Pipeline News July 2016

PIPELINE NEWS Saskatchewan’s Petroleum Monthly

July 2016

Canada Post Publication No. 40069240

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Volume 9 Issue 2

TRUMP SAYS "YES" TO KEYSTONE XL, BUT HE WANTS A PIECE

Focus: Williston Basin Petroleum Conference Trump A2, A3 ND update A13 PLUS: Mr. Wall goes east A6 Raging River Exploration A14 Photo by Brian Zinchuk Agricultural Equipment Technician

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PIPELINE NEWS July 2016

Trump’s 100-day energy action plan includes Keystone XL ■ By Brian Zinchuk Bismarck, N.D. – When Donald Trump came to Bismarck, N.D., on May 26, something was different. From that morning forward, he was now the presumptive Republican nominee for president of the United States in the 2016 general election. He chose the Williston Basin Petroleum Conference in Bismarck to make his first energy policy speech in that capacity.

While much of his comments focused on American energy independence, there were supportive words of Canada and derisive words for OPEC, especially Iran.

His presence helped bolster attendance at the convention from approximately 1,700 the week before his attendance was announced, to 2,600. Additional tickets quickly sold out (even though the arena was not chockfull when he spoke), but conference attendees had first dibs at a seat.

Security was incredibly tight, with those wishing to attend being told they should allow up to three hours to pass through the screening.

Bags were thoroughly searched, people were wanded with metal detectors, and sniffer dogs were common. At all times, rings of Secret Service agents surrounded Trump.

Arriving a little after the time he was supposed to take the stage before 7,700 people, Trump took reporters’ questions for nearly 40 minutes before going on stage.

Many of those approximately 50 media in the press conference expected he might only make a statement or a handful of questions.

In his nearly 40 minute speech, Trump focused on many energy issues. He started off by saying, “I’m delighted to be in North Dakota, a

state at the forefront of a new energy revolution.

“Oil and natural gas production is up significantly in the last decade.

Our oil imports have been cut in half.

“But all this occurred in spite of massive new bureaucratic and political barriers.

“President Obama has done everything he can to get in the way of American energy. He’s made life much more difficult for North Dakota, as costly regulation makes it harder and harder to turn a profit.

“If Hillary Clinton is in charge, things will get much worse. She will shut down energy production across this country.

“Millions of jobs, and trillions of dollars of wealth, will be destroyed as a result.

“That is why our choice this November is so crucial. Here’s what it comes down to: wealth versus poverty.

“North Dakota shows how energy exploration creates shared prosperity. Better schools.

More funding for infrastructure. Higher wages.

Lower unemployment.

Things we’ve been missing.

“It’s a choice between sharing in this great energy wealth, or sharing in the poverty promised by Hillary Clinton.”

Energy plan Outlining his energy plan, Trump said, “A Trump Administration will develop an America First energy plan. Here is how this plan will make America wealthy again: “American energy dominance will be declared a strategic economic and foreign policy goal of the United States.

“America has 1.5 times as much oil as the combined proven resources of all OPEC countries; we have more natural gas than Russia, Iran, Qatar and Saudi

Arabia combined; we have three times more coal than Russia. Our total untapped oil and gas reserves on federal lands equal an estimated $50 trillion.

“We will become, and stay, totally independent of any need to import energy from the OPEC cartel or any nations hostile to our interests.

“At the same time, we will work with our Gulf allies to develop a positive energy relationship as part of our antiterrorism strategy.

“We will use the revenues from energy production to rebuild our roads, schools, bridges and public infrastructure.

Cheaper energy will also boost American agriculture.

“We will get the bureaucracy out of the way of innovation, so we can pursue all forms of energy. This includes renewable energies and the technologies of the future. It includes nuclear, wind and solar energy – but not to the exclusion of other energy. The government should not pick winners and losers.

Instead, it should remove obstacles to exploration. Any market has ups and downs, but lifting these draconian barriers will ensure that we are no longer at the mercy of global markets.”

Deathy by 1,000 cuts Trump focused on increased regulation, saying, “President Obama’s stated intent is to eliminate oil and natural gas production in America.

His policy is death by a thousand cuts through an onslaught of regulations. The Environmental Protection Agency’s use of totalitarian tactics forces energy operators in North Dakota into paying unprecedented multi-billion dollar fines before a penalty is even confirmed.

“Government misconduct goes on and

Donald Trump’s 100 day action plan includes asking TransCanada to renew its application for the Keystone XL pipeline. He outlined his energy strategy at the Williston Basin Petroleum Conference in Bismarck, N.D. Photo by Brian Zinchuk

on. The Department of Justice filed a lawsuit against seven North Dakota oil companies for the deaths of 28 birds while the Administration fast-tracked wind projects that kill more than one million birds a year.

The U.S. Fish and Wildlife Service abuses the Endangered Species Act to restrict oil and gas exploration. Adding to the pain, President Obama now proposes a $10-perbarrel tax on Americanproduced oil in the middle of a downturn.

“At the same time President Obama lifts economic sanctions on Iran, he imposes economic sanctions on America.

He has allowed this country to hit the lowest oil rig count since 1999, producing thousands of layoffs.

“America’s incredible energy potential remains untapped. It is a totally self-inflicted wound.

“Under my presidency, we will accomplish complete American energy independence.

“Imagine a world in which our foes, and the oil cartels, can no longer use energy as a weapon.

“But President Obama has done everything he can to keep us dependent on others. Let me list some of the good

energy projects he killed.”

Keystone XL On the Keystone XL pipeline, Trump said, “He rejected the Keystone XL Pipeline despite the fact that it would create and support more than 42,000 jobs. His own State Department concluded that it would be the safest pipeline ever built in the United States.

And it would have no significant impact on the environment.

“Yet, even as he rejected this AmericaCanada pipeline, he made a deal that allows Iran to transport more oil through its pipeline that would have ever flowed through Keystone – with no environmental review.”

America First Trump said his administration will develop an America First energy plan. Outlining the points, he said, “American energy dominance will be declared a strategic economic and foreign policy goal of the United States …

Trump's 100 day action plan Trump outlined a 100 day action plan, which included Canada.

He said, “We’re going to rescind all the job-destroying Obama executive actions including the Climate Action Plan and

the Waters of the U.S. rule.

“We’re going to save the coal industry and other industries threatened by Hillary Clinton’s extremist agenda.

“I’m going to ask TransCanada to renew its permit application for the Keystone Pipeline.

