Petroleum Service News - Fall 2015

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FALL 2015

Q&A with National Chief Perry Bellegarde Another successful Education Fund Golf Classic 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

Common

GROUND

Industry and First Nations working together, forging new ground

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CONTENTS F A L L 2015

Departments MESSAGE FROM THE PRESIDENT 5 IN THE FIELD

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News, notes and events from the industry

MEMBER PROFILE BUSINESS MATTERS

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Eight ways to ensure your workforce is safe, welcoming and accessible to all employees

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Features ON COMMON GROUND The services sector finds ways to advance the industry’s relationship with First Nations communities

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COVER

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PSAC IN ACTION 2015 DRILLING ACTIVITY FORECAST

BRIDGING THE GAP Assembly of First Nations National Chief Perry Bellegarde on how service companies and First Nations can work together

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CELEBRATING DECADES ON THE GREEN PSAC member companies continue a strong tradition of education and student support

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19 WWW.PSAC.CA

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MESSAGE FROM THE PRESIDENT

Widening the Window for First Nations Participation

O

UR GREATEST ADVANTAGE IN CANADIAN ENERGY

success comes from a pool of homegrown talent. The PSAC Education Fund and the many scholarships we administer are just a few initiatives we have for attracting the talent we need. In this edition of Petroleum Services News, we also provide a special focus on the aboriginal workforce and opportunities for First Nations people and the industry to find ways of working together. The release of the Truth and Reconciliation Commission of Canada’s recommendations in June forced the country to pause and consider our past’s damaging policies surrounding First Nations people. But it also widened the window of opportunity for building positive relationships and fostering greater aboriginal involvement across the Canadian economy moving forward. Looking within our borders instead of abroad, examining new approaches to relationshipbuilding and bridging the education and skills gap with aboriginal people are all ways of working towards increased First Nations participation in aspects of resource development and the energy decision-making process. The oil and gas sector has rocked between a global economic crisis in 2008-2009, which significantly impacted the labour force with enormous losses, and a rapid recovery that caused equally challenging labour shortage challenges. Now, a dramatic drop in the price of oil and economic uncertainty has us reeling once again as we face the potential loss of intellectual capital and jobs. Creative recruitment practices, effective management and the retention of skilled and experienced workers is critical in building stability around employee resourcing. First Nations people have been involved in the resource economy for a long time, but doing more to identify and attract aboriginal talent, and training youth so they can be competitive for filling job opportunities, will ensure we don’t miss the boat once again. In this issue of PSN you will read about PSAC member companies, as well as individuals and groups, who are addressing this issue with earnestness, vigour and urgency. The oil and gas industry will continue to be an important driver of economic growth and employment in Canada, and moving forward with a successful and meaningful Canadian energy strategy should involve First Nations people. PSAC is proud to show leadership for its members on this issue. Through our involvement with the Canadian Chamber of Commerce, PSAC will participate in a project to build on this work and examine the changes that best support relationship-building between industry, aboriginal communities and governments. I am grateful to National Chief Perry Bellegarde for his time, for allowing us to interview him for our magazine and for sharing his thoughts on how the oil and gas services sector can work with First Nations to answer the TRC’s call to action. In an industry that is critical to the growth of our country, widening the window of opportunity for First Nations to participate and answering the industry’s needs for skilled workers is a real and powerful partnership that could actually help move the Canadian energy file forward. Best regards,

Mark Salkeld, PSAC President & CEO

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PETROLEUM SERVICES NEWS


IN THE FIELD PSAC Member Companies Win Big at the 2015 Canadian Oil and Gas Awards

