PIPELINE NEWS SASKATCHEWAN’S PETROLEUM MONTHLY Canada Post Publication No. 40069240
October 2019
www.pipelinenews.ca
Vol. 4/13
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What are the issues facing the oilpatch in this election?
In a few weeks time, either Justin Trudeau, left, will remain prime minister, or Andrew Scheer, right, will be the new one. This month we asked nearly everyone, “What are the issues facing the oilpatch in this election?” The answers were remarkably consistent. Photos by Brian Zinchuk
Whitecap wants more CO2 for Weyburn Unit A2
New pipeline proposed to the East Coast A3
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Green Party wants to end the oilpatch A18
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PIPELINE NEWS October 2019
Whitecap wants more CO2 for the Weyburn Unit By Brian Zinchuk Calgary, Weyburn – One of the key questions regarding the future of coal-fired power generation in Saskatchewan is the future for carbon capture and storage. For there to be a future, there has to be a willing buyer of the additional captured CO2, beyond what is captured at Boundary Dam Unit 3. Who would that buyer be? On Sept. 19, Whitecap Resources Inc. president and CEO Grant Fagerheim told Pipeline News they were interested. Indeed, he had just been to Regina to talk to government ministers about that exact issue. Whitecap is the operator of the Weyburn Unit, with 62 per cent ownership. The Weyburn Unit is currently the sole purchaser of the CO2 coming out of the Boundary Dam Unit 3 Integrated Carbon Capture and Storage Project, at the other end of a 71-kilometre pipeline. There the carbon dioxide is used for enhanced oil recovery. Fagerheim said, “I was just down in Regina two days ago, talking to the government about that. We want to continue to expand out the Weyburn project area, the CO2 recovery project. That means we need more CO2, not less. That means not just the Saskatchewan government, but we have to get the federal government to understand that. “We are prepared to expand the project area, but we need a long-term security of supply. This
If SaskPower goes ahead with another carbon capture project, Whitecap Resource is willing to buy its CO2. It would be used here, at the Weyburn Unit. Photo by Brian Zinchuk back-and-forth between the provincial and federal governments – they can’t plan, we can’t plan. We would like to advance. “We’re talking about an incremental $2 billion of capital to expand that,” Fagerheim said. That would be Whitecap’s investment for their end, not SaskPower’s. They would need a minimum 15 years of CO2, on top of what they have in place right now. “Either we get it from there (Estevan) or we’re looking cross border as well. We’re looking at North Dakota. We’re looking at Wyoming as well. Why wouldn’t we do what’s best for Canadians? Right here! Job cre-
ation, opportunities, CO2 sequestration, advancing the largest project in the world. That’s what I was just down there, talking to Minister Eyre and Minister Duncan about,” Fagerheim said. (Bronwyn Eyre is Minister of Energy and Resources, while Dustin Duncan is Minister of Environment and Minister Responsible for SaskPower, as well as MLA for Weyburn-Big Muddy.) “We want to continue to advance, and I think we can make some headway. The challenge they have right now, and I’m sympathetic to it, is that the federal government has said, ‘No more coal, no more coal!’
“Wait a second. If it’s responsibly developed, and we’re using the most advanced technologies available, what do you mean, shut down coal? Why would you shut down coal, with the recovery factors we’re getting today?” He went on, “We’re using it to demonstrate. The Chinese are coming over to see us. The Qataris. The Saudis. The Kuwaitis. They’ve all be to see us here in the last six months. Yet you’ve got these federal government policies, saying, ‘No more coal, no more oil, no more natural gas.’ You can’t create energy out of Pixie Sticks.” He said major companies are looking at carbon capture opportunities,
and that includes interest from at least one other company in southeast Saskatchewan. “We’re getting inundated all the time with potential to team up with other opportunities. I don’t think funding would be a problem. We want to expand the project area.” He thinks SaskPower would want to expand, if there wasn’t this overarching concern about coal from the federal government. “We would love to expand the footprint. For sure, we would.” He said the Saskatchewan government is being very supportive, with open communication, trying to do what’s best for the residents of Saskatchewan.
Alberta Premier Jason Kenney is doing the same in Alberta, Fagerheim added. “We think the two provinces are very welcoming.” tWhitecap’s 2019 production guidance is 70,000 to 72,000 barrels of oil equivalent per day, company-wide, of which 85 per cent is oil and natural gas liquids. Their September 2019 corporate presentation notes their southeast Saskatchewan assets, the Weyburn Unit (which uses CO2-enhanced oil recovery), has recovered 33 per cent of original oil in place. It has a possible recovery factor of 47 per cent. The reserve life is expected to be in excess of 40 years.
Saskatchewan Oil and Gas Supply Chain Forum coming Oct. 3 By Brian Zinchuk Regina – If it ain’t broke, don’t fix it, and as a result the 5th Annual Saskatchewan Oil and Gas Supply Chain Forum will emulate last year’s program. That’s according to Eric Anderson, executive director of the Saskatchewan Industrial and Mining Suppliers Association (SIMSA), on Sept. 18. The event will take place on Oct. 3 at Regina’s Delta Hotel. “This event is about buyers talking to sellers,” Anderson said. “It’s a procurement event.”
Anderson said the day will be opened by Minister of Energy and Resources Bronwyn Eyre at 9 a.m., as well as opening remarks from Rob Tebb, chair of SIMSA. Eyre will be followed by Petroleum Services Association of Canada president and CEO Gary Mar. Federated Co-operatives Limited will have Brian Jones speaking. Claus Mueller, director of business development for Worley Parsons is next. Stantec’s Mark Griffiths is next, followed by Todd Giasson of Schlumberger.
Crescent Point Energy team lead, supply management contracts, Laura Agnew, is next. TC Energy (formerly TransCanada) is represented by B.J. Arnold. The final presentation is by Kirsten Marcia, president and CEO of Deep Earth Energy Production Corp. The last segment of the day is the speed networking time. This is when participants get five minutes, sharp, to make their pitch to or ask questions of the procurement staff of various companies. In addition to the companies listed above,
Teine Energy, Kingston Midstream and Husky Energy are scheduled to have representatives on hand. There will be a small trade show throughout the day. That trade show has been sold out for months, Anderson said. Registrations have been strong so far. Anderson estimated they will have close to 300 people in attendance this year, up from 250 last year. “They are ahead of last year,” he said. “Everybody loved last year’s format, so we’re not touching it at all.”
Proud to support our communities
Last year, Greg Cousins of Site Resources, left, spoke to a representative of TransCanada (now TC Energy) as part of the speed networking segment. Photo by Brian Zinchuk
PIPELINE NEWS October 2019
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New pipeline project seeks to get western oil to the East Coast CANADIAN PROSPERITY PIPELINES SEEKS TO SUCCEED WHERE ENERGY EAST FAILED
By Brian Zinchuk Montreal– A new transcontinental pipeline project similar in concept to the defunct TC Energy’s Energy East project is in its formative stages. Canadian Prosperity Pipelines Corporation is in its formative stages, but their idea is to get oil from Hardisty, Alberta, to Saint John, New Brunswick, and a marine tanker terminal, for potential export. As a matter of course, the mainline would pass through Saskatchewan, Manitoba, Ontario and Quebec to get there. The project is called the Canadian Prosperity Pipeline Project, or CP3, and is expected to cost $23 billion. On Sept. 17 Pipeline News spoke to president and CEO Duane Lauritsen. He was born and raised in Grande Prairie, Alta., and graduated from civil and structural engineering degree from the University of Calgary. His career has been in the oilpatch in Alberta, principally designing and building oilsands projects for the last 25 years, working with large engineering, procurement and construction companies or owners, from the front end to back
end, with the exception of the mining shovels. This included an industry-first undiluted bitumen pipeline between Firebag and Suncor’s base plant. We also spoke to Doug MacLellan, who is director of project management and strategy, and a recent addition to the team which so far numbers four, plus three advisors. The other two directors are Eugene Van den Berg, executive vice president of finance and CFO, and Collin Daniels, director of regulatory affairs. MacLellan has deep Saskatchewan roots, having been born in Kamsack, and grown up in Saskatoon. He’s a chemical engineer by trade, having graduated for the University of Saskatchewan College of Engineering. MacLellan spent most of his career with Amoco, working on heavy oil and oilsands projects that have since come under the purview of Canadian Natural Resources Limited. His CV includes heading up the construction of a new, 12,000 bpd topping plant oil refinery in Kyrgyzstan. As mentioned above, the project is still very much in its formative stages, and they’re holding most of their
cards close to their chest. The size of the pipe is hypothesized to be 36 inches, although MacLellan indicated that could change, and perhaps it could be a larger pipe. Lauritsen indicated a capacity of 1.1 million barrels per day. Creating unity “It’s an amazing story for Canada on so many levels,” Lauritsen said. He noted that the recent attacks on Saudi Arabia’s oil infrastructure could have an impact on oil supplies in Eastern Canada. “Energy independence and energy security, for Canada, especially Eastern Canada, is getting heightened awareness.” “The vision for the Canadian Prosperity Pipeline is creating Canadian unity,” he said. Having lived in the west, and for the last two years in the east, he said, “I have experienced the polarization west to east. There’s a similar polarization, albeit a different story, east to west. The underlying vision of the CP3 project is creating Canadian unity achieved through breaking through communication barriers in an informed and factual manner. Lauritsen’s leadership philosophy is “collabo-
Canadian Prosperity Pipelines would like to build a line like this, or bigger, from Hardisty, Alta., to Saint John, N.B. Photo by Brian Zinchuk ration equates to harmony.” “Lots of people love the idea of unity, but at the end of the day, what 99 per cent of people care about is ‘What’s in it for me?’ “The unity-prosperity equation actually results in them being able to see money in their pocket at the end of the day – every Canadian. Every Canadian that wants to be part of this has an opportunity to,” Lauritsen said. Pension plan investment is one of the avenues. Lauritsen added, “This project is attracting significant attention, internationally,
from an investment perspective.” He noted international investment interests, and that should drive attention to other energy investment into Canada as well. “The investment climate is changing. A shift is happening,” he said. The results of the upcoming election don’t matter to him. One of the key issues has been Bill C-69, the recently implemented Impact Assessments Act. Lauritsen said, “We have done a deep dive into Bill C-69, every section with
a fine-toothed comb. We have completed a comprehensive review of Bill C-69 to identify specific risks in order to develop assessment and engagement strategies.” Hence, Lauritsen said they are “well appraised of Bill C-69,” and the engagement expected of it. “To that end, from a prosperity perspective, we will be putting into trust shares for Indigenous groups that do not have the ability to participate in an equity partnership with us, we will be intending to gift those ► Page A6
