petroleum services association of canada news summer 2012

SAFETY

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Features

Departments47

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Pushing a culture of safety from

the top of organizations has helped

reduce injuries in the industry

PSAC’s annual spring conference

provides attendees with the skills and

information needed to recruit and

retain employees

PSAC joins a delegation representing

Canada’s energy sector at the

China International Petroleum

and Petrochemical Technology and

Equipment Exhibition

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14

News and notes from the industry

Activity in the Western Canadian Sedimentary

Basin should increase from last year

When entering a foreign market it will take

patience to stay on the right side of the law

Advocacy initiatives from PSAC spread far

and wide

Prudential Energy Services Ltd. develops a

mobile fl uid storage system

Up close and personal with two members of

PSAC’s Board of Directors: Wally Dumont and

Ray G. Mills

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were woken up

to the fact that election polling can lack any predictive value in April.

Prior to election night, pundits bravely moved away from the genius

of hindsight to forecast an election result of historic proportions. And I don’t want to

commit the same error of trying to predict future events, but here I go.

I am asked frequently what I think the future of Canada’s energy industry looks like.

Low gas pricing, a widening differential, world economic slowdown, limited access to

new markets and global attention on Canada’s development of the oilsands together

cast a negative view of the future. To the extent election polls are nothing more than

public opinion polls, our industry similarly tracks “favourability” ratings by polling the

broader public to unveil perspectives on the industry – about what we do and just how

we do it. I’ll sum up some of those polls simply by saying that we have some work to do.

It’s worth noting that we do things differently here in Canada’s oilpatch and it’s

important that we turn outward to the broader national and international stages to tell

our story which is one of service, supply, innovation, and strong environmental and

safety performance. Our industry has much to boast about and many reasons to be optimistic about the road

ahead. So what does that mean for the future of our industry? Well, in short, I predict that Canada will become

the world’s energy powerhouse.

Why can I be so confident? Unlike pundits and pollsters of late, I am basing my prediction on a couple of

certainties. Canada’s services sector is a leader in the innovation and technological development of the industry

which is allowing for more efficient, productive and advanced drilling. This results in access to plays once

thought unreachable and others that were previously economically unviable to develop. Innovation is also driving

marked improvements in the footprint of our operations, decreasing surface footprint and the materials required,

while vastly expanding below surface reach. Our services sector is also a world leader in advancing health and

safety standards, and initiatives that typify the operations of PSAC members. We have come to understand that

stringent safety management systems are imperative and actually pay off in positive returns to the bottom line.

The second quarter update to PSAC’s 2012 Canadian Drilling Activity Forecast which trimmed forecasted activity

still projects increased activity as compared to last year, and our sector is very active in recruitment efforts

so we can meet the needs of our customers. Industry is working hard and is engaged in ongoing discussions

with policy-makers about ways to further enhance access to domestic labour pools as well as making foreign

worker programs more flexible to local labour needs. With recent announcements about improvements in the

regulatory review of projects and current proposals to increase access to new markets, demand side pressures we

face may soon find some resolve. These are all good signs of things to come.

My involvement with the PSAC Board of Directors further strengthens my confidence of hanging my hat on a

prediction of a bright future for Canada’s oil and gas industry, and the services sector specifically. PSAC is working

hard on a number of fronts including labour, health and safety, and public communication and dialogue that will

contribute directly both now and down the road to the future success of the sector and the industry more broadly.

The PSAC Board will continue to provide support and strategic direction ensuring that member’s needs are heard.

So how long until I see my prediction coming true? How long until Canada can confidently claim powerhouse

status? I won’t go so far as to peg a date, but I will say that we are close. For all of the reasons I have set out, I

believe we already have one foot squarely planted in the position of leadership. The continued work by PSAC and

other industry groups to coordinate efforts across industry and government has set the other foot in motion to a

position where Canada will stand proudly as the energy leader on the world stage.

Sincerely,

Mike Edmonds PSAC Board Chair

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A


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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:

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News, events and activities in the industry

Association of

Canada (PSAC) recently welcomed accountant

Aadil Edoo to the team. With more than four

years of financial experience in the services

sector, Aadil’s primary responsibilities include

financial reporting and analysis, budgeting and

payroll requirements. Aadil also oversees all

membership renewal dues, product sales and

event registrations.