News, events and activities in the industry

2015 PSAC Scholarships Awarded CONGRATULATIONS TO THE 2015 WINNERS OF

PSAC scholarships. Regular Member scholarships are available to PSAC Regular Member employees or their children pursuing post-secondary education and are valued at $1,500 each. This year’s recipients and their company sponsors are: Ashley Currie, University of Calgary (Halliburton Group Canada) Taylor Davis, Huron College at University of Western Ontario (STEP Energy Services Ltd.) Everett Apannah, Northern Lakes College (Power LAB Apex Oilfield Services (2000) Inc.) Morgan Strynadka, University of Alberta (Stream-Flo Industries Ltd.) Jason Collins, Dalhousie University (CEDA Industrial Services) THE INAUGURAL OIL AND GAS AWARDS CANADA 2015 were held in Calgary on June 24. The awards Applications for the 2016 Education Fund Scholwere an opportunity for the industry to pause and arships will be available online at the PSAC webcelebrate what it has achieved in operational excel- site in January 2016. lence, corporate social responsibility, innovation, health and safety, and environmental stewardship. Honourable Lois Mitchell, Lieutenant Governor of Alberta, presented awards to the following seven PSAC member companies: Award for Drilling Excellence – Ensign Energy Services Consultancy of the Year – Big Guns Energy Services (BGES) General Industry Service Award – CEDA IRYNA LUCHAK IS THE RECIPIENT OF THE 2015 Kerr Pumps and FlowValve Award for PSAC Roger Soucy Legacy Scholarship, funded by Excellence in Well Completion – KPMG, in the amount of $2,500. As a student at Calfrac Well Services Austin O’Brien High School in Edmonton and in Manufacturer of the Year – Tenaris her community, Iryna has demonstrated tremenNew Technology Development Award – dous leadership, volunteering her time to numerProduct – Blue Spark Energy Inc. ous initiatives and activities that aim to support Oilfield Services Company of the Year – the growth and wellness of others, including menKatch Kan Ltd. toring children with Big Brothers and Big Sisters Congratulations to all the winning PSAC member Society of Edmonton and YouCan Youth Orgacompanies, and to Quinn Holtby, Katch Kan’s nization, establishing the ThinkPower group at founder, president and CEO, who also won the her high school to encourage self-awareness and award for Industry Leader, Canada 2015. In his positive thinking, and organizing a 21-day Happy acceptance speech Holtby said, “Being reliable, Challenge to bring awareness to the harmfulness responsible, responsive and respectful can only of bullying. equal results. I like to think of Katch Kan as an Luchak, who is affiliated with Dreco Energy extension of myself and live by the quote, ‘Great Services ULC and Rig Solutions, will be attendleaders don’t tell you what to do; they show how ing the University of British Columbia in the fall it is done.’ ” where she will be studying engineering.

PSAC Roger Soucy Legacy Scholarship Funded by KPMG

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COMING EVENTS PSAC ANNUAL GENERAL MEETING November 3, 2015 TELUS Convention Centre, Calgary, Alta. 1:30 pm – 2:30 pm (Open to Regular Members only) 2016 DRILLING ACTIVITY FORECAST AND INDUSTRY OUTLOOK November 3, 2015 TELUS Convention Centre, Calgary, Alta. 2:30 pm – 4:30 pm (Open to all members) 2015 INDUSTRY INSIGHTS DINNER PSAC’s annual Industry Insights Dinner 4:30 pm – 6:00 pm: Networking Social 6:00 pm – 8:30 pm: Dinner featuring keynote speaker, Vivian Krause

PSAC is pleased to announce our keynote speaker, Vivian Krause, for this year’s dinner. The Financial Post calls her “the girl who played with tax data,” and she followed the money to uncover the foreign funding of Canadian green groups, including the Rockefeller Foundation. Krause’s research exposes how foreign interests are exercising their influence over Canada’s non-profit environmentalist sector through their funding, and using anti-Alberta oil campaigns to protect their own foreign economic and trade interests. This is one not to miss, as Krause sheds light on who and what is behind the campaign against Alberta’s oil and the Canadian energy industry. REGISTER FOR THESE EVENTS AT PSAC.CA/EVENTS

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10 FALL 2015

PETROLEUM SERVICES NEWS


ON COMMON GROUND The services sector finds ways to advance the industry’s relationship with First Nations communities BY MARTIN DOVER

W

HEN THE FEDERAL

Truth and Reconciliation Commission released its recommendations earlier this year, after seven years of research and public testimony across the country (which was published as a findings report), it came in the form of a neatly bundled PDF that summed up decades’ worth of the stories of injustice the commission had heard from hundreds of residential school survivors and their families from across Canada. The TRC’s conclusions are best summed up in its own words: “If every aboriginal person were ‘absorbed into the body politic,’” it explains, “there would be no reserves, no treaties and no aboriginal rights.” This policy has amounted to irrevocable socio-economic loss. In order to begin to repair those damages, the TRC set forth its recommendations, which stretch across sectors – from education to language preservation, business to provincial politics, the legal system to the mainstream media. The section that addresses business calls for industry to consistently refer to the United Nations Declaration on the Rights of Indigenous Peoples. While it mentions meaningful consultation and free, prior and informed consent, it also highlights equitable access to jobs and staff training on aboriginal relations. It calls on businesses to

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PHOTOS BY JOEY PODLUBNY

“ensure that Aboriginal Peoples have equitable access to jobs, training and education opportunities in the corporate sector, and that aboriginal communities gain long-term sustainable benefits from economic development projects.” “The natural resource sector has traditionally been an area where we haven’t necessarily participated other than as low-lying fruit in terms of jobs,” says Sheldon Wuttunee, president and CEO of the Saskatchewan First Nations Natural Resource Centre of Excellence in

“IF YOU WANT TO SUPPORT ABORIGINAL PEOPLE, HIRE ABORIGINALS.” – J.P. GLADU, PRESIDENT AND CEO OF THE CANADIAN COUNCIL FOR ABORIGINAL BUSINESS Saskatoon. “It’s all related to transfer agreements and the permit system, which allowed the non-First Nations population to develop an economy which we weren’t a part of, and now we’re in a phase of catch-up. With the recommendations from the TRC, education and training is at the forefront ... it’s making sure that [First Nations people] have a keen understanding that there is opportunity to get an education for.”

