PNN AUGUST 2021 by Pipeline News North

PIPELINE The Pipeline News North

NEWS NORTH August 2021

Serving the Oil and Gas Industry in Northern B.C. and Alberta VOL. 13 • ISSUE 08 • DIST: 17,500

FREE

Feds announce $25,000 for Canol Pipeline history project history of the Canol Pipeline Project from an Indigenous perspective is a key part in reconciliation with Dene people,” Northern Affairs Minister Dan Vandal said in a statement. “This community-driven project will create further economic development opportunities, enhance tourism and ensure that future generations of Canadians, and all those that visit the region, can learn about the important role the Dene played in the construction of the Canol Pipeline Project and the history of the Canol Trail.” Today, a portion of the route and road used to build the pipeline has become a heritage trail and tourist attraction for wilderness hiking and nature enthusiasts. It was designated a national historic site in 1990, and the ministry says $26 million has been spent to restore the land since 2007.

Like the Alaska Highway, the pipeline was built in the early 1940s as the U.S. and Canada worked to shore up defences along the west coast and Alaska, and provide critical supplies such as oil to the region. The pipeline was built in just 22 months, connecting Norman Wells, NWT, to a refinery in Whitehorse, Yukon, with more pipeline laid to Fairbanks, Watson Lake, Skagway, and

Haines. The pipeline was abandoned a year after its completion in 1944 as the war ended, and was later the subject of much criticism for its $134-million price tag. In a release, the ministry for Northern Affairs called the pipeline’s construction an engineering feat across “some of the most inhospitable terrain in the world.” The “critical” wartime project enlisted tens of thousands of construction workers and many local aboriginal workers, particularly the Sahtu Dene people, though little has been written about the role they played in its development, the ministry said. “This effort to document and share the

“Dene men and women who provided knowledge of the land were critical to Canadian and US war efforts. There has been extraordinarily little written about the critical role of the Dene in all phases of its development and this funding is the seed to tell these Dene stories and develop a monument in their honour.” Email Managing Editor Matt Preprost at editor@ahnfsj.ca

Flyer/Insert Distribution Rates as low as

50/1000

WE DO IT ALL!

Flyer/Insert Distribution, Print & Online Advertising Can furnish you with all your advertising needs. Call us for a free no obligation consultation.

Contact Janis or Nicole 250-782-4888

FLYERS

The federal government announced $25,000 in funding on Thursday to help preserve and document the role aboriginal people played in the building of the historic Canol Pipeline during the Second World War.

“The Dene Nation extends our highest respect to the Dene men and women who worked on the Canol Trail WWII efforts. The traditional knowledge of these brave Dene can finally be recognized through this partnership funding,” said Dene National Chief Norman Yakeleya in a statement.

The Pipeline News North 2 AUGUST 19, 2021

Nisga’a, LNG developers file project description A partnership between the Nisga’a Lisms Government, Rockies LNG and Houston-based Western LNG have filed a project description with provincial and federal environmental regulators for a proposed new floating LNG terminal at the end of Pearse Island.

“This is why, for close to a decade, our nation has worked to attract a world-leading LNG project to our treaty lands, and why we are proud to commence the formal regulatory process for our project, Ksi Lisims LNG,” said.

natural gas producers that have been looking for a West Coast LNG project to invest in to provide them with a new market for their natural gas. They include Advantage Energy Ltd., ARC Resources Ltd., Birchcliff Energy Ltd., Bonavista Energy Corp.; NuVista Energy Ltd., Paramount Resources Ltd., and Peyto Exploration and Development Corp. Western LNG is a Houston-based LNG terminal developer. The proposed project would be a floating LNG terminal located on Nisga’a land on the northern tip of Pearse Island, in the Portland Canal north of Prince Rupert. It would have an annual capacity of 12 million tonnes per year, which is similar in production capacity to the LNG Canada project.

Rockies LNG is a consortium of Alberta

The news release does not identify the

“Attracting an economic base to the Nass Valley has long been a priority for the Nisga’a Nation,” Nisga’a Nation President Eva Clayton said in a news release.

project’s capital cost, although the project description filed with the BC Environmental Assessment Office says the companies would invest $45 billion just in the upstream to produce the natural gas needed to supply the plant over its lifetime. The company’s timeline for completion and commissioning is late 2027 or 2028. The partnership says there are two possible pipelines that could feed the plant: the TC Energy Prince Rupert Gas Transmission pipeline or the Enbridge Westcoast Connector Gas Transmission. Both are permitted, but would still need to be built. — Business in Vancouver

FORT ST JOHN

PETROLEUM ASSOCIATION FSJPA/

fsjpa.wildapricot.org

Become a Member

The Fort St. John Petroleum Association is actively seeking new members. The purposes of the society Fort St John Petroleum Association are: • To create a nonprofit fraternal organization for educational, benevolent and social purposes. • To create a medium through which the society members may express themselves in Social activities, Educational pursuits and Athletic endeavors. • To contribute to the community in supporting worthwhile projects as decided upon from time to time by the society. • To provide entertainment that is enjoyable, instructive and beneficial to its members and families. • To encourage a spirit of good fellowship among the society members.

