PM#40020055 NEWS WINTER 2010 PLUS: Results from the 2010 Drilling Activity Forecast • Challenges to consider as recruiting ramps up Fuel management company safeguards its workers • Message from PSAC’s new president PSAC introduces a new name and look for your magazine
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Petroleum Services Association of Canada News Winter 2010
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albertaisenergy.ca
Alberta is Energy is supported by several Alberta business associations, many of which are focused on the oil and gas sector.
our futureour futurebuilding
The world is watching Alberta.
We are the kind of place that can attract and hold investment – whether it be time, money or human capital. To realize our potential we need to remain competitive.
Being competitive means jobs for Albertans – not only in oil and gas production and construction, but also hotels, restaurants, accounting firms, transportation companies and more.
Every dollar invested in the province’s oil and gas industry creates three dollars of value for Alberta’s economy.
PLUS: Results from the 2010 Drilling Activity Forecast • Challenges to consider as recruiting ramps up Fuel management company safeguards its workers • Message from PSAC’s new president
PSAC introduces a new name and look for your magazine
PSAC_Winter2010_p32-01.indd 2 11/22/10 2:44:38 PM
10
15
20We put our energy into knowing your business.Managing resources, maximizing investment and mitigating risk can be very diffi cult without the right strategy and
insight. At MNP, our team of Oilfi eld Service advisors are industry specialists who are equipped to handle challenges
specifi c to the Oilfi eld Service sector. Leveraging off of this experience — we will help you anticipate risk, optimize the
performance of your company and provide practical strategies to keep your business competitive and profi table.
To fi nd out how MNP can fuel your business, contact Dustin Sundby- CA, Oilfi eld Service Leader at 1.877.500.0779.
Chartered Accountants & Business Advisors 1.877.500.0779 mnp.ca
FROM THE DRILLING ACTIVITY FORECAST EVENTPSAC’s annual event continues
to draw crowds
OIL AND GAS SERVICE IS BIG BUSINESSPSAC delivers the report on the
services sector, and we’re all in
for some big surprises
HEAD OF THE CLASSAnnouncing the winners of PSAC’s
Education Fund
10
15
20
MESSAGE FROM THE CHAIR
2011 DRILLING ACTIVITY FORECASTCould increased activity be on the horizon
for 2011?
IN THE FIELDAll the news, events and latest announcements
PSAC REACHES OUTPSAC reaches out on behalf of the services
sector in its Public Outreach Program
PSAC IN ACTIONThe latest developments in what PSAC is
doing for its members and industry
BUSINESS MATTERSRamp up your recruitment without getting
employees down
MEMBER PROFILEEnvironmental Refuelling System Inc.’s
Frac Shack keeps workers safe in tough conditions
YOUR COMMUNITY911 Industrial Response Inc.
HEAD OF THE CLASSAnnouncing the winners of PSAC’s
Education Fund
10
28
20
26
PETROLEUM SERVICES NEWS
We put our energy into knowing your business.Managing resources, maximizing investment and mitigating risk can be very diffi cult without the right strategy and
insight. At MNP, our team of Oilfi eld Service advisors are industry specialists who are equipped to handle challenges
specifi c to the Oilfi eld Service sector. Leveraging off of this experience — we will help you anticipate risk, optimize the
performance of your company and provide practical strategies to keep your business competitive and profi table.
To fi nd out how MNP can fuel your business, contact Dustin Sundby- CA, Oilfi eld Service Leader at 1.877.500.0779.
Chartered Accountants & Business Advisors 1.877.500.0779 mnp.ca
000PSN.MNP_FP_wBL.indd 1 11/11/10 8:42:53 AM PSAC_Winter2010_p02-03.indd 3 11/22/10 2:48:00 PM
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MESSAGE FROM THE CHAIR
AM HONOURED TO BE WRITING TO YOU as the incoming 2010-2011 Chair of
the Petroleum Services Association of Canada. I look forward to my job of raising
the profi le of the oilfi eld services sector as we come out of what could arguably be the
worst economic downturn of our time.
I started in the services sector during the boom times of the late ’70s in Fort St.
John, B.C., as a mud man with Halliburton and have endured at least three downturns, and
the National Energy Policy, but this latest political and economic fi restorm has affected the
industry like no other. Regardless of what this winter drilling season brings, I know that
the resilience and dedication of PSAC member companies will continue to rebuild and
empower their employees as this quantum shift from deep gas to shale gas and heavy oil
creates new opportunities for the future.
Safety, climate change and the social licence to operate are important factors that
have become the “new norm” as we move forward in the pursuit of hydrocarbons. PSAC
member companies champion these causes as they work with producers, the public and
government agencies in reducing the oil and gas industry’s impact on the environment.
As the Chair of PSAC for 2010-2011, I feel it is paramount that we raise the profi le of the
services industry in the eyes of the public and the government, and continue to keep the
discussion about the signifi cance of the oilfi eld services sector top of mind. Many of you will be aware
that PSAC recently undertook an extensive project and commissioned the Canadian Energy Research
Institute (CERI) and Mission Capital Inc. to identify our industry’s contributions to Canada’s gross
domestic product as well as the revenues we’ve generated, not only at home but through our extensive
technological expertise employed elsewhere in the world. Our secondary and post-secondary
institutions can and will use this information to direct curriculum that will provide qualifi ed
personnel for years to come.
The results of the PSAC studies, revealing $65 billion of Canada’s GDP is generated by the oilfi eld
services sector and $13 billion in revenues is generated abroad by Canadian-based oilfi eld service
companies, indicate the sector is the single largest services industry contributor to GDP. Our 800,000
employees, or 4.8 per cent of the Canadian workforce, were negatively impacted two years ago by
policy changes focused on exploration and production companies and their royalties, taxes and profi ts.
Awareness and education will hopefully ensure that PSAC and the oilfi eld services sector are consulted
prior to any signifi cant changes in the future. E&P companies also recognize that the “Big Oil” label
has made it diffi cult, if not impossible, for them to garner public support for ongoing projects
without the support of the services sector. Working together, we can provide the direction,
funding and technological advancements required to maintain our status as the best-run and
most environmentally friendly oil industry in the world.