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PIPELINE NEWS October 2019
PIPELINE NEWS
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The oilpatch is crying out for a change in the federal government It’s not easy to cover a six-week campaign when you’re a monthly newspaper. So instead of getting into the daily issues of the campaign, this month Pipeline News asked essentially one question of most of the people we spoke to: “What are the issues facing the oilpatch in this federal election?” We asked that question across the spectrum, from small business owners to chamber representatives to municipal, provincial and federal elected officials. Well, we tried federal officials. We put in requests to the campaign offices of three incumbent MPs in Saskatchewan representing the three parties currently representing Saskatchewan. We spoke or had email conversations with the campaign teams of Conservative Rosemarie Falk, Battlefords-Lloydminster, Liberal Ralph Goodale, Regina-Wascana, and NDP Sheri Benson, Saskatoon West. All were told we were asking this primary question: what are the issues facing the oilpatch in this federal election? All were given five days to respond, and we made ourselves available evenings and weekends, with the deadline being the evening of Sunday, Sept. 22. Not one of those three candidates did so by our deadline. Similarly, the same request was put in to provincial NDP Leader Ryan Meili’s office, with no response. Those who did respond are in this edition, with additional stories on pipelinenews.ca that we did not have room to print. Curiously, many of the people we spoke to, especially in Weyburn, did not specifically mention names, i.e. Trudeau, Scheer, Liberal, Conservative, or if they did, it was minimal. Instead, they referenced a change in government instead. To that end, there was near-universal expectation, or desire, at minimum, of a change in government. And we’re not talking about the Green Party forming government, either. One other thing came up in this election coverage that we have never seen in the numerous federal and provincial elections we have covered over the past 11.5 years. Several organizations were skittish about what they could say, both to us, and to the outside world, due to the recent changes to the Canada Elections Act. One person felt they could not live tweet an event because of the Act. Another felt their organization had to cage their remarks since they were registered as a third party under the Act. This, despite the fact their organization is at the very heart of some of the key issues in this election. In effect, whether intentionally or not, debate has been
effectively muzzled. You, the voter, are not getting the fullthroated message from those, and likely many more, organizations and people because of the Elections Act. And you probably don’t even realize that. There’s a reason there’s so much discontentment with the federal government. Yes, the oilpatch understands things are cyclical, and oil prices are down. But consider this nugget. North Dakota’s oilpatch, centred just two hours drive south of Estevan, has achieved this miracle over the same time Saskatchewan has barely kept pace. North Dakota’s oil production dropped from 1.23 million barrels per day (bpd) in December 2014 to 942,000 in December 2016, but is now 1.44 million bpd, as of July 2019, according to the North Dakota Department of Mineral Resources. You can see for yourself here https://www. dmr.nd.gov/oilgas/stats/historicaloilprodstats.pdf While they do have better geology, this was achieved with the same oil price, and the same market. The most significant difference has been federal governments on each side of the border. The dip in North Dakota production happened weeks before Donald Trump was sworn in. Since then they’ve added 498,000 barrels production in less than three years – which is a little over what Saskatchewan produces (the most recent numbers we have is 460,000 bpd). They’ve added the equivalent of our entire oilpatch in the first two years under Trump. In the meantime, industry people in Saskatchewan are telling Pipeline News, “We’re just barely trying to keep our doors open as we go through this downturn.” What is wrong with this picture? It’s not hard to see why pretty much everyone is calling for a change in government. That could be us. Instead of billions of dollars flowing out of Canada, into North Dakota and Texas, we could be the ones booming. We could be generating more jobs, more revenue for the economy, more taxes for health care and schools. It could be us. But it’s not. A little over a year ago, the differential on heavy oil was costing us so much, Saskatchewan lost something to the tune of $300 million in royalties, never mind GDP. We were nearly giving our oil away. That’s $300 million that will never come back. And we continue to do this to ourselves every day. Energy East was supposed to be in service by 2018. So was Northern Gateway. But they’re not. And Trans Mountain Expansion could still be tripped up in the courts any day. That’s why the oilpatch is crying out for change. Can you blame them?
PIPELINE NEWS October 2019
Green Party platform is their final solution for the Canadian oilpatch It’s hard to come up with the proper adjective or description for the Green Party of Canada’s energy policy in its platform released on Sept. 16. Devastating doesn’t come close. Apocalyptic is closer. As much as I hate to say it, this is May’s ‘final solution’ for the Canadian oilpatch. She’s not talking about wiping out people, true. Just the entire industry – the one of the most valuable industries in the entire nation. The one that pays the bills for things like equalization. The vast majority of the Alberta economy. All gone, supposedly to be replaced by green jobs. I had seen the headlines throughout the day here and there, but I didn’t really clue in until I read the platform statement itself. “Since producing and burning fossil fuels is the largest source of emissions, we need to keep fossil fuels in the ground, and retool society to run on non-polluting, renewable energy sources. This is entirely possible, according to studies by the Stanford University researchers and the Deep Decarbonization Pathways Project,” it said. This means, “No new pipelines, or coal, oil or gas drilling or mining, including offshore wells, will be approved. Existing oil and gas operations will continue on a declining basis, with bitumen production
phased out between 2030 and 2035. Hydraulic fracturing (fracking) operations will be banned outright due to impacts on groundwater quality, methane release and seismic activity.” Let me unpack that for you. This one paragraph is the complete and utter destruction of the Canadian oilpatch, from Hibernia to Kitimat. The oil downturn has already reduced Canada’s land drilling rig fleet from 800 to 549. This would reduce it to zero. Absolute zero. As a rule, every well produces less today than it did yesterday. Without continual drilling to replenish reserves, natural declines will mean every well, oil and gas, will eventually run dry. If you do not keep drilling, your existing production will decline at an exponential rate, down to nothing. Unless we import it from the United States, every home heated by natural gas will go cold, lest they install electric or some other form of heating. Every petrochemicals plant will shut down. Every fertilizer plant which converts methane to ammonia will cease operation. Every barbecue – propane, natural gas and likely coal brickettes, will go cold. With no new wells, and a ban on fracking, the ascendant natural gas industry in British Columbia would come to a complete and quick halt. LNG Can-
Green Party Leader Elizabeth May ada? Done. In just 16 years – well, really 15, bitumen production would cease. That means the vast majority of Canadian oil production would go to zero. Fort McMurray, the economic engine of the nation, would soon look like its not-toodistant neighbour, Uranium City. And there would be no money to pay for remediation and cleanup. Forcing an entire industry into oblivion means they will quite obviously not be able to meet their obligations. It would all fall upon the tax-
OPINION
FROM THE TOP OF THE PILE
By Brian Zinchuk
payer. Taxpayers with no oil, gas or coal revenue, related jobs, or indirect jobs. A few short years ago, Saskatchewan’s oil revenue paid for the equivalent of half of our entire expenditure on health care. Everyone doctor, nurse, hospital, old folks home, pill and dressing south of Davidson. That would all be gone. Estevan, Lloydminster, Carnduff, Kindersley, Weyburn, all would be ground under the Green heel to dust. And we would be getting off easy, compared to Alberta. While Fort McMurray would be the worst hit, almost the entirety of Alberta, from Zama to Medicine Hat, would lose its primary industry. There would be an armed rebellion before Alberta lets that happen. The succession referendum would be immediate, and overwhelmingly passed. That’s the upstream side. On the downstream side, the Greens would, “Ban the sale of internal
combustion engine passenger vehicles by 2030.” If you get rid of the fuel, you might as well get rid of what consumes it, right? Except that the platform offers no solutions for transport trucks, heavy equipment, or farming equipment. Where will they get their diesel, if we shut down all oil production? Will there be batteries capable of running 600 horsepower tractors 24/7 in seeding time? But not to worry – they would reduce the use of nitrogen fertilizers in agriculture. So not only will the farmers have no fuel for their tractors, but not be allowed to use all that much fertilizer. And how would they make nitrogen without natural gas? Apparently we’re all going to get around with rail whenever possible as part of “zero-carbon public ground transportation.” Would that be on the tracks abandoned decades ago?
Where will all the electrical power come from, to replace all the fossil fuels? “Implement a major ramp-up of renewable electricity. By 2030, 100 per cent of Canada’s electricity will come from renewable sources,” it says. Do we dam every river? How, if we have no fuel for the bulldozers? The platform suggests existing oil wells could be repurposed for geothermal energy. Does that mean all of them? “A Green government will create a just transition framework for oil, gas and coal sector workers that reflects the unique conditions of each province,” the platform says. I don’t think their transition will be to an enlightened, electrically-powered age. A return to the stone age is more likely. Brian Zinchuk is editor of Pipeline News. He can be reached at brian.zinchuk@ sasktel.net.
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PIPELINE NEWS October 2019
Unity and prosperity from west to east are key to new pipeline project being proposed ◄ Page A3 shares from the corporation, to those Indigenous groups, those bands and so on. We are optimistic that we can generate prosperity for all Canadians,” he said. “Our economic analysis indicates strong allocations of cash flow after debt service to Indigenous groups, federal, provincial and local governments whilst retaining strong returns for equity publicprivate-partnership project funders. ” They will be in the black, but they will spread out the prosperity of what they are doing, to everybody. ”We are going to make meaningful equity available to them, that is typically not evidenced in projects of this nature, so they can capture some of the prosperity of what we are doing,” he said. MacLellan said, “There is some way to have an interest in the project without money up front. There’s going to have to be some give and take.” Lauritsen said, “We are focused on getting the money back to the people.
