FALL 2014
2014 Drilling Activity Forecast Update Follow these 10 team-building commandments T H E O F F I C I A L V O I C E O F T H E P E T R O L E U M S E R V I C E S A S S O C I AT I O N O F C A N A D A
Peak Paperwork Reducing redundancy to drive down costs in doing business
PM#40020055
Students hit the green at the Education Fund Golf Classic
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Industry Drills Wells at Record Speed in 2013
Oil and gas M&A dives in 2013
Oilsands are a huge job creator
ARC Financial Corp Predicts Record Producer Revenue in 2014, OFS to Benefit
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OFS to spend $6 billion on CAPEX in 2014
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CONTENTS FA L L 2 0 1 4
Departments MESSAGE FROM THE PRESIDENT IN THE FIELD
7 10
Industry news, notes and events
2014 DRILLING ACTIVITY FORECAST UPDATE BUSINESS MATTERS
12 23
Renowned management consultant Dan Gaynor dishes out tips for better team-building.
14
Service sector companies bear the burgeoning costs of third-party registries in the name of improving industry safety. It’s time for a standardized reporting system
20
A LOOK AT LEADERSHIP
30
Getting to know PSAC board members Chris Hall and Trevor Haynes
COVER
THE SAFETY STREAMLINE
MEMBER PROFILE
26 28
With its employees in the driver’s seat, ENTREC shows no signs of slowing down
Features 14
PSAC IN ACTION
TEEING UP A WIN-WIN PSAC’s Education Fund Golf Classic delivers a bright future for students and member companies
10 WWW.PSAC.CA
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26
20 5
Leaders never quit.
They may take it on the chin, they may get knocked down, but leaders get back up. We’ve done just that and continue to be in our clients’ corners, custom building solutions to help our clients do what they do best...lead. Because Alberta means the world to us. atb.com/Leaders
TM
Trademarks of Alberta Treasury Branches.
PETROLEUM SERVICES NEWS
MESSAGE FROM THE PRESIDENT The Road Ahead Is Paved With Promise
S
EPTEMBER MARKS THE KICK-OFF for the
Petroleum Services Association of Canada (PSAC)’s 2014-2015 season, and what a year it’s going to be! PSAC is forecasting a steady pace in activity levels for the rest of 2014 (see PSAC’s third-quarter forecast update on page 12), and we look forward to releasing our 2015 Canadian Drilling Activity Forecast at our annual Industry Insights Forum. We are very excited to welcome renowned Canadian commentator Rex Murphy, who will entertain guests at our dinner event with his insights and observations on Canada’s oil and gas industry. PSAC looks forward to strengthening our members’ outreach efforts. PSAC’s board of directors and executive team will be hosting a reception in Fort St. John, B.C., so members operating in the area have a chance to network with their peers and hear about current goings-on at PSAC. We will continue to champion the interests of our members and
will work to strengthen PSAC’s leadership position as the national trade association for the upstream service, supply and manufacturing Mark Salkeld, President & CEO sectors. Now more than ever, our sector needs strength in numbers to underscore our collective voice. PSAC will continue to take the lead as the voice of our sector, working to maximize the benefits of collaboration with our peer associations on the issues that we face as a whole. We are geared up and ready for the year ahead, and look forward to representing the interests of the leading and innovative companies that we proudly call our members Cheers, Mark
PETroLEUm SErviCES aSSoCiaTion of Canada’S
2014 INdustry INsIghts FOrum register today
Wednesday, October 29, 2014 TELUS ConvEnTion CEnTrE, CaLgary, aLbErTa
Network. Connect. Learn. Get up to the minute facts and trends at the 2014 PSAC Industry Insights Forum. Industry experts and leaders will share their insights and opinions at this premier event which will feature Canadian commentator and author, Rex Murphy at the Industry Insights Dinner. 1:30 pm - 2:30 pm: 2:30 pm - 4:30 pm:
PSAC Annual General Meeting (Regular Members only) 2015 Canadian Drilling Activity Forecast & Industry Outlook featuring: Mark Salkeld, President & CEO, PSAC; David Collyer, President & CEO, Canadian Association of Petroleum Producers (CAPP); Jeff Fetterly, Principal, Oilfield Services Analyst, Peters & Co. Limited; and, Representative, Wells Fargo & Company
4:30 pm - 6:00 pm: 6:00 pm - 8:30 pm: Canadian Drilling Activity Forecast Sponsor:
Networking Social Industry Insights Dinner with keynote, Rex Murphy Industry Sponsor:
Dinner Sponsors:
Toronto Stock Exchange
TSX Venture Exchange
Toronto Stock Exchange
Tor To Exc
TSX Venture Exchange
To register, visit psac.ca/event Bourse de Toronto
WWW.PSAC.CA
Bourse de Croissance TSX
Bourse de Toronto
Bourse de Croissance TSX
Bo Tor To
7
You Gotta See thiS FrackinG thinG!
013
(h)
FALL 2014 VOL 14 • No.2 The Petroleum Services Association of Canada is the national trade association representing the service, supply and manufacturing sectors within the upstream petroleum industry. PSAC represents a diverse range of nearly 250 member companies, employing close to 75,000 people and contracting almost exclusively to oil and gas exploration and production companies.