I have a great group of board members representing a wide variety of large and small service
companies all focused on championing the interests of our member companies in the pursuit of
new and exciting opportunities in this wonderful industry we call the “patch.” I encourage all of my
colleagues to get involved in committees and initiatives to make the most of their membership in the
vibrant leading edge association we know as PSAC.
Sincerely,
Brian CostonPSAC Board Chair
Ready to Raise Our Profi le
I
PETROLEUM SERVICES NEWS
Brian Coston, PSAC Board Chair
Sincerely,
PSAC_Winter2010_p04-05.indd 4 11/22/10 2:51:10 PM
WWW.PSAC.CA 5
T 403 264-1197F 403 264-1584www.pajakeng.com
Suite 300 Iveagh House707, 7th Avenue S.W.Calgary, AB CanadaT2P 3H6
Wellsite Supervisionand
Project Management • Drilling, Completion, Construction Supervision• Production Asset Management / Optimization• Drilling, Completion, Production Engineering• International and Offshore Supervision• Safety Programs and Audits
CONTRIBUTING WRITER: KRISTIANA INDRADATART DIRECTOR: CHARLES BURKE
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[email protected] • PUBLICATIONS AGREEMENT #40020055 CONTENT MAY NOT BE REPRINTED OR REPRODUCED WITHOUT PERMISSION FROM PSAC.
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 52,000 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.
Cert no. SW-COC-000952
PSAC_Winter2010_p04-05.indd 5 11/22/10 2:51:23 PM
6 PETROLEUM SERVICES NEWS
TTHE ANNUAL EMERALD AWARDS PROGRAM RECOGNIZES ENVIRONMENTAL EXCELLENCE IN ALL IN ALL AREAS RANGING FROM YOUTH TO COMMUNITY GROUPS TO BUSINESS• Recognizeaspecialvolunteer• Demonstrateleadershipinyourindustry• Honouryourteamforsettinganexample
IN THE FIELD News, events and activities in the industry
Results of Our Reader Survey
IPOD TOUCH WINNER: Brenda Arbeau’s daughter Megan holding her new prized possession
PSAC_Winter2010_p06-9.indd 8 11/22/10 2:54:09 PM
WWW.PSAC.CA 9
PSAC IS PLEASED to announce that a new
scholarship is being made available to students
as part of the PSAC Education Fund. The PSAC Roger Soucy Legacy Scholarship Funded by KPMG will be available to students starting in
2011. KPMG is providing $2,500 per year over the
next fi ve years for this new scholarship.
It was created to honour Roger Soucy, who has
been President of PSAC since its founding in 1981
and who retired on November 1, 2010.
Rhys Renouf, National Energy Services Leader
at KPMG, says, “KPMG places a high value on
education. We work with a large number of clients
in the energy services sector and understand the
important role that Roger has played over the
past 29 years. We admire the work that Roger
and PSAC’s members have contributed toward
advancing education in western Canada over the
past nine years through the Education Fund.”
Renouf adds, “KPMG wanted to augment the
goals of the Education Fund in our own way and
acknowledge Roger’s dedication at the same
time. And so the PSAC Roger Soucy Legacy
Scholarship Funded by KPMG is a great way to
honour someone who has put in a lot of time
and effort to support and grow an industry that
is integral to Alberta and Canada.”
Travis Strube, PSAC’s Education Fund
Committee Chair, acknowledged KPMG’s
contribution, stating, “Students and the petroleum
industry will both benefi t from KPMG’s generous
support of the Education Fund.”
PSAC’s Education Fund is dedicated to
encourage learning and building the future work-
force of the oil and gas industry. Enabling students
to take advantage of educational opportunities is
the central aim of the fund; it helps ensure that
future generations will have the knowledge and
tools to thrive, and is just one example of how the
petroleum services industry supports Canadian
communities in which it works.
Since it was established in 2001, the Education
Fund has invested over $140,000 in the future
of Canadian students. Students pursuing a
certifi cate, diploma or degree at an accredited
post-secondary institution are eligible to apply for
the annual scholarships, which are made available
in January of each year.
PSAC and KPMG Announce New Scholarship
COMING EVENTS
PSAC STARS & SPURS GalaJanuary 22, 2011, BMO Centre,
Stampede Park, Calgary, Alberta
www.psac.ca/events
PSAC Spring ConferenceApril 12 & 13, 2011
Red Deer, Alberta
www.psac.ca/events
PSAC Mid-Year Luncheon and Drilling Activity ForecastApril 2011, Calgary, Alberta
www.psac.ca/events
Petroleum Safety ConferenceMay 4-6, 2011
Banff, Alberta
www.enform.ca/events
NEW MEMBERS
REGULAR MEMBERSBlack Diamond Group Ltd.
DNV Energy Canada
E-MAC Corrosion Inc.
North American Pipeline Inc.
Triple T Oilfi eld Services
ASSOCIATE MEMBERSDitch Hitch
Integrated Risk Management
Techworks Solutions Providers Inc.
Message from New PSAC President FROM MECHANIC to a masters degree in business administration to
President and CEO of PSAC, that’s me in a nutshell and I can assure you
that I am truly looking forward to the challenges and opportunities ahead.
I came to the Canadian oil patch roughly 30 years ago and not long after, like many in our
industry, I experienced fi rsthand the negative effects of the National Energy Policy, and the fi rst of
three or four setbacks for the Canadian oil and gas services sector that over the ensuing years I will
dedicate all efforts in helping to avoid as much as possible for the PSAC membership.
Roger Soucy is leaving a spectacular 29-year legacy and my legacy will be based primarily on his
fi rst words of advice to me as the incoming President and CEO: “We are here to serve the PSAC
membership fi rst and foremost.” I have taken these sage words to heart. In previous services sector slow-
downs, I was fortunate enough to remain in the patch. However, it was through overseas contracts that I
kept connected to an industry that I truly love and realized that the Canadian oil patch is second to none.
I have worked off-shore Europe, western Siberia and Australia twice (west and east) and as interesting as it
was to work in these other areas, I must admit that there’s no place like home.