“We’re going to lift moratoriums on energy production in federal areas “We’re going to revoke policies that impose unwarranted restrictions on new drilling technologies. These technologies create millions of jobs with a smaller footprint than ever before.

“We’re going to cancel the Paris Climate Agreement and stop all payments of U.S. tax dollars to U.N. global warming programs.

“Any regulation that is outdated, unnecessary, bad for workers, or contrary to the national interest will be scrapped. We will also eliminate duplication, provide regulatory certainty, and trust local officials and local residents.

“Any future regulation will go through a simple test: is this regulation good for the American worker? If it doesn’t pass this test, the rule will not be approved.”

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TOP NEWS

Donald Trump would approve Keystone XL Pipeline, but he wants a piece He will look into Upland Pipeline proposal, too ■ By Brian Zinchuk Bismarck, N.D. – Donald Trump would approve the TransCanada Keystone XL Pipeline project, but true to form, he wants a piece, for the U.S. He would also look at TransCanada’s proposed Upland Pipeline. Not familiar with the project, he said his bias would be to approve it, as well.

On May 26, Trump clinched the necessary number of delegates to secure his place as the Republican nominee for president of the United States. On that day he travelled to Bismarck, N.D., to speak on the closing day of the Williston Basin Petroleum Conference in his first major policy speech on energy.

The Upland Pipeline would be an integral part of the proposed Energy East Pipeline, allowing North Dakota to ship up to 300,000 barrels per day from Williston, N.D., to Moosomin, Sask. where it would join up with the proposed Cromer Lateral (taking Saskatchewan oil) and feed into the 1.1 million barrel per day Energy East mainline.

In a buoyant mood, Trump took numerous reporters’ questions in a prerally press conference. Prior to addressing the press, numerous oil executives, including Continental Resources CEO Harold Hamm, took their place

behind the podium. During this press availability he took several questions from Pipeline News. Here is the exchange: Pipeline News: Sir, I think I’m the only Canadian press here.

The Keystone XL project caused great disruption to CanadaU.S. relations. Would you approve the project? Would you invite TransCanada to build it?

Donald Trump: Yes I would. Totally. It should be approved.

I’m not saying we shouldn’t get a better deal. See, Obama would approve it or not approve it. Hillary is probably not going to approve it, from what I understand. I look at it differently. I would absolutely approve it, 100 per cent, but I want a better deal. Because listen: here’s the difference between Harold Hamm, and myself, and you, or let’s say, Obama, who doesn’t know what the hell he’s doing. Here’s the difference. I’m going to say, “Folk’s, we’re going to let you build a pipeline. But give us a piece.”

We’re going to have to use eminent domain.

You know, remember when all the conservatives went, “Eminent domain! Eminent domain!”

Well, their favourite project is the Keystone pipeline. If you read the Keystone documents, a big section is devoted to eminent domain. Because without eminent domain, that pipeline wouldn’t go 10 feet. You understand that.

I want the Keystone Pipeline, but the people of the United States should be given a piece, a significant piece, of the profits. Right now Obama would have said, “Yes” or “No,” and most politicians would say, “Yes, we’ll approve it,” or “No, we won’t.”

I’m saying, “Yes, absolutely, we’ll approve it. But I want a piece of the profits because we’re making it happen

through eminent domain and other things.”

I want a piece of the profits for the Unites States. That’s how we’re going to make our country rich again, just one way out of thousands, but that’s how we’re going to make our country rich again and how we’re going to make America great again. You understand what I’m saying?

Pipeline News: TransCanada would like to build a pipeline from Williston that Mr. Hamm could actually ship his oil through, into Saskatchewan …

Trump: This is a different pipeline?

Pipeline News: It’s called the Upland

Pipeline, 300,000 barrels a day, TransCanada …

Trump: Do you like the idea?

Pipeline News: It’s great, it’s basically …

Trump: No, no.

Do you like the idea?

As a reporter? You’re not supposed to say, but that’s okay. (laughter in room) Pipeline News: I’m the only person in Saskatchewan who writes on energy. I love the idea.

Trump: We would look at it. Look, I’m going to look at anything.

I’m going to look at anything. A lot of times, pipelines are so much better. Instead of going on trains and having all

the problems caused by that, it’s underground.

E n v i r o n m e n t a l l y, they’re better in many cases. But we’re going to take a look at it.

Pipeline News: The difference is this pipeline would allow Mr. Hamm to export oil through Canada, into Canada, and also overseas through a Canadian port.

Trump: Okay, well I’m not aware of that one, but we will certainly take a look at it.

I will tell you my basic bias would be to approve. I want to approve for jobs, and the concept of pipelines is okay, if they’re going from the right place to the right place, okay?

Donald Trump spoke to 7,700 people in Bismarck, N.D. Photo by Brian Zinchuk

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PIPELINE NEWS July 2016

PIPELINE NEWS

EDITORIAL

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We are now fully two years into this With June now over, there is a heavy realization: we are now fully two years into this oil downturn.

Oil prices started dropping in June 2014, and they haven’t been back since.

Things started slowing down somewhat in the fall of 2014, but it was still around US$75 per barrel.

The OPEC meeting of late November 2014 was the breaking point. Saudi Arabia announced it was not going to make an effort to prop up prices anymore, and they would increase production.

The wheels came off the Canadian industry. Then the axles, shocks and brakes. We’re grinding the frame, now, folks.

Preparations are underway for the Lloydminster Heavy Oil Show this September. We took our time in booking a hotel room – usually a fatal thing when it comes to oil shows. In the past, if you didn’t book six months to a year in advance, you might be sleeping in your truck, or in a town 100 kilometres away.

Instead, this year, conference organizers explain there are plenty of rooms available, a consequence of more hotels in Lloydminster, and exhibitor downsizing. Remember those big displays we would see?

Well, a lot of them aren’t so big anymore. For example, an exhibit that once took up sixteen 10x10 foot slots will now take two, with a corresponding drop in the number of people staffing it.

It also means there are plenty of booths still available, so now is a good time to jump into a show that usually has an extensive waiting list. Getting in this year secures your place for the next show in two years, when things will hopefully be hopping.

On June 22 we caught wind that Trican Well Service shut down its Brandon facility, affecting 40 jobs. That 23,000 square foot office and shop, which Trican moved into in 2013, had been one of the most

significant votes of confidence in the Manitoba oilpatch in recent years. But now it is being shuttered.