PETROLEUM SERVICES ASSOCIATION OF CANADA 1150 800 6TH AVENUE SW CALGARY, AB T2P 3G3 TEL: 403.264.4195 FAX: 403.263.7174 EMAIL: info@psac.ca PRESIDENT AND CEO: MARK SALKELD VICE PRESIDENT, COMMUNICATIONS: KELLY MORRISON
PETROLEUM SERVICES NEWS IS PUBLISHED FOR PSAC BY
lift and maintain frac fluid temperature. mitigate scheduling risks. iCS group’s ground-breaking frac fluid Heating System is here! pit ponds, C-ring tanks, 400 barrel tank farms – precise, reliable temperature control ensuring consistent up-time and service. you choose the fuel – diesel, propane or, natural gas – the rest is up to iCS. iCS’ frac fluid Heating System… you frac when you’re ready, ‘cause your water is always ready to go!
VENTURE PUBLISHING INC. 10259-105 STREET, EDMONTON, AB T5J 1E3 TEL: 780.990.0839 FAX: 780.425.4921 TOLL-FREE: 1.866.227.4276 CIRCULATION@VENTUREPUBLISHING.CA PUBLISHER: RUTH KELLY DIRECTOR OF CUSTOM CONTENT: MIFI PURVIS MANAGING EDITOR: LYNDSIE BOURGON CONTRIBUTING WRITERS: ROBIN BRUNET, CALEB CASWELL, ROBBIE JEFFREY ART DIRECTOR: CHARLES BURKE ASSOCIATE ART DIRECTOR: ANDREA DEBOER ASSOCIATE ART DIRECTOR: COLIN SPENCE PRODUCTION MANAGER: BETTY FENIAK SMITH PRODUCTION TECHNICIANS: BRENT FELZIEN, BRANDON HOOVER DISTRIBUTION: KAREN REILLY ACCOUNT EXECUTIVES: PEGGY BOGDAN, KATHY KELLEY, DENNIS McCORMACK
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8 FALL 2014
PRINTED IN CANADA BY RHINO PRINT SOLUTIONS. RETURN UNDELIVERABLE MAIL TO 10259 105 ST. EDMONTON AB T5J 1E3. CIRCULATION@VENTUREPUBLISHING.CA PUBLICATIONS AGREEMENT #40020055 CONTENTS © 2014 PSAC. NOT TO BE REPRINTED OR REPRODUCED WITHOUT PERMISSION.
PETROLEUM SERVICES NEWS
To clear up any confusion about frac sleeves:
GripShift Sleeves vs Ball-Drop Sleeves with cement
with packers
For a long time, the big frac debate was about whether plug-and-perf or ball-drop sleeves-and-packers are better for multistage completions—shots versus sleeves. Now there is a third choice that has quickly changed the debate: the Multistage Unlimited coiled tubing frac system. This system also uses sleeves, which has led to some confusion, even though Multistage Unlimited GripShift casing sleeves don’t even use balls. To help clear things up, here’s a quick comparison: TM
TM
GripShift casing sleeves
Ball-drop sleeves
Cemented annulus for stage isolation
Open-hole packers for stage isolation
Recorded pressure data verifies stage isolation
Unverifiable stage isolation, known failures
Each sleeve positively located for frac
No way to positively identify active sleeve
Sleeve shifting verified three ways
No verification of sleeve shift
Single-point injection, precise frac location
Unknown where fracs initiate
Verified frac spacing
No control over frac spacing
Verified propped volume in each frac
Unpredictable propped volume in each frac
Identical sleeves can be installed in any order
Sleeves must be installed in exact order
All sleeves have full-drift ID at all times
Ball seats restrict ID until drilled out or retrieved
Closable version is available
No closable option unless retrieved
Real-time frac-zone pressure data
No real-time frac-zone pressure data
Screenouts easily and quickly removed
Screenouts are costly
Sleeves easily located and isolated for restimulation
Well segments difficult to isolate for restimulation
The Multistage Unlimited GripShift casing sleeve is not a ball-drop sleeve.
ncsfrac.com +1 403.969.6474 info@ncsfrac.com Leave nothing behind. ©2014, NCS Energy Services, LLC. All rights reserved. Multistage Unlimited, GripShift, and “Leave nothing behind.” are trademarks of NCS Energy Services, LLC. Patents pending.
IN THE FIELD
News, events and activities in the industry
2014 PSAC Scholarships Awarded
Associate Member Ditch Hitch Receives Prestigious Award Nomination
CONGRATULATIONS TO THE 2014 WINNERS
DITCH HITCH,
the industry leader for safe vehicle recovery, has been nominated for an Ernest C. Manning Award. The Manning awards recognize and support Canadian innovators who have demonstrated recent innovative talent and have successfully marketed their products. The 2014 award winners will be announced in October.