Contact us: Unless otherwise specified all regular meetings are held upstairs at the Fort St. John Curling Rink at 6:00 pm on the second Thursday of the month. Fort St. John Curling Rink 9504 96 St, Fort St John, BC Mailing Address:

Fort St. John Petroleum Association Box 6122, Fort St. John BC V1J 4H6

The Pipeline News North

AUGUST 19, 2021

Trans Mountain pipeline hits a major milestone Twinning a 1,150-kilometre long pipeline is no mean feat of engineering, especially considering that the last 2.6 kilometres pipe has to be threaded through a mountain. The $12.6 billion Trans Mountain pipeline twinning project is one of four major energyrelated construction projects underway in B.C. It will add a second pipeline to the existing one, which runs from Edmonton to Burnaby, increasing its capacity to 890,000 barrels per day from 300,000. A total of 13,000 people have been hired since construction started. At the end of May, the project alone accounted for 9,000

workers in Alberta and B.C. About 1,900 are concentrated in the Lower Mainland, with much of that manpower focused on expansions of the Burnaby tank farm and Westridge Marine Terminal. “The terminals are really some of the big meat of the work,” said Trans Mountain Corp. manager of communications Ali Hounsell in a recent progress update. “Overall, we’re at just over 30% complete on the project, and that’s as of mid-June. We have 182 kilometres of pipe in the ground. The completion rate really varies spread by spread.”

into nine sections or “spreads.” Spread 1 out of Edmonton is 94% complete, whereas work on the Fraser Valley – Spread 6 – hasn’t even started yet, as the company is still waiting for the Canadian Energy Regulator to issue permits from detailed route hearings. Much of the work is being done by Canadian contractors, although there are a few points along the pipeline’s route that pose some engineering, geotechnical and construction challenges that require expertise not found in Canada.

The pipeline twinning project is broken

METAL ROOFING & SIDING

ARDENT ENERGY H-65R & F-101R THERMOSTATICALLY CONTROLLED WOOD STOVES

METAL ROOFING & SIDING NOW DOING RE-ROOFS AND NEW INSTALLS NOW DOING RE-ROOFS AND NEW INSTALLS

LOAD THEM UP WITH WOOD, SET THE THERMOSTAT AND RELAX

AGRICULTURAL - INDUSTRIAL - RESIDENTIAL

• Up to 100,000 BTU/Hour Output • Stand-Alone or Forced-Air Furnace • Optional Water Coil Allows You to Heat Your Domestic Water Lines

AGRICULTURAL - INDUSTRIAL - RESIDENTIAL

H-65R

F-101R

Mon – Fri: 9am to 6pm • Sat: 9am to 5pm

780-538-1987 • www.gasfireplace.net

210042

11111 – 100th Street, Grande Prairie, AB

FACTORY DIRECT! FACTORY DIRECT! 11 Profiles - 32+ colours

11 Profiles - 32+ colours

Call CallJoseph Joseph250-794-6618 250-794-6618

PLEASE RECYCLE THIS NEWSPAPER. With your help dignity is within reach for all. Support Local Charities for the less fortunate in our community!

AURORA

a manufacturer of:

STEEL & TRIM

1-877-8METAL2

jwalter@aurorast.com

Visit our website www.versaframe.ca

The Pipeline News North 4 AUGUST 19, 2021

PNN

LNG Canada, TC Energy in a dispute over pipeline’s escalating cost

MISSION STATEMENT Pipeline News North provides current, interesting, and relevant news and information about the oil and gas industry in Northeast B.C. and Northwest Alberta. Have an interesting story to share or a news lead? Email us at editor@ahnfsj.ca.

WILLIAM JULIAN REGIONAL MANAGER 250-785-5631 wj@ahnfsj.ca

As the LNG Canada project enters its third year of construction, the consortium behind it recently noted some key milestones that have been reached. But while construction of the LNG terminal itself in Kitimat continues apace, the related Coastal GasLink project that will supply it with natural gas is running into both delays and escalating costs. JANIS KMET ADVERTISING CONSULTANT DAWSON CREEK 250-782-4888 EXT 101 C: 250-219-0369 jkmet@dcdn.ca

ROB BROWN MANAGING EDITOR DAWSON CREEK 250-782-4888 ext 112 C: 403-501-1492 editor@dcdn.ca

RYAN WALLACE ADVERTISING MANAGER FORT ST. JOHN 250-785-5631 C: 250-261-1143 rwallace@ahnfsj.ca

MATT PREPROST MANAGING EDITOR FORT ST JOHN 250-785-5631 C: 250-271-0724 editor@ahnfsj.ca

www.pipelinenewsnorth.ca BILLING: Lisa Smith - Accounting Manager 250-960-2771 Fax: 250-960-2762 accounting@ pipelinenewsnorth.ca

TC Energy, which is responsible for building the pipeline, recently warned that it may suspend construction activity, if it can’t resolve a dispute it is having with LNG Canada over the project’s escalating costs. In a recent project update, LNG Canada CEO Peter Zebedee said the consortium had awarded more than $3.2 billion in contracts and procurement, of which $2.6 billion has been awarded to local and First Nation-owned businesses and contractors. More than 4,000 workers are employed at the terminal site in Kitimat, and in recent weeks the project took delivery of some of its first major components: a 345-tonne, 50-metre long cryogenic heat exchanger (MCHE), and two precooler units, each weighing 300 tonnes each.