The company intends to re-open, but tellingly, they expect it to be in a few years. They just couldn’t hold on anymore.

Trican’s move is entirely understandable. Manitoba had been running around 20 drilling rigs for much of the boom since 2008. While the province’s road restrictions tend to result in the longest spring breakup on the prairies, as of June 23, not one drilling rig was working in the province. Not one, though Rig Locator (riglocator.ca) shows 12 within its borders. So, if your business is fracking and cementing wells, like Trican, what do you do?

There are a few good points this month. Sanjel trucks are still found driving the streets of Estevan, as new ownership has ensured the survival of their cementing and acidizing operations. CEOs of two of the top oil producers in Saskatchewan in terms of activity have paid visits to Premier Brad Wall in Regina, promising to continue to invest billions in the province. First it was Neil Roszell, CEO of Raging River Exploration, who said they intend on spending $3 billion in Saskatchewan over the next ten years.

On June 23, Crescent Point Energy Corp. CEO Scott Saxberg told reporters they have “upwards of $20 billion worth of projects to do in the province,” and they’ve already spent $7 billion on capital project in the last five years, never mind $500 to $600 million per year in ongoing operating costs.

So despite two years of ongoing doom and gloom, Saskatchewan’s largest oil and gas producer, Crescent Point, and a motivated up-and-comer, Raging River, are both keen on this province. Let’s just hope the rest of us can make it to the point where we’re all making money.

PIPELINE NEWS July 2016

Trump wants a piece of Keystone XL. Now what?

On May 26, I had the chance of a lifetime: the opportunity to question Donald Trump, who just that day had found out he had indeed locked up the Republican nomination for president of the Unite States. My question: Would he approve the Keystone XL Pipeline and invite TransCanada to build it?

He said, “Yes I would.

Totally. It should be approved.”

Trump added, “I’m saying, ‘Yes, absolutely, we’ll approve it. But I want a piece of the profits because we’re making it happen through eminent domain and other things. I want a piece of the profits for the United States.

That’s how we’re going to make our country rich again, just one way out of thousands, but that’s how we’re going to make our country rich again and how we’re going to make America great again.’”

The entire exchange is quoted verbatim on Page A3.

The media attending the conference were shepherded through our

Donald Trump in Bismarck, N.D., on May 26. Photo by Brian Zinchuk own Secret Service security screening. Our bags were thoroughly searched, we were wanded with metal detectors, and the large, imposing sniffer dog was a fitting set piece along with the large presence of Secret Service and police, armoured and armed, uniformed and plain clothes.

He landed in Bismarck a few minutes after the time

he was supposed to be on stage. Around 7,700 people, one third from the conference, the remainder outsiders, waited up to three hours to go through the security screening. They would wait a little longer.

The media room, with its podium and lights, was electric with anticipation. As he was running late, many of us expected Trump would maybe make a short statement or take questions for five minutes before taking the stage. Instead, he would take nearly 40 minutes of questions.

Prior to addressing the press, numerous oil executives, including Continental Resources CEO Harold Hamm, took their place behind the podium.

Despite the fact he came to North Dakota to talk energy, nearly 20 minutes into this unexpectedly long media availability, no one had asked about oil. This is when, standing at the far edge of room, with three Secret Service agents within arms reach, I got a chance to ask my questions about the TransCanada Keystone

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OPINION FROM THE TOP OF THE PILE

XL Pipeline project. True to form, he wants a piece, for the U.S. He would also look at TransCanada’s proposed Upland Pipeline. Not familiar with the project, he said his bias would be to approve it, as well.

I had hoped that someone was going to ask the Keystone XL question, but no one had. Canada has wanted to hear a “Yes” to that question for seven years, having heard only “Wait, wait, wait, wait, maybe, wait, wait, no!” from President Obama.

Someone had to ask the question. He had a prepared answer, and it was already in his speech to be given immediately thereafter.

That I, a Canadian, was able to ask the most important foreign policy question our country has had for seven years was huge. To get a “Yes” from the man who could very likely be the next president of the United States was the pinnacle of 24 years of journalism for me.

The question and response was picked up by almost every major media outlet in the U.S. and Canada. Sev-

By Brian Zinchuk

eral U.S. news networks ran it live.

His idea of getting a piece of the project may prove to be highly controversial. I spoke to a representative of the Laborer’s Union of North America immediately after Trump’s speech, and he didn’t like the idea at all, thinking that the project should stand on its merits.

Globe and Mail columnist Jeffrey Jones suggested on May 31 that Trump’s idea sounded uncomfortably like nationalization. He wondered what further implications such a policy could have for other pipelines, as well as the broad gambit of trade between the two nations. Should Canada seek a piece of the profits from Walmart and Starbucks, for instance?

And aren’t taxes already “a piece?”

From the broad standpoint, what Canada has right now is “No” from the Obama administration.

It is unlikely that Hillary Clinton, the Democrat contender, would reverse that decision. The project is pretty much flatlined now

– the only way to bring this pipeline back from the brink is a Trump win, and perhaps giving him his piece.

There is a Canadian precedent for this. Former Newfoundland and Labrador premier Danny Williams demanded an ownership share for the province in all offshore oil development projects. I’m not sure that’s in place now, but it most certainly was during Williams’ tenure. If you wanted to drill offshore, Williams’ government got a piece, up to 10 per cent.

What will Trumps’ piece be? Taxation? Tariffs?

Partial ownership? How much on any of these? Is it worth the cost, given the precedent it may set for all other projects and broader international trade?

Maybe a year from now, the dozers, excavators and sidebooms will get to work.

If you want Keystone XL built, tell your American friends to vote Trump.

Brian Zinchuk is editor of Pipeline News. He can be reached at brian.zinchuk@ sasktel.net.

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PIPELINE NEWS July 2016

Mr. Wall goes out east this time ■ By Brian Zinchuk Calgary, Toronto, St. John, Quebec City – In March 2013, Mr. Wall went to Washington to lobby for the TransCanada Keystone XL pipeline on Capitol Hill.

The following year, Premier Brad Wall again returned to Washington, each time spending the better part of a work week pushing to get that pipeline built.

He took time away from the spring session of the Legislature each time to promote the energy industry. It was all for naught, however, as in November 2015, President Barrack Obama

denied a Presidential Permit for the project, effectively killing it, at least for now.

Step forward to midJune 2016. Again, Wall spent the better part of a week on the road, during the spring legislative session, to promote the Saskatchewan energy sector, and its need for another TransCanada pipeline.