PSAC Roger Soucy Legacy Scholarship Funded by KPMG PAISLEY HAYES IS THE RECIPIENT
of the 2014 PSAC Roger Soucy Legacy Scholarship, funded by KPMG, in the amount of $2,500. Hayes, who is affiliated with Halliburton Group of Canada, has demonstrated exceptional academic achievement and commitment to her community of Olds, Alta. She is currently enrolled in the welding program at Olds College, and has donated many pieces of art to assist the charities in her community with their fundraising efforts. PSAC will begin accepting applications for its 2015 scholarships on psac.ca in January 2015.
of PSAC scholarships. Regular Member Scholarships are available to PSAC Regular Member employees or their children pursuing post-secondary education, and are valued at $1,000 each. This year’s recipients are: NATHAN ANDERSON Bachelor of Education, Edmonton - Ferus Inc. LAINE BLANCHETTE Instrumentation Engineer Certificate, Moose Jaw, Sask. - Gibson Energy KAITLYN BUDGELL Bachelor of Arts, Grande Prairie, Alta. - Welltec Canada Inc. SHEILA GREGORIO Bachelor of Education, Calgary, Alta. - Halliburton Group Canada MARCUS PEIRITSCH Bachelor of Business Management, Okotoks, Alta. - Calfrac Well Service Ltd.
PSAC Staff Member Receives MBA PSAC IS PLEASED TO ANNOUNCE that Patrick Delaney, vice president, health and safety, recently completed Athabasca University’s Master of Business Administration program. Congratulations to Patrick on this outstanding achievement, and the effort and sacrifice you undertook to achieve this challenging goal.
COMING EVENTS PSAC PRE-DRILLING SEASON MEETING September 10, 2014 Pomeroy Hotel Fort St. John, B.C. PSAC ANNUAL GENERAL MEETING October 29, 2014 TELUS Convention Centre, Calgary, Alta. 2015 CANADIAN DRILLING ACTIVITY FORECAST AND INDUSTRY OUTLOOK October 29, 2014 TELUS Convention Centre, Calgary, Alta.
10 FALL 2014
NEW MEMBERS 2014 INDUSTRY INSIGHTS DINNER October 29, 2014 TELUS Convention Centre Calgary, Alta. Featuring Canadian author and commentator Rex Murphy.
For more information about PSAC events, visit www.psac.ca/events
REGULAR MEMBERS Corpro Canada Ltd. Great Prairie Energy Services Inc. Q’Max Solutions Inc. SB Navitas Tubular Inc. Sterling Crane ASSOCIATE MEMBERS Black Spruce Merchant Capital Edmonton Hotel and Convention Centre Parkland Fuel Corporation Sequira Partners Inc. Renshi Consulting Group Ltd.
PETROLEUM SERVICES NEWS
C
M
Y
CM
MY
CY
CMY
K
WWW.PSAC.CA
11
DRILLING ACTIVITY FORECAST UPDATE
Strong Performance for Canadian Oilpatch
PSAC ADJUSTS DRILLING ACTIVITY FORECAST UPWARDS 2014 CANADIAN DRILLING ACTIVITY FORECAST (NUMBER OF WELLS)
ALBERTA: 6,762
SASKATCHEWAN: 3,544
BRITISH COLUMBIA: 707
MANITOBA: 430
TOTAL IN CANADA: 11,460 Note: Total includes activity in Northern and Eastern Canada.
I
N ITS THIRD UPDATE
to the 2014 Canadian Drilling Activity Forecast, the Petroleum Services Association of Canada (PSAC) expects to see 11,460 wells (rig releases) drilled across Canada this year. This figure represents a six per cent increase, or 660 wells, over the original forecast released in late October 2013. PSAC is basing its updated 2014 forecast on average natural gas prices of $4.75 CDN/mcf (AECO), crude oil prices of US$100/barrel (WTI) and the Canadian dollar averaging $0.90 USD. “PSAC has revised its figures based on a stronger than anticipated performance during the first two quarters, with 245 more wells drilled during that period,” explains Mark Salkeld, PSAC’s president and CEO. “We are confident this performance trend will continue, and we are forecasting an additional 415 wells to be drilled in Q3 and Q4.” On a provincial basis, the updated forecast includes increasing activity across most of western Canada. Specifically, Alberta is expected to see an additional 207 wells drilled, up from 6,555 for a total of 6,762 wells, representing a three per cent change from the October outlook. Additionally, PSAC expects a decent uptick in activity in British Columbia, with 157 additional wells for the year (a 28 per cent increase), to a total of 707 wells in that province. In Saskatchewan, PSAC is forecasting a new total of 3,544 wells, which represents an increase of 348 wells or 11 per cent
12 FALL 2014
over October numbers. However, PSAC has adjusted the activity expected in Manitoba to 430 wells, a decrease of 10 per cent from 480 wells. In terms of well type, the first six months of 2014 followed the trend of drilling for oil over natural gas, with 2,862 oil wells versus 509 gas wells drilled. Additionally, 84 per cent of wells drilled in the first half of the year were horizontal and directional, as compared to 16 per cent for vertical wells. “There are a variety of factors driving the better than expected activity this year,” says Salkeld. “A key factor is the increase in natural gas prices, which is partially being driven by low gas reserves that are at the lowest they have been in more than 10 years, so there is a corresponding increase in demand. Beyond that, well completions continue to gain efficiencies and that is speeding up activity levels in key formations.” The 2015 Canadian Drilling Activity Forecast will be released on October 29, 2014, in Calgary, Alta. Highlights of the forecast will be presented during PSAC’s Industry Insights Forum, a full-day event which includes PSAC’s Industry Insights Dinner featuring renowned Canadian commentator and author Rex Murphy. The Canadian Drilling Activity Forecast can be used with the PSAC Well Cost Study to effectively determine potential drilling and completion market sizes, as well as pricing and activity direction. For more information, contact PSAC at info@psac.ca or 403.264.4195.