This summer another milestone will be reached when it caps a massive LNG storage tank with a 1,600-tonne roof. Zebedee noted the only major hitch in the multi-billion dollar project was the Coastal GasLink pipeline, which will bring natural gas 670 kilometres from northeastern B.C. to Kitimat. In terms of construction, the CGL project is about 29% complete. TC Energy has warned that a reduction in the project’s workforce between December 2020 and April 2021, due to the pandemic and subsequent public health orders, has put the project behind schedule and is escalating its estimated cost of

completion. When TC Energy was contracted to build the pipeline, the estimated cost was $6.2 billion. In 2019, TC Energy announced a $400 million hike to the final cost, which would bring it to $6.6 billion, due to higher than expected costs of additional metering stations, rock removal and water crossings. That number is now likely to go up again “significantly,” although TC Energy has yet not put a number to the increase. “As a result of scope changes, permit delays and the impacts from COVID-19, including the provincial health order, we continue to expect project costs to increase significantly along with a delay to project completion compared to the original project cost and schedule,” the company said in a recent quarterly report to shareholders. “We remain concerned that TC Energy has proposed significant increased cost estimates to complete the pipeline, over and above the agreed cost when we took our final investment decision,” Zebedee said. “They’ve also said they will need more time to complete the work.” TC Energy has suggested the increased costs should be covered through increased toll charges to the LNG Canada partners – Shell, Petronas, KOGAS, PetroChina and Mitsubishi. It’s clear LNG Canada isn’t happy with that proposal. “Coastal GasLink is in dispute with LNG Canada with respect to the recognition of certain costs and the impacts on schedule,” TC Energy said in its recent quarterly report. “If a resolution is not reached in the near term, Coastal GasLink may be required to suspend certain key construction activities but would continue with work required for safety reasons and compliance with regulatory requirements.” — Business in Vancouver

The Pipeline News North

AUGUST 19, 2021

Pembina Pipeline partners with Haisla on Cedar LNG

Canada a leader in carbon capture Canada has emerged as a global leader in carbon capture and storage, both in technology development and in public and private investments in large-scale projects, according to a new report by Wood Mackenzie. The report came out one day after the Canadian minister of Innovation, Science and Industry announced a $25 million investment in Svante, a Burnaby company that has emerged as a leading point-source carbon capture technology company. B.C. is also home to Carbon Engineering, which is in the direct air capture space. But it’s not just technology that Canada is leading in – it’s also leading in terms of investments in major carbon capture utilization and storage (CCUS) projects. The report credits the Canadian government for providing incentives, both through carbon pricing and direct subsidies for major CCUS projects, like the Alberta Carbon Trunk pipeline. “Although Canada accounts for only 1.9% of the global CO2 emissions, the country holds 14% of the global operating CCUS capacity,” the report notes.

“Publicly announced projects could reach FID (final investment decisions) to significantly increase the CCUS capacity by the end of this decade, highlighting the importance of the learnings from these early stage, innovative CCUS projects.” All of the major investments in carbon capture in Canada to date have been in Alberta and Saskatchewan, which is not surprising given Alberta’s large oil and gas resources and Saskatchewan’s use of coal power. CCUS allows these industries to continue to produce power from coal

or produce petroleum products while sequestering much of the CO2 emissions. Major carbon capture projects already in operation in Canada include: Boundary Dam coal power plant in Saskatchewan Shell’s Quest CCS at Scotford upgrader in Alberta Sturgeon refinery CCS, Alberta The Alberta Carbon Trunk pipeline The latter is the world’s largest dedicated CO2 pipeline, the report notes, which could facilitate multiple CCUS projects being built in Alberta. At full utilization, it has a capacity to transport more than 14 million tonnes of CO2 annually, the Wood Mackenzie report notes. To date, about 9 million tonnes of CO2 have been captured by the Boundary Dam and Quest projects alone. The report notes that there are currently 13 other publicly announced CCUS projects in Canada. “If all proposed projects come online, Canada will increase its total CCUS capacity by over 500% to 115 (million tonnes per annum).” CO2 captured from coal power plants, oil refineries, cement plants, hydrogen production and other high emitting industries can be used in enhanced oil recovery (with most of the CO2 remaining sequestered), used as a chemical base for a number of products (strengthening cement, for example) or pure geological sequestration. — Business in Vancouver

Pembina Pipeline Corp. appears to be going all-in on indigenous owned major energy projects, including the Trans Mountain Pipeline project and an LNG terminal in Kitimat being developed by the Haisla First Nation. Pembina announced Tuesday it has entered a partnership agreement with the Haisla on its Cedar LNG proposal, a small floating LNG terminal that would be built on Haisla land. And though it has made no formal announcement on TMX, the company is reported to be also considering a partnership with an indigenous consortium that wants to buy the Trans Mountain pipeline project. The company announced it has formally entered a partnership agreement with the Haisla to develop Cedar LNG. “Pembina’s long history of safe, reliable operations, and engagement with local communities made them the distinct choice for Cedar LNG,” Haisla Chief Crystal Smith said in a news release. “With a strong partnership, Cedar LNG will bring tremendous economic opportunities and benefits ensuring the Haisla people have control of our own future.” “Cedar LNG will be the largest First Nation-owned infrastructure project in Canada and will have one of the cleanest environmental profiles in the world,” Pembina CEO Mick Dilger said. The announcement is good news for Kitimat and the Haisla, which recently saw another major LNG project that had been proposed there evaportate, when Chevron and its partner, Woodside Energy, announced they were abandoning the Kitimat LNG project. The Haisla have an agreement -- negotiated when the Canada LNG project was proposed -- to source natural gas from the Coastal GasLink pipeline to supply Cedar LNG. The Cedar LNG project has an estimated capital cost of $3 billion. A final investment decision is not expected until 2023, according to Pembina. Pembina makes no mention in its press releases of the Trans Mountain acquisition plan, but the Globe and Mail reports that Pembina has confirmed it plans to partner with the Western Indigenous Pipeline Group (WIPG), which wants to buy the Trans Mountain pipeline, presumably after the $12.6 billion twinning project is complete. It is one of two indigenous groups that have said they want to buy the Trans Mountain pipeline. The other is Project Reconciliation.