Except this time, the trip was not to Washington, but across Canada. The road show started in Calgary on June 8, with a speech to the Explorers and Producers Association of Canada.

A few days later, in Toronto on June 14,

Saskatchewan Premier Brad Wall and Quebec Premier Philippe Couillard. Photo courtesy Government of Saskatchewan.

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he spoke to the Empire Club of Canada.

On June 15, he met with New Brunswick Premier Brian Gallant to speak about the project, delivered a similar address to the East Coast Energy Connection Conference, and visited the Irving Refinery in Saint John, N.B. That refinery is the ultimate destination for the Energy East Pipeline as well as its oil export port, known as the Canaport Terminal.

Then on June 16, Wall was in Quebec City for a meeting with Québec Premier Philippe Couillard. The meeting included an agreement to expand their collaborative relationship to further develop the potential of carbon capture and storage (CCS). The two provinces agreed to accelerate the development and deployment of CCS technologies, exchange updates and information on CCS projects and technologies, and work together to explore opportunities of further collaborations.

An example given was the recently established BHP Billiton SaskPower CCS Knowledge Centre.

The big difference between the Keystone XL lobbying efforts and Energy East is the tremendous impact Energy East can have on Saskatchewan oil production. Keystone XL was planned to primarily take oilsands bitumen down to Cushing, Okla., and eventually the Gulf Coast. While some Lloydminster area heavy oil could have perhaps found its way into the pipeline, for all intents and purposes, nearly all of its flow would have been oilsands sourced.

Premier Brad Wall at the Empire Club. Photo courtesy Government of Saskatchewan.

Energy East, on the other hand, is a different kettle of fish. Also originating at Western Canada’s oil hub, Hardisty, Alta., it, too, would handle primarily bitumen. The project would repurpose an underutilized 42 inch natural gas pipeline in the TransCanada mainline system, converting it to oil usage for the western two-thirds of the project.

The portions in Quebec and New Brunswick would be an entirely new pipeline.

The capacity of Energy East would be 1.1 million barrels per day.

Implications for Saskatchewan There are two aspects of this project that do not get a lot of press, however. Energy East has a terminal planned northeast of Moosomin.

This terminal would be the receipt point for two other pipelines – the proposed Cromer Lateral, and the proposed Upland Pipeline. The 16-inch Cromer Lateral would tie into Enbridge’s mainline terminal at Cromer, Man. Perhaps not coincidentally, the Enbridge Westspur sys-

tem, the sole sales pipeline for southeast Saskatchewan, is also 16 inches in diameter. It has a capacity of around 255,000 bpd (roughly half of Saskatchewan’s total daily production).

Thus, conceivably, Energy East, via the Cromer Lateral, could take every drop of oil produced in southeast Saskatchewan that does not find its way onto a rail car (should the marketers want that option instead of the Enbridge mainline).

The even less talked about 20-inch Upland Pipeline would originate near Williston, N.D., and cross the international border near Northgate. From there, it would either run north to Cromer or Moosomin. If it goes to Cromer, that would allow North Dakota oil, up to 300,000 barrels per day (more than one–quarter of their daily production) to flow on either the Enbridge mainline or Energy East via the Cromer Lateral or perhaps an additional pipeline alongside the lateral.

(The Canadian endpoint of the Upland

pipeline has not yet been defined, according to materials handed out by TransCanada at the Williston Basin Petroleum Conference in Bismarck, N.D. in late May.) Together, the Cromer Lateral, Upland Pipeline and Moosomin terminal would greatly expand marketing options for southeast Saskatchewan, southwest Manitoba, and North Dakota oil. Crude from those jurisdictions would then have access to two refineries in Quebec and one in New Brunswick, or the option to have the crude oil shipped via tanker or barge to the eastern seaboard or even overseas. If the Cromer Lateral and Upland Pipeline were to both tie into Moosomin and run at full capacity, conceivably approximately 555,000 barrels of the 1.1 million barrel per day Energy East pipeline could be come from Saskatchewan, Manitoba and North Dakota.

This is why Mr. Wall went east.

To find out what he said, see the related story on Pages 7 & 10.

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Celebrating YEARS

PIPELINE NEWS July 2016

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Two speeches, one message on Energy East: Wall ■ By Brian Zinchuk Calgary, Toronto, St. John – Premier Brad Wall hit the road in June, speaking strongly in favour of the TransCanada Energy East Pipeline project.

On June 8, Wall spoke to the Explorers and Producers Association of Canada in Calgary. Then on June 14, he addressed the Empire Club of Canada in Toronto, and gave a similar message in Saint John, N.B., the following day. Both speeches are posted on the premier’s YouTube page in their entirety.

To EPAC, he related an email he got last year from a selfstyled “Rig pig’s wife,” Lisa, whose husband had worked his way through the ranks to be an oilfield consultant.

He entered the oilfield 17 years ago to pay back student loans. Her husband, Derek, came home Jan. 16, 2015, from an “early spring thaw.”

“That was six months ago,” Wall read from the email. “We’ve had zero income since then. Zero. There will be no unemployment

Saskatchewan Premier Brad Wall, right, met with New Brunswick Premier Brian Gallant on June 15 in Saint John, N.B. Photo courtesy Government of Saskatchewan.

insurance for Derek to collect. Nothing. It’s all on us, and nobody seems to understand, or care.”

“I would expect it’s how many others feel, across Western Canada, and in Newfoundland and Labrador, who have lost their jobs or suffered some other economic dislocation as a family.”

He pointed Keystone XL’s rejection, despite the fact there are already 91 pipelines crossing the CanadaU.S. border, and that

R.FRENCH TRANSPORT

oil-by-rail has increased 5,000 per cent in that same country.

“We all know that spills from a rail are far more difficult to clean up and can be more dangerous than the challenges that might come with pipelining,” Wall said.

He lamented that some non-governmental organizations and other provinces have said no to pipelines and a chance to get a better return for our oil. Wall pointed out the envi-

ronmental test for the National Energy Board for Canadian oil is now greater than that for oil from other countries.

Regarding a national carbon tax, Wall said, “Can you imagine if premiers or a prime minister or industry groups would’ve proposed a new car manufacturing tax in 2009, when that sector was reeling, when that sector was shedding jobs by the thousands and when they needed a direct bailout of the federal government?