PETROLEUM SERVICES NEWS
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14 FALL 2014
PETROLEUM SERVICES NEWS
THE
SAFETY
STREAMLINE BY ROBIN BRUNET
Service sector companies bear the burgeoning costs of third-party registries in the name of improving industry safety. It’s time for a standardized reporting system
W
ITHIN REGULATORY CULTURE,
the one sure area of growth is the paperwork that prevents people from getting things done. That’s a given in an industry as complex as oil and natural gas, but there comes a point when the redundancy and needless expense generated by paperwork becomes too much to tolerate. That’s exactly where the services sector – which is increasingly under pressure from operators to provide new, innovative and affordable solutions – is poised. Of particular concern are the health and safety registry databases that require service companies to deposit information. “We’re seeing enormous expenditure of time and money on the part of our members in order to comply with the process of submitting information,” says Patrick Delaney, vice president, health and safety, for the Petroleum Services Association of Canada (PSAC). “Our members are getting frustrated with the constant requests for data submission and updates, requests for copies of their Certificate of Recognition (COR) audits and the number of audits of their operations being conducted by their customers, the operating companies,” he adds. “The costs to individual service companies for supplying all this data can easily run to tens of thousands of dollars yearly … they are not convinced that the use of these third-party registries is making a positive contribution to the industry’s safety performance.”
WWW.PSAC.CA
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16 FALL 2014
PETROLEUM SERVICES NEWS
In theory, registries are straightforward: a service company prepares the paperwork to prove it’s fully compliant with all safety regulations and practices. The paperwork is submitted to the registry, reviewed and kept on file. Once certified as a safe operator by the registry, the service provider is then allowed to bid on contracts with exploration and production (E&P) companies. Many oil and natural gas companies require vendors to submit safety data for prequalification, relying on private registries to handle the administration. However, by virtue of the fact that there is no standardization amongst the registries, contractors who work for many clients are forced to use different databases with different standards. In recent years, there has been an increase in the number of registries used by E&P companies, and some of them do not have systems that support data sharing. This has resulted in some service companies having to deal with each registry separately when submitting data, adding to the cost and time of the process. Associations like PSAC have called for the establishment of a standardized reporting system, but so far nothing substantial has been achieved. This is troubling to Doug McNeill, chief strategic officer for Stream-Flo Industries Ltd. “There continues to be great interest in improving fiscal efficiencies for both the producers and equipment and
service providers, but duplication in the reporting regime has a cost impact to both sides,” he says. “One example of this is multiple registries causing duplication in our monitoring and reporting. No two registries are the same, so the impact can be appreciated. Innovation and driving cost out of drilling wells is the key for both operating and services companies like Stream-Flo. To pursue that, we need to eliminate any duplication in reporting, so the monies can be better used for innovative technology development.” Stream-Flo, a wellhead and christmas tree equipment manufacturer, has flourished since its inception in 1962, precisely because it has invested in and improved technology. As such, it is better equipped to provide consistent customer service, and the customer service translates into improved quality, reduced cost of the finished product and shorter delivery schedules. McNeill, whose clients include a wide cross-section of Canadian operators, finds his hands are increasingly tied when it comes to dealing with five or more registries. “The situation has become extremely challenging,” he says. “Even though I have to report to a third party registry company, the operators will ask me to submit the same information to them directly. Then, even though I’m being audited by the third-party registry, the oil company will request an additional audit undertaken by its safety group. The operator does not charge Stream-Flo to conduct the audit, but our resources are required to support the audit process. Our employees’ time and resources cost money, and the operators have their own additional costs.” Adding insult to injury are instances when Stream-Flo is asked by third parties for more information in order to keep their databases current, and a subsequent time lag occurs while the data is input by the registry. “Updated data is submitted, and during the time it takes to upload it, a company goes into the category of non-conforming service provider – which is the absolute last thing you want to be listed as while a simple data update is being conducted,” says McNeill. The cumulative effect on service providers, in the name of multiple reporting registries for safety and other issues, has a lasting effect on performance. “Most companies today are faced with few avenues for efficiency improvement initiatives,” says McNeill. “The last thing the industry needs is for margins to be eroded to provide a cheaper price, leaving no resources to pursue innovation opportunities.” That innovation is needed more than ever. “The challenges we’re faced with these days are along the lines of: How do we reduce the time required to drill a well? How can we run equipment faster and more reliably? How do we set up multi-stage fracking more quickly?” says McNeill. Speaking of these myriad obstacles, McNeill says there needs to be a “heightened level of communication between producers, operators and the service and equipment providers, in order to drive out waste.” Delaney takes a slightly different tack: “At the root of the third-party registry problem is the fact that oil companies have become as large