We will be paying taxes on whatever income we have, but that income is going to be shared with people with a real-time mechanism throughout the year, and they’ll be able to pay their relevant taxes on it. “Our team includes deep experience of having successfully worked on- and gained valuable insights to how empowerment is done to lift people out of poverty in other parts of the world where similar approaches were taken in other large infrastructure projects, and we intend on duplicating it here in Canada. We are moving the needle on empowerment and Indigenous benefit opportunity through participation via shareholding. “We are going to empowerment and engagement like it’s never been done before, and it’s going to be the way projects are done here in future.” He said as a new company, they will have an advantage over the incumbents, “because we are a new organization. All of our policies, procedures and actions are going to be done,
right from the get-go, in compliance with C-69.” Project details Two-thirds of Energy East was already in the ground, as it would have repurposed an underutilized 42-inch pipeline currently used for natural gas. This project, according to Mac Lellan, would be entirely new pipe – approximately 4,500 kilometres of it. It would be a new pipe, and a new right-of-way. The pipe will be a large-diameter install. They haven’t done the hydraulic work yet to finalize the size. But they’re aiming for 1.1 million barrels per day in capacity. There is identified market demand in Eastern Canada. “Whatever is surplus from that is able to go internationally,” Lauritsen said. “We’ve done analysis of international markets for the viability for premium, heavy Canadian crude, and have affirmed that there is a demand internationally. “At the end of the next 12 to 16 months, we have two objectives on the supply and marketing end. I want to have in place de-
Duane Lauritsen wants to build a pipeline from Alberta to New Brunswick fined memorandums of understanding with supply in Western Canada, and with international markets, and with the refineries that effectively say, ‘We’re aware of you. We want you to succeed.’ “When you get a little further down the road, the MOU is an invitation to reconnect with them and start contract negotiations on supply and marketing,” Lauritsen said. He acknowledged that they are still new, so it will take a while for those other parties to have confidence in their company. As for the product through the pipe, that will depend on what those negotiations result in. “It could be batched.
It could be dilbit (diluted bitumen). It could be light oil from Saskatchewan. It could be a number of things,” Lauritsen said. “We know there’s a demand. That’s a start point.” “We’ve got some route ideas, but we’re going to keep it confidential,” MacLellan said. “We have three potential routes,” Lauritsen said, the details of which are proprietary at this time. In the next 12 to 16 months, they intended on doing extensive validation on them, potentially including aerial surveys, to validate and select the most probable route. Several premiers, including Saskatchewan’s Scott Moe and New Brunswick’s Blaine Higgs, have been trumpeting a “national energy corridor.” To that end, Lauritsen said there is good awareness, from a political perspective. “We’ve achieved outreaches with Alberta, Manitoba, and New Brunswick,” he said, adding they are waiting for their outreach to be successful with Ontario and Saskatchewan. “Quebec is the last one
we’re going to approach formally,” he said, He added they already have support from one major union there and are seeking support of unions and their pension plans by way of potential investment. The big pension funds are also key. If they can get major Quebec pension backing, Lauritsen feels that will go a long way to bringing Quebec on board. Lauritsen noted CP3 will be the largest intraprovincial infrastructure project in Canadian history and will be identified as the longest and safest operating pipeline in the world, after the Druzhba, in Russia, which is currently the longest oil pipeline network in the world. CP3 will have the first ever fully-functional artificial intelligent reality (AiR)machine learning operating system on any currently operating pipeline in the world Quebec It’s no coincidence they are incorporated in Quebec headquartered and in Montreal. The choice was strategic. ► Page A7
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PIPELINE NEWS October 2019
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The oilpatch must educate the electorate about its importance: Grant Fagerheim By Brian Zinchuk Calgary – Grant Fagerheim is a rarity among oilpatch CEOs, in that he’s often vocal about the issues facing the industry. The president and CEO of Whitecap Resources Inc., which operates the Weyburn Unit, had a fair bit to say when we asked him, “What are the issues facing the oilpatch in the upcoming federal election?” Fagerheim replied, “It’s a better understanding, it comes down to, the importance of energy is, and how responsibly produced Canadian energy is, from Alberta, Saskatchewan, and British Columbia.”
He added this applies with the current our federal government or a new one. “Do they understand how important that the energy sector is to job creation, and to the Canadian economy? To the overall advancement of technology, information, and really responsibly developed resources.” As for more specific issues, Fagerheim said, “Pipelines. We have to get access to markets. The biggest holdback that we have in Canada at this particular time is the indecisiveness of the current governments to get pipelines built. Whether its oil – we’ve got three options right now. We’ve got TMX (Trans Moun-
tain Expansion), we’ve got Keystone XL, and then we’ve got the Line 3 replacement. “On natural gas, as well, it is important to get our hydrocarbons to tidewater, to world markets, to get world market pricing.” “Why are we penalizing ourselves as Canadians is dumbfounding. It’s ridiculous,” he said. Asked if anyone is paying attention, he replied, “The climate change profile is very active. I think that having the responsible development of Canadian resources helps not only Canada, but the world at large. “The existing govern-
Pipeline proponent incorporated in Quebec, chose Montreal for its headquarters ◄ Page A6 Opposition to oil pipelines in Quebec was a leading factor in the collapse of the now defunct Energy East project. After personally finishing a big contract late 2018 and taking some time off, Lauritsen noticed a significant increase in western separatism sentiment. Their messaging campaign is an “inside-out” marketing approach “to inform and educate the people of Canada about what the energy industry means to the Canadian confederation.” This includes factually-driven broadcasts in both official languages. He thinks there is support among the people, and politicians across
Canada. Lauritsen approached TransCanada (Now TC Energy) about this idea, but he was told TransCanada is focusing on other projects, and they wished him good luck. He approached other pipeline companies, and received a similar result, so he decided to go it alone. “In alignment with our marketing strategy and campaign, I chose to incorporate and headquarter the Canadian Prosperity Pipelines Corporation in Quebec, where I now live,” Lauritsen said. There will be a smaller, secondary headquarters in Calgary where much of the technical expertise would be based. He said they intend
Fighting for Saskatchewan's Oil Industry Lori Carr, MLA Estevan Constituency Office
306.634.7311 loricarrmla@sasktel.net
on a national advertising marketing campaign from very early on in the process, addressing different social aspects in each province, but with an over-arching theme of Canadian unity and prosperity.
ment is making it one of their key platform items – climate change, and carbon tax. Well, if you take that position, first of all, we should be celebrating the technological advancements Canada has, relative to carbon capture. Look at our own project, in Weyburn, Saskatchewan – the largest CO2 recovery project in the world. These are highly technical opportunities that we should be celebrating, not penalizing,” Fagerheim said. He said if we could take the funds at world market prices, not the discount we are selling our products at today, Canada could advance. “Take our products, and put them into continuing to advance technologies, creating jobs, creating tech centres, and having better health care, and the best education in the world,” he said. “It’s a re-education. I think the challenge is we have a re-do on the education side. It is important for us to have politicians and voting Canadians understand how important energy is to Canada and the world. The world needs more Canada. It needs more Canadian energy.” “I’m optimistic that we can grab a hold of this. It is a responsibility we have to take seriously, to help people under-
Grant Fagerheim is president and CEO of Whitecap Resources Inc. stand. Allowing them the opportunity to debate, understand how responsibly developed Canadian resources are. We sit on the third-largest resource, anywhere in the world, yet, we’re being penalized from getting it to market,” he said, referring to oil reserves which are largely in the oilsands. “It’s so illogical. It makes no sense, and we’re allowing it happen. We as pipeliners, we as midstream asset managers, we as governments, have a responsibility, and we take it seriously, because Canadians should have the benefits of our natural resources, at the highest level possible,” Fagerheim said. Asked about an East
Coast oil pipeline, like the defunct Energy East project, he replied, “It was dead. Why couldn’t we resurrect that? Why not? Why are we being displaced, when we’re importing over 750,000 barrels a day of foreign oil at this particular time? It’s illogical when we can’t get our own products to market.” Would they ship on Energy East? “Absolutely. You ship to where the best price is. They’re paying Brent prices, coming down the St. Lawrence Seaway, landed Brent prices. That’s a premium to WTI (West Texas Intermediate) of $5 to $8. Seven hundred thousand barrels a day? It’s massive. Canadians should be having the royalties and taxation. It’s massive,” he said. “Instead, the current government is running deficits out of control.” He said they are doing secondary and tertiary recovery. “They don’t want to talk about this. Last year, in 2018, we sequestered just shy of 1.8 million tonnes of CO2 from the Boundary Dam coal facility and the Dakota Gasification project in Beulah, North Dakota. Let’s celebrate! We talk about it, we give tours all the time. This is innovation, and we’re continually trying to advance more innovation.”