“Imagine some premier, or some policy person, proposing a new tax on that sector or, perhaps, proposing that we measure the carbon footprint of a manufactured car in some part of the country before we allow it on rail to go to other parts of the country, to replace the need, perhaps, for import vehicles.”

Wall said, “There continues an existential threat to this industry.”

“It’s posed by those who just aren’t comfortable that we have all this oil and what oil might mean, and it’s also posed by some just

R.FRENCH TRANSPORT

want to shut it down completely. And that might seem alarmist or overly dramatic except that it’s not. The opposition comes from an ever-growing matrix of activists from supporters of the Leap manifesto.

“That also comes from the divestment movement which we don’t actually talk about very much. The divestment movement, where pension funds and universities and faith-based organizations are trying to direct investment away from a sector based, I think,

on not entirely factual evidence. They are responding to the call that we move rapidly to the ‘post-carbon economy.’ We’re in the middle of a battle and, frankly, we have been winning very many battles.

When I say we I mean this sector and the resource importance of Western Canada. And I fear were in danger of losing more battles if were not vigilant.”

Wall said, “We have facts on our side,” and that we need to get those facts out. u Page A10

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A8

PIPELINE NEWS July 2016

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A9

Teine makes $975 million deal with Penn West Calgary – Teine Energy Ltd. announced on June 24 that it has closed its previously announced asset acquisition of southwestern Saskatchewan oil-weighted assets from Penn West Petroleum Ltd. for cash consideration of $975 million.

The acquisition includes a core position within the Saskatchewan Viking light oil play as well as low decline conventional Bakken heavy oil properties currently under water flood.

“This was an increasingly rare opportunity to acquire a scalable high netback oil position within one of North America’s most economic light oil plays,” said Jason Denney, president and chief executive officer of Teine Energy. “Our team is excited to apply our skillsets to the assets.”

For their $975 million, Teine acquired

15,495 boepd (91 per cent liquids) and proven plus probable reserves of : 53.2 MMboe.

Teine has identified over 1,000 undeveloped Viking horizontal drilling locations which include extended reach horizontal opportunities within the acquired Viking lands. The acquired lands contain some of the largest original oil in place (OOIP) within the play, the company said, and over 50 Viking sections containing water flood potential.

The asset includes approximately 7,000 bpd of low decline conventional Bakken heavy oil pools of which 98 per cent are under water flood which has resulted in a stable and predictable base decline of approximately 10 per cent.

Currently active polymer injection within the Coleville Pool has exhibited a promising

response and through further expansion may result in significant additional reserve recovery and further decline mitigation.

The acquisition adds to Teine’s extensive infrastructure, growing the Company’s owned and operated oil treating capacity to approximately 55,000 bpd and water treating and injection capability to over 200,000 bpd.

Teine stated it is now the largest landholder and producer within the Saskatchewan Viking fairway, controlling over 1,000 net sections (640,000 acres) of undeveloped land containing over 5,000 risked Viking horizontal locations.

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Brian Dangstorp has begun selling off some of his equipment. Photo by Brian Zinchuk

The boom is gone ■ By Brian Zinchuk Redvers – “We all have to learn how to get efficient and stay in business,” said Brian Dangstorp, owner of Dangstorp’s Service Ltd. in Redvers.

“I’m in a little different boat. I’m cutting back to retire,” said the former mayor of Redvers as he warmed up in his pickup. The brisk wind was cold comfort to outdoor exhibitors at the May 12-13 Redvers and District Oil Showcase.

“The boom’s gone. We have to learn to live in the unstable times.

I’m not expecting $110 oil again, maybe ever.”

The cost of doing business which was established during those boom times, when there was plenty of money going around, allowed for numerous layers of supervision, procedures and administration, he noted.

That overhead of doing business is still there, but the money is not.

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PIPELINE NEWS July 2016

Are cars GHGs taken into account? ▲

Page A7 He said three areas should be focused on.

First is addressing the notion that it’s going to be an easy transition to the “post-carbon economy. Second is answering the charge of the resource sector has not done enough by way of the environment.

“Third, we must continue to forcefully make the case that pipelines are safe and they will benefit all of Canada. And while imperfect, (they are) better than all of the alternatives,” he said, going into much further detail.

Toronto speech In Toronto, Wall spoke of a Ugandan pipeline that has recently been approved.

Neighbours Kenya and Tanzania saw the pipeline as a blessing which would help pay for roads, railways, irrigation, health and scientists. But here in Canada, with 170 billion proven barrels of oil reserves, we haven’t ap-

proved a major pipeline in 10 years.

Shifting gears to the Energy East proposal, he asked do we need it? Is it safe? Who will benefit? And will it pose problems with the battle against climate change?

The need has been established by the proponents backing it.

From 2010-2014, the U.S. crude oil pipeline network increased more than 12,000 miles, equivalent of 12 Keystone XL pipelines.

“Clearly, there’s a need for pipelines,” Wall said.

“We need pipelines, in part, to reduce our dependency on foreign oil. In your part of Canada, which is home to the third greatest reserves of oil on the planet, we need to import oil from other countries,” Wall said.

“Energy East is not all about that. In part, Energy East is about getting our product to tidewater and exporting it.”

“We need the pipe-

line to get a better return for the people who own the this resource in the first place; not the oil companies, not the provinces. It’s the people of Canada that own the resource. For years, we’ve been selling it at a discount because we have one customer, the United States.”

While the differential between WTI and Brent prices has closed, he noted, “At any given time, it has cost our treasury, alone, $200 million.”

He went on, “We need that particular pipeline and all pipelines because, while they are imperfect, in terms of being a mode of conveyance, they are the safest. This we can say, unequivocally, the safest way to move hydrocarbons.”

According to a Fraser Institute study, moving oil by rail is 4.5 times more likely to have a spill.

“Energy East has the potential to remove

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the equivalent of more than 1,500 oil cars from our rail system. This one pipeline alone will most assuredly move oil off of rail and into a pipeline.

The importance of these facts, of course, is underscored by our own history, by the tragedy, the horrific tragedy, at Lac Mégantic.”

Pipelines spill, on average, 1,100 barrels of oil per year, the equivalent of two rail cars, he said.

He acknowledged that most of the new Energy East construction will be in Quebec, and there are questions that need to be answered. As a result of 130 open houses across the country, talks with 7,000 landowners, 755 municipalities and 150 aboriginal governments there has been 700 route changes. The NEB process is serious, systematic, thorough and conscientious.