WHEN IT COMES DOWN TO IT,

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

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The Fort McKay First Nation has negotiated many training and educational opportunities with the oil and gas sector.

industry’s labour shortage gaps. In remote areas, aboriginal people remain what’s needed for specific projects.” From there, users can search for jobs or, if they are employers, an untapped source of employees. “If you want to support aboriginal people, hire aboriginals,” says J.P. search the database for specific skills that they are Gladu, president and CEO of the Canadian Council for Aboriginal Busi- in need of. ness. The CCAB’s mandate is to form ties between corporate Canada and aboriginal communities across the country. “You can’t build a socio-economic base without an economy, and there’s no economy without business,” says Gladu. “The TRC and the words from the AFN are about TAMARA NELSON, DIRECTOR OF HUMAN RESOURCES, bridging that gap.” SUMMIT LIABILITY SOLUTIONS The CCAB has been workIt hasn’t always been easy, to get projects and ing on a third-party certification program that would assist in matching aboriginal and non-aboriginal businesses. “We can’t be leaving it to the pri- the CCAB certification program up and running, mary producers to build relationships through things like procurement,” and there has been a bit of “chicken or the egg” says Gladu. “The supply chain needs to understand the importance of syndrome to contend with – “When people log aboriginal relationships because it benefits everybody in a region, in that in they want jobs, but industry wants people,” says Wuttunee. “We’re trying to do both simulsector and in the country.” And it’s not only the CCAB that’s working on database solutions. The taneously.” Saskatchewan First Nations Natural Resource Centre of Excellence is developing a program called EXPORT, a database where employers and potential employees alike can sign on to find each other. “When industry is mov- industry success stories to work from. A PSAC ing into an area and they’ve identified local communities that are on or member that’s excelled in spearheading various near a First Nation, we’re taking a proactive approach to ensure that we’re First Nations initiatives is Black Diamond Group. developing a portal to identify what skills are there in terms of individuals The company owns large housing facilities that that are trained or willing to be trained,” says Wuttunee. He adds that the service resource projects in remote areas, often centre hopes that the portal will be used across industries, from oil and gas working with local communities through conto forestry and even food services. “This is starting to build a communal tractors. “We have equity-based relationships approach, to be able to identify and develop a skills inventory and to know with First Nations in the areas,” says Trevor

“YOU CAN’T JUST HELICOPTER IN A FIRST NATIONS PERSON ALONE – IN FACT, YOU WOULDN’T DO THAT WITH SOMEONE FROM A RURAL AREA, EITHER. THEY NEED TO BE IN THE SPIRIT OF COMMUNITY. THIS IS LONG-TERM THINKING WITH A COMPETITIVE ADVANTAGE.” –

THAT’S NOT TO SAY THERE ARE NO

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PETROLEUM SERVICES NEWS


Haynes, Black Diamond’s president and CEO. “Through our services, we can be that transom between producers and First Nations.” Jonathan Stringer, the company’s general manager of aboriginal relations, notes that when Black Diamond is in discussion with aboriginal partners, employment and training is a significant factor in the relationship. Much of the First Nations engagement comes through catering and service roles in camp. “In the procurement and tender process in which we select our caterers, we look at what their local engagement and training strategy is,” says Stringer. “It’s a skill set that can be readily trained and engaged, from food services to hotel services to maintenance.” Black Diamond has also noted that training needs to be considered in new and creative ways when working with First Nations people. “We know it’s difficult to convince people to come to Calgary for training,” he says. “So if you can train closer to, or on the job, you get much more effective retention throughout. It pulls the community into the work that’s being done.” The last TRC recommendation to business suggests “education for management staff on the history of aboriginal peoples, including the history and influence of residential schools. This will require skills-based training in intercultural competency, conflict resolution, human rights and anti-racism.” This is perhaps the most challenging, and surprising, item. It requires fundamental change at the boardroom table. Tamara Nelson, director of human resources at Summit Liability Solutions, is one of those people working for change at executive levels. Nelson’s post-secondary research is in aboriginal economic development, and she works alongside the company’s president daily. “I’ve pushed that agenda and I have his ear,” she says. In her decade of consulting work, she says she hasn’t witnessed this level of First Nations engagement within any other company. “It’s true engagement, not surface engagement. The capital outlay to keep a program of this nature going in a company is a hard sell to many executive teams.”