I look forward to working with Brian Coston, PSAC’s incoming Chair, and give thanks to David Yager,
our outgoing Chair for the role he played in further instilling in me an excitement and enthusiasm to
lead PSAC.
Cheers,
Mark A. SalkeldPSAC President
ALL THE BEST to Roger Soucy as he
retires after 29 years at the helm of PSAC.
His retirement party was held on October 28
at the Sheraton Suites Eau Claire in Calgary.
The event was attended by colleagues,
co-workers and friends who toasted Roger
and wished him well. A brief trip through
photos of Roger’s legendary time at PSAC
was enjoyed by all.
For more photos of the festivities, visit
www.psac.ca/events.
For Roger’s a Jolly Good Fellow…
MARK A. SALKELD
PSAC_Winter2010_p06-9.indd 9 11/22/10 2:54:17 PM
10 PETROLEUM SERVICES NEWS
ACH YEAR, PSAC’S ANNUAL GENERAL MEETING, Drilling Activity Forecast and Industry Outlook Session present outstanding opportunities for networking and the gathering of valuable knowledge. This year began
with a media conference where PSAC offi cially released its 2011 Canadian Drilling Activity Forecast. Following the media conference, this year’s AGM was well attended by PSAC members as the association bid farewell to Roger Soucy after 29 years of steady leadership in his role as President. Members then welcomed incoming President Mark Salkeld, who brings 30 years of industry experience to PSAC, including various roles overseas with Nabors Drilling.
Member company representatives reviewed
fi nancial statements, elected new board members
and heard about PSAC’s accomplishments over
the past year from outgoing Chair for 2009-2010,
David Yager. The incoming Chair for 2010-2011,
Brian Coston, was introduced and welcomed.
More than 70 individuals and companies were
acknowledged for their enthusiastic commitment
and participation in PSAC initiatives and were
recognized with Distinguished Service Awards
and Long-Standing Member Awards.
2011 CANADIAN DRILLING ACTIVITY FORECAST AND INDUSTRY OUTLOOKIt was standing room only at PSAC’s 2011
Canadian Drilling Activity Forecast as more than
300 people crowded into the presentation hall to
hear about the upcoming year and the expected
activity levels from four industry experts: Roger
Soucy; Dan Macdonald, Analyst, oilfi eld services,
RBC Capital Markets; Chris Theal, President and
CEO, Kootenay Capital Management Corp.; and
Kerry Guy, Manager of Natural Gas Advocacy
for the Canadian Association of Petroleum
Producers.
While there is no doubt the industry will
continue to face challenges ahead, overall the
news presented at this session was optimistic:
ForecastDrilling
ACTIVITY
E
PSAC’S AGM, 2011 DRILLING ACTIVITY FORECAST AND INDUSTRY DINNER CONTINUE TO DRAW CROWDS
INDUSTRY DINNERPSAC hosted its annual industry dinner to a full
house of about 300 guests. The keynote speaker
was Robert Ineson, Senior Director with IHS
Cambridge Energy Research Associates (CERA).
Ineson is leader of CERA’s North American
natural gas team, and presented “The Shale
Gale and What it Means for the Canadian Gas
“WITH PSAC’S HELP, A MORE WELL-INFORMED GOVERNMENT AND PUBLIC WILL PROVIDE THE PLATFORM REQUIRED FOR ALL OF US IN THE OIL AND GAS INDUSTRY TO GROW AND PROSPER IN THE
HE NUMBERS ARE IMPRESSIVE: A $65-billion business, 800,000 employees, $9 billion in annual taxes. Even better, the Canadian oil and gas service, supply and manufacturing sector can be proud to call these numbers its own.
That’s right. A comprehensive study commissioned by PSAC has quantifi ed what many in the sector knew in their gut – the oil and gas services sector is big business.
If we already knew it, why did we need the study? David Yager, the 2009-2010 PSAC Chairman, and Chairman and CEO of HSE Integrated Ltd., explains, “The energy policy debate about the role of the oil and gas industry in Canada is primarily focused on exploration and production companies, including the royalties and taxes they pay and the profi ts they reap. While many people understand the essential role the services sector plays in supporting oil and gas development, most do not realize the degree to which this sector drives jobs, investment and economic opportunity.”
And when governments and the public don’t
understand the services sector’s economic
contributions, they can easily make decisions that
are detrimental to everyone working in and with the
sector – and the industry as a whole. (Case in point:
the Alberta Royalty Review of 2007.)
So PSAC commissioned the Canadian Energy
Research Institute (CERI) and Mission Capital Inc. to
conduct the study and produce the resulting report,
“The Contributions of the Canadian Oil and Gas
Services Sector to the Canadian National Economy.”
The study’s services sector data incorporates all of the
SERVICES SECTOR CONTRIBUTION TO GDPIn 2006 (the latest year of available data), the oil and gas services sector
contributed a whopping $65 billion to Canada’s gross domestic product
(GDP). That’s 4.8 per cent of Canada’s total GDP. Compare the service
sector’s $65 billion to the 2006 GDP of some other sectors:
• Oil and gas production: $86.6 billion
• Residential construction: $30.8 billion
• Automobile manufacturing: $17.6 billion
• Non-residential construction: $15.2 billion
• Agriculture: $9.0 billion
• Forestry: $6.5 billion
Out of Canada’s biggest industrial and resource sectors, only the producers
contribute more to Canada’s GDP than the oil and gas services sector.
SERVICES SECTOR CONTRIBUTION TO TAXESThat same year, the oil and gas services sector paid $9 billion in personal and
corporate taxes to federal and provincial governments. That’s 4.1 per cent of
all taxes paid that year.
SERVICES SECTOR CONTRIBUTION TO EMPLOYMENTIn 2006, the Canadian economy employed 16.5 million workers in total.
The oil and gas services sector employed 800,000 workers, or 4.8 per cent of
Canada’s total labour force.
These numbers are huge, but what’s even more impressive is that more
than half of the sector’s GDP contribution (52 per cent) and the sector’s
employment (54 per cent) comes from activities and industries located
throughout the country. That means that the sector’s benefi ts stretch further
than western Canada.
