Petroleum Services News - Winter 2012 by Venture Publishing

WINTER 2012

PSAC’S 2013 DRILLING ACTIVITY FORECAST

SERVICES

TAKING ADVANTAGE OF SR&ED FERUS INC. CONVERTS ITS TRUCKS TO NATURAL GAS

TECHNOLOGY BLUEPRINT

KUDU Industries Inc.’s investment in research and development is paying off

PM#40020055

PSAC_Winter_2012_p01.indd 1

11/21/12 2:50:35 PM

000PSN-CCI-FP.indd 1 PSAC_Winter_2012_p02-03.indd 2

11/16/12 4/18/12 9:17:06 4:37:10 AM PM

9:17:06 AM

CONTENTS

WINTER 2012

Departments MESSAGE FROM THE CHAIR IN THE FIELD

4 7

News, notes and events from the industry

2013 DRILLING ACTIVITY FORECAST

Steady business in the Western Canadian Sedimentary Basin

Features A BLUEPRINT FOR COMMERCIALIZING TECHNOLOGY

COVER

A former CFL star tackles the services sector

Advocacy initiatives from PSAC spread far and wide

A LOOK AT LEADERSHIP

GLOBAL GIVE AND TAKE FROM FOOTBALL TO FRACKING

PSAC IN ACTION

Ferus Inc. converts its trucks to run on compressed natural gas

Up close and personal with PSAC board members Brad Fedora and Scott Hauck

PSAC’s Industry Insights Forum takes a political look at 2013

Research and development pays off with SR&ED

MEMBER PROFILE

Innovation and new products drive KUDU’s business

BUSINESS MATTERS

WWW.PSAC.CA

PSAC_Winter_2012_p02-03.indd 3

11/21/12 2:52:04 PM

MESSAGE FROM THE CHAIR

New Year and New Challenges

FEEL ECSTATIC ABOUT THE HONOUR of being called to serve you

as Chair of the Board of Directors for the Petroleum Services Association of Canada (PSAC) for the 2012-2013 year. I have been involved with the PSAC board now for a few years, and assume the role as chair with great confidence and excitement about what the year ahead holds for PSAC’s members and our association. It will also be a challenge to continue with the great work that our past chairmen have achieved in growing our association and its role as the voice of the petroleum services, supply and manufacturing sectors. In the year ahead, our industry will continue to work toward ways of improving our performance and these efforts will hinge on our collective ability to find ways to drive efficiencies and cost containment measures Lucas Mezzano, PSAC Board Chair into the entire energy value chain. At the same time, our industry will continue to innovate and create ways to further limit the footprint of our operations as an example to the world of sustainable operations. Progress on these fronts will improve the attractiveness for investors, while continuing to position Canada as an energy leader on the world stage and our industry as a great place to work and thrive. While I have no doubt that innovation will continue to positively impact our operational, safety, and environmental performance, the petroleum services sector and our industry will continue to work through certain challenges. PSAC’s 2013 Canadian Drilling Activity Forecast anticipates that drilling activity in the year ahead will be slightly higher than the expected fi nal count of 2012. The major impacts on activity levels include low gas prices, a scaling back in capital investment, and capacity issues related to labour shortages. More detail on the 2013 Canadian Drilling Activity Forecast can be found on page 9. Following the ramp up of efforts in communications and government relations over the past few years, PSAC will continue to focus efforts in these areas with the goal of raising the awareness of the petroleum services sector and the issues we face. A key priority will be to continue to grow the profi le of PSAC and its members, and the important leadership role that Canada’s petroleum services, supply and manufacturing sectors have in innovation and technology development, a role not always well known or understood. In addition, PSAC will continue to leverage the relationships that have been formed across all levels of government, both provincial and federal, to discuss the key issues that members face, and to work collaboratively with government and our industry peers to map solutions that encourage future growth and sustainable resource development. We cannot afford to repeat the “fair share” fiasco when our voice was not heard. It is not enough that we continue the good work we do. We need to show it and be proud of it, both inside and outside the doors of our respective companies. In the year ahead, PSAC will also continue to dedicate efforts toward building vibrant communities which includes continued support of the STARS and Spurs Gala. The partnership between STARS and PSAC is now entering its 19th year and has raised more than $5 million. PSAC will continue to take the lead with its Community Partners program, an in-field courtesy program dedicated to encouraging respectful behaviours such as closing gates and reducing noise. Finally, PSAC’s Education Fund and the golf tournament held each year, which is the sole fundraiser for the scholarship program, will continue to support youth education with the goal of building a future labour pool for our industry. I look forward to the year ahead, and encourage employees of the more than 250 PSAC member companies to engage with the association through joining committees or providing regular feedback so that PSAC can continue to focus our efforts on the issues at the forefront for our members. Yours sincerely,

Lucas Mezzano PSAC Board Chair

PSAC_Winter_2012_p04-05.indd 4

11/19/12 4:27:07 PM

SERVICES WINTER 2012 VOL 12 • No.3 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 over 250 member companies, employing more than 65,000 people and contracting almost exclusively to oil and gas exploration and production companies. PSAC member companies represent over 80 per cent of the business volume generated in the petroleum services industry. PETROLEUM SERVICES ASSOCIATION OF CANADA 1150 800 6TH AVENUE SW CALGARY, AB T2P 3G3 TEL: 403.264.4195 FAX: 403.263.7174 PRESIDENT AND CEO: MARK SALKELD VICE PRESIDENT, COMMUNICATIONS: KELLY MORRISON COMMUNICATIONS COORDINATOR: LINDA ALDRIDGE

PETROLEUM SERVICES NEWS IS PUBLISHED FOR PSAC BY 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 ASSOCIATE PUBLISHER: JOYCE BYRNE MANAGING EDITOR: STEVE MACLEOD CONTRIBUTING WRITERS: KAREN PETKAU, LISA RICCIOTTI ART DIRECTOR: CHARLES BURKE ASSOCIATE ART DIRECTOR: ANDREA DEBOER ASSISTANT ART DIRECTOR: COLIN SPENCE PRODUCTION MANAGER: BETTY-LOU SMITH PRODUCTION COORDINATOR: BRENT FELZIEN DISTRIBUTION: JENNIFER KING ACCOUNT EXECUTIVES: ELLEN FRASER, DENNIS McCORMACK

You Gotta See thiS FrackinG thinG! Simultaneously heat an entire tank farm. maintain frac fluid temperature. mitigate scheduling risks. iCS group’s ground-breaking frac fluid Heating System is here! pit ponds, aboveground tanks, tank farms – precise, reliable temperature control ensuring consistent up-time and service. you frac when you’re ready, ‘cause your water is always ready to go!

icsgroup.ca

1-866-247-4460

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 © 2012 PSAC. NOT TO BE REPRINTED OR REPRODUCED WITHOUT PERMISSION.