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PIPELINE NEWS October 2019
Trade, transportation and taxation are the oilpatch issues in this election, says Moe By Brian Zinchuk Regina – For much of the past year, Premier Scott Moe has been speaking loudly of the challenges the oilpatch has been living with. Now, with a federal election on Oct. 21, Pipeline News asked him what are the issues facing the oilpatch in this election. He replied, “The issues facing the oilpatch in this federal election I would put forward are threefold. I’ve always said, we need the three “T’s” in order to be successful to be here in Saskatchewan, economically and environmentally. The same holds true for the oil sector in the province. “We need trade agreements around the world. We need to have that steady, consistent trade environment. We have some of that, as it pertains to oil. I think we would like a little more consistent and sustainable trade environment. “Secondly is the transportation of which we have talked about at great length, with respect to not only getting our product to the U.S. market but getting it to the world. And we should be getting it to the world,
A national energy corridor would not only incorporate pipelines, but power transmission lines, like these near Steinbach, Manitoba. Indeed, such a corridor might pass in close proximity to these lines. Photo by Brian Zinchuk because of the manner it is produced. Not only from an ethical labour standards, but from an environmental standard. “Last but not least is
the tax environment that we operate under here in this nation and in Saskatchewan, as part of the nation of Canada. We have had repeated chal-
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lenges with respect to our tax and regulatory environment coming from our federal government. The most notable among those, obviously, is the
carbon taxation policy that they have imposed on this sector, in particular, but also all Canadians. “I would also put forward the constraints that would come about by the introduction and operation of Bill C-69, which scared away one proponent, the Energy East Pipeline. Bill C-48 essentially shut down the Northern Gateway project. There’s other items that have been put forward as well that have been impacting the energy sector, from a Canadian perspective, not specifically Saskatchewan,” he said. An example is a drilling moratorium in the north shelved any hopes of the Mackenzie Valley Pipeline, which Northwest Territories’ premier has talked about repeatedly. These are all policies that are disallowing our economy in this province, he noted. He talked of the advantages of a pipeline like the now-defunct Energy East pipeline, from Hardisty, Alta. to Saint John, N.B., where it could have value added to the product, and buffering us from challenges in the industry like price spikes. It would also allow us to export to the world. Moe has been a proponent for a national energy corridor, one that several Conservative pre-
miers are also advocating. It would encompass pipelines for oil and natural gas, as well as power transmission lines. “For a host of reasons, we should be having a conversation, and maybe we will be, at the premier’s level, on a national energy corridor.” “How that impacts on Saskatchewan, and I think Canada is very similar, 70 cents of every dollar is exported, essentially. If we were able to export our energy to other areas of Canada, sustainable energy products, whatever that might be, it bodes well for the sustainability of the Canadian economy. They are used in a number of ways, in Canadian industries that are then creating value in communities across Canada, or they are adding value to, as in Saint John, and exported around the world. “We most certainly have to have the conversation around a national energy corridor. I think, in fairness, we have to have the same conversation from the perspective of provinces like Quebec, Newfoundland and Labrador, and Manitoba – areas that expanded their hydro power and they are looking to get that hydropower to customers not only in Canada, but the U.S. as well.” “Ultimately, when we have access to that energy, ► Page A9
PIPELINE NEWS October 2019
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◄ Page A8 whether its hydropower, oil, or natural gas, when we have that access across our nation, it allows us to be more competitive,” Moe said. He noted Canada is an ethical producer. Moe said all people want to address a cleaner environment for the next generation. “We now have the federal NDP who want to move forward with a policy, a Quebec platform, if you will. In a national campaign. They feel it’s necessary to have a specific platform for a specific region of the nation where they have said they would essentially give a veto to the province of Quebec, but not to any other provinces, across the nation,” Moe said. “The NDP characterizes this as ‘asymmetrical federal-
MET
to wreck out country.” Moe said, “We need to understand when wealth is created in one area, one region of this nation, that it is not only good for the people living in that area, it is good for all Canadians. And we need to work together on topics like a national energy corridor so that we can extend the opportunity to benefit from that wealth, like the sustainable oil produced in this province, into other areas of the nation, like Saint John, New Brunswick, like central Canada into Quebec and Ontario. He said, “If the federal government is not willing to partake in it, it is one I will continue to lead at the premier’s table.”
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Dear Editor: For the past four years the Liberal Government has continuously enacted policies and legislation designed to destroy the energy industry in Canada. It’s no secret that this industry is vital to the prosperity of not only Souris-Moose Mountain, but the entire economic landscape of Canada. A narrow-minded and impetuous approach to energy policies has left the Canadian economy in dire need of better leadership. While the Liberal Party’s view on natural reACKsource development is clear from the past four years, the platforms of many other national parties sing PALADIN an all too familiar tune. The NDP are prepared2988BBLK to give ‘veto’ power over pipeline projects to the provinces, and are focused on cutting oil and gas subsidies and investing in net-carbon free electricity. The Green Party is focused on moving to renewable energy, transitioning workers out of the oil, gas, and coal industries, and implementing large bureaucratic taskforces that I suspect will conclude that their plan ultimately isn’t feasible. All three of these parties fail to see the innovation and technology that continue to develop every day within the natural resource sector that makes the ongoing exploration and production of natural resources environmentally sustainable. The Conservative Party sees the value in greener technology, such as carbon capture and storage,
BLACK
to keep the energy sector alive and well. Andrew Scheer and the Conservative Party are committed to eliminating the Carbon tax and repealing Bill C-69. A plan is in place to end the ban on shipping traffic in British Columbia, establish clear time lines, get up front consultation with indigenous communities, and ban foreign-funded advocacy from disrupting our approval process. While the People’s Party suggests it will take similar steps with respect to cancelling carbon tax andCTbuilding the / CP / ESRpipelines, /M fact of the matter is that these alone are not enough. Andrew Scheer’s plan for a National Energy Corridor BLACK will open up the country’s distribution to allow Canada to become energy independent by 2030. A Conservative government will develop a coast-to-coast, right-of-way for energy infrastructure projects, allowing both the provinces and Indigenous communities to share in the prosperity. This corridor will minimize environmental impacts, lower the cost of environmental assessments, increase certainty for investment to come back to Canada, and most importantly, get these critical projects done. Its time for Canada to take our prosperity back and lead the world in energy innovation and environmentally sound natural resource production. Robert Kitchen Conservative Party nominee for Souris- Moose Mountain
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PIPELINE NEWS October 2019
Market access, regulatory and fiscal terms are the issues for CAPP in this election, says McMillan By Brian Zinchuk Calgary – Tim McMillan, president and CEO of the Canadian Association of Petroleum Producers, thinks the issues facing the oilpatch in this election come down to primarily three things: market access, regulatory and fiscal terms. He said on Sept. 18, “In June, we brought out our energy platform, that we framed up what those issues are, as far as we’re concerned. They are, Number 1, market access. There are some fundamental issues with Canada. We’ve been the victims of foreign activists working very hard to limit our market access. Thus far, that work has been sadly successful.” On the regulatory front he said, “Canada, today, is viewed as a global jurisdiction that can’t get major projects done. That needs to be corrected. “On fiscal side, our largest customer, and now the largest producer of oil in the world and a net exporter of gas, has done fundamental tax reform. The fiscal terms in the U.S. today are driving investment
into that country, often at the expense of Canadian jobs,” McMillan said. “The proof is in the pudding. We’ve seen capital investment in Canada fall from over $80 billion a year in the upstream to less than $40 billion. At the same time, investment and production in the U.S. have skyrocketed.” As noted in another story in this edition on Page A17, North Dakota has added nearly a half million barrels of oil production, the equivalent of an entire Saskatchewan, in the first two years of the Donald Trump administration. “That’s a good one,” he said of the North Dakota example. “You’re comparing apples to apples. They’re both into the same formations, and policy, regulatory and fiscal terms are driving investment on an applesto-apples comparison. “We can take a step back and look at general, big picture investment in Canada versus the U.S., Middle East and other places, and again, Canada is viewed as a place that can’t get major projects done. That, today, is losing
Tim McMillan value on every barrel we’re producing because we can’t get world prices,” McMillan said. Asked why that’s the case, he said, “I think there’s a lot of ways to look at that, but if we look at the fundamental challenge, there is an active campaign, put forward by U.S. activist groups, well-funded,
targeting Canadian oil and gas and specifically Canadian infrastructure.” “We have seen those actors on Trans Mountain. We have seen them on Energy East. As soon as LNG facilities were announced, we saw them shift their focus to the natural gas world and gas pipelines. We can’t be naïve to this. We have to
continue to challenge their misinformation, and we have to implore our political leaders to do what’s in Canada’s interests, not just what’s in the interests of these foreign-funded activists.” Asked what he thought their motives were, he said, “So shut down the Canadian energy industry.” Why? “I think there’s many reasons why, but I don’t have a clear insight of what is at the root of it. If it was purely on a climate imperative, enabling Canadian natural gas is something they should be working towards. And the fact they are working against Canadian natural gas really just enables coal to continue to build out in India and China, or get natural gas from jurisdictions with a far-higher carbon footprint than Canadian gas. I will not accept that it’s purely on a climate basis that they’re doing this work,” McMillan said. Breaking down what he means by “market access,” McMillan said, “Our resources in Canada are world-class, in size, in
scope, in cost of production. We’re at a time in history where global demand is at a record high, for both oil and gas, and both are growing at near-record pace. All credible predictions, International Energy Agency and others, have it growing out to the end of their forecasts. “Canada, however, has limited our ability to build pipelines to our customers, and to new customers, meaning that every barrel of oil we produce in Canada, we lose value on, compared to global prices. In the third and fourth quarter of last year we were losing at time $40 a barrel compared to world prices, because we have only one customer, the United States, and global prices are set at tidewater, at the ocean. “On the natural gas side, the exact same issue. We are losing billions of dollars a year in value, because we have one customer, the United States, and in fact, that customer is displacing Canadian gas in Ontario and Quebec today,” McMillan said. ► Page A11
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PIPELINE NEWS October 2019
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Morale and investment are low with the current federal government: Dan Cugnet By Brian Zinchuk Weyburn – Morale and investment in the oilpatch couldn’t get much lower, with the current govern-
ment, according to Dan Cugnet, chair of Weyburnbased junior producer Valleyview Petroleums. On Sept. 11, the day
of the election call, Pipeline News asked Cugnet what the issue are for the oilpatch in the federal election. He said, “The obvious
one is the same thing we’ve been faced with for the last four years with the current government. They’re completely hostile to the
idea of resource extraction in any way, shape or form. The oil industry does not fit with their idea of the future.”
As examples, he said, “I think we can use the word obstruction. They’ve been obstructionist with ► Page A12
have to approach it with very good principles – low cost that meets environmental principles.”
McMillan is formerly Saskatchewan’s minister responsible for Energy and Resources.