Building a Skilled Workforce to support the Petroleum Competency Program (PCP) and is pleased to

recognize those individuals who received their PCP in 2011. The PCP is managed by the

Petroleum Human Resources Council of Canada. For more information visit www.petrohrsc.ca.

Jason Barnes

Chad Barney

Dylan Begg

Vincent Boscher

Darcy Bustin

Dominic Clouthier

Stacy Compton

Colby Debolt

Dave Dixon

Cory Dobbin

Graham Fraser

Bo Gawryliuk

Todd Gripich

Bryce Jones

Max Keeler

Scott Kesterke

Tyler Kludash

Jason LaRoche

Justin MacIver

Cory D. Martin

Tom Matthews

Robert McLoughlin

William McRae

Jason Melenchuk

Joe Merrick

Roy Muckler

Devan Nusse

Carl Nylen

Johnathan Perry

Derrick Pruden

Travis Reschny

Chad Rowe

Stephane Sauve

Logan Shantry

Stephen Sheppard

Stephen Towns

Jason Wilson

Lawrence Borowic

Melvin Budge

Dorrell Amos

Joseph Arkinstall

Bryce Baloun

Brian Belcourt

George Benoit

Jason Brooks

Glen Cerny

Matthew Croll

Craig Crosby

Dan Delinger

Tom Delinger

Edward Giroux

Trevor Gordon

Chad Graham

Kyle Gross

Jim Harpell

Ayden Harris

Jerry Hernandez

Darrell Horton

Taylor Howarth

Jeffrey Hurley

Michael Ivey

James Johnson

Ashim Joseph

Robert McBride

Ronald McCoy

Rhett McDaniel

Thomas Minder

Patrick Mones

Mathieu O’Handley

Kenneth Ostare

Marshal Petersen

Brad Reeves

Brady Saunders

Cody Strickland

Keith Tetachuk

Jeremy Welker

Cole Woods

Stephen Woychyshyn

SAIT Polytechnic awarded a PSAC funded scholarship to Steven Lee, a student

enrolled in the Petroleum Engineering program. PSAC provides scholarship support through the

PSAC Education Fund for students at technical schools in petroleum-related and trades programs

at Northern Lights College, Keyano College, NAIT, SAIT and SIAST. For more information about

PSAC’s Education Fund scholarship program, please visit www.psac.ca.

June 12 & 13, 2012

The Westin

Calgary, Alberta

July 19, 2012

Calgary Elks Lodge and Golf Club

Calgary, Alberta

November 6, 2012

TELUS Convention Centre

Calgary, Alberta

November 6, 2012

TELUS Convention Centre

Calgary, Alberta

For more information on all PSAC events, visit:

www.psac.ca/events

Quest Coring Inc.

Reform Energy Services

3MV Energy Corp.

Columbia Industries

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the Petroleum Services

Association of Canada (PSAC) released

its mid-year update to the 2012

Canadian Drilling Activity Forecast,

predicting a slight increase in Canadian

drilling activity levels from the previous year.

The revised forecast for 2012 is a total of 13,150

wells drilled (rig released) across Canada,

representing a two per cent increase in total

wells drilled over 2011. The fi nal tally for 2011

was 12,850 total wells drilled.

The 2012 revised forecast represents only

a slight decrease of 200 wells from PSAC’s

January update which pegged activity for the

year at 13,350 wells drilled. The second quarter

decrease is largely attributable to the decline

in gas drilling due to record lows in natural

gas pricing. “There have been some conditions

that have impacted expected drilling activity

Little Change in Mid-Year Update

I that were beyond our industry’s control,” says

Mark Salkeld, PSAC president and CEO. “That

said, productivity so far this year is high and

activity is still on the uptick.”

The overall decrease to the forecast since

November is attributable to declining gas

prices, labour shortages, balmy weather at

the outset of the year and world economic

conditions including the European debt

crisis. PSAC is basing its updated 2012

forecast on average natural gas prices of

CDN$1.90/mcf (AECO) and crude oil prices

of US$100/barrel (WTI).

“We have to bear in mind that the days of

20,000 plus wells are likely not to return any

time soon, and that’s largely due to the fact

that we are drilling longer and more complex

wells now that are accessing plays once thought

unreachable or fully tapped,” Salkeld adds.

“The fi rst quarter of 2012 saw average well

depth reach beyond 2,000 meters and is a

sure sign that our industry now operates very

differently than even just fi ve years ago when

vertical wells were still the prominent well type

and technology. We are forecasting horizontal

wells to make up over half of all well types

this year which is a marked increase from the

horizontal well count of 2007 which leveled out

at only 13 per cent of total wells.”