WWW.PSAC.CA

PSAC_Winter_2012_p04-05.indd 5

Calgary U Edmonton U fort mCmurray U winnipEg

11/19/12 4:27:32 PM

Trusted advisers to Canada’s Energy Services Sector For information on how KPMG can assist you, please contact: Rhys Renouf National Sector Leader, Energy Services (403) 691-8426 rrenouf@kpmg.ca

kpmg.ca

© 2012 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.

PSCA_8.25x10.75_Apr2012_FINAL.indd 1 000PSN-KPMG-FP.indd 1 PSAC_Winter_2012_p06-07.indd 6

4/10/2012 3:59:21 PM 11/16/12 11/2/12 4:41:07 4:39:06 PM

ndent erved.

in the field

News, events and activities in the industry

COMING EVENTS

PSAC and Enform Partner to Shine a Light on Safety PSAC and Enform joined forces to provide safety updates to approximately 50 delegates

Canada’s Energy Technology Blueprint Breakfast Forum December 5, 2012 The Metropolitan Centre Calgary, Alberta STARS & Spurs Gala Presented by PSAC January 19, 2013 BMO Centre, Stampede Park Calgary, Alberta For more information visit www.stars.ca PSAC 2013 Spring Conference April 16 & 17, 2013 Sheraton Red Deer Hotel Red Deer, Alberta PSAC Mid-Year Luncheon April 2013 Calgary, Alberta PSAC Education Fund Golf Classic July 18, 2013 Calgary, Alberta For more information on all PSAC events, visit www.psac.ca/events

New Members Regular Members Downton’s Transport Ltd. Energetic Services Inc. Associate Members Chartis Insurance Company of Canada

WWW.PSAC.CA

who attended the 2012 PSAC Pre-Drilling Season Meeting in Fort St. John, British Columbia this September. The purpose of the meeting was to hear from regulatory agencies and the local RCMP on safety-related issues affecting the services sector. Highlights included WorkSafeBC discussing the recent increases in signage on B.C. resource roads and the good driving behaviours of oil and gas sector personnel by using rules of the road and radio calling. As PSAC was instrumental in the development of the new Lease Lighting Guideline approved this past June, PSAC invited Enform to provide an overview of the guideline to PSAC members. The Enform lunch session attracted 70 guests who also heard key updates on industry driver training courses. The Lease Lighting Guideline focuses on outdoor lighting requirements in outdoor workspaces, specifically for: mobilization and demobilization of drilling equipment on a lease site, ancillary drilling activities, and any lease site servicing operations (e.g., snubbing, cement pumping, well testing, stimulation, coiled tubing operations, wireline, etc.) For more information about the new Lease Lighting Guideline visit www.enform.ca. Enform’s session also provided information on changes planned for the industry’s driver training courses. Enform discussed reframing the approach to driver training courses, to ensure workers understand “why” (e.g. why it’s important to do a pre-trip inspection) and leave the “how to” (e.g. how to do a pre-trip inspection) for job-specific training. The discussion also touched on how to address driver fatigue and provided details on tools and courses to assist employers with specific training requirements. For more information about PSAC and its safety initiatives visit www.psac.ca.

PSAC Funds Technical College Scholarships Across Western Canada PSAC, through its Education Fund program, provides scholarships for students pursuing post-secondary education at technical colleges enrolled in petroleum-related or trades programs, especially interested in a career in the petroleum services sector. Scholarships were awarded this fall to the following Northern Alberta Institute of Technology (NAIT) and Saskatchewan Institute of Applied Science and Technology (SIAST) students. NAIT Scholarship Recipients: Sean Brabazon, Petroleum Engineering Technology program Daljit Gill, CNC Machinist program Mark Tucker, Heavy Equipment Technician program

SIAST Scholarship Recipients: Amanda Desalchuk, Welding Certificate program (2012-2013) Rob Lesser, Welding diploma Kyle Lorencz, Instrumentation Engineering Technology diploma Curtis Ostachuk, Truck and Transport Mechanic apprenticeship Terrence Reichert, Heavy Duty Mechanic apprenticeship Ryan Taylor, Welding diploma Isaac Winter, Instrumentation Engineering Technology diploma (2012-2013)

59:21 PM

4:41:07 PM

PSAC_Winter_2012_p06-07.indd 7

11/19/12 5:05:39 PM

10 years

Living Leadership

Leaders bend but never break.

Even when the direction of the economy seems to change with each gust of wind, leaders stay agile and act quickly. From sudden changes in global markets to dropping commodity prices, we’ve done just that—by continuing to custom build solutions to help our clients do what they do best…lead. Because Alberta means the world to us. atb.com/corporate

Trademarks of Alberta Treasury Branches.

000PSN-ATB-FP.indd 1 PSAC_Winter_2012_p08-09.indd 8

11/16/12 11/6/12 9:32:04 4:39:56 AM PM

9:32:04 AM

2013 DRILLING ACTIVITY FORECAST

Oilpatch Activity to Remain Steady

0.;.16.; 1?6996;4 .0A6C6AF 3<?20.@A ;B:/2? <3 D299@

.9/2?A.' $ !"

@.@8.A052D.;' &&

PSAC FORECAST POINTS TO CAUTIOUS OPTIMISM IN 2013

:.;6A</.' $"

/?6A6@5 0<9B:/6.' %"

A<A.9 6; 0.;.1.' !

Note: Provincial breakdown does not include Northern or Eastern Canada.

HE PETROLEUM Services Association of Canada

(PSAC) 2013 Canadian Drilling Activity Forecast predicts a total of 11,400 wells drilled (rig releases) across Canada for 2013. This is a slight increase over the expected fi nal tally of 11,250 wells drilled (rig releases) for 2012. “We are cautiously optimistic about 2013’s drilling activity levels,” says Mark Salkeld, president and CEO of PSAC. “The fi rst quarter will see a typical ramp up of activity, and of course, slower activity in the spring with break up. However, we expect the last two quarters of 2013 to bring increased activity as larger producers continue with their plans and mid-sized companies gain access to the capital they need.” PSAC is basing its 2013 forecast on an average natural gas price of CDN$3.25/GJ (AECO) and a crude oil price of US$95 per barrel (WTI). “As a result of ongoing suppressed gas prices, our forecast is conservative for next year’s activity levels,” adds Salkeld. “We are forecasting that 2013 will see nearly 90 per cent of well completions in favour of oil, which is being driven by commodity prices.” Other factors that are likely to impact next year’s activity include the costs associated with the technology required to drill deeper and longer wells, and access to capital to support equipment upgrading and purchasing. “To put next year’s expected drilling levels into context, the well count is still a 32 per cent increase in activity since the downturn in 2009,” Salkeld says. 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.