Natural gas needs to get to tidewater ◄ Page A10 Asked if we did get gas to the coast for export, what would it do to the continental price, he replied, “There’s a lot to that. In Ontario and Quebec, they’re bringing in over half their gas, per day, from the United States, and they’re paying substantially more than we’re getting for gas, here, in Western Canada. “So if I pull back to gas consumers in Western Canada, we have incredible volatility, right now, because of pipeline constraints. The slightest disruption can push gas prices to next to nothing. Over the last two years, we’ve seen times where it is trading at pennies. By having optionality and having access to global markets, it gives a far more stable market for producers, and for consumers. It would be a price far less than the global price, because there’s no refrigeration or compression costs, but it would be close to a competitive market for North American production. “I think it would definitely stabilize. I think it would hover around competitive costs, as opposed to today, where it has massive swings when there’s disruption on the pipeline infrastructure. It can drop to pennies. I guess when it does that, it’s a real bargain for power plants, but ultimately it’s damaging the economy. It’s a far healthier thing for us to have a stable price, based on the cost of produc-
tion,” he said. “We have a 300 yearsupply, and people have stopped looking for new pools, just because the resource is so well-defined, under our feet, in the Montney and Duvernay. We will not see the $12 a gigajoule we saw in the early 2000s. The world has fundamentally changed. “For SaskPower, the cost effectiveness for natural gas, we think should be driving their decisions.,” he said. “The substantial carbon reductions that comes from putting gas in, instead of coal, is probably better, and more cost-effective system than the substantive mandates SaskPower is forced to look at.” On the other hand, carbon dioxide captured from coal-fired power plants can be used to extend the life of oilfields, like the Weyburn Unit, for decades. On that front, he said, “Our industry is one of the largest consumers of electricity, as well as one of the suppliers of one of the fuels for the electricity system. We will always come to this with a very principled focus. We think that the electricity system should be designed on a low-cost model that meets the environmental imperatives the government puts forward to it. He expects that would have renewables, gas, and coal on the system, each with their role. “Where it makes sense for clean coal, I think
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PIPELINE NEWS October 2019
Tankers off East Coast, but not West Coast, is absurd ◄ Page A11 anything to do with resource extraction, whether it be pipelines, pipeline approvals. The two hot button bills, Bill C-48, Bill C-69, change the regulatory landscape making it all but impossible for any large-scale megaprojects. That’s not just resource extraction, but anything they don’t deem necessary. It’s highly subjective, and I think it takes the power out of the hands of the existing regulatory bodies. “The idea that we can bring tankers of oil into Quebec, via the St. Lawrence River, but we can’t move tankers of oil out of the Pacific coast is absurd, when we have rows of cruise ships coming up and down that same coastline. They’re basically just massive vessels, full of bunker oil, parked in the harbour of Victoria. “To me, the biggest issue is that we’re dealing with a lot of hypocrisy, and
a lot of the country doesn’t realize, or doesn’t want to accept what has built modern society. “To that point, too, we continue to funnel equalization dollars into Quebec from the very resource sector they seek to hobble.” Cugnet does not have a lot of confidence in the current government getting the Trans Mountain Expansion pipeline built, especially given ongoing court challenges to the project. “To me, energy is something that is of national concern, and really speaks to our own independence and our own national security. I don’t know when and why the courts were given so much power to step in on matters of national importance and national security. It’s insanity. I just don’t know why the courts have this much power.” “If we were in a state of war, and needed this oil?” he posed. “We are
in a state of war. It’s just not bombs, it’s economic warfare. I think if we had some leadership that started to view it that way, there would be a sense of urgency. It’s the exact opposite, the environment we’re in.” Asked what he would want to see happen in the first year, if there were a change in government, Cugnet said, “Repeal Bill C-69, C-48 and the carbon tax.” He went on, “I think those are big parts of it. But create an environment where there’s some stability, for foreign investment, and even domestic investment. You look at institutional investors. Why would they put money into the energy industry when the goalposts are moving every two weeks? There’s no consistency in the regulatory environment right now. How do you invest in something if you don’t know what the government’s going to be
doing a week from now, two weeks from now, or a month from now?” He noted that under the previous government, some of these processes were taking many years, up to a decade. “I think the NEB (National Energy Board) has serious issues, when we can see, Stateside, the regulatory environment down there, and how many pipelines have hit the ground in the last 15 years. We’re talking large pipeline projects, and how many haven’t happened here in Canada. I think the NEB needs a serious overhaul. I think it was too onerous and two punitive beforehand. Some might disagree, but there’s no reason anything in this world should take ten years of due diligence before it can commence.” “This is essentially looping, laying a pipeline that has been in existence for decades.” Asked if there isn’t a change in government,
Dan Cugnet, seen here speaking at the Saskatchewan Oil and Gas Show in June, feels the current Liberal government has been hostile to resource extraction. what will happen to the mood and investment climate activity in the oilpatch, Cugnet replied, “I would say it is flat to none, right now, as it is.” He pointed to a recent sale of assets in the region, and teams interested in investing in them can’t get money. “We’re at the bottom right now, from the standpoint of investment,” he said, and similarly, from a standpoint of morale.
“The institutional investors, for the most part, are gone. Bankers aren’t putting any money into the sector’s space. It’s death by attrition.” “Can it get worse? That is the question. I don’t know. I guess that’s what we’ll find out. How many houses have sold in Estevan and Regina last year? Can it get worse? Can we lose more businesses? Maybe.”
This election could determine the survival of the industry: Yager By Brian Zinchuk Calgary – “Depending on who wins, it’s the survival of the industry.” That’s what energy policy analyst, consultant,
executive and writer David Yager thinks is the significance of this election, with reference to the oilpatch. He spoke to Pipeline News on Sept. 17.
“If we end up with this sort of worst-case scenario, with a Liberal Party government propped up by the Greens, like they did in B.C., which is when Andrew Weaver says, ‘Jump!’ John Horgan says, ‘How high?’ “The times of surrender with the Green Party are climate plans. That is obviously a devastating scenario, where they do
what she (Green Party Leader Elizabeth May) says, which is ban fracking, which really kills LNG exports, and stops Trans Mountain. “But that’s not going to happen,” he said. “If the Liberals need someone to prop them up in Ottawa, it’s more likely to be the Bloc Quebecois. The issues facing the oilpatch in this election are numerous, according
to Yager. The first is not interfering with liquefied natural gas (LNG) exports. “That is the Number 1 issue. We talk about oil all the time, the price of oil and pipelines. But the real devastating damage has been caused by the collapse of natural gas. It some days sells for 10 per cent what it sold for at the turn of the century, and 25 per cent what it sold for in 2014. We
have just got to get some gas out of the basin.” Next is finishing the Trans Mountain Expansion. Thirdly, don’t interfere with Enbridge Line 3 Replacement or Keystone XL. Political risk has been a big issue. To get investor confidence to return to the oilpatch, he’s noted Jason Kenney needed to be elected as premier of ► Page A13
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PIPELINE NEWS October 2019
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The world needs more Canada: Jason Skehar By Brian Zinchuk Regina – “The world needs more Canada,” Jason Skehar, president and CEO of Alberta-based Bonavista Energy Corporation told the Saskatchewan Chamber of Commerce on Sept. 4 in Regina. Skehar was speaking there as part of Energy Week. He’s a Saskatchewan product, having grown up on a farm near Theodore and getting his mechanical engineering degree from the University of Saskatchewan. He started out by saying, “Oil and natural gas is Canada’s top export with 22 per cent of all exports nationally, generating approximately $100 billion in revenue and $40 billion in capital investment annually. We are a big engine of this Canadian economy.” He went on, “Through our supply chain, this sector employs over half a million talented workers across the country through more than 10,000 business. Our industry generates billions in revenues for all orders of government, providing support for the programs Canadians value - health care, education,
infrastructure, social services and more. “This is truly ‘Canada’s industry’ – it doesn’t belong to any one province or region. It’s our Canadian entrepreneurial spirit and our innovative passion, but it’s also our manufacturing, our steel and our concrete that all contribute to make this a national industry.” “The world’s appetite for energy is not diminishing and oil and gas will be needed to energize the globe for many decades to come — and Canada can play a significant role, as fifth largest, in meeting global energy demand while addressing global environmental and social issues.” He pointed out, “Paris-based International Energy Agency, global energy demand is expected to grow by 27% by 2040 as China, India, Southeast Asia and other regions seek to grow their economies. All forms of energy will be needed but oil and natural gas will supply more than 50 per cent of that demand even as renewables increase by 400 per cent out to 2040. Specifically, the cleanest form of hydrocarbon energy, natural gas is fore-
casted to grow at a staggering rate, in excess of 40 per cent by 2040.” “Energy improves lives – it is literally transformative,” Skehar said He noted that the people of nations which used more energy per person had longer average lifespans, went to school longer, and had fewer deaths due to air pollution. At the other end of the scale, nations where the energy usage is just over one tenth of what developed nations use per person see much worse numbers, especially when it comes to deaths from air pollution. “As access to energy increases, so do living conditions,” he said. Skehar pointed out an example of one of the largest critics of hydrocarbon energy, brazen in his hypocrisy. Skehar showed a slide of Leonardo DiCaprio’s “uber yacht” at the World Cup in Brazil in 2014. “Canada operates with world leading standards for protection of air, water and land – over half of Canada’s investment in developing emissions-reduction technology today comes from our sector. Specifi-
Yager expects tanker ban won't last. ◄ Page A12 Alberta, Trans Mountain Expansion needs to be built, and the federal election. He said, “I don’t think a Liberal minority is as bad as it sounds, actually, if a Liberal minority is propped up by the Bloc. They’ll finish LNG Canada.” Yager expects the tanker ban off the B.C. coast will be challenged in court by Indigenous groups, and “collapse under the weight of its own stupidity.” Similarly, he expects Bill C-69 will be amended over time.
