, it targets improvements in the right place at the right time.”

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On line condition monitoring coupled with reliability, availability and maintainability (RAM) analysis can facilitate in understanding the causes of shortfalls which would cause failures, downtime, start-up delays or full shutdown, allowing operators to optimise their maintenance strategy around reliability and machine condition.

The data produced, identifies where losses can be reduced and this information is quantified to improve in costs, quality or both. Plant failures are then ranked and improvements implemented to provide either quick wins or longer term rewards. The unique online tool is used as an aid to facilitate decisions, whether to replace or repair, how many spares to keep or what action to take in a cost constrained environment.

The fully functioning on-line monitoring and supporting analysis combines detailed statistics and performance monitoring which gives real time, round the clock, access to the condition of the machinery. The dashboard interface demonstrates an overview which cuts the complexity of the message

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Oil & Gas Network, October 2015

11

Morgan Advanced Materials Offers PGS-100 Graphite-loaded Silicon Carbon for Demanding Oil and Gas Sealing Applications MORGAN ADVANCED MATERIALS’ PGS100 graphite-loaded silicon carbide material is ideal for oil and gas applications that require protection from high temperatures and corrosive environments. Its advanced properties help reduce seal face wear, increasing uptime, and offering up to twice the service length of competitive components.

Morgan can custom machine the material into a wide range of geometries for such applications as; refinery seals, industrial abrasive slurry seals, and industrial pump bearings and seals. The material is also ideally suited for sour crude oil pumping at temperatures greater than 700°F The unique face topography that results from the PGS100 material enhances seal face pressure-velocity (PV) characteristics compared to monolithic sintered silicon carbide and, unlike monolithic materials that incorporate matte lapping to increase face roughness, the PGS100 topography remains for the life of the product. The material also improves thermal shock tolerance, with the ability to survive and maintain integrity in the face of rapid temperature changes on the order of several hundred degrees. In addition, the material allows users to survive in marginally

Emerson Adds Power Over Ethernet to Wireless Gateway Adding Power over Ethernet (PoE) allows the Smart Wireless Gateway to easily integrate with compatible infrastructure without the need for extra wiring

lubricated conditions for longer than sintered carbide. Providing this window of tolerance enables significant savings to be achieved resulting from increased uptime, and reduced parts and labor costs.

Morgan provides design guidance and assistance selecting the most appropriate material and grade for specific customer applications. With materials finishing capabilities in the US, UK, and China routine parts can be supplied globally within short lead times. Morgan also offers expedited services for emergency replacement circumstances to enable the most rapid recovery of uptime.

EMERSON PROCESS MANAGEMENT has added Power over Ethernet (PoE) to the Smart Wireless Gateway 1420, making it possible to power the gateway and compatible devices using a standard Ethernet cable. PoE allows easy, economical installation of wireless Gateways without requiring extra power wiring infrastructure.

The PoE Gateway provides infrastructure flexibility in places where there is limited access to power. By using an Ethernet cable connection, a new PoE Gateway can be easily installed and powered by an existing wireless access point. Alternately, PoE allows the Gateway to power any Ethernet-enabled instrument. Taking advantage of existing power infrastructure results in a significant cost savings compared to running new wiring.

For more information on the Emerson Smart Wireless Gateway 1420, visit EmersonProcess.com/Gateway1

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2015-05-15 1:37 AM

SIL2 Flow/Level FlexSwitch Detects Fluid Interface In Oil Well Separation Tank Processes Fluid Interface Detection Eliminates Process Stream Contamination Petroleum engineers responsible for the process of separating crude oil, gas and water will find the SIL2 rated FlexSwitch® FLT93S Flow/Level/Temperature Switch from Fluid Components International (FCI) provides precision interface detection of fluids to manage separation tank operations.

After extracting crude oil, the first step in the refining process is to separate the oil, gas and water into separate process streams using either two-phase (oil/gas and condensate) or three-phase (oil, gas and water) separation tanks. There are various types and classes of separation tanks based on multiple technologies, but fluid interface detection of the oil, gas and water is always important for successful operations.

Detecting the interface of oil, gas and water in a tank is difficult because each of these fluids differs in their fundamental characteristics. If the fluid interface detection isn’t accurate, troublesome emulsion layers of oil/water and gas/condensate can contaminate the individual process streams and affect the refining process.

With its advanced thermal dispersion sensing technology, the FLT93S Switch ensures accurate interface detection of oil, gas and water. The FLT93S Switch performs monitoring, controlling and alarming of flow rates or levels of critical fluid layers in tanks such as emulsion layers, foams, liquids and slurries.

With its rugged industrial design and housing, the FLT93S Switch features superior reliability rated to SIL2 and a long service life under the harshest petrochemical industry conditions. The FLT93S Switch is a dual-function insertion-style instrument that offers either flow/temperature sensing or level/ temperature sensing in a single device.

A single FLT measures and monitors flow or level and temperature simultaneously with excellent accuracy and reliability. Dual 6A relay outputs are standard and are assignable to flow, level or temperature.