PICKERS & CRANES FROM 17 TON TO 270 TON Serving Grande Prairie, Edson & Northern BC

Grande Prairie, AB 780-814-6990 Edson, AB 780-723-3373

www.arcticcrane.com WWW.PSAC.CA

PSAC_Winter_2012_p08-09.indd 9

11/19/12 5:06:33 PM

YOU DECIDE WHERE YOUR NEXT PRODUCTION FACILITY GOES. We’ll make sure it performs.

Global Flow provides Integrated Energy Solutions to run oil and natural gas production operations with integrity and efficiency – from automation/SCADA solutions, including vendor-neutral SCADA systems, to electrical and instrumentation controls plus process equipment and fabrication. At Global Flow, customer support means access to expertise for your project from day one through

globalflowinc.com

completion. If working with multiple vendors is costing time and money, let Global Flow’s Integrated Energy Solutions be your single source solution.

000PSN-GlobalFlow-FP.indd 1 10 PSAC_Winter_2012_p10-15.indd

11/16/12 11/8/12 9:19:57 4:41:26 AM PM

9:19:57 AM

Blueprint Commercializing

FOR

Technology

BY LISA RICCIOTTI

KUDU INDUSTRIES RELIES ON AN INNOVATIVE CULTURE AND PRODUCT LINE TO KEEP GROWING ITS BUSINESS

LEX DAMNJANOVIC IS ON THE HIGHWAY

somewhere between Provost and Calgary. The chief operating officer of KUDU Industries Inc. is riding with several KUDU employees on the drive home after the company’s annual budget-cum-brainstorming meeting. It’s a dark, early winter evening, but Damnjanovic is excited about the ideas that were exchanged during that annual meeting, which included about 50 KUDU sales and operations staff. WWW.PSAC.CA

PSAC_Winter_2012_p10-15.indd 11

“This new pumpjack, our hydraulic stroker, is KUDU’s first venture outside the artificial lift area,” Damnjanovic says. “Our customers come to us for help with everything and we don’t like to say no. We have to innovate to stay ahead and this new stroker addresses a lot of their problems.” KUDU’s philosophy of constant innovation began with Robert Mills. He helped develop the first commercial progressing cavity pump (PCP) for oil wells in 1979. Mills formed KUDU along with his son Ray, in the Calgary family’s garage in 1989 to continue innovating PCPs and improve production for Canada’s oil industry. KUDU has continued to develop the artificial lift system and to introduce new products. Innovation in the oilfield industry has become more important than ever. Oil supply from easyto-access reserves will soon be inadequate to meet the global needs of an expanding population. Soheil Asgarpour, president of the Petroleum

11/19/12 5:15:02 PM

Audit t Tax t Advisory

Reason says: we need to grow. Instinct says: there’s more than one way.

Our client Swift Oilfield Supply Inc. has been growing steadily, and their success is not by chance. Operating in an industry known for its boom and bust cycles, they wisely recognized that rapid expansion could get them ahead in the short term but wasn’t necessarily the best answer for the long term. Swift Oilfield Supply shares our thinking regarding growth, always applying both reason and instinct to make important decisions. At Grant Thornton LLP, we take great pride in our clients’ successes—and this is no exception. If you’re involved in the oil and gas industry, give us a call. And let us help unlock your potential for growth.

Grant Thornton LLP. A Canadian Member of Grant Thornton International Ltd

000PSN-GrantThorton-FP.indd 1 12 PSAC_Winter_2012_p10-15.indd

11/16/12 11/2/12 4:31:25 4:41:40 PM

4:31:25 PM

Technology Alliance of Canada, says the world will need to add the equivalent of six new Saudi Arabia-sized oilfields by 2030. “We’re beginning to run out of the low-hanging fruit,” he says. “Alternative energies are being developed, but there’s nowhere near enough available at affordable prices to meet the growing need. There’s no other solution but innovation—new technology is key to accessing more challenging oil reservoirs such as tight oil.” Investing in innovation has brought the world to KUDU’s door, and vice versa. The company has expanded its business into 32 countries, which span the alphabet, from Albania, Argentina and Australia to the U.S., Venezuela and Yemen. Russia is its newest business territory. KUDU holds 20 patents related to PCPs, with another five pending. KUDU’s newest technology to move from test phase to market is the hydraulic stroking unit Damnjanovic is so excited about. The unit is twice the size of a standard hydraulic stroker and, KUDU’s COO says, it does twice the work. The new unit will be released in early 2013, but work on the stroker began half a year earlier because of a suggestion from one of KUDU’s clients. “It started very locally with us asking KUDU’s branch managers if they’d ever thought about building a larger pumpjack,” says Chris Holben, production superintendent with WestFire Energy Ltd. “Then things progressed quickly. Six months after we got the phone call inviting us to work together on the project, we were installing the new pumpjack.” WestFire is currently using 10 of the new hydraulic strokers in west-central Saskatchewan. The company tested the units for KUDU at its oil properties in the Viking formation. KUDU chose WestFire to run the pilot project because the two companies have a long-standing relationship – and because it was WestFire’s idea. The larger-pump concept was already on KUDU’s radar, but consistently hearing the need from customers helped move the idea into research and development (R&D). “We’re not a one-hit wonder,” says Damnjanovic. “We’re always looking for how we can reduce operating costs for our customers and optimize production.” KUDU’s R&D spending is driven by customer demand. The amount can vary from year to year, but Damnjanovic estimates R&D accounts for one

WWW.PSAC.CA

PSAC_Winter_2012_p10-15.indd 13

“ WE HAVE TO INNOVATE TO STAY AHEAD.” - ALEX DAMNJANOVIC, COO OF KUDU to two per cent of the company’s annual costs. All staff members are responsible for pushing innovation forward. Feedback from customers and sales reps is documented in KUDU’s ISO system. From there, ideas become seeds in an efficient growth process that sees those ideas bear fruit, lie fallow until the time is right for germination, or hit the compost bin as non-viable. “We look for the big ideas. Solutions that will solve problems for the masses, not one company,” Damnjanovic explains. “And our goal is to make things incrementally better. We want gamechangers, new concepts with the potential to revolutionize the industry.” That approach has paid off in the past with the development of highly successful new products like the PCP Well Manager, the Top Tag system

and Tough Coat. Well Manager was developed five years ago when, Damnjanovic says, “we realized everything we were putting out was dumb steel.” Smart technology was added to the Well Manager that measures flow rates and lets flow speed increase to optimal levels, then adjusts as needed. Top Tag is the first engineered PCP that allows the user to locate the rotor inside the stator without using a tag bar. This KUDU product was developed at the suggestion of a steel mining crew drilling in the Lloydminster area. They consistently encountered plugged pumps and restricted flow, similar to water trying to flow through a pinched garden hose. By removing the tag bar, Top Tag improves flow and extends the pump life. Damnjanovic says the R&D for those two innovations was fairly straightforward. Developing Tough Coat, a metal coating applied to PCP