6 AUGUST The Pipeline News North 19, 2021

CAOEC calls Federal “Just Transition” legislation proposal unclear n response to NRCAN’s announcement recently (“Canada Launches Just Transition Engagement”) the Canadian Association of Energy Contractors is seeking clarification on how the federal government defines “Just Transition” and why legislation may be required to support it. With respect to building a clean energy future, Canada’s energy industry has made it abundantly clear it supports this initiative, and has decades of innovation and a track record of success that demonstrates its commitment.

“Our industry continues to be the largest investor in environmental technology and protection in the country,” explains CAOEC President & CEO Mark A. Scholz. “Our commitment to lowering emissions and producing the cleanest forms of energy in the world are there for all to see, including the federal government, who have partnered with us on many of these initiatives.” Given the Canadian energy industry’s willingness and proven record of lowering emissions, and the strong global demand for responsible oil and gas, it is difficult to

Get out in front of local customers and thousands of eyes! We can work within your budget...

understand in what context legislation would be needed, or how transitioning to lower emissions would leave anyone behind. “Our record clearly shows we support working towards cleaner forms of energy, and energy production. Given our alignment on these issues, we would ask the federal government to more clearly define their intentions for our industry if they are different than partnering with us as we lead the world in providing best-in-class, affordable energy, including oil and gas,” says Scholz.

Call 250-782-4888 and let’s get started!

DawsonCreekMirror.ca

The Pipeline News North

AUGUST 19, 2021 7

The 101 on drilling rigs. All you need to know.

Canada’s drilling fleet is always changing to incorporate new technology and meet market demand. Most noticeably, the Canadian drilling fleet is growing in numbers. The fleet has 40% more rigs than it did 15 years ago. Today, the rig fleet offers just over 600 rigs. For the most part, a rig is a rig is a rig. For example, all rigs have a derrick (the mast-like structure that holds the pipe to be lowered into the well bore) a catwalk that holds the drill pipe, a rig floor where floorhands handle the drill pipe, a drawworks which is the machinery that hoists and lowers pipe and a blowout preventor that enables a driller to control well pressure. But different size rigs are used depending on the drilling target formation. Oil formations tend to be deeper than gas formations. When investors are most interested in producing oil, large rigs are in high demand. When the market prefers gas production, small rigs are in demand. Western Canada has plenty of both gas and oil, and activity cycles back and forth between preferences of one over the other. Drilling rigs come in three sizes: singles, doubles and triples. These categories refer to how many lengths of pipe can stand in the rig’s derrick. On a single, the derrick holds one length of pipe. A double holds two, and a triple holds three. A tall derrick isn’t necessary to drill deeper. If more pipe is needed to drill deeper, a single section of pipe is hoisted to the rig floor and added to the drill string. But sometimes the

entire drill string needs to be pulled out of the hole (to change the drill bit, for instance). A derrick that holds multiple lengths of pipe comes in handy and helps the crew to complete this evolution quickly. A crew working on a triple is able to pull three lengths of pipe out of the hole before unscrewing the pipe. The Derrickman, working from the monkeyboard, sets the ‘stand’ of pipe in the derrick. Then the crew pulls up the next three joints of pipe. This evolution is called ‘tripping’. The larger derrick is efficient to drill deep wells but isn’t necessary for shallow wells. Single rigs drill wells that are around 1 to 2 kilometres deep. These wells usually access gas basins. Single rigs and their crews change drilling locations often, sometimes every day or every other day. Doubles and triples are larger rigs with bigger substructures and taller derricks. These rigs drill between 3 and 6 kilometres into the earth and might be at the same location for several months to complete deep drilling operations. Singles, doubles and triples refer to conventional rig categories. Additional new categories of rigs have introduced different ways of handling pipe. For instance, some companies run coil-tubing rigs that stream tubing from a large reel instead of using drill pipe, or automated drilling rigs that are outfitted with a pipe-handling arm that raises the pipe into the derrick, eliminating the need for a derrickhand to work from the

monkeyboard. Through the 1990s, rig activity focused evenly on the two commodities. Then in 1998, there was a shift: gas wells began to make up the bulk of drilling activity. Through the early 2000s, rig activity increased year over year, but gas wells—which are shallower and can be drilled faster—far outstripped the increase in oil wells. Between 2001 and 2006, oil wells made up about 25% of rig activity, and gas wells 75%. The drilling industry reacted to this demand by expanding the fleet. In 2007, the rig fleet grew faster than it ever it had before: 49 rigs were added. Most of these new rigs were the smaller ones best suited for gas drilling. Then in 2008, natural gas was on the market in abundance, and the stock market price of natural gas started to fall. Investors pulled back on gas drilling. In 2010, industry was back to an even split between gas wells and oil wells. And then the turn-around happened: oil drilling overtook gas drilling in western Canada. In 2011, 61% of the wells drilled were seeking an oil formation, versus the 39% seeking gas. Today’s market continues to favour large rigs that can reach deep oil formations. There also is increased interest in accessing these formations at an angle: rig crews drill a well bore that curves toward a drilling target. Drilling rig contractors have been adding equipment in 2013. Unlike 2007’s fleet expansion, these rigs will be the larger, heavier rigs, primed for oil drilling.