INNOVATION AND DRIVING COST OUT OF DRILLING WELLS IS THE KEY FOR BOTH OPERATING AND SERVICES COMPANIES LIKE STREAM-FLO. TO PURSUE THAT, WE NEED TO ELIMINATE ANY DUPLICATION IN REPORTING, SO THE MONIES CAN BE BETTER USED FOR INNOVATIVE TECHNOLOGY DEVELOPMENT. - DOUG MCNEILL
WWW.PSAC.CA
17
and complex as government, with multiple departments each with their own mandate overlaid with myriad approval processes, and, from what I can see, very little interdepartmental communication between the procurement and safety processes.” To which McNeill adds, “Sometimes we’re our own worst enemies when it comes to silos within companies. When the safety initiative saves customers money, that’s great; but when we step outside that particular group and its budget, we see the costs of doing business mounting. There’s an opportunity to reduce the costs, and we can make great strides in driving out the costs of doing business to the benefit of all.” Despite ongoing frustrations, Delaney points to an initiative that would see occupational health and safety regulations for the oil and gas industry harmonized across the western provinces. PSAC has been working with trade associations that represent the other sectors of the Canadian upstream petroleum industry on proposals for changes to Part 37 of Alberta’s Occupational Health and Safety Code dealing with oil and gas operations. As part of the process,
the associations reviewed the regulations of the four western provinces and have had discussions with regulators about areas where these regulations might be harmonized. To date, the discussions have been positive, and if an agreement can be reached, the industry in Western Canada could enjoy a degree of standardization previously unheard of. “We hope to get feedback from the regulators before the end of this year,” says Delaney. The question is, could standardization migrate into other badly needed areas of the industry? Delaney will say only that PSAC “has made very good headway” with the Alberta regulators in the discussions about revisions to Part 37 of the Alberta OH&S Code. As a businessman, McNeill believes standardization has the potential to drive out the costs in doing business. “The service industry has embraced the Certificate of Recognition (COR) safety program, which has been compared to third-party safety registries,” he says. “Reviews have identified COR as much more extensive in scope and a much more robust auditing process. COR is a requirement for all members of PSAC.”
THERE’S AN OPPORTUNITY TO REDUCE THE COSTS, AND WE CAN MAKE GREAT STRIDES IN DRIVING OUT THE COSTS OF DOING BUSINESS TO THE BENEFIT OF ALL. - DOUG MCNEILL, STREAM-FLO INDUSTRIES LTD.
A HERITAGE OF POWER, STRENGTH AND INCREDIBLE VALUE. Sterling Western Star Trucks Alberta Ltd is the leader supplying premium product and service to the commercial trucking industry. We are dedicated to exceeding our customer’s expectations in quality, delivery and cost through continuous improvement and customer interaction – a one stop shop from purchasing a Western Star Truck, to parts and most important – first rate service. The staff and management thrive in an atmosphere of sophistication. We adapt to the changes in our industry so our customers can depend on us to be there when needed in all kinds of weather. Doing our job so our customers can do theirs.
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18 FALL 2014
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Our goal is to get you
home safely, every day.
Your safety is our business. At Enform, our vision is to eliminate workrelated incidents and injuries in the upstream oil and gas industry. Everything we do is dedicated to continuously improving your safety. Working with our industry partners, we provide leading training programs and services that touch the lives of hundreds of thousands of workers every year. We promote health and safety practices through safety management planning and support, training programs, and by providing the resources that you need to get the job done safely. We were created by industry, for industry and together we are making a difference. Learn more about us at www.enform.ca
Enform Rig Watch Magazine 1/2 page.indd 1
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medical · safety consulting · H2S safety industrial health · environment · training blow out and well control · turn-arounds
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TEEING UP A WIN-WIN PSAC’s Education Fund Golf Classic delivers a bright future for students and member companies
P The PSAC Education Fund Golf Classic Committee, from left to right: Brian Farmer, Committee Chair; Linda Aldridge; Caterina Furlan; Garry Lane; Graham Maglio; Lee Emond; Victoria Assen; Marty Price; Travis Strube; Karoline Beninger; Blake Lawrence; Brett Noble; Michael Van Olm; Mark Salkeld. Missing: Clyde Bonnell; Heather Doyle; Kelly Morrison; Glenn Walker.
20 FALL 2014
LENTY OF WINNERS
walked away from this year’s 2014 Education Fund Golf Classic, held once again at the Calgary Elks Lodge and Golf Club. Yes, there were those that earned trophies and prizes, but the true winners were the students who received scholarships from PSAC thanks to the funds raised at the tournament. Due to the generosity of PSAC members, the golf tournament’s guests and sponsors raised more than $50,000 this year. This funding makes it possible for PSAC to continue providing scholarships to students pursuing post-secondary education, and the program helps increase awareness of job opportunities in the sector. Since its inception in 2001, the Education Fund has awarded more than
PETROLEUM SERVICES NEWS
INSURANCE EXPERTS for the oil & gas sector
2014 PSAC scholarship winners Marcus Peiritsch (left), and Paisley Hayes (centre) with Education Fund Chair, Dieter Wentzel.