11/19/12 5:08:06 PM

rotors to reduce corrosion and eliminate the need for chrome, was a whole different scenario. “It uses a very sophisticated process that took a lot of smart people years to figure out, with a lot of late hours and sleepless nights,” he recalls. Typically, KUDU’s product development process has a one-year cycle. The company focuses on fast delivery to stay in sync with the market and won’t develop a product unless there’s strong demand and the timing is right. All ideas are vetted through an initial “bounce-back” assessment, run by customers and KUDU’s sales people to see if a good idea has the potential to be one of

the great ideas the company likes to pursue. If the idea bounces, it then moves to a three- to four-month market research phase. At this point KUDU determines the retail cost for the prospective product. Instead of determining what it would cost to make a new product, KUDU works backwards from one question: what would their customers be willing to pay? “Then our challenge is, can we make it for that price?” Damnjanovic says. “It’s a red-light, green-light gated process. A project either moves ahead to actual development or not.” R&D and engineering staff then spend about four months developing prototypes of green-light ideas. The next step—a very crucial one to KUDU—is real-life testing of the new product in the field by an interested KUDU customer. The feedback from hands-on experience is essential for working out any kinks and quirks of a new product. “Being first or early to enter the market is important, but sustainability is most important. We have to be able to deliver what we promised,” Damnjanovic says.

Generating ideas seems to be the easy part of KUDU’s creative yet demanding R&D process. Following brainstorming at last year’s annual meeting, about 50 ideas received serious consideration. Only seven made it through the gate into development. This year, following the company’s annual budget meeting in Provost, KUDU employees are excited for what’s ahead in 2013. There’s high hopes for the new hydraulic pump, lots of plans to take existing products into new international markets and, of course, KUDU has some new ideas waiting to blossom. Damnjanovic can’t reveal details, but does disclose that KUDU is finessing innovations for insertable PCPs, as well as thermal application products such as the high-temperature PCPs in demand for SAGD operations. “They’re a very grounded bunch of guys,” WestFire’s Holben says, about KUDU. “They don’t let success go to their heads and they haven’t strayed from their business plan and their roots. They gave us an innovative product we can use.”

Leaders in Safety and Training for the Oil and Gas Industry Enform is the safety association for Canada’s upstream oil and gas industry. Established by industry for industry, Enform helps companies achieve their safety goals by promoting shared safety practices and by providing: » Effective training, including courses on general and operational safety programs and petroleum fundamentals » Expert audit services » Professional advice Our vision is no work-related incidents or injuries in the Canadian upstream oil and gas industry. Contact Enform today for more information.

Email info @ enform.ca 000PSN.Enform_1-2H.indd 14 WINTER 2012

PSAC_Winter_2012_p10-15.indd 14

Calgary 403.516.8000

Toll-free 1.800.667.5557

www.enform.ca 1/30/12 11:58:26NEWS AM PETROLEUM SERVICES

11/19/12 5:08:49 PM

you’re one.

BE IN

THE DRIVERS SEAT

WWW.PSAC.CA

PSAC_Winter_2012_p10-15.indd 15

7690 Edgar Industrial Court . Red Deer, Alberta . PH: 403 -314-1919 TOLL FREE 888-314-1919

RED DEER OFFICE

9115 - 52 Street SE . Calgary, Alberta . PH: 403 -720-3400 TOLL FREE 800-874-5812

CALGARY CORPORATE HEAD OFFICE

If you aren’t driving a Western Star,

11/16/12 4:42:00 PM

% " "

&'''

! "

" $"

000PSN-Flexpipe-FP.indd 1 PSAC_Winter_2012_p16-19.indd 16

11/6/12 10:16:40 11/16/12 4:43:31 PM AM

0:16:40 AM

Global

Give ANDTake

PSAC’S 2012 INDUSTRY INSIGHTS FORUM HIGHLIGHTS THE GLOBAL IMPACTS ON CANADA’S ENERGY INDUSTRY

HE PETROLEUM Services

Association of Canada (PSAC) kicked off its 2012 Industry Insights Forum with its annual general meeting to recognize an outstanding year for the association. Distinguished Service Awards were presented to volunteers from PSAC member companies whose dedication and commitment enabled PSAC to deliver outstanding events, resources and programs, including the Education Fund Golf Tournament and the 2012 Spring Conference. PSAC also saluted members celebrating their longstanding service, including several reaching the 30-year milestone. PSAC also honoured retiring directors Brian Coston, Mike Davis, Ian Simister, Ken Willson and Gord McCormack. The AGM welcomed PSAC’s 2012-2013 Board Chair, Lucas Mezzano, and the new Board of Directors. Members also reviewed fi nancial statements and looked back at a fruitful year for PSAC. Mark Salkeld, PSAC president and CEO, outlined his highlights of 2012 which included the strengthening of relationships with senior federal and provincial officials, the announcement of a new Lease Lighting Guideline, and the continuation of PSAC’s successful public outreach and media relations programs. Salkeld capped the meeting off with the introduction of a new look and feel for PSAC, including a new logo and website, with the tagline “Working Energy.” He explained that the tagline reflects the dedication, innovation and leadership of PSAC’s member companies.

WWW.PSAC.CA

PSAC_Winter_2012_p16-19.indd 17

2013 CANADIAN DRILLING ACTIVITY FORECAST AND INDUSTRY OUTLOOK A standing-room only crowd attended the 2013 Canadian Drilling Activity Forecast and Industry Outlook session. David Yager, former PSAC Chair, moderated the session. Roger Serin, an analyst with TD Securities, delivered an engaging presentation on investor trends over the last 40 years and the current demand for producers to provide yields to investors. Allen Brooks and Michael de Carle, with investment bank PPHB, provided the Oilfield Services Outlook. Their presentations touched on the possible impact on Canada’s energy industry from the U.S. presidential election, which took place the same day. David Pryce, vicepresident of operations with the Canadian Association of Petroleum Producers, followed this presentation with an overview of the future of Canada’s energy industry. PSAC president Mark Salkeld gave the fi nal presentation with his outline of the 2013 Canadian Drilling Activity Forecast, which estimates a steady year ahead for Canada’s oilpatch with an expected 11,400 wells drilled. INDUSTRY INSIGHTS DINNER PSAC hosted a sold out crowd, including Honourary PSAC Member Roger Soucy, at its annual Industry Insights Dinner. Lucas Mezzano assumed his position as Board Chair of PSAC and gave a preview of the year that lies ahead for the association and the petroleum services industry.