When used in conjunction with the PSAC

Well Cost Study, the Canadian Drilling Activity

Forecast can be used to determine potential

market sizes for drilling and completion

products and services, as well as pricing and

activity direction. For more information

about how to subscribe to the Drilling Activity

Forecast or Well Cost Study, contact PSAC at

[email protected] or 403-264-4195.


Servic-ith several pieces of heavy equipment moving around a wellsite and thousands of pounds of pressure being used, there’s a big element of human risk in the fi eld. When an incident does take place in the oilpatch it refl ects negatively on the

entire industry, which is why Canada’s oil and gas industry is at the forefront in adopting cross-industry initiatives that have reduced injuries substantially over the years. Many companies have taken a leadership role by moving beyond just having safety programs to creating safety cultures that span their entire operations.

W

CultureSafety


Mullen is based in Okotoks, Alberta and

operates 27 businesses, with 18 in the oilfi eld

services sector. There are more than 5,500

employees working for the company and

with a good portion of the businesses in

transportation, company safety extends far

into the fi eld with individual drivers, trucks

and load securement. “You can’t just speak

about safety, you have to emphasize it. The

manner in which you do business cannot

compromise safety,” Lockwood says. “You have

to continuously endorse the concept of quality

and have it running through the company. If

you want to have a quality company, in our

case, its total customer satisfaction and they

expect a contractor to provide an exemplary

safety environment.”

At Mullen, part of the company’s training

program emphasizes problem solving,

teaching employees – from supervisors to

people working at facilities – the safest way

to do a job and hazard assessment. “This

business is always evolving and you need

complete engagement of people to the point

where they can identify hazards and are

looking for hazards, to make the workplace

safer for everybody,” Lockwood says.

Coaching and developing the right attitudes

and values does require work and patience.

So, rather than being seen as a constraint on business, safety

has become a competitive advantage for Canada’s operators and

service companies alike. Roy McKnight, manager of Industry

Initiatives for Enform, says all players on a worksite – operators,

drillers, trucking companies and service companies – contribute

to the overall picture that shows productivity and injury rates

going in opposite directions. “Companies are implementing proper

health and safety management systems, taking corrective and

preventive action. We’re asking really good questions before things

go wrong,” McKnight says. “Everyone recognizes that it’s a shared

responsibility, and without collaboration, things break down.”

“If an incident happens in this industry, people are lucky not to

lose a limb or their life,” says Ron Harris, quality HSE manager

with Firemaster Oilfi eld Services Inc. Firemaster has been

providing safety equipment, services, emergency response and

training to the services sector since 1980. There have been many

changes to safety regulations over the years, but the industry’s

drive to get to zero injuries is internally driven. “People are

starting to see that safety doesn’t have to compete with business

priorities,” Harris says. “When safety is integrated as a core value

and you operate that way, you can still meet deadlines, stay on

budget and work safely.”

So employees know they are supported by the management

team, Firemaster schedules regular fi eld visits from executives

and the Red Deer-based company has also reordered all its

meetings so that safety is discussed before operations – a clear

message that safety comes fi rst. Another way to gain support for

safety initiatives is including the personal values of employees.

“Most people come with the value of wanting to go to work, earn

a good day’s pay and go home at the end of the day with all their

fi ngers and toes,” says Harris. “It’s on us to nurture that value and

help bring it to the forefront and make sure people are thinking

about it and working that way.”

Firemaster has built a “no blame” incident reporting system,

which encourages employees to report incidents and near misses.

Regularly taking a heavy-handed approach to change employee

behaviour may discourage employees from being open and removes

the opportunity to identify and improve on problematic systems.

“Our system doesn’t try to assign culpability of an employee. We

try to fi nd system failures, explain the facts around what happened

and identify steps that the company will take to make sure it doesn’t

happen again,” Harris explains. “We fi nd we get much better results

with our workforce when we champion and reinforce the good

things they do. They then want to do more of that.”

Implementing sound processes, procedures, and health and

safety management systems, helps ensure companies meet

legal requirements and align with industry best practices. A

key to enhancing commitment to those systems is nurturing a

company’s safety values and it starts at the top. Strong leadership

support is essential to building a safety culture and carrying

that culture from the corporate offi ce out into the fi eld. “You

have to ensure that at the top of the leadership chain safety is of

paramount importance,” says Stephen Lockwood, president and

co-CEO of Mullen Group Ltd.