Nelson says that service companies can make a difference by developing programs alongside First Nations leadership, rather than trying to push legislation towards them. “Summit Liability has developed a phase-based training program that is adaptable to each individual First Nation, because “every band is different,” says Nelson. “They are like any family; they come with their own challenges and successes.” Nelson calls the training system a “work of art” that has gone through 14 to 15 iterations in its lifespan and is constantly changing. The basic program takes inexperienced workers and trains them on the job, partnering them with another First Nations person that is already on staff. “You can’t just helicopter in a First Nations person alone – in fact, you wouldn’t do that with someone from a rural area, either. They need to be in the spirit of community. This is long-term thinking with a competitive advantage.” Nelson acknowledges that a lot of the phrasing that surrounds doing business with First Nations is confusing – “Although many will assert that all you need to do is ask, not every door is open if you yourself are not First Nations or you don’t come in with a base of knowledge,” she confirms. “You have to be in it for the long haul, rather than coming in for the quick sale.” She says the important thing is to keep knocking on doors, to embrace the “long trudge. You meet some amazing people.”

DIGGING DEEPER In 2014, Calfrac Well Services provided a donation to fund research related to aboriginal relations at the University of British Columbia. The goal was to further understand the environment surrounding local participation in the economy. The donation led to a survey of the resources that First Nations in B.C. currently have in order to participate in expanding their own economy, and has focused primarily on education. Petroleum Services News will feature more about this work in the Winter 2015 issue.

A boardroom at the Fort McKay First Nation, in northern Alberta.

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BRIDGING the

GAP I

N JULY, ASSEMBLY OF FIRST

Nations National Chief Perry Bellegarde visited Calgary to give a keynote luncheon speech at the Calgary Chamber of Commerce. During his address, National Chief Bellegarde spoke about his plans for a national energy forum, and his goal of bringing together the energy industry, government and First Nations leaders. Beforehand, Petroleum Services News spoke with him about how service companies and First Nations can work together.

PHOTO: CANADIAN PRESS

PSN: What can PSAC members take away from the release of the Truth and Reconciliation Commission of Canada’s Calls to Action, in terms of working with First Nations communities?

WWW.PSAC.CA

NATIONAL CHIEF BELLEGARDE: One of the main things [PSAC] can do is assist in lobbying governments, both federal and provincial, for implementation of the United Nations Declaration on the Rights of Indigenous Peoples. Recently, the premier of Alberta, Rachel Notley, has done two things: she apologized for the residential school policy, and she has directed her cabinet to find ways and means to

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PHOTO: JOEY PODLUBNY

The winning team from this year’s PSAC golf tournament A respect for land, air and water are important factors in working with First Nations communities.

implement the Declaration. And that’s really powerful because that’s reconciliation. [The AFN has] also asked the premiers to do a number of other things. In the area of education, we’ve asked them to change their curriculum to address treaties and aboriginal rights in school. We’ve asked them to teach about the residential schools and the impacts, about the cultural genocide that it was. We’ve also asked that they start looking at ways to become more involved in the economy. We’ve asked them to start looking at setting up bilateral processes with First Nations governments, which will create economic certainty and stability. And when you get First Nations involved like that, they also bring added respect for the land, the air and the water. We’ve asked the provinces to consider, before granting access to industry, that industry has a strategic plan for First Nations engagement, procurement and benefits-sharing. Those things can happen as a means of considering the Truth and Reconciliation Commission (TRC) recommendations. PSN: And employing First Nations people is a way to address a shortage of workers, too. NCB: There is a skilled labour shortage in Western Canada and the fastest growing population is young First Nations men and women. You have human capital there, so invest in that capital. We’ve got a labour pool that is stable. That should be looked on as value-added. But the best thing to do is build relationships at the community and/or tribal council level.

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In Canada, there is a huge socio-economic gap that exists. That’s what we’re trying to close and we can’t do it alone. The UN Human Development Index has rated Canada sixth in the world, but when you apply those same indexes to First Nations people, we’re 63rd. It’s not good for the provinces, our people, this country. If we can

relationship before you build anything else. Think about the impact on GDP when people are trained, participating and working. If we can close the gap by 2026, we’d save $115 billion over 15 years and would add $401 billion to Canada’s GDP, just by focusing on education and training.

“We call upon the corporate sector in Canada to adopt the United Nations Declaration on the Rights of Indigenous Peoples as a reconciliation framework and to apply its principles, norms, and standards to corporate policy and core operational activities involving Indigenous peoples and their lands and resources.” – TRUTH AND RECONCILIATION COMMISSION OF CANADA: CALLS TO ACTION close that gap and make sure aboriginal people are part of the economic boom that is going on in some areas, the boom will be even louder. When we win on any front, Canada wins. If your membership can embrace that, the idea of getting behind initiatives to close the gap, that’s good for this country. PSN: How is oil and gas unique in considering the recommendations? NCB: I don’t know if it’s any different. We are trying to reach out and connect with all sectors – oil and gas, mining, forestry, tourism. The public and private sectors need to get their heads around that gap. Build relationships, go out and make relationships with chiefs and councils, build a

PSN: What’s not happening that should be? NCB: Each company should have a strategy in three areas – a representative workforce strategy, a procurement strategy and a resource-revenue sharing strategy. We have to have more First Nations people on the boards of directors and more in senior management positions because it’s about diversity and value-added. If you want to partner with First Nations people, get more First Nations people working in your organization and make sure they’re present when decisions are being made on your policy. It’s not just profit anymore – you have to take into account people and the planet. It’s going to be difficult. Change isn’t easy, but let’s start the process.