11/19/12 5:09:34 PM

â&#x20AC;&#x153;PSAC will continue to provide the advocacy and tools its members need so that the innovation shaping the operational, safety, and environmental performance of our industry continues to be standard setting the world over,â&#x20AC;? he said. â&#x20AC;&#x153;A large part of this work will continue to focus on strengthening relationships with government, our peers and the broader public.â&#x20AC;? Dr. Jack Mintz, Palmer Chair in Public Policy at the University of Calgary, was the dinnerâ&#x20AC;&#x2122;s keynote speaker and delivered an engaging look at the fiscal situation for Canada, the U.S. and Europe. In particular, he discussed the potential impact the outcome of the U.S. presidential election could have on the American economy, and in turn, how the election outcome is likely to impact Canadaâ&#x20AC;&#x2122;s oil and gas industry. To read more about PSACâ&#x20AC;&#x2122;s year in review, please access the 2012 Annual Report at www.psac.ca. DISTINGUISHED SERVICE AWARD RECIPIENTS Al Aimers Brett Noble Brian Farmer Brian Paisley Clyde Bonnell Coleen Hutton Darcy Kuhn Doug Smith Gail Purdy Garry Lane Glenn Walker Gord Haycraft Graham Maglio Ken Braun Lee Emond Mandy Dewart Marty Price Renee Vanderwolf Richard Dunn Tamara Nelson Travis Strube PSAC THANKS OUR SPONSORS FOR THEIR GENEROUS SUPPORT 2013 Canadian Drilling Activity Forecast & Industry Outlook Sponsor

(', , -$! #"* ,$(' % " !"* $%/"%! "*-$ "+ , (* ! -$! . #"* &')

18 WINTER 2012

PSAC_Winter_2012_p16-19.indd 18

Industry Insights Dinner Sponsor

Industry Sponsor

Networking Social Sponsor

PSAC 2011-2012 LONGSTANDING MEMBERS 30 YEAR MEMBERS EVRAZ Inc. NA Master Flo Valve Inc. Precision Rentals, a Division of Precision Limited Partnership Stream-Flo Industries Ltd. 25 YEAR MEMBERS Mullen OilďŹ eld Services LP 15 YEAR MEMBERS Andyâ&#x20AC;&#x2122;s OilďŹ eld Hauling Ltd. Aveda Transportation and Energy Services Inc. Calfrac Well Services Ltd. Magnum Perforating Services Inc. Mudco Services Ltd. Qâ&#x20AC;&#x2122;Max Solutions Inc. Weir SPM 10 YEAR MEMBERS IROC Energy Services Corp. Nabors Blue Sky Ltd. Steel View Oil Pressure Services Ltd. 5 YEAR MEMBERS 911 Industrial Response Inc. Action Industrial First Aid Limited Apex OilďŹ eld Services (2000) Inc. Bravo OilďŹ eld Safety Services Inc. Canadian Energy Services L.P. Clear Environmental Solutions Division of Canadian Energy Services L.P. Highmark Wireline Ltd. Momentive Specialty Chemicals Canada Inc. Panda Tank & Vac Truck Services Inc. ProTechnics, a Division of Core Laboratories Canada Ltd. Quattro Energy Services Inc. Terra Water Systems, a Division of Precision Limited Partnership United Centrifuge Ltd. Wenzel Downhole Tools Ltd.

PETROLEUM SERVICES NEWS

11/16/12 4:43:40 PM

Canadian Energy Research Institute Many activities are directly focused on natural gas issues or KDYH VLJQL¿FDQW LPSOLFDWLRQV IRU QDWXUDO JDV PDUNHWV

Recent Study Release

NGL’s in North America: Overview and Outlook to 2035 This report provides an overview of the natural gas liquids industry with a focus on Canada, as well as provides an analysis and outlook to 2035.

At Aon we help you address two of today’s most complex business issues: risk and people.

Publications

CERI Commodity Report - Natural Gas CERI Commodity Report - World Oil Geopolitics of Energy

As the leader in risk management, insurance and human resource solutions, we combine strengths to help you seize opportunity.

Upcoming Conferences

Natural Gas: March 11-12, 2013 Oil: April 29-30, 2013 Petrochemical: June 2-4, 2013

To learn more, contact your local Aon representative or visit: www.aon.ca | www.aonhewitt.com/canada

For more information call: (403) 282-1231; visit our website: www.ceri.ca; or email: info@ceri.ca

ARSCA_RH8485

Relevant · Independent · Objective 000PSN-AON-1_4.indd 1

4/20/12 2:41:31 PM

Please Contact for a Distributor near you.

#14, 7896 - 49 Ave., Red Deer, AB T4P 2K2 Phone: (403) 347-5480 | Toll Free: 1-888-550-6006 | Fax: (403) 347-0070 | info@ifrworkwear.ca

www.ifrworkwear.ca

WWW.PSAC.CA

PSAC_Winter_2012_p16-19.indd 19

11/21/12 3:35:22 PM

For Over 20 Years

Sales • Service • Delivery • Installation • Analysis • Recycle Exchange • Disposal • Pails • Drums • Bulk

CONNECTING YOU WITH NORTH AMERICA’S GAS & OIL INDUSTRY

Anywhere It’s Used! diversifiedglycol@yahoo.ca 403.343.9555 | 1.888.242.7270 PO. Box 888 Red Deer, AB T4N 5H3

JUNE 11-13, 2013

,ĞůĚ ŝŶ ĐŽŶũƵŶĐƟŽŶ ǁŝƚŚ͗

CALGARY, ALBERTA, CANADA

Used Glycol is not Waste

Trade it In!

20 WINTER 2012

PSAC_Winter_2012_p20-21.indd 20

STAMPEDE PARK gasandoilexpo.com

PETROLEUM SERVICES NEWS

11/21/12 3:38:48 PM

FromFootball toFracking

DDIE DAVIS SPENT THE

second half of his Canadian Football League (CFL) career playing for the Saskatchewan Roughriders, but when he retired after the 2009 season there was no question he was going to live in Calgary. The defensive back won his first Grey Cup with the Calgary Stampeders in 1998 and made Alberta his permanent home in 1999. “This is where my wife is from, this is where my kids were born, this is where I’m going to end up,” he says. In total, Davis played 15 seasons in the CFL, was named a CFL All-Star four times and won a second Grey Cup with the Roughriders in 2007. The 39-year-old from St. Louis turned down a few coaching opportunities so he could spend more time at home with his family. Two years ago, Davis started working for Halliburton as a production enhancement account representative. PETROLEUM SERVICES NEWS: WHEN DID YOU REALIZE THAT CANADA WOULD BE YOUR HOME? EDDIE DAVIS: After my first year when I came to play for Calgary. I loved the city so much and, at the time, the Canadian dollar was 65 cents compared to the U.S. dollar, so it didn’t make sense for me to cross the border and go back home. I knew a lot of guys that did it; they’d end up losing money and would have to work hard down in the States to get it back. PSN: WHAT MADE YOU DECIDE TO WORK IN THE OIL AND GAS SERVICES SECTOR? ED: It just so happened that my neighbour worked for Halliburton. When I retired from playing football, I wasn’t looking for a job, I was just happy hanging out with my family and travelling, but he mentioned that they needed some sales people at Halliburton.