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As the industry matures and continues to improve on safety systems,

Enform’s McKnight predicts safety will evolve to include a deeper, more

sophisticated level of investigation into incidents. “We’ve essentially

solved the easy problems. Now, we’re continuously improving on

communication, procedures and getting to the very root cause of

incidents,” he says. “You may fi nd the cause has nothing to do with

industry but more with the psychology of society. It’s going to be a

different way of thinking to solve a different kind of problem.”

A steady decline in workplace injuries is encouraging to a sector whose

potential impact on communities and society is continuously highlighted

in the public eye. It’s more reason, McKnight believes, using every tool

and approach available from different disciplines – human resources,

business management, training and technology—will be needed to

achieve zero injuries. “It’s going to take a whole culmination of effort,

passion and desire to get us there,” he says.


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Servic-

R

HelpWanted

made up the theme

of the Petroleum Services Association of Canada (PSAC)

2012 Spring Conference, which hosted more than 210

delegates on April 17 and 18 in Red Deer, Alberta. With

the services sector facing an increasing labour shortage, the focus of the

conference was to provide the skills and information oilfi eld services

workers need for success in their careers and to equip employers with

tools to recruit and retain employees. These issues were addressed

in three education streams: human capital mangement, professional

development and transportation management.

Mark Salkeld, PSAC’s president and CEO, said the labour shortage

continues to be an issue as activity continues at a healthy pace. “Land sales

are on the increase which is a prime indicator of future activity,” he says. “So

with this in mind, PSAC’s Transportation Issues Committee and Human

Resources Committee created a program for this year’s conference that

placed a strong emphasis on engaging and retaining current employees.”

Delegates heard from experts, including

Cheryl Knight, executive director and CEO

of the Petroleum Human Resources Council

of Canada. Knight shared several fi ndings of

a study commissioned by PSAC to assess the

skill transferability of workers across Canada.

“There are opportunities to transfer workers

from other provinces and other sectors within

Canada,” said Knight during the session. She

advised recruiters to scan the news to see where

job losses are happening in other areas of the

country such as a closure at a mill.

Pierre Thiffault with Transport Canada

delivered proactive and well-received messages

regarding the importance of improving

driver behaviour. A well-known speaker in

the transportation fi eld, Thiffault provided

attendees with tips on how to change employee

attitudes and reduce driver distraction. An

additional highlight from the transportation

stream included a presentation by Randall

Howe and Fred Andersky from Bendix

Commercial Vehicle Systems, which aimed to

improve workers’ understanding of stability

technology for commercial vehicles. This topic

generated a lot of discussion about the new

technology and how it applies to both tractor-

trailer and straight truck applications.

Further conference highlights included

a presentation by Jim Tittemore, president


of Bottom Line Impact, to a full house on

the importance of building a performance

management tool kit to building a strong

team. Tittemore drew upon sports analogies

to demonstrate to delegates the importance of

coaching, providing immediate feedback and

identifying motivators, which he pointed out

isn’t usually just a pay cheque. He noted, “quite

simply, people have to like coming to work.”

Bill Isley, manager of organizational learning

and effectiveness with the University of

Alberta, gave two presentations on strategies

to deal with a muilti-generational workforce,

an important issue many companies are now

grappling with head-on. Isley noted that

for the fi rst time in history four generations

are working together, each of which has

been molded by a completely different set of

experiences, which translates into completely

different approaches to work. He noted,

however, that regardless of how wide the gaps

are between the generations, everyone wants

to do meaningful work and to be treated with

respect in the workplace.

At the conference’s delegate dinner, Sylvia

Yaeger kept the audience in stitches with her

keynote address about the impacts of stress

and how to manage stress better. Yaeger’s

engaging presentation highlighted how stress

affects the health and performance of workers,

including increasing the likelihood of making

mistakes, taking more time away from work and increasing the risk

for serious illness. She recommended using a few simple techniques

including breathing and getting more exercise to help keep stress at

bay.

PSAC’s Spring Conference remains the only event designed specifi cally

for oilfi eld workers and managers. Next year’s PSAC Spring Conference

will be held in Red Deer, Alberta, on April 16 and 17, 2013.