Now, let’s look at how this kind of data may have affected the outcome
of the Alberta Royalty Review. At the time, PSAC representatives were
invited into the conversation, but the panel’s primary focus was producer
profi tability, oil prices and the impact on consumers. At that time, PSAC
did not have the oil and gas services sector numbers to broaden the debate.
“If we had walked in and said, ‘We’re a $65-billion-a-year industry with
800,000 workers paying $9 billion a year in taxes – and your decisions will
affect all of this immensely,’ it would have made a huge difference,” says
Yager, a self-described “data guy” who chose to spearhead the data project
when he became PSAC Chair in 2009.
Because Statistics Canada is the primary source for the report’s data, the
report is a “snapshot” of the sector in 2006, the last census year. As we all
recall, the oil and gas industry was experiencing its biggest boom ever that
year – quite a different scenario from today. “The odds are pretty good that
it’s shrunk since then,” agrees Yager, “but our sector’s contribution to the
overall economy remains substantive.”
Nisku Industrial Park, one of the largest industrial business parks in
western Canada, is a compelling example of the services sector’s economic
clout. Nisku is home to 400 businesses and 6,000 employees, over 70 per cent
of them in the oilfi eld services sector.
“We attract attention from around the world,” says Pat Klak, Executive
Director of the Leduc/Nisku Economic Development Region, home of the
Nisku Industrial Park. “China, the U.S., Europe – we’ve had interest from
those countries and many more because they know how much value our
PSAC_Winter2010_p14-19.indd 16 11/24/10 10:54:45 AM
17
innovative oilfi eld services companies bring to Canada. With the
release of the PSAC report, now the rest of Canada will see how
important the industry is as well.”
The report makes it clear to policy makers that another
major component of the oil and gas business – beyond
producers – needs to be factored into decisions. To
ensure decision makers are aware of the data, PSAC
executives have been actively delivering copies of
the report directly to elected offi cials, ever since it
was released. Ron Liepert, Alberta Energy Minister,
Thomas Lukaszuk, Alberta Employment and
Immigration Minister, and Christian Paradis, federal
Natural Resources Minister, all received the report
from Elizabeth Aquin, PSAC’s Senior Vice President,
at events in Calgary this fall. “Delivering the report
in person allows us to convey key messages from this
groundbreaking study and urge elected offi cials to
read the report in full,” explains Aquin.
PSAC hopes government offi cials and policy
makers will take the time to review the report and
understand its key message: the services sector is big
enough to deserve a separate voice from the E&P sector. Clearly, that’s
already happened in Alberta. On behalf of Minister Liepert, Tim Markle,
Public Affairs Offi cer for the Alberta Ministry of Energy, affi rms, “The
xoil and gas services sector industry is very important to Alberta. This
document clearly shows how valuable it is.”
That’s exactly the kind of response PSAC is looking for. PSAC knows its
lobbying efforts on behalf of its member companies will be much more
effective when governments and the public know about and value the full
economic contributions of the services sector.
Yager is also hoping that the report helps the sector gain a new
profile with the business community at large. Yager says that
certain jobs are “enshrined” in Canada’s culture, like the farmers,
fi shers, automotive assembly workers, foresters and miners. But to his
dismay, oilfi eld services jobs don’t seem to have the same recognition.
“When people talk about the oil industry, all they talk about is big
profi ts. There doesn’t seem to be any cultural identification of this
enormous group of workers that does something valuable.” Greater
recognition of the important role played by the sector’s employees will
help companies recruit and retain the skilled workers they need now
and into the future.
“We need to be proud of what we’ve got,” states CERI’s Peter
Howard, the report’s author. Howard hopes the report will help
Canadians realize that “this is homegrown Canadian technology,
people and resources, developed over the last 50 years.”
Nisku Industrial Park’s Pat Klak agrees there’s plenty to be proud
of. “We live it every day, as we watch the sector continue to deliver
in good times and bad. Thousands of people work in the industry
because it’s good, important work. They’re proud of what they do and
they are a big piece of Alberta’s prosperity.”
No question, this is a sector to be reckoned with – one that clearly
holds its own among Canada’s heavy hitter industries. What’s more,
WWW.PSAC.CA
when the economic downturn hit in 2008, the services sector – unlike
some other sectors – didn’t demand a bailout. “What this industry does is
motor along, in economic ups and downs and despite governments’
attempts to destroy it periodically with primitive tax and royalty policies,”
says Yager.
Mark Salkeld, PSAC President, is immensely proud of the sector and its
accomplishments. “I’ve worked in the oil and gas services sector my entire
career. If I had the chance to do it over, I wouldn’t change a thing. The
people in this sector are resilient, hard-working, smart and innovative.
It’s no surprise to me that the sector’s employees and entrepreneurs have
“FOR YEARS WE’VE BEEN TRYING HARD TO CONVINCE THE PEOPLE TO GIVE US A SEAT AT THE TABLE OR INCLUDE US IN THE ENERGY POLICY DEBATE. WITH THIS COMPELLING DEMONSTRATION OF ECONOMIC IMPACT, THE SERVICES SECTOR SHOULD NOW EXPECT A GREATER ROLE IN ANY DISCUSSIONS THAT IMPACT THE WELL-BEING OF THE ENERGY INDUSTRY.” – David Yager, 2009-2010 PSAC CHAIRMAN
innovative oilfi eld services companies bring to Canada. With the
release of the PSAC report, now the rest of Canada will see how
The report makes it clear to policy makers that another
major component of the oil and gas business – beyond PUBLIC ADDRESS
CERI Interim President Peter
Howard shares the results of
the PSAC report
PSAC_Winter2010_p14-19.indd 17 11/24/10 10:54:56 AM
18
PARTNER REPORT ADDS UP SECTOR’S EXPORT CAPACITY
PETROLEUM SERVICES NEWS
T
Are you TRULY protected?ADVERTISING FEATURE
HERE IS MUCH CONFUSION IN THE OIL AND GAS INDUSTRY ABOUT THE
true certifi cation of the Protective Clothing worn by workers. Almost all coveralls, shirts, pants and jackets sold to hydrocarbon workers will have labels sewn in the clothing stating that “This garment meets the performance requirements of CGSB 155.20-2000 Workwear for Protection against Hydrocarbon Flash Fire”. Do these garments actually meet this standard or don’t they? That is the critical question!