Unlike density displacers, which are often used for level and interface control, the FLT93S Switch

relies on the specific heat transfer properties of the media to identify the interface of different products.

With its unique thermal dispersion sensing capability, the FLT93S monitors the interface of products with similar densities for highly reliable control in separation tanks and other vessels.

FCI’s FLT93S can identify the interface between any type of media including foam, emulsion layers, liquids and slurries. The FLT93S Switch’s dual switch point option allows one instrument to control two different product interfaces. Two or more switches are used to control product discharge and intake at specified points.

The FLT93S operates over a wide setpoint range in hydrocarbon liquids from 0.01 to 5.0 fps (0.003 to 1.5 mps), in gas/air from 0.25 to 120 sfps (0.08 to 37 smps) and in water from 0.01 to 0.3 FPS (0.003 to 0.9 MPS). Level/interface accuracy is ±0.25 inch (±6.4 mm), and measurement repeatability is ±0.125 inch (± 3.2 mm). The standard FLT93S withstands operating temperatures from -40 to 350°F (-40 to 177°C), and an optional configuration is available for temperatures from -100 to 850°F (-73 to 454°C).

With its thermal dispersion flow sensor the FLT93S features built-in temperature compensation, which ensures repeatable and reliable operation, even in extreme environments, such as those found in the high temperature chemical refining and other process industries. This automatic compensation adjusts the instrument for changes in operating environment temperatures to ensure the trip points will remain accurate and will prevent false alarms or alarm failures to improve end-product quality, to maximize safety and to allow alarms to be set within a narrower set point range.

A wide selection of process connections is available for the FLT93S. The electronic control circuit can be integrally-mounted with the sensing element, or it can be located in a remote location. The standard enclosure is made from a coated aluminum alloy. It is suitable for use in ATEX locations and is rated for NEMA Type 4X (IP66) environments. Stainless steel or fiberglass enclosures also are available.

Fluid Components International is a global company committed to meeting the needs of its customers through innovative solutions to the most challenging requirements for sensing, measuring and controlling flow and level of air, gases and liquids.

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Oil & Gas Network, October 2015

13

CASE STUDY

Operator Saves USD 5.4 Million During Plug-and-Perf Operations in Less Than One Year KICKSTART RUPTURE DISC VALVE eliminates mechanical intervention for toe preparation in 100 wells in the Woodford Shale with 100% success rate CHALLENGE: Improve the efficiency and safety of plug-andperf operations for multistage fracturing in the Woodford Shale.

SOLUTION: Deploy KickStart rupture disc valve to eliminate the need for coiled tubing (CT) or a workover rig to prepare the toe of the well for the first stimulation stage.

RESULT:

Saved more than USD 50,000/well on average for 100 wells in less than one year, with 100% reliability and zero NPT.

First stage of plug and perf requires mechanical intervention The South-Central Oklahoma Oil Province (SCOOP) is a play that targets the Woodford Shale in Oklahoma, USA. For one operator, plug and perf is the multistage stimulation technique of choice in these cemented horizontal wells. This method is straightforward for every stage except the first because after the casing is cemented, the well is a closed system and perforating guns cannot be pumped down to perforate the first stage.

CT or other mechanical intervention was used to run the perforating guns to the initial toe stage, but this technique increased cost, risk, and logistical complexity. Various toe initiator valves have been available as an alternative to CT for several years, but the operator had avoided their use because many of them are unreliable. The lack of reliability frequently negates their potential benefits because it often necessitates last-minute mobilization of CT units or workover rigs.

KickStart valve provides a reliable, cost-effective alternative Schlumberger proposed use of the award-winning KickStart rupture disc valve to stimulate the first stage. The valve’s outstanding record of reliability convinced the operator to use this technology to enhance the efficiency of stimulation operations and save both time and money.

The closed valve is run to the toe of the well as part of the casing string. Casing pressure is then increased to a predetermined value, causing the valve’s rupture discs to burst, shifting a sliding sleeve and opening the valve, thereby exposing the formation to the fracturing fluid. The first stimulation treatment can then begin and subsequent pumpdown operations can follow.

Operator saves USD 5.4 million in less than one year The valve performed smoothly as per its design the first time the operator tried it in the SCOOP play. Pleased with the efficiency of the operation and savings in excess of USD 50,000, the company elected to continue its use. 100 installations in less than one year have brought the total savings to USD 5.4 million, with a 100% success rate and zero NPT. The valve continues to form an essential component of this operator’s plug-and-perf designs.

14 Oil & Gas Network, October 2015

4 Ways to Boost Employee Performance and Job Satisfaction

By Ascanio Pignatelli KEVIN WILSON WAS A GREAT LEADER, but his team was not producing the results he knew they were capable of. One day he arranged a meeting with Jim Hefner, a recently retired executive who had built and led a team that shattered every single company performance record. “Jim, how’d you build such an amazing team?

They not only outperform the rest of us but they seem to have more energy, confidence and fun than anyone else.”