8 AUGUST The Pipeline News North 19, 2021

Service rigs. Different than drilling rigs

Service rigs in Canada, and the crews that operate them, are sought after around the globe. CAOEC Service Rig members have operated their equipment from Australia to Russia and everywhere in between. The Western Canadian Sedimentary Basin (WCSB) is one of the most challenging basins to produce hydrocarbons, and the rigs and people developed working in the WCSB have experience that is second to none. Service rigs are much smaller than drilling rigs and they are fully mobile. Where a drilling rig requires trucks to move its various pieces, a service rig’s equiment is on wheels, and can be driven from location to location. Mobility is required because unlike drilling rigs that, once situated, can spend months in the same location, service rigs will move often (sometimes daily) to new jobs on different well sites. Combined, CAOEC Service Members operate over 900 rigs in Canada. The demand

for service rigs is generally different than for drilling rigs, and is not as direclty impacted by the price of oil or natural gas. Work on existing wells can be more economical when commodity prices are lower because operating costs are not as high, and returns are often more predictable. This means service rigs may still be busy when producers aren’t otherwise looking to drill new wells. From turning exploratory wells into producing wells, to shutting wells in (temporarily halting well production), to repairing wells as required, to abandoning wells (permanently and safely closing the well) service rigs are used to perform a variety of different services and will often return to the same well site many times. The service rig unit carries the mast structure (otherwise known as the derrick) and the rig floor. When a rig is working downhole, the unit is secured with its derrick sitting over top of the well bore.

Like drilling rigs, service rigs also come in different sizes. A typical rig is close to 20 meters long with the board. With the board and derrick laid over, it is just over four meters high. The laid-over derrick can hang out anywhere from one to eight meters beyond the cab. When loaded up and ready to move a typical rig can weigh up to 50,000 kilograms and is close to 20 meters long (with the laidover derrick extending anywhere from 1 to 8 meters beyond the cab) and 4 meters high. Additionally, service rigs work on both oil and natural gas wells, and must adjust their procedures accordingly. These must rigs keep pace with all of the market driven changes in activity, and as such have made technological adjustments along the way. Service rigs, however, don’t vary as greatly as drilling rigs, and many of the anciliary well services are handled by purpose-built, specialty equipment such as coil tubing or fracking units.

Ads work.

You just read one.

The Pipeline News North

AUGUST 19, 2021 9

Canada’s oil and natural gas industry demonstrates transparency and performance with report on emissions, says CAPP The Canadian Association of Petroleum Producers (CAPP) released a new report titled, Canada’s Natural Gas and Oil Emissions: Ongoing Reductions, Demonstrable Improvement. The report, which lays out the means to a lower-carbon future through innovation and new technology and illustrates the industry’s proven track record of lowering emissions-intensity, is the first in a series of planned Environment, Social and Governance (ESG) disclosures. Highlights of the report: From 2011 to 2019 combined natural gas, condensate and natural gas liquids production increased 32 per cent while emissions intensity in this sector decreased by 33 per cent. As a result of Canada’s flaring conservation practices, this country ranks among the lowest-emission natural gas producers globally. While production from Oil Sands In Situ facilities grew by 66 per cent from 2013 to 2019, emissions intensity dropped by 8 per cent. From 2013 to 2019 oil sands mining production increased 59 per cent as emissions intensity decreased by 14 per cent. Canada’s offshore industry produces some of the world’s lowest emission oil. The industry has a broad portfolio of innovative solutions to deliver emissions reductions; technological advances that are not just aspirational, but are making a difference now and continue to be developed to improve performance in the future. Some examples of these technologies are discussed in the report and include: Methane Reduction – Industry is working to reduce methane emissions to meet Canada’s goal of a 45 per cent reduction from 2012 levels by 2025. Among the world’s top 10 petroleum exporters, Canada alone has a methane reduction target. Industry is working with the Alberta government on the Alberta Methane Field Challenge which is testing new methane detection technologies including sensors on drones and trucks. Carbon Capture, Utilization and Storage – Facilities are already showing how CO2 can be captured and stored or used in the production process, keeping millions of tonnes of CO2 out of the atmosphere. Cogeneration – Upstream producers can use waste heat to generate electricity. In the oil sands, excess electricity not used for plant operations is sold to Alberta’s power grid. Cogeneration supplies about 34 per cent of the province’s electricity Supplying affordable, reliable and cleaner energy to a growing global population is the goal of Canada’s upstream energy industry. Advancing greenhouse gas (GHG) emissions reduction is critical to realizing the vision for Canada to be a global supplier of choice with lower-carbon natural gas and oil.