WWW.PSAC.CA

PSAC_Winter_2012_p20-21.indd 21

Eddie Davis won a Grey Cup with the Calgary Stampeders in 1998 and with the Saskatchewan Roughriders in 2007. They brought me into the BDFA (business development field associate) program. They had been running it in the U.S. for years, but nobody from Canada had ever been through the program. I’m pleased to say I was the first and last person to do the program in Canada. The goal of the program is to basically renew your sales tools. It exposes the person to several different entities in the services industry: the cementing side, the completions side and the hydraulic fracturing side. PSN: WHAT SKILLS FROM YOUR FOOTBALL CAREER HAVE YOU BEEN ABLE TO APPLY TO YOUR DAY-TO-DAY JOB? ED: The biggest thing is just to listen. When you’re out there on the field, and you have 60,000 people cheering, it’s hard to hear other players calling out plays or making checks. You have to train yourself

to listen to a specific person’s voice. I do the same thing when I’m talking to clients, I’ll sit back and just let the client talk. I think a lot of the time in sales, the sales person can talk too much and they miss what the client actually needs. PSN: WHAT SAYING OR PHRASE INSPIRES YOU? ED: Never give up. I’m a strong believer that if you work hard and see the goal in front of you, you can attain it, no matter how long it may take you. PSN: IF YOU DIDN’T PLAY FOOTBALL, OR HAVE YOUR CURRENT CAREER, WHAT CAREER WOULD YOU BE IN? ED: I was in mechanical engineering, so I probably would have ended up working for a company in the auto industry. I went to school in northern Illinois, and Detroit is in that area, so that’s probably what I’d be doing right now.

11/19/12 5:10:47 PM

BUSINESS MATTERS

SR&ED Mythology 101 DON’T BELIEVE EVERYTHING YOU’VE HEARD ABOUT FEDERAL RESEARCH AND DEVELOPMENT TAX PROGRAMS BY STEVE MACLEOD

ESEARCH AND DEVELOPMENT

(R&D) often conjures up images of white lab coats. Shawn Reain, tax partner and western Canadian SR&ED leader with PricewaterhouseCoopers LLP, says that misconception, as well as a few others, could be costing oil and gas services sector companies money.

“YOU HAVE TO BE PROACTIVE ABOUT IT AND MAKE IT A LOW IMPACT ACTIVITY ON PERSONNEL TIME BY MAKING IT AN EFFICIENT PROCESS.” The Scientific Research and Experimental Development (SR&ED) tax program is the federal government’s biggest source of R&D funding. It provided $3.6 billion in tax assistance across Canada during 2011. Reain says nearly 90 per cent of the claims fi led under SR&ED are for experimental development, which is work done to advance technology and either create new, or improve, existing materials, devices, products or processes. “If companies are going to do that themselves, they’re going to go bankrupt,” Reain says. “They’re going to be like Kodak.” Reain says there are plenty of petroleum services companies that are developing new technologies and processes, but not taking advantage of SR&ED. The tax program provides eligible companies with an income tax deduction and an investment tax credit. Here, Reain dispels some of the myths surrounding the tax program and explains how services sector companies can tap into it. “It is a pretty lucrative return on your investment,” he says. “You have to be proactive about it and make it a low impact activity on personnel time by making it an efficient process.”

22 WINTER 2012

PSAC_Winter_2012_p22-28.indd 22

MYTH #1 THE OIL AND GAS INDUSTRY IS NOT ELIGIBLE FOR SR&ED Part of the SR&ED definition notes that prospecting, exploring or drilling for oil and natural gas is not eligible for the tax program. “In the services sector, a lot of companies think that because they’re part of the oil and gas sector they are excluded,” Reain says. “The exclusion is saying that if this is all you’re doing, it’s excluded.” However, Reain says, if a company is developing a tool, a device, an apparatus or a product to perform any of those activities, then SR&ED is applicable. “It’s a subtle difference, but it’s a big difference,” he says. MYTH #2 THE CANADA REVENUE AGENCY (CRA) IS TOUGH ON THE OIL AND GAS INDUSTRY “This is somewhat true, but what the CRA is focusing on making sure you have the documentation that says you are doing this type of work,” Reain says. “It’s incumbent on the tax payer to keep the proper evidence.” Reain says CRA focuses on when a SR&ED project starts and ends, so companies should create a checklist for SR&ED projects and try to identify them early. “It can be meeting minutes from monthly management meetings, where you say we have this issue and here’s what we’re doing about it,” he says. “It could be an AFE (authorization for expenditure) to say we’re going to set up this project to figure this problem out; or it could be tool development, so it could be a project plan to develop a tool for a client.” MYTH #3 IT’S NOT WORTHWHILE TO CLAIM SR&ED ANYMORE The federal government outlined plans to scale back SR&ED funding in the 2012 budget. The government plans to redirect R&D funding from this program to more direct R&D funding support programs, such as the Industrial Research Assistance Program (IRAP). Also, beginning on January 1, 2013, the general SR&ED tax credit will be reduced from 20 per cent to 15 per cent; and capital expenditures will not be part of SR&ED beginning in 2014. “It’s still 15 per cent, plus 10 per cent in Alberta, so it’s still a 25 per cent tax credit in Alberta, which from my perspective is quite lucrative,” Reain says. “For small and medium-sized enterprises, which there are lots of in the services sector, the rate hasn’t changed at all [it will remain at 35 per cent].”

PETROLEUM SERVICES NEWS

11/16/12 4:52:01 PM

Two is stronger than one.