Certifi cation provides the assurance that all the components including fabrics, thread and fastening systems have been tested by accredited labs and have met the criteria for protection against FlashFire as set out in CGSB155.20. Only components that have had the lab test reports verifi ed by CGSB on an annual basis can be deemed to be LISTED as certifi ed.
This program extends to the Certifi cation of Finished Garments. Only fi nished garments that have been examined by CGSB and found to meet the criteria can bear the CGSB logo on the label. In order to verify compliance CGSB performs an annual audit of manufacturers that have actually submitted garments for verifi cation of compliance.
MWG Apparel Corp of Winnipeg is the ONLY manu-facturer of Flame Resistant clothing that is entitled to display the CGSB Certifi ed label in our clothing.
If at any time it is found that the components or the fi nished garments do not pass subsequent testing, CGSB can and will pull the certifi cation.
There are similar certifi cation programs for hard hats, work boots and other safety products that the majority of
manufacturers of these products certify their products. At present MWG Apparel is the only certifi ed manufacturer of GARMENTS for Protection from FlashFire. For additional information please see the CGSB website at: http://www.tpsgc-pwgsc.gc.ca/cgsb/prgsrv/certprg/program/c155_020-2000_index-e.html
In comparison, other garment manufacturers state that their clothing “Meet the performance requirements of CGSB155.20” There has been no verifi cation of this claim and the only person declaring that the garment meets the standard is the person sewing the label into the garment, with NO third party verifi cation. These other garment manufacturers merely rely on the fact that fabric mills test their fabric in accordance with CGSB criteria and then leave you the purchaser and wearer of protective clothing to decide if the garment meets the standard or not.
DO YOU HAVE THE KNOWLEDGE TO MAKE THIS DECISION?
Bill C-45 states that “Every one who undertakes, or has the authority, to direct how another person does work or performs a task is under a legal duty to take reasonable steps to prevent bodily harm to that person, or any other person, arising from that work or task.” As a responsible employer by supplying your workers with CERTIFIED garments you will have demonstrated due diligence in the unfortunate event of your workers being exposed to a FlashFire incident.
For more information about CGSB certifi cation and how to protect yourself and your fellow workers, please contact:
Look for this Logo.if the garment does not display this symbol then it is NOT fully certifi ed.
MWG Apparel Advertorial2.indd 1 11/22/10 11:37:27 AM
been able to build a business that puts it in the league with Canada’s other
resource industry superpowers.”
PSAC is very pleased that its new report confi rms what PSAC members
already knew: the services sector really does matter. Responsible for
approximately fi ve per cent of all GDP and employment, and four per cent
of all taxes, the sector makes signifi cant economic contributions every
year – signifi cant enough to be considered when policies are being set and
opinions are being formed. PSAC hopes that with this data, the oil and gas
services sector will fi nally receive the attention it deserves.
PSAC’s reports are available on the PSAC website at www.psac.ca.
A second report commissioned by PSAC focused on the sector’s export capacity. PSAC wanted to understand the sector’s export capacity because over the last six decades, Canadian advances in research and development, technology and equipment have strengthened the oil and gas industry from one that primarily imports its products to one that is exporting to international markets. Alberta’s government has long since pushed the idea of industrial diversifi cation, and David Yager, 2009-2010 PSAC Chairman, believes that it has been achieved thanks to the efforts of the services sector.
For this report, called “PSAC Oil and Gas Support Companies International Revenue Review,” Mission Capital Inc. sought out information from the larger services companies that are required to disclose their international revenues. Data was tallied from the companies’ 2008 and 2009 annual reports.
The report states that in 2009, 36 Canadian drilling and well servicing, service and supply, and pipeline infrastructure and processing companies earned $12.8 billion in revenue outside of Canada. The international revenue of those companies made up one-third (34 per cent) of their total revenue. Interestingly, there was a 15 per cent drop in revenue from 2008 to 2009, but only a nine per cent drop in international revenue over the same period. That shows the agility of the sector and its people to move to areas of highest activity as required.
Overall, the report’s data proves that Canadian oil and gas services sector people and technology are definitely exportable. “We’re not just waiting around for oil companies to decide they want to drill here,” says Yager. “We can go out and work for other people in the world – and we do.”
HERE IS MUCH CONFUSION IN THE OIL AND GAS INDUSTRY ABOUT THE
true certifi cation of the Protective Clothing worn by workers. Almost all coveralls, shirts, pants and jackets sold to hydrocarbon workers will have labels sewn in the clothing stating that “This garment meets the performance requirements of CGSB 155.20-2000 Workwear for Protection against Hydrocarbon Flash Fire”. Do these garments actually meet this standard or don’t they? That is the critical question!
Certifi cation provides the assurance that all the components including fabrics, thread and fastening systems have been tested by accredited labs and have met the criteria for protection against FlashFire as set out in CGSB155.20. Only components that have had the lab test reports verifi ed by CGSB on an annual basis can be deemed to be LISTED as certifi ed.
This program extends to the Certifi cation of Finished Garments. Only fi nished garments that have been examined by CGSB and found to meet the criteria can bear the CGSB logo on the label. In order to verify compliance CGSB performs an annual audit of manufacturers that have actually submitted garments for verifi cation of compliance.
MWG Apparel Corp of Winnipeg is the ONLY manu-facturer of Flame Resistant clothing that is entitled to display the CGSB Certifi ed label in our clothing.
If at any time it is found that the components or the fi nished garments do not pass subsequent testing, CGSB can and will pull the certifi cation.