PETROLEUM SERVICES NEWS


MEMBER PROFILE

The Right Stuff Black Diamond Group’s First Nations engagement model has led to success across the West BY ROBIN BRUNET

C

ALGARY’S BLACK DIAMOND GROUP

is known for its ability to work through tough operating environments. In its work providing modular buildings and support equipment to projects in remote regions, it has also forged a reputation for groundbreaking partnerships across Western Canada. The company has become an industry leader in aboriginal relations, beginning with a 2009 equity-based agreement – Black Diamond Dene LP – with the Fort Nelson First Nation. Since then, the company has ratified three other First Nations agreements and is communicating with as many as 30 aboriginal groups in total. Anyone working in Northern Canada understands that effective First Nations engagement is critical to business success, but some partnership models have proven more successful than others. Trevor Haynes, president and CEO of Black Diamond, notes that being a good partner means “getting involved in the aboriginal communities first-hand.” Jonathan Stringer, Black Diamond’s general manager of media relations, chimes in: “We also ensure that our involvement helps First Nations participate meaningfully in resource development,” he says. By building roads, buildings and other infrastructure on behalf of Black Diamond’s clients, First Nations derive income as well as acquire transferrable skills. But even though Haynes, Stringer and other Black Diamond personnel are serious about bestin-class relationship building, their good intentions might have gone south had they not created strict engagement guidelines. “We’re very selective about who we partner with – it has to be a good fit – and we’re adamant about involving the entire community instead of just the chief and council,” says Haynes. When asked to explain how they determine

WWW.PSAC.CA

Black Diamond’s Mt. Milligan Camp, located between Fort St. James and Mackenzie in northern British Columbia.

what makes a good fit, Stringer replies, “It’s a combination of research, industry activity in the area and discussions with the community. One thing that is very important for us is that we ensure our partnership is for the long term. That means we want to partner where there will be the opportunity for long-term business opportunities together.” Over 500 band members voted for the Black Diamond Dene LP. “The consensus vote is managed by the First Nations, so it depends on the method they choose to employ,” says Stringer. “Our partnerships with Fort Nelson First Nation and West Moberly First Nations involved a vote by the entire membership. Knowing before our partnership is ever finalized that the entire community has fully supported our venture puts us in a better position for success in the community and with industry.” In addition to providing a quality, competitively priced product, the Dene partnership was structured to improve local capital and offer residents the chance to start their own businesses. “We also got ourselves involved in the local school, staged hockey games and social events, and generated money for a scholarship fund,” says Haynes. In January 2011, Black Diamond entered into a second agreement within the Treaty 8 First Nation. This time, members of the West Moberly First Nations, located southwest of Fort St. John, B.C., voted on the equity-based partnership. A partnership with the Beaver Lake Cree Nation near Lac La Biche, Alta., followed in 2012 (it addresses oil sands activity and other resource development in the BLCN territory), and more recently, Black Diamond engaged with First Nations in Norman Wells, N.W.T., and the Whitecap Dakota First Nation in Saskatchewan. Affiliations with organizations such as the Impact Society (which coordinates character development programs in schools across North America) help Black Diamond round out its commitment to aboriginal communities. “None of this comes easy,” says Stringer. “It takes a lot of time and effort – but the results are worth it.” Haynes and his colleagues are looking forward to boom times in the North. “In B.C. alone, two of the proposed energy pipelines [would] go through 60 different First Nations territories and require partnerships,” he says. “From the work camps to the ports, the aboriginal component will be substantial, and the same holds true for projects in Alberta and Saskatchewan. Frankly, we think our engagement model is superior to other models, and we have the track record to prove it.”

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BUSINESS MATTERS

Driving for Diversity Eight ways to ensure your workforce is safe, welcoming and accessible to all employees BY LISA CATTERALL

F

OSTERING A WORKPLACE THAT’S

believes that diversity and cultural acceptance are key parts in any business. Given the close ties that cultural sensitivity has with workplace safety and social responsibility, she argues that companies must keep diversity in mind with every business decision made. Once an overarching goal is set in place, it then guides the rest of the business to follow suit. “For example, a culture that promotes safety as a priority is one where people feel supported when speaking up,” she says. “That’s INCLUDE CULTURAL AWARENESS IN ALL ASPECTS OF THE a work environment that respects individuals’ BUSINESS. Calgary-based workforce development opinions, and that’s the same thing as an and labour market consultant Cheryl Knight inclusive workplace.” open to employees from all backgrounds can be challenging. Human resources staff and executives often understand what is needed to establish an accessible, conflict-free workforce, but the changes required to do so can seem daunting at first. Petroleum Services News gathered some expert tips focused on creating an inclusive environment where employees can thrive:

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MAKE CULTURAL AWARENESS TRAINING PROGRAMS ACCESSIBLE AND INTERESTING. Sandra Sutter, business manager for the Circle for Aboriginal Relations Society, notes that there are two simple factors that can increase employee engagement. “There are a couple of ways to make it more accessible – one of those is art, and the other is food. It’s always a good idea to introduce culturally appropriate food and art so that the culture becomes less scary,” she says. PARTNER WITH COMMUNITY AND CULTURAL ORGANIZATIONS. Local groups can provide support to employees and allow companies to better understand the needs of individual communities. “If you know you’re going to grow in a particular area, that’s an opportunity to develop partnerships in that region,” says Knight, noting that the regional approach can also increase buy-in among staff. “[It] requires field and operations people to get involved, understand, learn and be a part of success, rather than have it be pushed down from corporate offices.”

work. In addition, mentorship programs set up between employees with similar backgrounds can provide additional support outside of work. “We’ve found that group hiring works really well, so that [employees] can lean on one another and don’t feel completely abandoned,” says Sutter. “And making sure that you have someone who can help translate the language between an employer and a new employee can have a great impact as well.” SHARE AND CELEBRATE SUCCESS STORIES WITH THE LOCAL COMMUNITY. By setting up employees for success and encouraging individuals to share their experiences, companies can remove cultural barriers and foster further engagement. Concrete role models can encourage others from a specific cultural group to see the potential for success. “When people start to see Joe and Lucy down the street having a little bit more access to things that help them to have a more successful life, they get interested. They want to know where they’re working, how they got that job, what kind of education they needed, etc. And this can lead to a steady stream of new employees, just from one role model,” says Sutter.

the adoption of an inclusive, accommodating workplace policy needs to occur from the inside out and include involvement at the executive, managerial and employee levels. “The hard part is to work with field and operations managers and help them see how diversity initiatives support their business. I would recommend workshops so that they can come to the conclusion that diversity makes sense from a business perspective,” says Knight. DESIGNATE A DAY-TO-DAY CONTACT WHO IS RESPONSIBLE FOR MAINTAINING AN INCLUSIVE WORKPLACE. “You should have somebody like the president promoting it and putting out the corporate message, but you need somebody that is responsible because people are going to have questions and problems,” says Knight. “There needs to be somebody to go to.”

START SMALL. Rather than applying cultural awareness measures across the board from the start, Knight believes it’s best to start with a growth region as a pilot. “Focus diversity strategies in a particular region first, to test them and GROUP HIRING AND EMPLOYEE MENTORSHIP. Hiring a see which mechanisms work for their particular number of employees from a common cultural group at once allows them to transition into OFFER WORKSHOPS AND TRAINING AT ALL LEVELS. situation. From there, they can expand it as a the workforce with an automatic support net- Rather than a top-down, or bottom-up approach, company,” she says.

20 FALL 2015

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22 FALL 2015

PETROLEUM SERVICES NEWS


CELEBRATING DECADES ON THE GREEN PSAC member companies continue a strong tradition of education and student support

T

HE PETROLEUM SERVICES

Association of Canada celebrated 30 years on the golf course with its 2015 Education Fund Golf Classic on July 16, 2015, held at the Carnmoney Golf Club in DeWinton, Alta. Neither the gloomy weather outside nor the gloomy mood in the sector took away from members coming together to support student education in preparation for careers in petroleum services. PSAC members and industry supporters raised just under $30,000 for the PSAC Education Fund this year, bringing the fund’s total contributions to $280,000 in scholarships and grants since 2001, when it was established. “Each year the petroleum services sector overwhelmingly supports our tournament and in turn the PSAC Education Fund,” said Mark

WWW.PSAC.CA

Salkeld, president and CEO of PSAC. “The oil and gas services sector is a great place for opportunities for young people. Canada has an important role to play in supplying the global energy needs of the future. The Education Fund is one of many initiatives we have to attract the talent our sector needs to help Canada fill that role, and where we can make a positive difference.” The PSAC Education Fund provides resources for Canadian students to create awareness of and help develop a potential long-term labour pool for the upstream service, supply and manufacturing sector in the oil and gas industry. This is done through several sets of scholarships including funding scholarships at five technical schools across Western Canada, the PSAC Regular Member scholarships and the PSAC Roger Soucy Legacy Scholarship Funded by KPMG.