Finishing LNG Canada is another important point. There are two important oilsands projects that are still under consideration “If you checked all those boxes, you wouldn’t know the place,” he said, acknowledging a number of those items are outside of the election. “Obviously, a Conservative government is the best possible outcome. But we don’t see a lot of that.” In April, Yager released a self-published book entitled From Miracle to Menace:
Jason Skehar is president and CEO of Bonavista Energy Corporation. cally, Canada spent $8.4 billion on environmental protection in 2016, the oil and gas sector was responsible for $3.7 billion, nearly 50 per cent,” he said. Exporting liquefied natural gas (LNG) could allow Canadian gas to displace coal in other parts of the world, lowering global emissions and earning Canada enough carbon credits, it done in enough volume, to meet our Paris Accord commitments. He said, “By displacing more polluting forms of energy in the growing economies of Asia with Canadian energy, global emissions growth can be reduced by as much as Canada’s total emissions today.” On the innovation
front, he said, “Bonavista partnered with Petroleum Technology Alliance Canada, Baker Hughes, a GE company, and Environment and Climate Change Canada to create an infield environment to test a methane sensing and analytics platform, a real-time technology which can be deployed across the sector to sense and correct methane emissions.” With regards to Indigenous prosperity, Skehar said, “There are many misconceptions about the relationship between our industry and indigenous peoples – here are some facts. Six per cent of workers in our industry are indigenous, versus an average of 4 per cent for other
industries. Oil and natural gas is also a huge contractor of Indigenous-owned businesses, spending billions annually with hundreds of firms. The oil sands companies alone purchased goods and services valued at $3.33 billion in 2015/2016, the same year the federal government, by contrast, spent only $63 million in indigenous procurement.” To realize this vision, Canada must increase its market access by building export pipelines, he noted. “If Canada is truly to make a difference on the world stage, we need options. We need governments at all levels to actively support more export pipeline projects. ► Page A14 COMMERCIAL RESIDENTIAL FARM OILFIELD CONSTRUCTION & MAINTENANCE 24/7 125-175KW OILFIELD GENSET RENTALS – REASONABLE RATES WWW.CARNDUFFELECTRICLTD.COM CARNDUFF ELECTRIC
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PIPELINE NEWS October 2019
Sask. Chamber’s take on oilpatch election issues By Brian Zinchuk Regina – What are the issues for the oilpatch in this federal election, as seen from the Saskatchewan Chamber of Commerce? Pipeline News asked Steve McLellan, the chamber’s CEO on Sept. 4, at the conclusion of an energy series speech by Bona Vista Energy president and CEO Jason Skehar.
McLellan said Skehar’s presentation was in partnership with the Canadian Association of Petroleum Producers “to increase our collective energy literacy.” McLellan said, “Canadian people, particularly in Saskatchewan, need to understand the value of the sector, and when we talk to our candidates, in the upcoming election,
or the provincial government that we’re very clear, this is a critical sector, and they have to make the right decisions going forward.” Asked what are the issues, from the Chamber of Commerce’s perspective, McLellan said, “First is certainly access. We need to get our products out to the markets, through to tidewater and
so on. So getting the pipelines built is a no-brainer. It’s a record we’ve heard many times, but we have to keep playing it. “The other one, I think, is respect. I don’t think the Canadian government, or the provincial government in many provinces, I think ours does here in Saskatchewan, give the industry the full respect that they have.
“Many people would be shocked to see how many people still work, every single day, at highpaying jobs, quality, highlevel expertise in the oil and gas sector. We can’t forget that. Those people go home at the end of the day safely, and feeling they’ve produced a good product. And yet the Canadian general public I’m ► Page A15
Sask Chamber Steve McLellan
Capital investment in oil and gas down by more than half ◄ Page A13 Finding new markets for responsibly produced Canadian energy products will help to suppress carbon leakage, which occurs when other less responsible suppliers meet global energy demand without acknowledging and addressing the impact to our environment and our society. “Increasing market access is one issue we need to solve to play this critical role,” Skehar said. Canada is rapidly falling behind the United States due to our lack of regulatory efficiency, he noted. In particular, “Right now, regulatory complexity
in this country is undermining our ability to get projects done.” The United States is already exporting 7 billion cubic feet per day of natural gas by LNG, and Canada “has yet to ship its first molecule of LNG” America is also outpacing us on competitiveness. He said, “We need to create the right fiscal conditions to restore industry competitiveness. “Even as recently as two years ago, Canada had a significant advantage over the U.S. in terms of our federal and provincial tax rates. “Not anymore. “The U.S. has carried out sweeping tax reforms
recently, lowering the federal corporate income tax rate and allowing immediate expensing of capital investments. Canada has not kept pace. With our tax advantage gone, billions of dollars and over 100,000 jobs have left Canada for the U.S. and other countries.” Capital investment in oil and gas is down by more than half, from $81 billion in 2014 to $37 billion in 2019. Correspondingly, government revenues at all levels fell from $18 billion in 2013 to $7 billion in 2017. Skehar said, “That means less money for schools, hospitals, roads, and social services across the country. It also means less
investment to scale up environmental innovation and technologies that bend the curve on emissions intensity. “Canada is sending a strong message that it’s difficult to do business here.” He pointed out that while some Indigenous people are opposed to resource development, “Many want to see growth. Many Indigenous communities are seeking economic self-determination through responsible resource development and active participation in Canada’s oil and natural gas industry.” “Cleaner LNG can help to lower global greenhouse gas emissions when used to displace higher-
emitting coal-fired electricity generation in China, India and Southeast Asia. With upstream electrification sourced with renewable and natural gas energy, emissions will be reduced in Canada. When you couple this initiative with internationally approved carbon credits as per Article 6 of the Paris Agreement, Canadian LNG would produce fewer greenhouse gas emissions per unit of energy than any other LNG sources around the world. That’s a solid reason to build more Canadian LNG facilities,” he said. Skehar said we need a strong, united, national voice. “With the right policies in place, we can ensure
we build a strong energy future and strong economic prosperity across Canada.” He concluded saying, “As Canadians, we must stand up for Canada by telling the entire story about our oil and natural gas industry and the role it can play around the globe to improve lives and the environment. “When it comes to Canadians oil and natural gas development, we have an economic opportunity in front of us which we have never seen in the past century. We have plenty to be proud of and even more to offer. “The world needs more Canada.”
PIPELINE NEWS October 2019
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Young minds are looking for environmentally friendly ◄ Page A14 not sure respects them for the work that they do. We need to gain that level of respect, and increase it. “And I think we need to attract innovators into the sector. We need to start to ensure that the young minds, and the old minds, but certainly the young minds that are looking for things that are environmentally friendly. This is a great sector to be engaged in, because they’re invest-
ing in energy conservation every single day,” McLellan said. “If our government can do that after the next election, we’re going to be in a much better spot.” Regarding market access, he said, “We have two products – oil and gas. But we also have expertise. We now have oil and gas guys working around the globe. We also have innovations that are created here. We need to get them out to dif-
ferent jurisdictions, as was explained today by Jason (Skehar). The opportunity in second- and third-world countries, to take our technology and make energy there more effectively, and certainly more than using chunks of coal and chunks of wood. We can take our technology there. It’s expertise, and also the raw commodity. We’ve got to get it to the world.” Earlier that day, the future of coal-fired power
generation was discussed by the Estevan Chamber of Commerce. On that topic, McLellan said, “Coal has been, for a long time, and I think, as a natural resource, been an important one. We may stop using it to the extent that we have to produce energy, and I understand that. I think there’s some great expenditures and really great technology that has gone into clean coal. But it may not have the shelf life that
Survival of the oil industry is key for Weyburn mayor in this election Weyburn – The survival of the oil industry is the key issue in this federal election for Weyburn Mayor Marcel Roy. On Sept. 11 he said, “The issues are the life of the industry. That’s what the issue is. Green Leader Elizabeth May said yesterday if she would become prime minister, she would cancel all the oil industries and simply go to green and renewables. “That would cancel our whole industry. Our two pillars of economics here, in Weyburn, is agriculture and the oil industry. That would wipe everything out. That would be devastating to our province,” he said.
“Technology has changed a lot in the industry, and we’ve lost a lot employment due to technology. So we’re struggling with that movement and shift. If we have policies coming in, no matter what government comes in, that’s very anti-oil policy, that’s simply going to be devastating to Weyburn.” Asked what he is telling candidates, Roy said, “To ensure that we still hold and understand that Canadian-made oil is the oil we should be using, as opposed to importing, and supporting coal in our sister community, Estevan, and making sure that’s still important for Saskatchewan, too.”
many would want. But I don’t think we’re spending enough money, or enough effort, to determine what else we could use that resource for, that wouldn’t be as environmentally damaging as simply burning it. So I think that’s part of it.” He said the communities of Coronach and Estevan have been hard done by. “I think our provincial government has sat by to some extent and watched what the federal government has done to them, instead of standing by and ensuring they’re part of the conversation. There’s a transition committee down there in the Estevan area, and I don’t think the provincial government has been as proactive and forthcoming with them as they could be,
and I would encourage the provincial government to do that. “I think the federal government has been there. I think there’s more they could do. But at the end of the day, it’s going to be about technological advancement. It’s going to be about ensuring there’s a transition from one type of the economy to another in those areas. As I’ve said to the Estevan Chamber, the sign at the entrance of the city says they’re the ‘Energy City.’ It doesn’t say they’re the oil and gas city, it doesn’t say they’re the coal city. So start to think about what that means, and what that could mean.” He suggested that wind and solar energy might be avenues to look at.