Wellsite Supervision and Project Management s $RILLING #OMPLETION #ONSTRUCTION 3UPERVISION s 0RODUCTION !SSET -ANAGEMENT /PTIMIZATION s $RILLING #OMPLETION 0RODUCTION %NGINEERING s )NTERNATIONAL AND /FFSHORE 3UPERVISION s 3AFETY 0ROGRAMS AND !UDITS

Suite 300 Iveagh House 707, 7th Avenue S.W. Calgary, AB Canada T2P 3H6

T 403 264-1197 F 403 264-1584 www.pajakeng.com

Compass Bending has doubled in size to serve you better 8F IBWF EPVCMFE JO TJ[F UP QSPWJEF PVS DVTUPNFST UIF IJHIFTU QPTTJCMF MFWFM PG RVBMJUZ BOE TFSWJDF Additional Services:

t *OTVMBUJPO UBQJOH BOE DPBUJOH JODMVEJOH :+ CFOET t % BOE % CFOET t w BOE w CFOET t 4USVDUVSBM #FOEJOH

Experience, Quality & Service. CompassBending.com CompassBending.co 7320 30 Street S.E. Calgary, Alberta T2C 1W2 t Phone: (403) 279-6615 t Fax: (403) 236-4249 t Toll free: (800) 708-7453

000PSN.Pajak_1-4_nBL.indd 1

WWW.PSAC.CA

PSAC_Winter_2012_p22-28.indd 23

11/11/10 1:21:26 PM

11/16/12 4:52:05 PM

PSAC IN ACTION THE PETROLEUM SERVICES ASSOCIATION OF CANADA (PSAC) CONTINUES TO KEEP THE SERVICES SECTOR FRONT AND CENTRE THROUGH ADVOCACY AND OUTREACH PSAC TESTIFIES AT THE HOUSE OF COMMONS ON LABOUR ISSUES PSAC appeared as a witness before the Canadian House of Commons Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities this fall. PSAC provided comments in regard to two of the committee’s studies: Fixing the Skills Gap: Addressing Existing Labour Shortages in High Demand Occupations and Understanding Labour Shortages: Addressing Barriers to Filling Low-Skilled Jobs. Following its submission to pre-budget consultations, PSAC was invited to appear before the House of Commons Standing Committee on Finance regarding the upcoming federal budget. PSAC tabled recommendations related to tax credit programs for overseas workers. PSAC also asked the government to provide clarification regarding taxable benefits as they relate to travel and accommodation costs incurred by out of province employees, and tax credits for employee training. PSAC PARTICIPATES IN MANUFACTURING DAYS ON THE HILL PSAC participated in a series of executive roundtable discussions on the future of manufacturing in Canada as part of its involvement with the Canadian Manufacturing Coalition (CMC). In total, representatives of the CMC met with 55 Members of Parliament, including eight ministers and senior policy advisors from seven ministries. PSAC SUPPORTS YOUTH EMPLOYMENT STRATEGY This fall, PSAC hosted a news conference with Minister of State Ted Menzies who put a call out for proposals from companies who may be eligible for funding under the Youth Employment Strategy (YES). The program is dedicated to projects that connect young Canadians with private sector jobs. The federal government has dedicated $50 million to the program with the goal of connecting more than 3,000 Canadian youth with jobs in high demand, such as skilled trades. PSAC PARTICIPATES IN AN ONLINE JOB FAIR TARGETING PETROLEUM SERVICES PSAC and a select number of PSAC members recently participated in an online job fair organized by the Petroleum Human Resources Council of Canada (PHRCC) in partnership with the Government of Alberta. The job fair was visited by more than 2,000 people and resulted in thousands of applications for jobs in high demand. PSAC PARTICIPATES IN FEDERAL ROUNDTABLES ON LABOUR ISSUES PSAC recently participated in two federal roundtables to address labour challenges facing the petroleum services sector. Specifically, PSAC provided input at the skill shortages and training needs roundtable hosted by Diane Finley, minister of Human Resources Skills and Development Canada. PSAC also participated in a roundtable, hosted by Neil Yeates, deputy minister of the Department of Citizenship and Immigration Canada (CIC). The purpose of the CIC roundtable was to discuss the creation of a modernized employment application management system to support the introduction of a fast and flexible economic immigration system to meet Canadian labour market needs.

24 WINTER 2012

PSAC_Winter_2012_p22-28.indd 24

MAKING CONNECTIONS IN THE MARITIMES PSAC met with Bruce Northrup, New Brunswick’s minister of Natural Resources, as well as the deputy minister and representatives from the Ministry of Energy to introduce PSAC and discuss issues related to hydraulic fracturing and the oil and gas development in the province. Specifically, PSAC discussed IRP 24, the Industry Recommended Practice regarding fracture stimulation that is currently under development. Also in New Brunswick, PSAC delivered a presentation explaining the IRP process at the 37th annual Exploration, Mining and Petroleum Conference held in early November. PSAC REACHES OUT TO MANITOBA PSAC met with Keith Lowdon, director, Petroleum Branch, Manitoba Innovation, Energy and Mines, to discuss concerns regarding municipal infrastructure, road use agreements and hydraulic fracturing. PSAC provided information regarding the Road Use Agreements developed in Alberta and has committed to participating in future discussion on these issues. PSAC MEETS WITH B.C. MINISTER OF ENERGY AND MINES This fall, PSAC met with Rich Coleman, B.C. minister of Energy and Mines, to introduce PSAC and to open dialogue about the petroleum services sector in the province. The meeting touched on the sector’s size and scope, and issues facing the industry in northeastern British Columbia. PSAC WORKS WITH B.C. GOVERNMENT ON NATURAL GAS WORKFORCE PLANNING PSAC is contributing to a comprehensive workforce strategy and action plan for the B.C. natural gas industry. The goal is to ensure there will be sufficient numbers of skilled workers to meet the anticipated expansion of the sector. All potential sources of and mechanisms for labour market supply, including apprenticeship training, institutional skills training, recruitment and retention strategies, inter-sector and inter-provincial migration, and international immigration are being reviewed along with the full participation of First Nations. PSAC ATTENDS THE 2012 ENERGY AND MINES MINISTERS’ CONFERENCE Over three days this September, PSAC represented its members at the 2012 Energy and Mines Ministers Conference in Charlottetown, PEI. PSAC had the opportunity to speak with Joe Oliver, minister of Natural Resources, as well as provincial ministers, deputy ministers and senior staff on a number of issues affecting the petroleum services sector including hydraulic fracturing, labour, competitiveness, and access to markets. PSAC REPRESENTS MEMBERS AT PACIFIC NORTH WEST ECONOMIC REGION (PNWER) CONFERENCE PSAC attended the PNWER conference which is intended to coordinate provincial and state policies to achieve continued economic growth while maintaining the region’s natural resources. Conference delegates included elected and government representatives from Western Canada and Washington, Oregon and Montana. PSAC attended sessions discussing energy, workforce development, and the New West Partnership (NWP). Topics at the NWP session included a proposal to review the harmonization of regulations such as “oilwell servicing provisions.”