23


The wrap-up barbecue featured the Regular Member scholarship cheque presentation to Ashley Currie, who is studying to receive her bachelor of science at the University of Calgary. Five other students received PSAC Regular Member scholarship cheques this year in the amount of $1,500. They are: The 2015 Most Honest Team enjoyed the day despite the weather. (From left to right) Kevin Howell, Quinn’s Energy Group of Companies, Ian McConnell, Core Laboratories Canada Ltd., Sue Benney, Ops Mobil and Norm Eaton, RBC Securities

Ashley Currie, 2015 Regular Member Scholarship Recipient with John Gorman, Halliburton Group Canada and past PSAC Chair

First Place Team (from left to right) Fred Farmer, John Gorman, Bill Matheson and Kevin O’Brien, Halliburton Group Canada

Taylor Davis, Huron College at University of Western Ontario (STEP Energy Services Ltd.) Everett Apannah, Northern Lakes College (Power LAB Apex Oilfield Services (2000) Inc.) Morgan Strynadka, University of Alberta (Stream-Flo Industries Ltd.) Jason Collins, Dalhousie University (CEDA Industrial Services) Iryna Luchak, University of British Columbia (Dreco Energy Services ULC) (Rig Solutions) was the recipient of the 2015 PSAC Roger Soucy Legacy Scholarship, funded by KPMG. Golfers enjoyed a day of activities on the course with a Beat the President contest and cash prize of $1,500, a fun photo booth, refreshments and placement team prizes and trophies. The 2016 tournament will mark the 15th anniversary of the PSAC Education Fund Scholarship program. Scholarship applications will be available through PSAC in January 2016.

Mark Salkeld, PSAC President & CEO prepares for a full day of driving for the Beat the President contest

Golfers head out in the rain

24 FALL 2015

PETROLEUM SERVICES NEWS


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CIB BC2015 PDF 0715-073-195011_KNOW AD_7.375x4.875_PET SERVICES_CANADIAN.indd 26 FALL

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1

7/31/15 10:58 AM PETROLEUM SERVICES NEWS


PSAC IN ACTION THE PETROLEUM SERVICES ASSOCIATION OF CANADA CONTINUES TO KEEP THE SERVICE, SUPPLY AND MANUFACTURING SECTORS FRONT AND CENTRE THROUGH ADVOCACY AND OUTREACH PSAC PRESENTS Recent meetings and events attended by PSAC include the Canadian Energy Summit, the Canadian Suppliers Opportunity Forum, the BC Liberal Leader’s Dinner, the Saskatchewan Government Business Reception at the Global Petroleum Show, the Canadian Manufacturers and Exporters Alberta Deputy Minister’s Dinner and the U.S. Consul General’s Independence Day Celebration, as well as numerous Calgary Stampede stakeholder events. Here are a few other highlights of the key stakeholder meetings PSAC has been involved with over the past couple of months:

LEFT TO RIGHT: Elizabeth Aquin, PSAC; Dale Dusterhoft, Trican; David McHattie, Tenaris; Ian McConnell, Core Lab; Chris Gall, Calfrac; Deborah Close, Tervita; Tom Whalen, Baker Hughes; January McKee, Amgas; Scott Van Vliet, Environmental Refuelling Systems; The Honourable Greg Rickford, Minister of Natural Resources; Duncan Au, CWC Energy Services; Grant Stevens, Grant Production Testing; Scott Hauck, Distribution NOW; Mark Salkeld, PSAC; John Gorman, Halliburton Group Canada

PSAC CONNECTS WITH CANADIAN LEADERS AND STAKEHOLDERS FEDERAL: • In June, PSAC met with the House of Commons Standing Committee for Natural Resources and other invited MPs in Ottawa to provide members of Parliament with a presentation on hydraulic fracturing. At the request of Natural Resources Committee members, PSAC made a presentation that outlined safety and environmental performances and demonstrated the technology and research that goes into these highly sophisticated operations. It was an important opportunity to address issues related to hydraulic fracturing and emphasize its importance to energy development and the economy. Canada has hydraulically fractured over 215,000 wells since 1951. A copy of the presentation is including introducing her to the PSAC Board of Directors, where they available on PSAC’s website. • During Stampede week, PSAC and the Board of Directors met with were able to discuss issues facing PSAC members, including market acHonourable Greg Rickford, Minister of Natural Resources and Minister cess and competitiveness, as well as concerns for the industry around for the Federal Economic Development Initiative for Northern Ontario. corporate taxes, royalty review and climate change policy implications. PSAC’s board was able to share updated statistics from a study of the oil • As a sponsor of the 2015 Energy and Mines Ministers’ Conference and gas sector’s economic contributions, which show that in 2009, the (EMMC) in Halifax, from July 19-21, PSAC’s president and CEO, Mark sector contributed $75 billion to Canada’s GDP (up from $65 billion in Salkeld, provided the opening remarks. Following on the heels of the Premiers’ Conference in Newfoundland and Labrador, and with the 2006), and direct and indirect employment reached 685,000 workers. announcement of the premiers’ alignment on a Canadian Energy Strategy, PSAC was able to emphasize the importance of the provinces’ role PROVINCIAL: • On June 8, PSAC had its first meeting with the new Alberta Energy in making Canadian energy products not only available across Canada, Minister, Honourable Margaret McCuaig-Boyd. Since that meeting, but also to support Canada’s role in supplying global energy needs by PSAC has had a number of opportunities to meet with the minister, ensuring we are able to export our products from tidewater.