Canada’s Natural Gas and Oil Emissions: Ongoing Reductions, Demonstrable Improvement, is the first report in a planned series of ESG disclosures from CAPP members which is expected to include Indigenous Engagement; Diversity and Inclusion; Air, Land and Water; Research and Innovation as well as Process and Personal Safety. The entire report on emissions can be downloaded from the CAPP website, as well as the methodology. CAPP quotes Ben Brunnen – Vice President Oil Sands, Fiscal & Economic Policy: “Canada’s natural gas and oil industry has a track record of being one of the most transparent around the world. This report raises the bar even higher, positioning the industry as a leader in voluntarily reporting the collective emissions performance of our industry, and should be a challenge for other jurisdictions to do the same.” “The international comparable data shows Canada is a good performer when it comes to emissions intensity but also that we’re continuously getting better. The key to our future will be the ability of our industry to quickly advance new technologies to continue reducing GHG intensity, keeping Canada a global supplier of choice.” “The energy sector is working with government, regulators, and stakeholders to explore the most efficient pathways to reducing emissions. The oil and gas industry is active across the country through direct exploration and production and a multibillion dollar supply chain. Leveraging our leadership in ESG performance and innovation can strengthen the industry and the whole Canadian economy.” “Canada’s energy sector has made tremendous progress reducing GHGs and that continues through significant investment in the clean tech sector and knowledge sharing across the industry. Canadian producers of natural gas and oil are important for providing a stable global energy supply and are

committed to finding efficient and effective pathways to a lower-carbon future.” Supporting information: In 2019, exported oil, natural gas and petroleum products earned $112.6 billion – Canada’s top export by value. Canada produces about 1.5 per cent of the world’s GHG emissions. Canada’s natural gas and oil industry produces about 0.3 per cent of overall global GHG emissions. In its 2020 Stated Policies Scenario, the International Energy Agency (IEA) projects global oil demand will increase 6 per cent by 2040, reaching 104 million barrels per day while natural gas demand is expected to increase by 30 per cent to 5,221 billion cubic metres over the same period. By 2040 the IEA expects oil and natural gas will provide 53 per cent of global energy demand. There is growing demand for Canadian heavy oil. The IEA projects heavy oil and bitumen demand will grow 21 per cent by 2040 and Canada will be needed to supply approximately 79 per cent of that total. The IEA’s World Energy Outlook 2020, recognizes Canada as a leader in climate action. The Canadian Association of Petroleum Producers (CAPP) represents companies, large and small, that explore for, develop and produce natural gas and oil throughout Canada. CAPP’s member companies produce about 80 per cent of Canada’s natural gas and oil. CAPP’s associate members provide a wide range of services that support the upstream oil and natural gas industry. Together CAPP’s members and associate members are an important part of a national industry with revenues from oil and natural gas production of about $116 billion a year. CAPP’s mission, on behalf of the Canadian upstream oil and natural gas industry, is to advocate for and enable economic competitiveness and safe, environmentally and socially responsible performance.

Playing hide-and-seek is fun but…

in business,

BEING FOUND FIRST

is what makes you a winner! Advertise with us

AND BE SEEN EVERY TIME! Janis Kmet | jkmet@dcdn.ca 250-782-4888 ext 104 | DawsonCreekMirror.ca

10 AUGUST The Pipeline News North 19, 2021

Cook’s corner

Black Gold; Texas Tea

Yesterday, we called it black gold, Texas tea, and watched as it became the road to riches for all the Jed Clampetts of the world. Today, and for many, it is now called carbon pollution, a fossilized dinosaur, and a means to end the world as we know it, yet it is still the road to riches and the cornerstone for most of the world’s economy. TransCanada ended its pursuit of the Keystone XL Pipeline. EXXON shareholders voted two “activist” crusaders to their Board of Directors in hopes of changing public opinion. A Netherland court ordered Shell Oil to reduce its carbon footprint and invest in something else.

Baked Peppers With Rice Stuffing Serves 6

3 tablespoons olive oil 1 large chicken breast, diced 5 ounces lean pork, diced 4 ounces ham or smoked bacon, diced 7 ounces short-grain rice 2 garlic cloves, finely chopped 2 pounds ripe tomatoes, skinned, seeded and chopped 1 green bell pepper, finely chopped 3 tablespoons corn kernels 2 teaspoons paprika Pinch powdered saffron Salt and freshly ground black pepper 6 tablespoons chopped fresh parsley 6 large red bell peppers Heat the oil in a large saucepan and fry the chicken, pork and ham or bacon until colored on all sides. Take the pan off the heat and reserve. Meanwhile, cook the rice in plenty of boiling salted water until done — usually about 15 minutes, but follow the instructions on the package. Drain and reserve the rice. Add the garlic, chopped tomatoes, green bell pepper, corn kernels, paprika, saffron, salt and pepper, and parsley to the pan containing the meat. Let the sauce simmer and reduce the volume of liquid by about half. Stir the rice into the sauce. Oil a deep ovenproof dish big enough to take all the peppers. Cut off “lids” at the stalk ends of the peppers and remove the seeds. Stuff them with the meat and rice mixture and replace the lids. Tuck the peppers into the dish, cover with foil, and bake at 325 F for 11⁄4 hours. PC217106