$230,000 in scholarships and grants to deserving students, and has raised the awareness of careers in the petroleum services sector. “What a spectacular day and what a result,” said Mark Salkeld, president and CEO of PSAC. “We are tremendously grateful for the generosity shown by everyone attending.” Highlights of this year’s tournament and barbecue include cheque presentations to Marcus Peiritsch, a University of Lethbridge student affiliated with Calfrac Well Services Ltd., who was awarded a $1,000 PSAC Regular Member Scholarship. Paisley Hayes, a welding student at Olds College in Olds, Alberta, was awarded the 2014 PSAC Roger Soucy Legacy Scholarship, funded by KPMG, in the amount of $2,500. Paisley, affiliated with Halliburton Group Canada, received this award for achieving academic excellence and demonstrating commitment to her community. PSAC Regular Member Scholarships were also awarded to four other students this year. They are Nathan Anderson of Edmonton, affiliated with Ferus Inc.; Laine Blanchette of Moose Jaw, Sask., affiliated with Gibson Energy; Kaitlyn Budgell of Grande Prairie, Alta., affiliated with Welltec Canada Inc.; and Sheila Gregorio of Calgary, Alta., affiliated with Halliburton Group Canada. PSAC will begin accepting applications for its 2015 scholarships in January of next year. For more information about PSAC’s Education Fund and its scholarships, visit psac.ca.
WWW.PSAC.CA
Providing insurance solutions to oil & gas companies locally and around the world
Austen Lillies alillies@rogersinsurance.ca 1.403.296.2411
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Toll free: 1.800.565.8132 600 - 1000 Centre Street N. Calgary, Alberta T2E 7W6
rogersinsurance.ca 21
BUSINESS MATTERS
The 10 Commandments RENOWNED MANAGEMENT CONSULTANT DAN GAYNOR DISHES OUT TIPS FOR BETTER TEAM BUILDING BY CALEB CASWELL
D
AN GAYNOR IS AN
expert at saving companies in peril. In 1999, working relationships at the Calgary Herald had broken down, to the point where a bargaining union was established and a strike was inevitable. It looked as though the paper, which had only recently celebrated its centennial anniversary, would eventually collapse. To part the angry sea of strikers and lead the paper to salvation, they called Gaynor. What makes Gaynor the man of the eleventh hour is his zeal for leadership. Through his company, Gaynor Consulting, he coaches company management and leadership. Below, he gives us his 10 tips for job site team building:
WWW.PSAC.CA
BUILD RELATIONSHIPS: “One of the most basic lessons that I teach, day in and day out, is that followers care about leaders who care about them,” says Gaynor. While it’s common for those in leadership positions to keep a professional buffer to avoid getting too close to their employees (Gaynor calls it the “doctrine of distance”), he finds that the benefits of connection outweigh possible detriments. “Having closer relationships gave me the forum to have tough discussions with people,” says Gaynor, “and to make decisions with more confidence, because I knew what my employees were about and what their motivations were. [But] you just can never let a friendship come ahead of making a right decision for the organization.” FOCUS ON WHAT’S MOST IMPORTANT: Here, Gaynor quotes American football coach Vince Lombardi, who led the Green Bay Packers to five NFL championships within a seven-year span: “Success demands a singleness of purpose.” It’s not only important to define what the team should be doing but also to ensure the company works towards a unified goal. >> CONTINUES ON PAGE 24
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BUSINESS MATTERS ESTABLISH A CODE OF CONDUCT: At the St. Catharines Standard, Gaynor was in charge of helping redefine the paper’s code of conduct. “As we started purposefully building the kind of team we wanted to be together, instead of the team we were,” he says, “people got pretty enthused about what we were doing and the kind of team they were becoming. That meant they were building something they were proud of.” SET GOOD GOALS: There are four defining factors to a good goal, and Gaynor says all companies should measure their corporate goal against this rubric. They should be: clear, challenging, achievable and worthwhile. APPLY THE “FOUR Ps”: Planning, preparation, practice and performance are the alliterative keys to making sure your team functions well. “Preparation is oftentimes the most overlooked part of the four Ps,” says Gaynor. “I think every good leader [needs to] pause once he or she’s developed their goals and say, ‘How prepared is my team for this, and what do I need to do to make sure they’re ready?’ ” COMMUNICATE WELL: Consistent updates keep dialogue open between staff and management, making people feel they matter and allowing for consistent guidance towards the team’s goal. During his time at the Calgary Herald, Gaynor would hold three meetings a day – one in the morning, one in the afternoon, and one at 1 a.m., for the press and production team.
BE STRONG UNDER FIRE: “I came to the conclusion very early that every team reflects its leader,” says Gaynor. In high-stress situations, it’s the leader’s job to set an example. If the leader becomes unglued, it gives employees the excuse to act similarly. PROVIDE LOTS OF FEEDBACK: Positive feedback comes in two forms: encouragement and correction. Both reach their full potential when delivered in a specific, clear, consistent and respectful manner. It’s also important to know the line between professional comment and personal attack. ACCEPT NO EXCUSES: It’s easier for people to accept their mistakes when they know they’re working under a leader that wants to help them move beyond them. Don’t focus on the problem; focus on the solution. MAKE EVERY PERFORMANCE COUNT: Don’t ignore or avoid opportunities to encourage or correct your team. Every day is a chance to tighten the organization’s performance, and each conversation acts as a small step toward a better work environment.