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PIPELINE NEWS October 2019
What does the oilpatch have to do with a window manufacturer? Everything By Brian Zinchuk Weyburn – One might think that a window manufacturer doesn’t have a lot to do with the oilpatch. When it comes to Southern Glass Works Ltd. in Weyburn, you would be wrong. “The patch has such a big impact on my business, because the residential part is huge. The residential is what feeds us,” said Cliff Anderson. “When the patch hurts, we hurt. Like every small business in a small town, you feel it.” The family business includes Cliff Anderson as president and his wife Kelly as office manager. Their kids involved include Rolan, sales manager, and Brett, production manager. Brett’s wife, Halie, manages rentals. “We have commercial and residential rentals. We have some oilfield commercial, and we have apartments, and all of those are greatly affected by the downturn,” he said. The commercial properties are full, but bringing in half of what they used to. They have 57 residential rental units, and those have
seen rents chopped about 30 per cent. Cliff said they’re not in the oil or agriculture industry, but they’re affected by them. “I grew up here. I’ve had a business here since 1983. I know what it’s like to live through lean times,” Cliff said. He started as a general contractor. The glass business was started in 2004, and the boys have taken over ownership. “In the last four years, we’ve seen what’s gone on here. We feel it,” Cliff said. Brett chimed in, saying, “Oh God.” “I went to Ottawa with that bunch as well and supported it, because I felt, as a business, we need to support these guys,” Cliff continued. To that end, Cliff went to Ottawa as part of the United We Roll convoy earlier this year. Asked what are the issues in this election, Cliff said, “The is if we have another four years of what we just had, we haven’t seen nothing yet. He’s going to get way worse. That’s what I’m afraid of.
“The carbon tax has chased away the oilfield business here. We have a lot of empty commercial shops here. Commercial real is the heart of your economy, and our commercial real estate is down. I was around in the 80s, and it was bad, so you knew it. It’s back to that. We overbuilt a bit, possibly, and now there’s too much sitting. We’re that way in the residential a bit, too. “When your own government is complicit in roadblocking your economy, you’ve got trouble.” He referred to Bill C-48, the tanker ban, and C-69, the Impact Assessments Act, as examples. “We’re down two or three staff from what we were,” Cliff said. It’s not about growth, but where they can cut to stay in business. “How can we be more efficient?” Brett said. “It’s all about trying to stay viable. As long as we’re in these conditions keep going on, it’s going to be a battle for us.” How much do they blame on the federal gov-
Cliff Anderson, left, and Brett Anderson are part of the family ownership behind Weyburn’s Southern Glass Works Ltd. Photo by Brian Zinchuk ernment? “As much as anything, it’s mindset,” Cliff said. “It isn’t the price of oil that is the issue. How do our neighbours across the border seem to be doing okay, and our (oil industry) isn’t?” “If he ( Justin Trudeau) gets in again, where are we going? I don’t know where we’re going to be,” Cliff said. “I think on a small scale, for us, because the industry is so poor, we’re not talking about businesses buying windows. We’re talking about the employee, the service rig hand coming in
to buy windows. And if they kill farming, who do we sell to?” Brett said. “Generally, the government should be doing things to promote the oil industry, instead of roadblocks.” “A change of government will not mean magic. But it’ll change the mindset,” Cliff said. “The best case, things go back the way they were,” Brett said. Five years ago, with their rental apartments, they could post a vacancy at 6 p.m. and in a short time, have five applications. That doesn’t happen anymore.
To be fair, oil was $100 a barrel then. But Cliff pointed out they’ve seen the highs and the lows over the last 25 years, and Cliff thinks they’re at the lowest of the lows. It’s been three years since they’ve had a renter whose originally from out east. If the Trudeau Liberal government is re-elected, Cliff said, “I think there will be a lot of questions pf what does Western Canada do?” Is he referring to national unity? “Absolutely,” Cliff replied.
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In the first two years since Trump was sworn in, North Dakota added the equivalent of Saskatchewan’s entire oilpatch in production By Brian Zinchuk Estevan – The most recent numbers published for Saskatchewan’s oil production show 459,916 barrels per day (bpd) in June 2019. That’s a dip from a slight peak in March of 500,288 bpd. Since February 2015, near the onset of the oil downturn, Saskatchewan’s production has largely hovered within the range of those two numbers except for a slight dip just below that in the summer of 2016.
Saskatchewan’s production peaked in December 2014 at 536,619 bpd. In Canada, the Justin Trudeau-led Liberal government was sworn in in October 2015. During that same time, North Dakota also saw a peak in December 2014, at 1,229,572 bpd, according to their Department of Mineral Resources. Their production dropped below a million barrels per day in the fall of 2016, then bottomed
out at 942,156 bpd in December 2016. Donald Trump was sworn in as president in January 2016. Since that time, North Dakota has steadily climbed over the 1 million barrels per day hump in February 2017, to
1.1 million bpd in September 2017. They crossed 1.2 million bpd in April 2018, 1.3 million bpd in September 2018, and 1.4 million bpd in December 2018. Since then the production of North Dakota has remained relatively flat, hov-
ering between 1,392,517 bpd in April 2019 and the current peak of 1,442,459 in July 2019. That’s an increase of 52.9 per cent from December 2016. In the first two years since Trump was sworn in, North Dakota added the
equivalent of Saskatchewan’s entire oilpatch, and has remained flat relatively at that level for seven months. Even so, the last two months listed, the state has eked out slightly new record production numbers.
Vote on the economy Weyburn – Nick Mayer with MayCo Well Servicing, based in Oxbow, thinks people need to think about the economy when they go to the ballot box in the federal election this October. “I think we need people to vote on the economy. I think that’s Number 1 for Canada in general,” he said while attending an Energy Safety Canada session in Weyburn on Sept. 11. Asked what are the issues facing the oilpatch,
Mayer said, “We’ve just gone through four years of decimation, basically. Four more years of this leadership, it’s not good. Not for my company, anyway.” “I think, from 10,000 feet, our ability to move oil is what’s affecting us.” Is it affecting MayCo? “Absolutely,” Mayer said. That includes both their rate of utilization, and the rates they charge. And this is in part as result of the reduced drilling activity.
North Dakota seems to be able to get its oil around. This photo was taken in May 2018, south of Williston. Since then, the state has added 200,000 bpd of oil production.
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PIPELINE NEWS October 2019
It all ends. No new pipelines, coal, oil or gas drilling will be approved by Greens By Brian Zinchuk Toronto – The Green Party of Canada platform for this federal election, if implemented, would devastate Canada’s oilpatch to the point of eventual annihilation– like the entire oilsands within 16 years. No drilling, no new pipelines, and fracking to be banned. “We are in a climate emergency and politics-as-usual is leading us down a path we simply cannot survive,” said Elizabeth May. “The Green Party is proposing a course change, and we are ready to take the lead.” Released on Sept. 16, the Green Party platform promises, “No new pipelines, or coal, oil or gas drilling or mining, including offshore wells, will be approved. Existing oil and gas operations will continue on a declining basis, with bitumen production phased out between 2030 and 2035. Hydraulic fracturing (fracking) operations will be banned outright due to impacts on groundwater
quality, methane release and seismic activity.” They would cancel the Trans Mountain Expansion Pipeline, instead spending the $10 to $13 billion cost to their “Canadian Grid Strategy.” This would involve implementing a national electrical grid, including connections between Manitoba and Ontario, and upgrading connections between New Brunswick and Nova Scotia. The Green Party promises to “Implement a major ramp-up of renewable electricity. By 2030, 100 per cent of Canada’s electricity will come from renewable sources. This includes getting remote and northern communities off diesel generators.” As for orphaned wells, the Green Party promises to “work with provincial governments to determine which orphaned oil and gas wells are geologically suited to produce geothermal energy. This will turn provincial liabilities into po-
tential income-generating renewable energy, ideally in partnership with First Nations. Those with weaker geothermal energy potential may be used in district energy, including for greenhouses.” That’s on the supply side of the energy equation. On the demand side, the platform promises to “Ban the sale of internal combustion engine passenger vehicles by 2030.” They will expand charging stations for electrical vehicles. Via Rail would be strengthened with regional rail networks and several 10-kilometre double tracks to “avoid bottlenecks where heavy freight pushes passenger rail to the siding.” High speed rail would be implemented in the Toronto-OntarioQuebec City triangle and from Calgary to Edmonton. All passenger ferries would be converted to electric or hybrid systems by 2030. Nitrogen fertilizer
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(generally made from natural gas) used in agriculture would be reduced. New construction of buildings would require net-zero emissions by 2030. The justification for all of this is given as such: “Since producing and burning fossil fuels is the largest source of emissions, we need to keep fossil fuels in the ground, and retool society to run on non-polluting, renewable energy sources. This is entirely possible, according to studies by the Stanford University researchers and the Deep
Decarbonization Pathways Project.” The Green Party calls it “Mission: Possible.” The platform press release states, “The climate crisis is the lens through which every policy envelope in the platform is viewed – the economy, health, education, foreign affairs, immigration, public safety, defence, social welfare, transportation. The policy framework is also designed to meet the linked challenges of reconciliation with Indigenous Peoples, climate stability, economic and social justice, and real de-
Alida’s Classic Vacuum Truck has shut down By Brian Zinchuk Alida – With their iron at auction and property for sale in Alida, Classic Vacuum Truck has shut down as of the end of July. “We’re going to retire,” said Randy McCannell, owner with his wife Tammy, on Sept. 3. The choice to do so was a combination of three or four things. “Trying to find men was a big
issue.” The Redvers property, which has an existing tenant, is being retained, but they’re putting up the Alida properties, with an office downtown, a house and two shops on an acreage to see if there are any takers. Randy and Tammy have a place in Brandon where they will end up eventually. The slow activity level in the oilpatch has been a
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big factor. “You have to go through the same steps, whether you have 23 guys working or three, and the cost is still there. “The big deal was trying to find good employees to run the trucks. We’ve always had good employees, but it just seems since oil turned down, its hard to find good people.” “The whole oil industry has been in the toilet ► Page A19
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PIPELINE NEWS October 2019
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23 units went to auction ◄ Page A18 for what, now four years? It’s a good little business. We offered it to some of our employees, but they didn’t want to risk it, either. I had seven in the end,” he said. With a federal election this fall, he said, “If that guy gets in down east, it ain’t going to end. It’s going to get worse.” They took 23 units to Regina for sale by McDougall Auctioneers via an online sale. This included vac trucks, a fire truck, rig shacks and other units. The closing date was Sept. 19. Asked about future plans, he said they’re going to spend some time at their place in Arizona. “I don’t know what we’re going to do. Maybe travel a bit, maybe see what else is out there for some other gig,” he said.