Baker Hughes

Cenovus

GEOTrac

Grant Thornton

Kal Tire

JuneWarren-Nickle’s Energy Group

AbaData

Helly Hansen Workwear

Nexus Exhibits

OPB Promotions and Awards

SAIT Polytechnic

Red Deer College

Roadata Services

Rogers Insurance

Western Star Trucks Alberta

Alberta Institute PMAC

Avanti Software

Big Bill

Canalta Hotels

Driving Force

Enform

FP iMarketing

J.J. Keller & Associates

Mentor Engineering

PIC

Province and State Permitting

Spira Data

Stinger

Vital Benefi ts

Productivity Alberta

Government of Alberta

WorkSafe BC

WCB – Alberta

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ServicesSteps

invited

Mark Salkeld, president and CEO of the Petroleum

Services Association of Canada (PSAC), to join a

delegation representing the Alberta oil and gas industry

in China, the answer was a resounding “yes.” The result was a mid-March

whirlwind tour in and around Beijing, as well as the opportunity to

represent PSAC member companies at the China International Petroleum

and Petrochemical Technology and Equipment Exhibition (CIPPE). The

exhibition is the largest of its kind in the world with more than 50,000

international delegates attending.

Salkeld travelled with association peers Mike Dawson, president

of the Canadian Society of Unconventional Resources (CSUR), and

Mark Scholz, president of the Canadian Association of Oilwell Drilling

Contractors (CAODC), as well as Wade McGowan, president and CEO of

Ironhand Drilling.

At CIPPE, Salkeld introduced PSAC to more than 250 attendees and

provided an overview of the Canadian petroleum services sector. During

the exhibition, Salkeld and his colleagues hosted the Alberta booth in the

International Pavilion and met many representatives from companies

around the world interested in doing business in Canada. “We spoke to a

variety of delegates including a China-based equipment supply company

currently operating in Syria looking to leave there and set up shop in

Canada, and a proppant manufacturing company which dropped off

samples of their product,” Salkeld says.

PSAC member companies were well represented throughout the

exhibition. “Of the hundreds of company displays, there were divisions

of PSAC members including Schlumberger, Baker Hughes and National

Oilwell Varco (NOV),” notes Salkeld. “In short, numerous PSAC member

companies are operating in China and their infl uence on the health and

operational culture is growing in that market.”

Prior to attending the CIPPE conference, the delegation was hosted

by the Great Wall Drilling Company (GWDC) and given a tour of

the company’s operations in Pan Jin and the Liaohe oilfi eld, as well as

GWDC’s bit manufacturing, directional drilling and hydraulic fracturing

branches. GWDC expressed an interest in expanding operations into

Canada and are looking to become members of PSAC.

W

Canadian embassy representatives also welcomed Salkeld and his

peers in Beijing where they were given a high level overview of the

embassy’s responsibilities in relation to oil and gas initiatives. While

at the embassy, they were joined by representatives of the Alberta

government who spoke to the processes that are in place to protect

intellectual property and patents of Canadian companies. “Once again

we were well hosted and have established some great relationships,”

Salkeld says. “We are planning follow up meetings with their

representatives when they visit Alberta.”

Salkeld and his colleagues also met with representatives from the

Chinese National Petroleum Corporation (CNPC) and the Alberta

Petroleum Training Centre (APTC), a service organization jointly

invested in and operated by CNPC and the Government of Alberta. The

CNPC-APTC has been playing an active role in strengthening technical

exchanges in the petroleum sector between China and Canada, and

promoting China-Canada economic and trade relationships in the

petroleum industry since 1989.

Salkeld says, “The tour offered us the chance to create awareness of

PSAC, Canadian oilfi eld activity, our safety and unique work culture here

in Canada, and to explore many new potential business opportunities in

the Asian marketplace.”

ChinaPSAC

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Services

© 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.

Trusted advisers to Canada’s Energy Services Sector

For information on how KPMG can assist you, please contact:

Rhys RenoufNational Sector Leader, Energy Services(403) [email protected]

kpmg.ca

000PSN-KPMG-PF.indd 1 4/11/12 8:11:20 AM

How to Avoid Extortion

T and reputation of Canada’s petroleum

services sector has opened up foreign markets for local

fi rms, but heading overseas can bring pitfalls, especially

in recent years. Although the federal government passed

the Corruption of Foreign Public Offi cials Act in 1998, which made it illegal

for Canadian fi rms to pay for business advantages from overseas

offi cials, enforcement of the law lacked until recently. In 2007, the

RCMP established its international anti-corruption unit and since then

prosecution of foreign misconduct has grown from 23 investigations in

2010 to 34 in 2011 alone, according to Milos Barutciski, co-chair for the

International Trade and Investment Group at Bennett Jones LLP.