As for who benefits, he said, “All of us as Canadians benefit from the energy sector in general.”

The energy sector is the largest private-sector investor in Canada, employing 500,000 people directly or indirectly, paying $17 billion in

direct taxes and royalties, never mind indirect taxes.

Regarding climate change, he posed, “If we build this pipeline, will it make climate change worse? I should note that it’s a question rarely asked of other major developments in Canada. This province, for example, assembles more than 2.2 million vehicles a year. I’m proud of that. Our federal government in your provincial government are working to see that number increase. And that would also be good for us in Saskatchewan.

It would be good for all of Canada if the auto sector got even stronger in Central Canada.

“Tomorrow if Ford or GM or Toyota announced a plan to build a brand-new assembly plant in Brantford or Oshawa, would we see a protracted, interminable, deeply philosophical debate about the impact of the auto industry on climate change? And what if the federal government said of the auto sector, ‘We’re going to impose some new regulations in terms of the transportation of your product across Canada and those regulations

might be something like (this): We’re to measure the source GHG’s manufacturing those cars, or maybe the life cycle GHG implications of those cars, a conveyance for fossil fuels, obviously.

And, if it doesn’t measure up, we might not approve those cars to go on a rail tunnel across the country. Everyone in this room would think that would probably be pretty wrong-headed policy, just to be understate the case. People right across this country and Western Canada would think that doesn’t make any sense.”

If anything, he said the pipeline would help in terms of GHG emissions because pipelines create less GHGs than rail. If Canada doesn’t produce that oil, someone else will, Wall added.

“There are many other countries with whom we compete as oil producers in the world, who, frankly, don’t give much of a dang about the environment, who care far less than the companies in this country, than the provincial governments in this country, than the federal government in this country.”

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A11

Field clerk for 250 workers found work serving tables ■ By Brian Zinchuk Williston, N.D. – Meghan Moody, 21, is currently a server at the Hula Grill in downtown Williston, N.D. But when she came to Boomtown, USA, in 2014, she found work in the oilpatch.

Moody came from Indiana to visit her best friend, who had come to Williston to find work.

Moody got a job with an oilfield construction company.

“I got a job and just stayed. It was so busy.

The money was good,” she said.

She came in Williston in September, 2014, just as the price of oil began its decline from an average US$100 per barrel for WTI. She worked in the oilpatch until August 2015.

Moody initially worked in administration as a field clerk. She would take care of payroll, ground disturbance permits and the like.

“I lived in a townhouse. I caught rides with a friend,” she said.

“I was taking care of the hours of 250 people every single day.”

Jobs kept wrapping

up, and work was disappearing. Moody moved into human resources in the company’s main office. Her company was looking for work in Texas and Indiana.

“I took over as the main office person. I was going home for vacation when I heard they were going to cut my hours,” she said.

Instead, she asked for a layoff, and collected unemployment insurance for three months.

Her boyfriend, who she met at the same company, now works for

someone else. “He’s still working, which is good,” Moody said.

“I was in a townhouse when I moved it.

It was $1,900 a month for a one bedroom. Now it’s $1,200. You can get similar ones for $895.

In October, 2015, Moody hired onat the Hula Grill, a Hawaiian theme restaurant in downtown Williston.

“It’s really weird.

When it’s busy here, it’s great. But I’m used to 6 a.m. to 7 or even 10 at night. My phone started ringing at 6 a.m.”

For now, she’s going

Meghan Moody used to work as a field clerk in the oilfield. Photo by Brian Zinchuk

to see what happens.

Her boyfriend is from Michigan, she noted. “I

want to go somewhere where it’s different,” Moody concluded.

A12

PIPELINE NEWS July 2016

Lloydminster Heavy Oil Show Sept. 14-15 ■ By Brian Zinchuk Lloydminster – Gear up and get ready for the Lloydminster Heavy Oil Show, taking place in the border city on Sept 14-15.

As of June 23, there was still booth space available for booking. As a result of the downturn in the oil sector, several companies that used to take out large, multi-booth spaces have downsized, thus freeing up space for other exhibitors. Some exhibitors which may have taken up to 16 slots are down to two.

This presents an opportunity for companies that could not get into previous shows, which typically sell out.

Grabbing a space now also ensured first dibs on that space at the 2018 show. So even if things are a little slow now, taking a booth this year could mean not missing out two years from now, when things have hopefully recovered. “It’s a great

opportunity,” said Pam Becotte, secretary-treasurer of the show.

There are close to 160 exhibitors currently booked. There’s still lots of interest, she noted, and interest picks up each time oil goes up.

The show takes place at the Lloydminster exhibition grounds.

The growth in the hotel sector, combined with the downturn, means that there are plenty of hotel rooms still available. Again, this is in contrast to previous years, when failure to book a room six months in advance meant you might not have somewhere to stay. Many out-of-town companies have reduced the number of staff members they plan to bring, thus freeing up more rooms, according to oil show organizers.

Attendees can preregister for a show pass at www.lhos.ca.

Before the main show begins on Wednesday, Sept. 14,

there is an evening banquet on Tuesday, Sept. 13. Ron Morgan, senior vice-president and chief operating officer of Crew Energy, will be the guest speaker.

Crew Energy is a heavy oil producer in the Lloydminster area. Prior to joining Crew, Morgan worked with Harvest Energy, Viking Energy Royalty Trust, CNRL, Petrovera Resources, PanCanadian Petroleum, CS Resources and Murphy Oil. Attendance is open to the public, but the $50 tickets for the prime rib banquet are only available through advance sales. Contact the show office at www.lhos. ca to obtain a ticket.

On Sept. 14, there will be a social evening with a comedian. Again, ticets can be obtained by contacting the show office.

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A13

North Dakota rigs so efficient they’ve worked themselves out of a job ■ By Brian Zinchuk Bismarck, N.D. – The heady days of over 200 rigs working in North Dakota are over, and not just because oil prices are low.

Instead, many of the rigs have literally worked themselves out of a job, as rig efficiency has seen a remarkable uptick in the last five years or so.

Rig efficiency was a major point brought up during North Dakota’s opening press conference and presentation at the Williston Basin Petroleum Conference in Bismarck, N.D., May 24-26.

Lynn Helms, director of the Department of Mineral Resources for North Dakota, said the average drilling rig is now getting up to 24 wells done per year. In 2012, a rig would average eight to 10 wells a year.