Norway Sovereign Wealth Fund divested its interests in oil producers. Insurance company declined to reinsure pipelines. Endless protests block new pipeline construction. Protesters demanded B.C. be net zero carbon emissions by 2025. Vancouver City Council is looking to charge a parking tax of $1000/ year per gas guzzling vehicle. Premier Horgan said every new vehicle sold in B.C. in 2040 will be zero emissions. Five major oilsands producers said net-zero greenhouse gas emissions by 2050. The list keeps going, but where are we headed? Is oil really going the way of the dodo bird? Will we truly be electrified by 2030 or 2040 or 2050? Can we be net zero by 2025? Climate change activists and fossil fuel deniers would like you to believe that the end is near. They would also like you to believe that we can do without the energy a barrel of oil currently provides. Much was written about the demise of the internal combustion engine during the past two years of pandemic ponderings. Oil prices plunged as we were all ordered to stay home and quit moving about. And with that, all that time at home came the steady barrage of mindless social media postings predicting oil’s demise in a few short years as its use fell off the cliff. But, with the pandemic now ending, what is happening? The International Energy Agency (IEA) predicts that by the end of 2022 we will be using more oil than ever before and will surpass 100 million barrels per day for the first time. 2021 will see the sharpest rise ever in oil consumption. They also predict that there could be temporary oil shortages due to supply and delivery constraints. Others predict we will travel more than we ever did before. Which is it? Will oil be gone as our primary source of energy before Trudeau can say “election” or is it here to stay until Greta grows up and gets selected to lead the EU? Who has got this right? Do we really need oil? Big business says we must keep plodding along and we will get to net zero by 2050?

250-843-7885

Our brilliant politicians say different. They say we can flip the switch to off by legislating net zero by 2025 or 30, or you pick a year. Trudeau says his carbon tax will be net zero financially to us

The Pipeline News North

continued from previous

AUGUST 19, 2021 11

Black Gold / Texas Tea

Canadians, and for many, a positive source of income. Alas here in B.C., Premier John says not so fast. B.C. is not going that way. His carbon tax will not be used to help his citizens pay for more expensive energy. He will use our taxes to fund more hotels for homeless, more to pay for higher contract costs that subsidize union workers in government-issued infrastructure contracts, and much, much more in paying for the thousands of newly created government workers. Some say we do not have enough lithium, graphite, cadmium to supply the electric vehicle market. Others say we aren’t developing new copper mines fast enough. Some just pray that technology will keep up and provide what we need, when we need it. What is real? One of these days we will wake up and smell the proverbial roses and begin to read the fine print of all these promises.

keep up to world oil demand, maybe not here initially, but they will be built — somewhere. “Activist” directors on major energy companies will vote keep their oil-based programs profitable while they too work on net-zero solutions. Yes, we Canadians will keep paying more and more for our energy, until it reaches the point where Canada is non-competitive on the world scale, after which we will begin replacing our governments with the direction to lead us down another path. Shell Oil won’t stop producing oil because of one judge, but if required, they will just stop selling it in the Netherlands. The Norway fund is keeping its investments in refineries while they tell the world how great their Environmental, Social, and Governmental (ESG) platform is. Pipelines will still find insurance companies to do business with as insurance companies will go to where the money is. Net zero by 2025 will be another long-lost slogan by next year. Vancouver taxpayers will wake up and realize that $1000 to park a

car is not an incentive, but a political penalty for living in utopia. Horgan will be long gone before he can penalize the rest of B.C. with his 2040 promise. And surprise, surprise, the most likely of all these promises to exceed is… oilsands producers net zero by 2050. They too understand that times are changing, that we must change, but to turn this ship around and make the worldwide changes needed, that will take time. Just like new battery technology, they too will rely on new technologies to make the changes. And unlike our politicians who think in election cycles, their projections will be based on reasonable implementation periods. Until then, there will still be the steady increase and use of non-combustion vehicles, where it makes sense, more recycling of plastics into useful products, and more mines that provide the minerals required for this all, etc., etc., and etc. Evan Saugstad lives and writes in Fort St. John.

PIPELINE

New pipelines will be proposed and built to

SERVING THE OIL & GAS INDUSTRY IN NORTHERN B.C.

NEWS NORTH

2021 SCHEDULE PUBLICATION DATE

BOOKING DEADLINE

AD COPY DEADLINE

21 JANUARY 2021

15 JANUARY 2021

18 FEBRUARY 2021

11 FEBRUARY 2021

18 MARCH 2021

12 MARCH 2021

15 APRIL 2021

9 APRIL 2021

20 MAY 2021

14 MAY 2021

17 JUNE 2021

11 JUNE 2021

15 JULY 2021

9 JULY 2021

19 AUGUST 2021

13 AUGUST 2021

16 SEPTEMBER 2021

10 SEPTEMBER 2021

21 OCTOBER 2021

15 OCTOBER 2021

18 NOVEMBER 2021

12 NOVEMBER 2021

16 DECEMBER 2021

10 DECEMBER 2021

ADVERTISING RATES

(colour included)

Full Page: Half Page: Quarter Page: Front Banner: Pipeliner:

$1000 $700 $400 $600 $100

E ELIN PEIP ORTH WS N

Legal/Career Rate: $2.82/Line

Contact Us: Ryan Wallace 250-785-5631 rwallace@ahnfsj.ca Nicole Palfy 250-782-4888 npalfy@dcdn.ca PRINT & ONLINE EXPOSURE