There are similar certifi cation programs for hard hats, work boots and other safety products that the majority of
manufacturers of these products certify their products. At present MWG Apparel is the only certifi ed manufacturer of GARMENTS for Protection from FlashFire. For additional information please see the CGSB website at: http://www.tpsgc-pwgsc.gc.ca/cgsb/prgsrv/certprg/program/c155_020-2000_index-e.html
In comparison, other garment manufacturers state that their clothing “Meet the performance requirements of CGSB155.20” There has been no verifi cation of this claim and the only person declaring that the garment meets the standard is the person sewing the label into the garment, with NO third party verifi cation. These other garment manufacturers merely rely on the fact that fabric mills test their fabric in accordance with CGSB criteria and then leave you the purchaser and wearer of protective clothing to decide if the garment meets the standard or not.
DO YOU HAVE THE KNOWLEDGE TO MAKE THIS DECISION?
Bill C-45 states that “Every one who undertakes, or has the authority, to direct how another person does work or performs a task is under a legal duty to take reasonable steps to prevent bodily harm to that person, or any other person, arising from that work or task.” As a responsible employer by supplying your workers with CERTIFIED garments you will have demonstrated due diligence in the unfortunate event of your workers being exposed to a FlashFire incident.
For more information about CGSB certifi cation and how to protect yourself and your fellow workers, please contact:
HE PSAC EDUCATION FUND awarded 10 students and 10 schools $1,000 each for a total of $20,000 in scholarships and grants this year. PSAC is pleased that these annual awards will enable student recipients to pursue their educational goals and help
small schools in western Canadian communities enhance their learning programs.
HeadOF THE
PSAC EDUCATION FUND ANNOUNCES SCHOLARSHIP AND GRANT WINNERS
T
ClassSince being established in 2001, the Fund has invested over $140,000 in
the futures of Canadian students. Students pursuing a certifi cate, diploma or
degree at an accredited post-secondary institution are eligible to apply for the
scholarships. Proposals for grant funding are submitted by schools aiming to
enhance their learning opportunities in math, sciences or trades programs.
The goal of the program is to build awareness of and interest in careers in
the petroleum services industry. By offering fi nancial support through the
PSAC Education Fund, the petroleum services industry helps to develop and
support future leaders in a tangible way. PSAC and its member companies are
committed to encouraging learning and building the future workforce.
Enabling students to take advantage of existing opportunities and helping
schools to create new ones is the central aim of the
PSAC Education Fund. The Fund helps ensure that
the upcoming generation will have the knowledge
and tools to thrive, and is just one example of
how the petroleum services industry supports the
Canadian communities in which it works.
Scholarship recipients were determined this
year through a random draw process while
grant recipients were selected by a committee
according to a predetermined set of criteria.
More information can be found starting in January
at www.psac.ca/community.
SCHOLARSHIPSA total of 539 eligible applications were received
for PSAC scholarships in 2010. Applications
covered a variety of fi elds, including engineering,
medicine, technology, business, education, trades
and much more. This year’s recipients of $1,000
scholarships were:
STUDENT NAME COMPANY AFFILIATION SCHOOL AREA OF STUDY Yulia Abramovich Enerfl ex Ltd. University of Calgary Psychology Stefano Arcovio Calfrac Well Services Ltd. Queen’s University EngineeringAngela Misuraca Sanjel Corporation University of Calgary CommunicationsReto Mueller Master Flo Valve Inc. University of Alberta Engineering Adam Thomson Weatherford Canada Partnership University of Alberta Engineering
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:
STUDENT NAME SCHOOL AREA OF STUDYAndrea Buchfi nk University of Alberta EngineeringChloe Curtis Northwest Community College NursingStephanie Eely Langara College NursingSteven Hackman University of Alberta EngineeringColleen Wilson Queen’s University Engineering
SCHOOL GRANTSA total of 39 eligible applications were received for school grants in 2010. All of the schools are located in communities with populations of 30,000 or lessand have limited resources available for science, math and trades programs. The 10 schools that received PSAC Education Fund grants of $1,000 this year were:SCHOOL PROJECT TOWN/PROVINCEAtikameg School Purchase of educational rockets and launch pads Atikameg, AB Beiseker Community School Purchase of TIG welder Beiseker, ABEagle Butte High School Purchase of Vernier probeware Dunmore, ABForestburg School Purchase of lab equipment, chemicals and model kits Forestburg, ABHoly Spirit Catholic School Purchase of robotics equipment Devon, ABJessie Duncan Elementary School Undertake job shadow/oil & gas job bank project Penhold, ABRimbey Junior/Senior High School Purchase of double reel cable holder for welder Rimbey, ABSaanich Adult Education Centre Sponsored science fair Brentwood Bay, BCSPIDER Distributed Learning Sponsored fi eld trip to Port of Vancouver petroleum facilities Gibsons, BCSuccess School Purchase of measurement sensors and galvanometer Success, SK
SAIT Polytechnic thanks Connie and Murray Cobbe and Barbara and David Johnson for their leadership and generosity. Both couples have donated $5 million each to education, through the Promising Futures™ Campaign in support of SAIT’s Trades and Technology Complex. In recognition of their gifts, the new home of the MacPhail School of Energy will be named the Johnson – Cobbe Energy Centre. Both Mr. Cobbe and Mr. Johnson are graduates of SAIT’s Petroleum Engineering Technology Program, and their combined contribution of $10 million will help create a centre of inspiration and transform the lives of many future students.
SAIT’s new Trades and Technology Complex will engage up to 8,100 more full and part-time students each year in hands-on, career-oriented training. It will also turn Calgary into a hub of learning and contribute signifi cantly to our economy — thanks to the generosity of the Johnsons and Cobbes.
SAIT Polytechnic thanks Connie and Murray Cobbe and Barbara and David Johnson for their leadership and generosity. Both couples have donated $5 million each to education, through the Promising Futures™ Campaign in support of SAIT’s Trades and Technology Complex. In recognition of their gifts, the new home of the MacPhail School of Energy will be named the Johnson – Cobbe Energy Centre. Both Mr. Cobbe and Mr. Johnson are graduates of SAIT’s Petroleum Engineering Technology Program, and their combined contribution of $10 million will help create a centre of inspiration and transform the lives of many future students.
SAIT’s new Trades and Technology Complex will engage up to 8,100 more full and part-time students each year in hands-on, career-oriented training. It will also turn Calgary into a hub of learning and contribute signifi cantly to our economy — thanks to the generosity of the Johnsons and Cobbes.
sait-promising-futures.ca
TWO COUPLES, ONE GOAL: INSPIRING OTHERS.