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PSAC IN ACTION THE PETROLEUM SERVICES ASSOCIATION OF CANADA (PSAC) CONTINUES TO KEEP THE SERVICE, SUPPLY AND MANUFACTURING SECTORS FRONT AND CENTRE THROUGH ADVOCACY AND OUTREACH. PSAC CONNECTS WITH CANADIAN LEADERS FEDERAL: • In June, PSAC met with the Honourable Greg Rickford, minister of natural resources and minister for the Federal Economic Development Initiative for Northern Ontario, in Calgary to introduce the new minister to the association and to highlight challenges facing the services sector. • Also in Calgary, PSAC hosted several Alberta MPs, including and the Honourable Greg Rickford, Joan Crockatt, MP Calgary Centre and MP Earl Dreeshen (Red Deer) on a member facility tour, demonstrating the technology behind hydraulic fracturing operations. ALBERTA: • PSAC spoke with the Honourable Diana McQueen, Alberta energy minister, and the Honourable Dave Hancock, interim premier, about the outlook for the oil and natural gas industry, highlighting issues facing PSAC members including skills development, market access and competitiveness. • PSAC also took the opportunity to speak with Jim Prentice, Ric McIver, MLA, and Thomas Lukaszuk, MLA, at the Alberta PC Leadership Candidate Kickoff Reception.
BRITISH COLUMBIA: • PSAC met with, and made a presentation on hydraulic fracturing to, members of the B.C. Legislative Assembly, highlighting PSAC’s Working Energy Commitment and Hydraulic Fracturing Code of Conduct. • PSAC held informal discussions with ministers and MLAs at the BC Liberal Leader’s Dinner hosted by the Honourable Christy Clark, premier of British Columbia. • PSAC attended a ministerial round table with the Honourable Bill Bennett, minister of energy and mines and minister responsible for core review. SASKATCHEWAN: • Along with the Saskatchewan Industrial Mining and Suppliers Association (SIMSA) and Government of Saskatchewan, PSAC co-hosted the Saskatchewan Business Reception at this year’s Global Petroleum Show. • PSAC hosted Mike Carr, deputy minister of labour relations and workplace safety, at the recent Human Resources Committee meeting to inform members about the employment standards regulations enacted to support the new Saskatchewan Employment Act. • To further connect with leaders in the province, including former energy minister Ian McMillan and the Honourable Bill Boyd, minister of the economy, PSAC attended the Premier’s Dinner hosted by the Honourable Brad Wall, premier of Saskatchewan.
PSAC REACHES OUT TO LOCAL, NATIONAL AND INTERNATIONAL STAKEHOLDERS To continue to increase awareness and understanding of PSAC, our members and their operations, Mark Salkeld, PSAC president and CEO, delivered remarks at the following events: • Rimbey Regional Synergy Group Open House, which brought together more than 100 local residents to hear from PSAC, industry representatives and the regulator about work to engage local communities in productive conversations about how the industry operates. PSAC presented on the Working Energy Commitment, the Hydraulic Fracturing Code of Conduct and the Community Partners program. • PSAC presented to a group of Canadian Trade Commissioners from posts all around the world during the Global Petroleum Show. This was an opportunity to address investment opportunities with Canadian petroleum services companies, highlighting essential foreign markets and encouraging companies to look at expanding internationally.
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• At the Petroleum Technology Alliance Canada’s 2014 Hydraulic Fracturing – An Environmental Perspective Forum, PSAC introduced the Hydraulic Fracturing Code of Conduct. • PSAC participated in the panel discussion “Exchanging Policy, Regulatory and Operational Best Practices in Unconventional Gas” at the annual board meeting of the China National Petroleum Corporation-Alberta Petroleum Centre. This event was an opportunity for informal discussion with the Honourable Diana McQueen, minister of energy, and Jim Ellis, CEO, Alberta Energy Regulator.
FOR MORE INFORMATION: To learn more about PSAC’s advocacy efforts, contact info@psac.ca or 403.264.4195.
PETROLEUM SERVICES NEWS
PSAC HOSTS FEDERAL LEADERS AT MEMBER FACILITY
Pictured here: Greg Rickford (centre, blue shirt with thumbs up), Mark Salkeld, PSAC president and CEO (left of Mr. Rickford), Joan Crockatt, MP, Calgary Centre (right of Mr. Rickford), Scott Van Vliet, PSAC board member and co-president of Environmental Refuelling Systems Inc. (far right, standing), Darin MacDonald, president and CEO of Sanjel Canada Ltd. (kneeling, left of Mr. Rickford), and representatives from PSAC, Environmental Refuelling Systems Inc., and Sanjel Canada Ltd.