“The new normal

is really the issue we all want to know. It’s not going to take us 186 drilling rigs,” said Ron Ness, president of the North Dakota Petroleum Council. “With the efficiency they’ve gained and their ability to do this that much better, we’re ultimately going to have to find a new measuring stick for the activity. It may be completions, I don’t know. The drilling rig has always been the barometer of the industry.

I don’t think it’s going to be that anymore. I think we should start talking about that now, after this conference. You can now do so much more with 80 or 130 drilling rigs, than you could with 186.”

It now takes an average 15 to 16 days to drill a Bakken or Three Forks well in North Dakota.

Efficiency in water usage and hauling has

gone a long way to reducing truckloads into well sites. It used to take 2,000 semi-loads per well. That number is down to 1,250 now, and is on its way to 250 as pipeline infrastructure develops.

North Dakota wells would commonly flare, but now nine out of ten wells have a pipeline from the get-go. This is a result of regulatory changes several years ago which required an approved gas capture plan before a well licence would be granted.

A few years ago at this conference, Helms laid out a grid of expected oil production based on the number of rigs drilling. But two years into the downturn, the oil companies have dramatically outperformed those expectations. With the number of active rigs down by six-sevenths, production has remained relatively

POWDER COATING

Ron Ness, president of the North Dakota Petroleum Council, and Lynn Helms, director of the North Dakota Department of Mineral Resources, take questions from reporters on May 24. Photo by Brian Zinchuk

In addition to drilling efficiency, completions and water handling has improved as well.

“All of that foldedin has allowed industry to maintain production with far, far less drilling rigs,” Helms said.

When Pipeline News travelled to Bismarck via Crosby, Williston, Watford City and Dickenson, N.D., not one drilling rig could be seen in the field from the once-hectic U.S. Route 85 nor Interstate 94. When asked about

the lack of drilling, Ness said, “Well, I think there’s only 25 out there in 11,000 square miles, so it’s pretty hard to track one down, actually. We dropped from 186 drilling rigs on December 12, 2014, to 28 today. And those 28 are pretty well focused in the heart of McKenzie County and part of Montrail and part of Williams County. You get into that key area and you’ve find a big percentage of those.

Page A15 ▲

flat, dropping from 1.2 million to 1.1 million barrels per day.

Asked about this, Helms explained initial production is up 20 per cent from just a few years ago. A new well can expect over 1,250 barrels per day for the first 30 days. In the core area, a lot of wells have IP30s of 3,000 bpd. Estimated ultimate recovery factors are up 20 per cent per well. Decline rates are flatter, from 65 per cent to 55 per cent, in the first year.

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A14

PIPELINE NEWS July 2016

Raging River Exploration plans to spend $3 billion on capex in 10 years in Sask.

■ By Brian Zinchuk Regina – Raging River Exploration Inc. representatives visited Regina on June 6 to meet with Saskatchewan Premier Brad Wall and visit the legislature, with the intent of highlighting the company’s 2016 capital plan. The company plans on spending $3 billion in capital expenditures in Saskatchewan over the next 10 years, and a further $1 billion in operational expenses.

There Raging River representatives met with Premier Brad Wall and Minister of Economy Bill Boyd.

Speaking to Pipeline News on June 7, president and chief executive officer of Raging River Neil Roszell explained, “We wanted to go down and chat about investment and economics in Saskatchewan and to show our support as the government has shown its support for us.”

They spoke about pro-business support and other initiatives like the Energy East Pipeline Wall has been fervently backing. Raging River has also been working with the Ministry of Economy on well licensing processes.

Rock Energy The meeting came on the heels of Raging River’s purchase of Rock Energy Inc. on May 31.

The purchase, expected to close around July 22, includes 2,550 boepd of

oil production and 25 net sections of highly prospective land, targeting Viking light oil in the Kerrobert area of west central Saskatchewan complementary to Raging River’s existing Viking assets.

The Viking light oil drilling inventory associated with the acquisition includes over 200 net Viking horizontal drilling locations identified by Raging River. In addition to the Viking assets, Raging River is also acquiring interests in low decline, heavy oil assets, which include a recently initiated polymer flood at Mantario (Laporte) and legacy water floods at Onward, both in west central Saskatchewan.

Raging River is primarily a light oil producer, so the acquisition of heavy oil properties might raise some eyebrows. But it turns out that area has multi-zone development potential, and the company is actually going for the light oil Viking prospects.

Roszell said, “The primary interest for Raging River, for Rock, from an expansion and growth perspective, is the Viking light oil and the successful extension that (Rock and its team) were able to prove in Kerrobert.

That is where we plan on dedicating capital and growing. That production is from the heavy oil is an absolutely great addon, but heavy oil, as we

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look at it today, would see nominal capital initially. I’m not saying we wouldn’t spend more capital in the future, in 2017 and beyond, but right now we deem the heavy oil as a produceout, good cash flow asset to use that cash flow to re-deploy Viking growth.

“That was the whole driver of the acquisition.”

The Viking is shallower than the heavy oil Manville formation. “We did get, in most cases, all the rights of the lands we are acquiring,” Roszell said. There are additional heavy oil opportunities identified that Raging River will look at.

Drilling According to Rig Locator (www.riglocator. ca), Raging River placed fifth on the top five active operators list for the entire country on June 7, with three drilling rigs working. Teine Energy Ltd., another Saskatchewan Viking player, rated fourth with four active rigs.

Roszell attributes that to their shallow wells taking only 2.5 days from spud to release. They also use a pre-set or rathole rig to set surface casing and make their two to three drilling rigs more effective.

They can make a reasonable return at even US$45 and US$50 per barrel with their light oil, he noted.

Upon closure of the Rock Energy acquisition, Raging River will have approximately 19,000 boepd in production, working towards 20,000 boepd by the end of the year.

The 2016 Raging River capital program includes $175 million in investment, which consists of 215-220 new wells. Over 85 per cent of that amount is expected to be spent in the

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Neil Roszell is president and CEO of Raging River Exploration. File photo

Kindersley area. In addition, Raging River will continue to concentrate on technology advancements in the Viking area.

The initiatives include horizontal waterflooding and trials of different drilling spacing in order to maximize oil recovery and the long-term economic benefits for the company and people of Saskatchewan.

Raging River expects that production will continue to grow as enhanced oil recovery is implemented in the Kindersley area over the next 10-15 years. The company has a drilling inventory of 3,900 locations, with approximately 90 per cent of these locations in Saskatchewan.