000PSN.SAIT_FP_wBL.indd 1 11/11/10 8:46:59 AM
severity of motor vehicle accidents. One of the CVSE’s areas of
concern is the high number of mechanical deficiencies found on
routine inspections of commercial vehicles. CVSE is initiating a pilot
project giving officers the authority to remove and withhold a licence
plate until the vehicle has been deemed roadworthy.
PSAC’S 2010 EDUCATION FUND GOLF CLASSIC RAISED $46,000 FOR EDUCATIONA crowd of 144 oilpatch employees and guests took to the fairways on
July 22 in Calgary for a day of fundraising and fun, generating $46,000
for education at the annual PSAC Education Fund Golf Classic.
The event, which took place at the Calgary Elks Lodge and Golf Club,
boasted a number of highlights including a special presentation to
guests of honour Stefano Arcovio, an engineering student at Queen’s
University, and Angela Misuraca, a communications student at the
University of Calgary. As a result of the tournament proceeds,
each student was awarded a $1,000 scholarship towards their post-
secondary studies. Arcovio and Misuraca are two of 10 students awarded
the scholarships through member companies as part of PSAC’s 2010
Education Fund. Both students plan to work in the oil and gas industry
upon completion of their studies. The fund also awarded $1,000 grants
to 10 schools in small western Canadian communities this year to
enhance their math, science and technology programs. The mandate of
the PSAC Education Fund is to create awareness of career opportuni-
ties in the petroleum industry and help to develop the future workforce.
(More detail in article on p.20)
PRIVACY CONCERNS ADDRESSEDIn response to concerns raised by our members, PSAC has lodged a
complaint with the Alberta Information and Privacy Commissioner
relating to data being collected by ISNetworld on behalf of oil and gas
companies. The complaint relates to the collection, use and disclosure of
both contractor company fi nancial information and employees’ personal
information; safeguarding of personal information; potential for the
wider dissemination of personal information provided by Canadians
under the U.S. Patriot Act; and protection regarding access to personal
information collected by ISNetworld. The Privacy Commissioner is
currently conducting an investigation of the PSAC complaint, and PSAC
will advise members regarding progress on this issue.
MEMBER LUNCHEONPSAC hosted 55 member company representatives at a member luncheon
in Fort St. John, B.C., following its 11th annual Pre-Drilling Season
Meeting. PSAC provided an update on the Association’s activities and
member services.
ALBERTA IS ENERGY PRESENTATION IN LLOYDMINSTERAs part of PSAC’s commitment to partner with the other trade
associations to ensure the industry is unifi ed in countering negative press,
PSAC and CAPP made a presentation to an audience of 70 members of the
Chamber of Commerce in Lloydminster, Alberta, in August. They
presented the Alberta is Energy message, part of a joint industry campaign
designed to improve public opinion about the oil and gas industry. More
information on the campaign can be found at www.albertaisenergy.ca.
PSAC ANNOUNCES THE RESULTS OF TWO GROUNDBREAKING STUDIES ON THE ECONOMIC IMPACT OF OIL AND GAS SERVICESOn October 5, PSAC announced to a sold-out crowd at Calgary’s Westin
Hotel the results of two studies into the economic impact of oil and gas
services on the Canadian economy. PSAC commissioned the Canadian
Energy Research Institute (CERI) and Mission Capital Inc. to undertake
these studies to create a better understanding among governments,
the public and the media of the signifi cant fi nancial and employment
role this industry plays across Canada. The results indicate that
in 2006 the oil and gas services sector contributed $65 billion
to Canada’s gross domestic product, employed 800,000 workers
across Canada and contributed $9 billion in personal and corporate
taxes to federal and provincial governments. More information about
the project can be found on p.15 or at www.psac.ca.
PSAC IN ACTION: Keeping the services sector front and centre
GROUNDBREAKING STUDY:
David Yager, PSAC Chair and Peter Howard of CERI present the findings of the impact of oilfield
services on the Canadian economy at a press conference
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VP_psac ad_1-4.indd 1 11/24/10 10:09:55 AM
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Justify your hiring actionsCurrent employees who survived the layoffs may be extra sensitive
to new hires. Employers need to be aware of current employee concerns
that business is ramping up too quickly and new hires are not
justified. Kelly Burake of DMK Drilling says that by fostering a strong
organizational culture and keeping current employees in full
understanding of hiring practices, new people are openly welcomed
and accepted into the organization.
Shift your recruiting strategiesRecruitment strategies that worked before the recession may not show the
same results today. While DMK relied on active recruiting in previous
years, the company has shifted its strategies and is experiencing success
recruiting through referrals. DMK has also reacted to shifting employee
values. While money and pay was a defining factor in the past, Burake
says employees now seem to value job security above other benefits.
Tap into new marketsWhen looking for additional sources of labour, Cheryl Knight of the
Petroleum Human Resources Council of Canada suggests tapping into
downsized workers from other industries that are accustomed to similar
work, environments and possess transferable skills. The pool of skilled
immigrants already in Canada is another strong source of workers.
Profile yourselfCompanies should remember to profile themselves not only to their
customers but also to future employees, says Knight. By having a website
where potential employees can see what programs and benefits the
company offers, the company can successfully profile itself as an
employer of choice.
Promote the positivesThe seasonal nature of many services companies’ work and their
operations in remote locations continues to create attraction issues for
companies in the sector. According to a report by the Petroleum
Human Resources Council of Canada, there is a real need and
opportunity to promote the positives associated with a career in the
sector. Employers can highlight the opportunity to work with
high-tech equipment and cutting-edge science, the variety of
work arrangements, solid compensation and benefits available, and
the career opportunities within the sector, across the whole upstream
industry and internationally.