PETROLEUM SERVICES NEWS

11/19/12 5:11:31 PM

MEMBER PROFILE

Fuelled by Natural Gas FERUS INC. IS PLANNING AN LNG FACILITY TO SUPPORT ITS FLEET OF NATURAL GAS-POWERED TRUCKS BY KAREN PETKAU

Some drilling fleets are also converting their rigs to be powered by natural gas instead of diesel. Balaski says there’s also an economic benefit to using LNG because it can be supplied at a 20 to 40 per cent discount compared to diesel, on a gallon equivalent basis, which includes transportation, storage and engine gasification. “We’ve been quite aggressive in this market. We brought equipment onto the ground before we had our own production,” Balaski says. “That way, we could supply and service pilot projects with potential customers once we have a facility of our own.” Ferus plans to have its first LNG facility constructed by early 2014. The company is already working on pilot projects with other companies and Balaski says Ferus plans to become a full-service provider of LNG to others. “We have begun feeding the market so when we do have production, we’ve educated and made people feel comfortable with LNG as a fuel source, so they can sign on to longer-term deals,” he says.

Ferus plans to have its ﬁrst LNG facility constructed by early 2014.

T DIDN’T TAKE LONG FOR Ferus Inc. to realize the benefits of

running trucks powered by liquefied natural gas (LNG) engines. The Calgary-based company is now developing an LNG facility in Alberta to serve its fleet of about 100 LNG trucks and provide service to other companies interested in converting their trucks to LNG engines. “Ferus has had this focus (on LNG as a fuel source alternative for diesel) for a couple of years now,” says Travis Balaski, manager of market development for LNG in Canada with Ferus. Ferus has focused on liquefied gases in Alberta for about a decade. The company launched in 2002 to provide liquid carbon dioxide (CO2) and liquid nitrogen (N2) for well stimulation. Ferus now has eight cryogenic plants to produce CO2 and N2 throughout Canada and the U.S., as well as a fleet of 300 trucks to transport the product. This specialized service has given the private company a niche that includes storage facilities and onsite services. Ferus started looking at LNG engines a couple of years ago and test drove a truck at the facility of a natural gas engine maker in Vancouver. After testing one unit out in the field, Ferus introduced an LNGpowered heavy-duty truck into its fleet back in March. The company says it was the first LNG truck to be deployed in Alberta. The LNG trucks are equipped with 475-horsepower engines and have a range in excess of 700 kilometres. “When comparing it to diesel, you could have a reduction in the 20- to 30-per-cent range on the CO2 emissions, over 70 per cent reduction on your NOx (nitrogen oxide) emissions, over 90 per cent reduction on your particulates and 99 per cent reduction on your SOx (sulphur oxide) emissions,” Balaski says.

WWW.PSAC.CA

PSAC_Winter_2012_p22-28.indd 25

1 (877)-872-2ROI

online marketing . web development . conversion

THIS IS WHAT YOU SEE

THIS IS THE FOUNDATION An online strategy that works isn’t just a pretty website

IT’S WHAT YOU DON’T SEE THAT MAKES ALL THE DIFFERENCE Check Our Website for Special Offers for PSAC Members

www.fp-imarketing.com/psac

11/19/12 5:12:25 PM

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

SCOTT HAUCK President, Distribution Services Canada National Oilwell Varco Years in Services Sector: 30 BRAD FEDORA President and CEO Canyon Technical Services Ltd. Years in Services Sector: 4 SCOTT HAUCK

IF YOU COULD DO ANY OTHER JOB/OCCUPATION, WHAT WOULD THAT BE? SH: I would be a hunting, fishing and outdoor outfitter. Being outdoors and enjoying very pristine, remote activities around nature has always been my leading passion. BF: Casino manager or fishing guide. WHAT IS YOUR FAVOURITE BOOK OF ALL TIME? SH: Where the Red Fern Grows BF: The Big Short. It’s about the making of the financial crisis. WHAT DO YOU THINK IS THE BIGGEST CHALLENGE FACING CANADA’S ENERGY INDUSTRY AT THIS TIME? SH: The dynamics of our Canadian and global energy paradigm have changed, and we are at risk of becoming a pawn in the game if we do not develop other markets or add value to the products that we produce. For the time being the nut has been cracked and energy, and the global opportunity to fi nd and develop energy, is more pervasive than at any other time in my 30-year career. I believe we produce oil and gas in Canada under some of the most environmentally sound practices in the world and I imagine that we will continue to be on that forefront which in itself adds value to our products and may be part of the new horizon. BF: Perception and trust. The oil and gas industry and the general public are still at odds – we have a lot of trust to build.

26 WINTER 2012

PSAC_Winter_2012_p22-28.indd 26

BRAD FEDORA

WHAT MOTTO OR PHRASE DO YOU LIVE BY? SH: NO YNRZ (No Whiners). This is my personalized license plate. BF: You only live once – enjoy what you are doing. IF YOU COULD TRAVEL TO ANYWHERE IN THE WORLD, WHERE WOULD YOU GO? SH: I pretty much have and “there is no place like home.” BF: Fly fishing in Cuba. WHAT IS YOUR MOST TREASURED POSSESSION? SH: Family. BF: Family and friends. WHAT FOOD DO YOU CRAVE? BETTER YET, WHAT IS YOUR SIGNATURE MEAL THAT YOU MAKE? SH: On the barbecue: spare ribs, potatoes and onions baked in tinfoil, corn on the cob. BF: My signature meal as of the summer of 2012 is a whole roasted and smoked pig. PSAC’s Board of Directors represents the diversity of Canada’s upstream petroleum services, supply and manufacturing sectors. With more than 150 years of collective experience, PSAC’s board brings unparalleled breadth and depth of expertise to the strategic direction of PSAC and the issues of the day. Visit www.psac.ca to find out more about PSAC’s Board of Directors.

PETROLEUM SERVICES NEWS

11/19/12 5:13:35 PM

000PSN-

NOV Mission offers equipment and services for all of your well service needs. Along with an extensive product offering of proven brands, Mission has a sales and after-market network that spans 6 continents equipped for in-house and on-site operations. All Mission well service HTXLSPHQW FDQ EH VHUYLFHG UHSDLUHG DQG UHFHUWLĂ&#x20AC;HG Â˛ HYHU\ZKHUH \RX DUH

For more information visit: www.nov.com/mission

000PSN-NOV-FP.indd 1 PSAC_Winter_2012_p22-28.indd 27

Email: mission@nov.com

One Company . . . Unlimited Solutions 11/16/12 11/2/12 4:43:11 4:54:31 PM

000PSN-Rogers-FP.indd 1 PSAC_Winter_2012_p22-28.indd 28

11/16/12 11/8/12 9:06:13 4:52:36 AM PM