Tammy and Randy McCannell, as seen in this file photo from 2009, have shut down their business, Classic Vacuum Truck in Alida. They had built a new shop in Redvers (not the shop pictured) after winning a lot in a draw at 2008’s Redvers & District Oil Showcase.
This truck was all shined up for the Redvers Oil Showcase, back when times were good. File photo
All of Classic Vacuum Truck’s units have gone to auction. File photo
No one’s investing because of the pipeline issue Estevan – Export pipelines and investment are the top two issues for Brad Bennett, vice president of operations and a partner in Estevan-based Sun Country Well Servicing. Asked on Sept. 19 what are the issues facing the oilpatch in this federal election, he said, “The biggest issue is trying to get rid of our oil. The second biggest problem is we don’t have any investors that want to come into Saskatchewan anymore because we can’t get rid
of our oil. No one wants to invest in Saskatchewan, Alberta, or anywhere. “We need to export it at a decent dollar. In southeast Saskatchewan, we can get rid of our oil a lot better, but the biggest problem is nobody wants to come in and invest in Saskatchewan. On the federal side, we’ve pushed everybody out. We’ve scared everybody. We’re getting no pipelines. We’re going green. We’re getting rid of our coal. The carbon tax is not helping anyone, either. I haven’t added it
up, what the carbon tax is going to cost me at the end of the year, but I’m sure it’s going to be a substantial increase,” Bennett said. “That’s going to hurt the industry, too. We’re just barely trying to keep our doors open as we go through this downturn. This has been going on since 2014, so it’s the longest downturn we’ve ever had. We’re not getting any help from the federal government. Our provincial government can only do so much.” “I think what we need
to do is keep more of our money in Canada, helping Canada,” he said, noting we should be spending so much money on foreign aid around the world. “My biggest concern is we don’t have any investors left coming into Canada, into the oil industry.
CAREER
They’re all scared. You look at the U.S., and they’re just thriving. If Trump doesn’t get in, I don’t know, however.” North Dakota’s oil production dropped from 1.2 million barrels per day (bpd) in December 2014 to 942,000 in December
VOTE FOR US AND WE WILL: Build Pipelines Eliminate the Carbon
Tax 100% No Capital Gains Tax Only 15% Income Tax on first $100,000 earned Tundra Oil & Gas is a Manitoba-based oil and gas exploration and production company and a wholly-owned subsidiary of Winnipeg-based James Richardson & Sons, Limited. Tundra’s head office is in Winnipeg, with additional offices in Virden and Calgary. At Tundra, we believe that our people are the foundation of our success, and we are dedicated to growing our company in a sustainable and disciplined way. This philosophy has served us well since our inception in 1980. Today, Tundra is a team 300-strong, and a leader in the Manitoba and southeast Saskatchewan oil industry. We take pride in supporting the communities in which we operate and stewarding the resources we manage for today and for the future. We are committed to working together and to getting everyone home safe every day.
Facilities Engineer/Technologist Job Type: Permanent, Full-time Location: Estevan, SK This position’s objective is to provide support to ensure that all Tundra facilities are designed and installed in a safe, environmentally friendly, timely, and cost-efficient manner to maximize production and minimize operating costs. All facilities shall be designed and installed according to the applicable safety, labour, and engineering codes and standards. Qualifications: • Undergraduate Degree in Engineering or 2-year Technical Diploma • A minimum of 5 years of Facilities related experience is required. • Understanding of and ability to read and interpret engineering drawings – PFD, P&ID’s, Isometrics, plot plans, and surveys. • Is a strategic and proactive thinker. Thinks critically and acts logically to evaluate situations and generates required steps to ensure success. Closing Date: October 7th, 2019 We wish to thank all applicants for their interest, however, only those selected for further consideration will be contacted.
Phillip Zajac
Pension for Veterans End Open Borders Stand up for Freedom of
Expression
306-420-5777 • phillipzajac@gmail.com
Authorized by the Official Agent for Phillip Zajac
Kim Leipert
Ph: 306.825.5355 • Cell: 306.821.2880 Fax: 306.825.5356 www.heavyoilfieldtrucks.com peddlerconsignment@sasktel.net 2010 INTERNATIONAL 7500
$54,900 Stk# 250130
Air Ride Suspension; Tandem Axle; Standard Cab; White Color; Drive Side: Left Hand Drive; Diesel Fuel Type; 40,000 lb Rear Axle Weight; Front 315/65r22.5 Rear 11r22.5 Tires; 508 in Wheelbase; All Aluminum Wheels
2007 INTERNATIONAL PAYSTAR 5900
$89,900 Stk# 474827
C/w Dual s.s exhaust, Dual s.s. breathers, beacon lights, pindle hitch, espar heater, 2008, Advance 20 meter tank, TC-406 code, s/n 2AESTLA078E000124, hydraulic driven load pump in heated box, spray bar, Alberta safety.
C/w 2007 Advance 16 m3 tank, TC406-crude spec, no tank cert. Only hauled water, 4 top hatches, T&E Load pump, shaft driven, s/n 2AESTHB047S000142, rear spray bar, hoses, tool boxes, pindle hitch, ready to go to work.
2006 WESTERN STAR 4900SA
2009 KENWORTH T800
Stk# 941030
www.tundraoilandgas.com
Repeal Bills C71, C69, C48 Reinstate the Fair Disability
PEOPLE’S PARTY OF CANADA NEEDS YOUR VOTE!
$129,900
For full job details and to apply, please visit
2016, but is now 1.44 million bpd, as of July 2019, according to the North Dakota Department of Mineral Resources. He noted that only three oil companies are doing a significant amount of work in southeast Saskatchewan.
Call for Price Stk# 64640
C/w Dual s.s exhaust, dual s.s. breathers, beacon lights, 32,338 engine hours, wide track suspension, 2006 Custom Vac Systems 18 meter vac tank s/n 26220506, TC-406/412 code, three external rear valves, full opening rear door, Hibon blower system, tool boxes, Alberta Safety.
NEW LOCATION! Corner of Hwy. 16 & Upgrader Road, Lloydminster
A20
PIPELINE NEWS October 2019
Unreserved Public Real Estate & Equipment Auction
Glen Peterson Construction Ltd
Unreserved Public Auction – Complete Dispersal
Cara Dawn Transport
Retirement for Dave Wellings, plus equipment from other sellers
2 of 3– 2020 & 1 of 3– 2019 Kenworth T800
2013 Caterpillar 980H
1 of 2– 2019 Kenworth T800 & 2012 Cozad 80 Ton 16+16+16
2007 Mack MR688S w/Concord CCP-38XZ-170
2010 Caterpillar 140M VHP Plus
Property may be viewed without an appointment
2018 Doepker Impact 32 Ft
3 Parcels of Real Estate – 1.63± Title Acres w/Concrete Plant 2.69± Title Acres w/Shop & Office 140.9± Title Acres w/Rail Access 2014 Gerrys KLH405 75 Ton 3+3+3
SK/City of Estevan Parcel 1 – Lot 11 Blk/Par 84, Plan 92R50022, Lot 12 Blk/Par 84 Plan 92R50022, Lots 5-9 Blk/Par 84 Plan 92R50022 – 1.63± Title Acres
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6000± sq ft concrete plant & office, 4 silos, 100 ft conveyor, 3500± kg powder weigh batch, Win batch MPAQ C48-TB V8.6.6 automation, MPAQ computer program, air card in computer, Rice Lake digital weight indicators IQ plus 355, control panels, (2) hopper weigh batch discharge, (4) hopper holding bin, pneumatic air system, boiler system, graveled yard, full municipal services. Zoned “M1” Light Industrial, taxes $19,780.95.
1 of 2– 2012 Cozad 16+16+16
Parcel 2 – Lots 1-12 Blk/Par 101 Plan C3929, Blk/Par 101A Plan 3929 Ext 4, Blk/Par 101B Plan 101270898 Ext 6, Lots 2-5 Blk/Par 109 Plan C3929 – 2.69± Title Acres
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7200± sq ft shop & office, full municipal services, natural gas heat throughout (2017). Zoned “M1” Light Industrial, taxes $25,346.38.
1994 Peterbilt 379 & 2018 Cancade 17 Ft
SK/RM of Estevan No.005 Parcel 3 – SW-18-02-07-W2 – 140.9 Title Acres
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Rail line access, 2± acres of storage space with (2) 24 ft x 36 ft storage buildings & (1) 20 ft x 30 ft steel framed storage building, balance native grass, taxes TBC. 2015 John Deere 844K Series II
Estevan, SK
Regina, SK
October 31 (Thursday) 9 am For more information: Tyler Peterson – Contact 306.421.3474
Chad Caza – Ritchie Bros. Territory Manager – 306.514.8655 ccaza@ritchiebros.com Ritchie Bros. Real Estate – Broker – Ed Truelove –306.441.0525 etruelove@ritchiebros.com
Location
Parcel 1: 446 6 St, Estevan, SK Parcel 2: 314 6 St Estevan, SK Parcel 3: At the junction of Hwy 18 & Sawyer Road go South 3.5 km (2.17 miles). Property on East side. Brokerage: Ritchie Bros. Real Estate Services Ltd.
rbauction.com | 800.491.4494 Auction Company License #303043 & 309645
2015 Komatsu D155AX-7
October 18 (Friday) 10 am
1512 Fleet Street N, Regina, SK GPS: 50.503644; -104.547634
Equipment includes: 14 truck tractors, 4 winch trucks, 52 lowboy trailers, 23 flat deck trailers, 5 container trailers, 8 pickups, wheel loaders, dump trucks ...and much more!
Equipment Viewing: October 15 to 17
For more information: Mason Schick: 306.897.9900
Auction will be held at the Cara Dawn Transport yard:
mschick@ritchiebros.com