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MEMBER PROFILE
We’ve Come a Long Way Together WITH ITS EMPLOYEES IN THE DRIVER’S SEAT, ENTREC SHOWS NO SIGNS OF SLOWING DOWN BY ROBBIE JEFFREY
D
ONNING A
Forrest Gumpinspired beard, and averaging 50 kilometres per day, 23-year-old Curtis Hargrove – the “Cold Lake Runner” inspired by Terry Fox – ran across Canada throughout 2012 and 2013 to raise $1 million for Edmonton’s Stollery Children’s Hospital Foundation. That Hargrove was an employee of ENTREC Corp., a leader in heavy-lift and heavy-haul services across western Canada and the United States, is a fitting coincidence for a company that likes to hire ambitious, motivated people that strive to make a difference. “Anybody can buy iron,” says John Stevens, president and CEO of ENTREC. “It’s attracting the right employees that counts.” In the race for above-and-beyond results and exceptional labour, ENTREC clearly leaves its competition in the dust. “We want to be the employer of choice,” says Stevens. “I absolutely believe that if you have engaged employees, they will deliver excellent customer service.” Underpinned by five core values (safety, customer service, engaged employees, community and environment, respect and integrity), ENTREC supports local initiatives, and their local employees, at events like the Dawson Creek Fall Fair and Exhibition and Guitars and Wagons Weekend in Grande Prairie. The company sent heavy machinery to High River, where some of ENTREC’s Calgary employees live, during last summer’s catastrophic flood. Stevens is adamant that “if it’s important to our employees, it’s important to us.” ENTREC began operations with one truck and four trailers under the name Schell Equipment in 1995. As it grew, the company was acquired by Transco, later to be bought by Flint, where the ENTREC name was born. The
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Spruce Grove-based company provides service to the oil and gas, mining, petrochemical, hydroelectric, construction and mining industries, and is benefiting from a recent large-scale expansion of its crane fleet. In 2012, acquisitions in B.C. made it the biggest local crane company in the Prince Rupert, Terrace and Kitimat area, leaving ENTREC well positioned to take advantage of new LNG developments, and setting off a precipitous 309 per cent growth in its annual revenue that year. ENTREC is also active in the Bakken oil formation in North Dakota, with operations in Watford City and Dickinson. “Obviously, labour is always the challenge,” Stevens says. “But our management has experience in U.S. markets, and the Bakken is a very busy area.”
“ANYBODY CAN BUY IRON. IT’S ATTRACTING THE RIGHT EMPLOYEES THAT COUNTS.” - JOHN STEVENS, PRESIDENT AND CEO OF ENTREC. Another acquisition further north, along the border between Alberta and B.C., made ENTREC the biggest crane and transportation company servicing the oil and gas industry near Grande Prairie, Fort St. John and Dawson Creek. Busy with projects around Bonnyville, Cold Lake and Conklin, ENTREC recently moved into a state-of-the-art facility in Grande Prairie and built a new shop in Whitecourt. The company also has several cranes on site for the multi-billion-dollar modernization of the Rio Tinto Alcan aluminum smelter in Kitimat. Through decades of planning, hard work and employee satisfaction, ENTREC has proved that big ambitions offer tremendous results. Just ask Curtis Hargrove.
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© 2013 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 2249
A LOOK AT LEADERSHIP PETROLEUM SERVICES NEWS TALKS WITH PSAC’S BOARD OF DIRECTORS AND TAKES A PERSONAL LOOK AT LEADERS IN THE SERVICES SECTOR
CHRIS GALL Vice President, Global Supply Chain Calfrac Well Services Ltd. TREVOR HAYNES President and CEO Black Diamond Group Limited
IF YOU COULD DO ANY OTHER JOB, WHAT WOULD THAT BE? CG: Medical doctor (specialist). TH: There is no other job I would rather be doing, or company I’d rather be associated with. WHAT IS YOUR FAVOURITE BOOK OF ALL TIME? CG: The Da Vinci Code. TH: I have lots of favourites. The Driver by Garet Garrett is a little-known gem.
CHRIS GALL
WHAT ABOUT MOVIE? CG: The Great Gatsby. TH: The Shawshank Redemption. WHAT DO YOU THINK IS THE BIGGEST CHALLENGE FACING CANADA’S ENERGY INDUSTRY AT THIS TIME? CG: The overall public perception on the environmental impacts of Alberta’s oil industry. TH: International competitiveness and market access. They’re essentially one issue. WHAT WOULD YOU SAY IS YOUR BIGGEST ACCOMPLISHMENT TO DATE? CG: Remaining true to myself. TH: Having convinced great people to work with me.
TREVOR HAYNES
IF YOU COULD CHANGE ONE THING ABOUT YOURSELF, WHAT WOULD IT BE? CG: My appetite for excellence, which can turn into a never satisfied level of expectation. TH: There are many areas for improvement. I would like to be more effective at making people around me feel good about themselves, their ideas and their accomplishments. WHAT IS YOUR MOST TREASURED POSSESSION? CG: My family. TH: They aren’t truly possessions, but my children are what I treasure the most. IF YOU COULD TRAVEL ANYWHERE IN THE WORLD, WHERE WOULD YOU GO? CG: Florence, Paris and Egypt. TH: I’ve travelled extensively; it’s a passion of mine. I would like to explore Antarctica at some point.
WHAT MOTTO OR PHRASE DO YOU LIVE BY? CG: Never let go of your dreams. TH: The will to prepare to win is more important than the will to win.
WHO ARE YOUR HEROES IN REAL LIFE? CG: My parents. TH: People with a vision, people with determination, people who make a difference. I have the privilege of being around them every day.
WHAT TALENT WOULD YOU MOST LIKE TO HAVE? CG: To be a Renaissance-era artist like Leonardo. It is gratifying how artists can generate ideas and then translate them onto paper. TH: The talent to make my answers to these kinds of questions sound interesting.
IN A FEW WORDS, WHAT WOULD YOU SAY ABOUT HOW 2014 IS GOING TO TURN OUT? CG: Optimistic, challenging, growth, perseverance, entrepreneurial. TH: 2014 will prove a transitional year for Canada’s resource industry, as a good part of the groundwork for global market access will have been established. It is up to us to make it happen.
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PETROLEUM SERVICES NEWS
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