ER 2020 NOVEMB • DIST: 11,600

VOL. 12

11 • ISSUE

rth.ca

linenewsno

pipe

Servin

d Gas Oil an g the

o ry in N Indust

FREE

CAPP | PAG

ert nd Alb B.C. a rthern

nounces CAODC an of its e the releas g forecast in 2021 drill release of its 2021

ces the announ CAODC . Forecast increase Drilling 3,771 – an ls drilled: 2021 wel Projected 0 (3,296*) 202 – an of 475 from s: 33,938 rating day *) 2021 ope 0 (29,664 Projected from 202 4 4,27 of (505 increase e by 27 decreas to d t expecte ling rigs) Rig flee dril rigs to 478 ease of drilling 50, an incr d = 18,5 expecte Total jobs r year ove r 2,349 yea + actual t levels *forecas 0 activity along start, 202 end of Q1 ID-19 promising After a halt at the COV a crashing nomy due to the s in came to oric low global eco stry faced hist in drilling s with the indu low The oric ic. e hist tractors pandem ling con which drov DC dril oil pricing, with CAO ve rigs in June. activity, 17 acti it only record, averaging st year on nturn in the wor ed dow not only bers prolong 2020 was DC mem n of the cing extensio stry. CAO was an her redu gas indu y oil and in by furt ’s tedl aga ada den yet m Can rece ed the stor ing by on unp . However, weather and gett ice activityt numbers headcount and well serv rig flee ling the year. registered low dril ciation’s stable throughout the Asso ly tive rela d inside! remaine ed on the Continu

LOCATIONS THAT SUIT YOUR BUSINESS NEEDS

TURE A E F 0 HLY MONT MUM 17,50 INI M H T TION WI U B I R DIST Artistic

n rig. | Brow

mmer? es this Suarly. E Relief Valv Servicingok Your Turnarouertand&sB.C. Bo Alb ges tified in in All Ran m’s is Cer • Pim PSV’s of Valves. ck Taylor and • We Sto Supply All Makes Tracking and Can puterised ely Com • Complet System. PSI. g to 5000 Labellin Up of s.ca ability www.pimm nde Prairie • Test Cap Fort St.

John

Gra

(250) 787-08

(780) 513-28

• Distributed to the community in general through these ﬁne publications, Alaska Highway News, Dawson Creek Mirror. • Distribution by mail and direct drop-off to Oil & Gas companies,and related businesses and organizations, in the following communities: BRITISH COLUMBIA – Arras, Baldonnel, Cecil Lake, Charlie Lake, CHETWYND, Clayhurst, DAWSON CREEK, Farmington, FORT ST. JOHN, Goodlow, Groundbirch, HUDSON HOPE, Moberley Lake, Pink Mountain, Pouce Coupe, Progress, Rolla, Rose Prairie, Taylor, Tomslake, and Wonowon.

12 AUGUST The Pipeline News North 19, 2021

PIPELINE NEWS NORTH

2021-2022 OILFIELD MAP PIPELINE

NEWS NORTH The Pipeline News North Oilfield Map is seen and used by thousands of people in the oil, gas and forestry industry. Don’t miss our on this opportunity to have your business highlighted!

ORDER YOUR FULL COLOUR AD SPACE TODAY! SINGLE INSIDE SPACE $ 00 *

295

*Includes 30 Full Colour Maps for your distribution. Inside positioning only. Specific positioning sold on a “First Come, First Serve” basis.

SINGLE FRONT PAGE SPACE $ 00 *

500

*Includes 30 Full Colour Maps for your distribution. Front Cover positioning. Only 4 spots available. Specific positioning sold on a “First Come, First Serve” basis.

Book your space NOW! Booking/Material Deadline

PIPELINE

NEWS NORTH pipelinenewsnorth.ca

Serving the Oil and Gas Industry in Northern B.C. and Alberta

2020-2021 OILFIELD MAP

• Facility & Pipeline Construction • Maintenance & General Oilfield Services • Plant Turnarounds

Serving the North & South Peace and surrounding areas

www.candoo.ca

7510 100th Ave. Fort St John, BC

250.785.2018

COMMUNICATIONS

Map courtesy of:

9916 - 98th Street, Fort St. John, BC V1J 3T8 Tel: 250-785-5631 | Fax: 250-785-5661 E-mail Ryan Wallace at: rwallace@ahnfsj.ca

LED STADIUM LIGHT TOWERS COMMUNICATION TOWERS OFFICE TRAILERS FIRE SUPPRESSION TRAILERS UTV’S • CELL BOOSTERS RADIOS

T:250.785.0310 F:250.785.0233 TTCOMM.CA

September 17, 2021 Call: 250-782-4888 or Fax: 250-782-6770 901 – 100 Ave. Dawson Creek BC V1G 1W2 to book your ad TODAY!

YES

I would like to reserve a spot in the 2021-2022 Oilfield Map

Company Name

7920 ALASKA RD - FORT ST JOHN, BC

Your locally owned source for Oils, Greases, Coolants, Industrial Supplies, Tools & More! Serving Northern BC & Alberta.

Contact Name:

Call 250-787-0415

www.armourlubricants.com

Phone:

*NOTE: Prices quoted are NET.