“Kevin, I’m a big fan and follower of (CSE). It’s a branch of industrial-organizational psychology known as Core Self-Evaluations.

That’s what made us so successful. Ever heard of it?”

Kevin shook his head, “No.” Excitedly, Jim leaned in to explain: “Well, CSE is the personality trait responsible for our temperament, our wellbeing, and how we judge our circumstances. It also drives our behavior. Those with high CSE are far more positive and confident in their abilities, satisfied with their jobs and perform them far better than those with low CSE. As a manager, your job is to coach and raise each of your employees’ CSE levels.”

Jim is correct; as a leader, your primary focus should be to personally coach the best out of your team members and raise their CSE levels. Doing so will ensure you are more satisfied with their work and perform it better. Fortunately, CSE can be easily assessed and increased by:

Shifting the “Locus of Control” The “Locus of Control” is determined by the extent to which a person believed they control their success or performance. Employees who believe that they control their future (Internals) have an internal locus of control and are generally happier, more empowered, and more productive than those who attribute their success or performance to fate or their surroundings (Externals). As a result, internals are more satisfied with their work and perform better than externals. You can find out whether an employee is an internal or external by simply asking “What’s been responsible for your success/performance?”

If the answer reveals an external locus of control shift power back to your employee by asking “How has believing that you aren’t causing your success affected your career?” Let them explain so they can really experience how they’ve been limiting themselves, then ask: “If you knew that you were in complete control of your success, what would be possible?

Increasing Emotional Intelligence Employees with a tendency to easily experience unpleasant emotions like anxiety, depression and despair have lower emotional intelligence (EQ) and will react far more negatively to stress.

Because their EQ levels are lower, their ability to connect, understand and influence others is severely impaired. For Kevin and others in leadership positions, the need for emotional stability is even more paramount, as they are the face of the organization and set the tone for employee morale. If you have an employee that’s emotionally unstable consider asking: “What can you do to not get so stressed out next time you have a presentation/sales call)?”

Or “What might be a more appropriate way to react to an upset client/colleague?

Instilling Self-efficacy Self-efficacy is the trait responsible for how likely we are to succeed with current goals and tasks, or take on a challenging assignment or “write it off” as impossible. (How likely we are to adhere to a diet or workout program is dictated by our self-efficacy.)

Those with high self-efficacy are more determined and persistent when dealing with adversity, and more likely to welcome new challenges as opportunities. The greater a person’s belief in their own power to influence an outcome the more likely they are to succeed with a new challenge. The following four step process can help you develop someone else’s self-efficacy: • Build confidence- Question any belief they might have that is limiting their performance. For example, if an employee thinks they aren’t experienced enough to manage a project you can remind them of their unique strengths and capabilities.

• Promote modeling- Have inexperienced employees watch other colleagues with similar skills perform more advanced tasks so they too can develop those positive, “can-do” beliefs.

• Evaluate to motivate- Rewards, recognition and positive feedback are key to helping your employees feel more competent, motivated and open to growth. Negative feedback can devastate those with low self-esteem, as they almost always take it personally.

• Optimize the environment- Create a vibrant, energetic, stressfree workplace that encourages your staff to get the nutrition, exercise, and rest they need so they can perform their best.

Increasing their Self-esteem Self-esteem is the approval we have of ourselves and the extent to which we see ourselves as capable, significant, successful, and worthy. It is the most essential of the CSE domains since workers with low self-esteem are often unproductive because they are indecisive, fear making mistakes and strive for perfection which leads to frustration when it isn’t attained.

Generally they are highly irritable and pessimistic, and can drain the positive, enthusiastic energy of their more self-assured colleagues. Predictably, those with low self-esteem are more likely to be unsatisfied with their jobs, performing them considerably worse than those with higher self-esteem.

To boost the self-esteem of your employees: • Recognize and celebrate their successes and accomplishments as much as possible.

• Express your gratitude and appreciation to them for the contribution and difference they keep making.

• Be a model of kindness and compassion to others, especially those with lower self-esteem.

Conclusion Jim Hefner understood that coaching the best out of his team meant raising their CSE levels. He did everything he could to raise those levels and as a result his team was always more satisfied with their work, performed it better, and were more confident, motivated and enthusiastic. They were also far less stressed, had less conflict, coped more effectively with setbacks and were better equipped at capitalizing on opportunities. To better engage, empower and motivate your greatest resource and boost the bottom line lead like Jim and raise those CSE levels.

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Gas engines are built to run. But what if they could fly?

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With products like Mobil Pegasus™ 1, which help deliver leading-edge technology so you can go longer between maintenance outages and shutdowns — more than tripling your drain intervals compared with conventional oils. Providing not only peace of mind, but the chance to ignite productivity to enviable new levels. Visit mobilindustrial.com for more.

Copyright © 2015 Exxon Mobil Corporation. All rights reserved.

All trademarks used herein are trademarks or registered trademarks of Exxon Mobil Corporation or one of its subsidiaries unless otherwise noted.

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