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27


PSAC CONNECTS WITH KEY STAKEHOLDERS • PSAC contributed submissions to a number of review panels between June and August on the subject of hydraulic fracturing. The governments and regulators of the energy industries in Newfoundland and Labrador, Northwest Territories and the Yukon all had calls for input on the subject to consider whether hydraulic fracturing should be adopted to further energy development in their jurisdiction, or to seek input on proposed regulations for the practice. • To increase awareness and understanding of PSAC, our members and their operations, Mark Salkeld, PSAC president and CEO, continues a program of community outreach. Most recently, Mark presented to the Warburg-Pembina Surface Rights Group and met with the Leduc-Nisku Economic Development Association. • PSAC hosted a meeting in Fort St. John, B.C., on July 13, between the BC CVSE authorities, PSAC members and the CAODC and CAPP. The purpose of the meeting was to discuss concerns raised by the BC CVSE with how the industry is transporting coil tubing reels and wide loads in northeast B.C. PSAC, CAODC and CAPP agreed to develop proposals for addressing those concerns, and will be meeting with the CVSE to discuss those proposals.

2015

INDUSTRY INSIGHTS

PETROLEUM SERVICES ASSOCIATION OF CANADA

LEFT TO RIGHT: MP Joan Crockatt; Mark Salked, PSAC President and CEO; MP Leon Benoit, Chair of the Commons Standing Committee on Natural Resources; Wally Kozack, Director of Industry and Government Relations, Calfrac Well Services Ltd.; Elizabeth Aquin, Senior Vice President, PSAC; David Browne, Vice President, Communication and Marketing, Trican Well Service Ltd.

Tuesday, November 3, 2015 TELUS Convention Centre Calgary, AB | 1:30 pm – 9:30 pm Visit PSAC.CA for more information

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

Analysts include: Adam Gil, CFA, Institutional Equity Research, CIBC World Markets – E&P Greg Coleman, Managing Director, Research, National Bank Financial – Service Outlook

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28 FALL 2015

PETROLEUM SERVICES NEWS


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DRILLING ACTIVITY FORECAST UPDATE

Drilling Activity Forecast Remains Unchanged Third quarter shows no expectation of significant improvement by year-end 2015 CANADIAN DRILLING ACTIVITY FORECAST (NUMBER OF WELLS)

5,000

4,000 ALBERTA: 2,839

3,000

2,000

1,000

SASKATCHEWAN: 1,660

BRITISH COLUMBIA: 559 MANITOBA: 251

0

TOTAL IN CANADA: 5,320

Note: Total includes activity in Northern and Eastern Canada.

I

N ITS THIRD QUARTER UPDATE TO THE 2015

Canadian Drilling Activity Forecast, the Petroleum Services Association of Canada (PSAC) expects drilling activity to remain flat to year-end. PSAC reports a total of 5,320 wells (rig releases) to be drilled in Canada this year – this figure remains unchanged from PSAC’s Mid-Year Activity Update (April 2015), when it made a substantial downward adjustment, reducing its original forecast of 10,100 wells by 4,780 wells – a 47 per cent decrease. PSAC bases its third quarter update to the 2015 forecast on average natural gas prices of $2.50 CDN/mcf (AECO), crude oil prices of US$53/ barrel (WTI), and the Canadian dollar averaging US $0.77. “PSAC’s Drilling Activity Forecast to the end of year remains flat,” said Mark Salkeld, PSAC’s president and CEO. “By now, most of the shock from the steep drop in oil prices we experienced at the beginning of 2015 has been absorbed. The adjustment down last quarter was dramatic, and now oversupply and low cash flows means there’s no better news for drilling activity from now to the end of year except, perhaps, that it’s holding.”

30 FALL 2015

On a provincial basis for 2015, PSAC now estimates 2,839 wells to be drilled in Alberta (down 50 per cent from the 5,740 wells in PSAC’s original October 2014 forecast). In Saskatchewan, the expected well count is now 1,660 wells, less than half of the 3,365 wells originally forecasted, but 153 wells higher than forecasted in the April 2015 update. Manitoba is forecasted to drill 251 wells, down by 179 wells from the original forecast, while British Columbia’s count has been nominally increased to 559, from 555 forecasted originally. “Small changes with rig counts up in one area, and down in another, means the numbers have balanced out across the map and the overall forecast picture remains unchanged. Better performance in Saskatchewan, where top-performing producers were in a position to take advantage of lower overall service and completion costs, was balanced by a drop in Alberta where a lot of uncertainty has added to the chill from the oil price shock,” says Salkeld. “BC LNG potential remains a promising incentive for exploration activity, but access to global LNG markets is critical. Without it, production will remain flat and Canada will miss out in the global market.”

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