Having just achieved another quarterly production record in the first quarter of 2016, representing a 24 per cent increase over the comparable first quarter period in 2015, Raging River sees a bright future in Saskatchewan, the company noted in a release.

“The key message, from us to Premier Wall and Minister Boyd, was we plan on being

in Saskatchewan, with continuous investment in Saskatchewan for 10-plus years. We have a great vision as to how we can create economics for ourselves and for the province and we really want to see that government support continued from in the past,” Roszell said.

Raging River employs approximately 250 field people on the average day. Of that, 25 percent of these individuals are dedicated to full-time operations and 75 percent are dedicated to capital projects such as drilling, completions and pipeline/facilities.

Pipelines Regarding pipelines, Roszell said, “My fundamental take is Energy East is more important than Keystone XL at this point, in terms of Canada and getting our crude offshore to world markets. We’ve got a couple more pipelines within the country to get our crude to either one of the coasts that are probably more important than getting additional crude into an already oversupplied U.S. market.”

Asked if Raging River’s oil could find its way into Energy East, he declined to comment, saying that question is more for their marketers. Roszell said, “I do think Energy East has the ability to tighten the discount our equivalent WTI-Canadian barrel gets to its U.S. counterparts. On average, the same barrel of crude in Canada trades at about an eight per cent, on average, net discount to the same barrel in the U.S. If we could tighten that up, it’s net beneficial to governments and ourselves.

(For) governments, from increasing their price on royalty production, and, obviously ourselves, for producing our wellhead price.”

Explaining their pricing, he said, “Kindersley crude is really priced on and Edmonton-par barrel, less $3.50 per barrel for quality adjustment. Not a Western Canada Select, which is typically WTI less $14.50, divided by the currency.”

Kindersley oil is 38 degree API vs. 40 degree API for West Texas Intermediate.

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Trican suspends Brandon base, hopes to resume operations in 2-3 years ■ By Brian Zinchuk Brandon, Man. – Having begun operations in Brandon, Manitoba in 2012, Trican Well Service shut down its Manitoba facility on June 22.

Roughly 40 jobs are affected, but some have been offered transfers to other locations. Some of those transfers have been taken up, but others have not.

The company completed a large 23,000 square foot facility in 2013, moving out of their temporary quarters at that point.

Rob Cox, vice-president for the Canadian geographic region, told Pipeline News on June 27

that they consider operations suspended, and he noted the intention to resume work out of Brandon in two to three years time.

Trican still maintains a base in Estevan.

That base had serviced southwest Manitoba until the establishment of the Brandon operations allowed the company to divvy up work between the two bases. Estevan will do so again, with one frac spread and several cement units. One of those cement units came over from Brandon.

“We intend to service the area out of Estevan,” he said.

Manitoba had been

running close to 20 drilling rigs for much of the drilling season until the downturn hit at this time in 2014. Manitoba, which historically has the longest spring breakup shutdown in the prairies, had not yet seen any drilling by June 27 since the end of the winter drilling season. On the day of the shutdown, there were no active drilling rigs in the province, according to riglocator.ca “Activity’s certainly dropped,” Cox said.

Trican has sold their operations in Russia, the United States and Kazakhstan, and shut down operations in Columbia, Algeria and Australia.

Cox said, “We’re pretty much a Canadian operation now.”

The company is less than half the size it was two-to-three years ago, he explained. But when asked if they will survive, he responded, “Absolutely.”

Cox pointed out Trican recently went to the market and was able to raise about $60 million, money which will be used to pay down debt.

He added they are even starting to hire in selected areas.

For this year, he said Saskatchewan “looks pretty good,” but Manitoba is quite a bit slower.

Trican’s Brandon location, seen here in 2013, had its operations suspended in late June. File photo.

Production flat despite huge drop in active rigs ▲

Page A13 “It is certainly a different level of activity in western North Dakota today than it was two years ago.”

Helms added, that 27 of the 28 rigs were in the “core area.”

“Outside of the core area, you’re just not going to find any drilling rigs out there. It’s going to take $60 oil-plus to bring rigs back to those areas that would have had a lot of drilling rigs two or four years ago. The anticipation of that is year-end at best.”

One of the issues for the state in increasing federal regulation, they noted. “The major focus

of the Petroleum Council is regulation over the last 14 months,” Ness said.

As oil prices improve, Ness said they expect maintenance of wells to take place first, then completion of what are known as DUCs, drilled and uncompleted wells, before drilling picks up.

“Just because you hit US$60 oil today, doesn’t mean you’re going to go out and activate your rigs,” Ness said. “We expect the rest of this year to remain very flat. As we expect, as we get into the US$50 range, (producers) are going to try to restore their balance sheets. They’ll go back

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out and put wells back on completion that had mechanical failures or are down because of the dollars earned. Then they’re going to hit your DUCs, and then you’ve got to convince the market you’re back in business.

It’s a capital-intensive play. We know. We hope to see it steady, slow, so we don’t see that Bakken premium back on the inflationary aspect.

“We don’t expect to see a whole lot of change for the rest of this year.”

While companies have “high-graded” their workforce, Ness noted it may be difficult to bring in more workers in the

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future, as many have left.

Helms said, “If you go to zero drilling rigs, it becomes super hard as a company to get started again. You don’t have the drilling engineers, you don’t have the permitting people, the surveyors and all that to get moving again, so inertia sets in.

One of things we want to push, as a state, and as a petroleum council, is to keep people planning for mid-term and long-term at the same time as they’re trying to sustain themselves in the downturn.”

The “next economy for North Dakota” is the value-added portion of

the industry, he added.

As for Williston itself, 39 wells are planned to be drilled underneath the four square mile area of the city. These wells will be drilled from pads with pipelines already in place. Zero flaring is expected, and very little truck traffic as well. Every other month, another batch of wells will be added.

It’s expected to take another decade-and-ahalf to drill out the Bakken, Helms noted.

Four years ago, carbon dioxide-flood enhanced oil recovery wasn’t even on the radar.

Now it, and methane-

EOR, are being considered.

Ness concluded, “This is a huge economic machine. It’s taken a long time for industry. Nothing happens quickly. There’s so many wells, so much activity.

Our industry thought is, don’t be surprised by production declines in the summer and into fall unless we see more wells completed and more stimulation.”

With around 28 rigs, they’re not seeing the slowing down initially expected a few years ago, but there will continue to be a decline in production.

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PIPELINE NEWS July 2016

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