SOLUTIONS FOR EMPLOYERS RAMPING UP RECRUITMENT
PSAC_Winter2010_p26-27.indd 27 11/24/10 10:55:30 AM
28
NVIRONMENTAL REFUELLING Systems Inc.’s modular hydraulic
fracturing (“frac”) fuel delivery system,
Frac Shack, has already been called an
industry standard. The self-contained unit that
removes workers from the hazards of working on a
hot frac pad and minimizes the risk of fuel seeping
into the environment is equipped with a patent-
pending, real-time fuel monitoring system – a
system that allows operators to see what’s
happening in frac pumper saddle tanks without
exposing themselves to danger.
Todd Van Vliet, President of the Edmonton-
based fuel management company says, “Nobody
has to worry about who is there and whether the
pumpers are getting low on fuel or whether they
are going to overfi ll them. It just takes the whole
concern over fuel right out of the equation so the
engineers and operators can then focus on just
getting the job done.”
The New Standard
E
MEMBER PROFILE
With explosions and fi res having been reported in areas such as the
Marcellus Shale in the northeastern United States, absolute safety and
precision is top priority for Environmental Refuelling Systems. Overfi lling
tanks raises the likelihood of dropping diesel fuel on the ground or in the worst
case, Van Vliet says, spraying diesel fuel onto hot engines.
Up-to-the-minute data about fuel levels in the saddle tanks of each frac
pumper is transmitted to the control room in the Frac Shack via a wireless
reader on each of the refuelling heads. Audible and visual cues alert operators
when fuel levels are low or when fuel tanks are full. In the latter case,
automatic valves are programmed to close, removing the possibility of
overfi lling the tanks.
A visit to operations in the Horn River Basin shale play in the summer
of 2009 prompted Van Vliet and his brother Scott, who is Executive Vice
President of the company, along with colleague Glen Brotzel to develop the frac
fuelling delivery system. “We’ve spent a lot of time and effort to try and make
it right,” says Van Vliet, who adds that many safeguards have been added to the
system to minimize risks as much as possible.
Frac pumpers often operate around the clock, pumping at 15,000 pounds per
square inch of fracturing fl uid at their full capacity, says Van Vliet.
“If they’re pumping hard and one piece of pump gives way or there’s a hole
in something, somebody’s going to be seriously injured,” he says. Sometimes
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www.cfrac.com
000PSN.CtrR&C_1-2H_nBL.indd 1 11/10/10 3:18:46 PM
up to 30 frac pumpers are lined up so closely that walking in between them is
near impossible. Add to that mix of challenges the searing 300-degree Celsius
heat generated by the locomotive engine and the frac pumper it powers. The
environment is aptly called a hot zone.
Yet, Van Vliet saw workers endure those conditions in order to refi ll fuel
tanks or troubleshoot problems.
“They were doing a great job, but none of us want our people there,” he says.
“I was horrifi ed.”
In addition to safety benefi ts, the “plug and play” feature of the fuel head and
the reduced downtime in refuelling pumper tanks has produced effi ciencies in
the process that the company hadn’t expected.
“The theory is that when we pull into a site, it doesn’t take us long to rig up
because all we do is put on the right adaptor for the client’s system, throw on the
fuel heads and you’re ready to go,” says Van Vliet.
“When we worked with Nexen at their Dilly Creek operation, that frac took
them eight or nine days less than they had scheduled and one of the reasons
is they didn’t have to hold up any of the fracing
waiting for refuelling,” he adds.
The real-time monitoring system might help
avoid a costly bill as well. Van Vliet says a ruined
COMPANIES THAT RESPOND NEED COMPANIES THAT RESPONDLike Sanjel, more and more of Alberta’s top companies want ATB as their financial partner. ATBresponds.com
Response. Results.
®ATB Corporate Financial Services is a registered trademark of Alberta Treasury Branches.
000PSN1.ATB_FP_wBL.indd 1 11/10/10 2:38:20 PM
MEANINGFUL EXPERIENCE that felt good – that is how Tanya
Janssens-Brewster sums up her company’s volunteer
work at the 21st Arctic Winter Games hosted by Grande
Prairie in March 2010. “It was really exciting and there
was just so much energy at the Games,” she adds.
Janssens-Brewster, President of 911 Industrial Response Inc.,
and 15 of her employees provided medical care to attendees,
including athletes, coaches and the public, for more than 30 shifts
throughout the week-long Winter Games. Such work is nothing
new for 911 Industrial, a Grande Prairie-based company that
provides emergency medical care for industrial sites and
frequently volunteers its services at events in the community.
The Games are a biennial sports competition for youth athletes
from around the globe living in communities north of the 55th
parallel. Janssens-Brewster was herself a former Artic Winter
Games competitor, participating in fi gure skating when she was
13 and the Games were held in the Yukon. She understands fi rst-
hand the opportunity the Games present for youth living in the
world’s northern communities, many of whom she says might not
otherwise leave their home countries, let alone visit Canada. The
ability to be a part of the Games “on the other end” was behind
Janssens-Brewster’s motivation for volunteering her company’s
services. “They couldn’t have the Games without medical
coverage,” she says.
911 Industrial employees enjoyed the opportunity to give back
to their community and be a part of the celebration of sport,
social exchange and cultures. “Most of the people who work here
are involved in sports,” says Janssens-Brewster. “So to be able to
help out those kids and provide a safe environment for them to
compete in – it felt good.”
30 PETROLEUM SERVICES NEWS
COMMUNITY MATTERS
BY CAILYNN KLINGBEILFORMER COMPETITOR RETURNS TO WINTER GAMES WITH TEAM OF STAFF
COMPANIES THAT RESPOND NEED COMPANIES THAT RESPONDLike Sanjel, more and more of Alberta’s top companies want ATB as their financial partner. ATBresponds.com
Response. Results.
®ATB Corporate Financial Services is a registered trademark of Alberta Treasury Branches.
Alberta is Energy is supported by several Alberta business associations, many of which are focused on the oil and gas sector.
our futureour futurebuilding
The world is watching Alberta.
We are the kind of place that can attract and hold investment – whether it be time, money or human capital. To realize our potential we need to remain competitive.
Being competitive means jobs for Albertans – not only in oil and gas production and construction, but also hotels, restaurants, accounting firms, transportation companies and more.
Every dollar invested in the province’s oil and gas industry creates three dollars of value for Alberta’s economy.