Barutciski draws on years of experience in international trade and anti-

corruption law, including stints providing council to several Fortune 500

companies and The World Bank. He thinks avoiding bribery charges is

usually more diffi cult than just closing your eyes and thinking pious thoughts.

“You’ve invested a huge amount of money getting into a country, and then all

of a sudden, boom, down comes the shakedown,” he says. “Several years, and

tens of millions of investment later, you are suddenly put in jeopardy because

of some greedy offi cial in a country on the other side of the planet.”

Giving into this kind of pressure can tempt fi rms, but yielding to

temptation can net a hefty fi ne, such as the $9.5 million fi ne that was

handed down to a Calgary-based company just last year. Fines at this level

could even mean closing the doors of a company. So, it pays to know what

to do when approached for the wrong sort of business transaction while

working abroad.

Requests for bribes are seldom explicit. Barutciski says long delays

in getting business done can be a sign that someone is waiting for an

incentive to get a project started. Then, you have to fi gure out how to

nudge things along without paying. “You have to have some experience,

and you have to invest the time and the energy,” he says. “Learn a little

bit, speak with your council, speak with other companies about some of

the strategies you can use. It’s lots of things; not just calling your lawyer at

every turn.”

Some offi cials who cause unnecessary delays in hope of a little palm grease

do so without the blessing of their higher-ups. In such cases, it can help to

talk to their boss, or their boss’s boss. Barutciski says high-level offi cials

are often as anxious to start producing projects – and royalty payments –

as the foreign company. The solution, though,

does not involve turning the offending party

over to authorities. Extorters seldom hand over

proof of their intentions, says Barutciski, so it

would be hard to make it stick anyway. Instead,

he advises using strategic language with the

higher-ups, such as “administrative bottlenecks”

instead of “blackmail.”

Though waiting for a profi table project to

start can be agonizing, Barutciski says that

steeling your nerve can work wonders. First,

this gives you more time to think. “Slow things

right down, buy yourself some time and start

developing some strategies to ward off these

demands and get where you need to get without

paying the bribe,” he says. “It’s not always

straightforward how you get there.” The second

reason simple waiting works is that would-be

bribe recipients might not be patient. “At some

point they give up. Not all of them, but some of

them,” says Barutciski. “There are easier marks

out there to spend time on.”

Applying the strategies outlined here, Bartuciski

says, can vary greatly with context, geography

and other factors. Dealing with a low-level

offi cial will be different than fi guring out how

to stop the criminal desires of a minister of

security – a situation which Barutciski says

he’s dealt with personally. So even before the

situation arises, fi gure out how to deal with it

and talk with as many people as possible when

creating a plan. “You have to be cautious, you

have to be skeptical, not take things at face value

and you have to take your time,” says Barutciski.

When playing a game with such high stakes

and variable conditions, it might be the biggest

single favour you can do for yourself.


© 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.

Trusted advisers to Canada’s Energy Services Sector

For information on how KPMG can assist you, please contact:

Rhys RenoufNational Sector Leader, Energy Services(403) [email protected]

kpmg.ca

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In March, PSAC also called on Alberta provincial representatives to

address the labour shortages as one of 19 associations and business

organizations that have come together to form the Alberta Coalition

for Action on Labour Shortages (ACALS). ACALS has met with

senior offi cials from government to discuss initiatives that will help

industries attract workers from across Canada, as well as from foreign

labour markets.

PSAC helped organize a plant tour of the Hyduke Energy Services Inc.

facility in Leduc, Alberta, to provide the Honourable Rona Ambrose,

Minister of Public Works and Government Services and Minister for

Status of Women, a fi rst-hand look at the operations of a PSAC member.

The minister completed a tour of the facility and took time to speak

with workers on site.

PSAC met with James Rajotte, M.P. for Edmonton-Leduc and Chair of

the Federal Finance Committee, to discuss the economic contributions

of the petroleum services sector to the Canadian economy, skilled labour

shortage issues and potential labour pilot projects aimed at alleviating

the ongoing labour crunch.

PSAC met with senior policy offi cials from B.C.’s Ministry of Advanced

Education to introduce PSAC, the petroleum services sector and its issues

related to skilled labour shortages.

Before the Alberta election, PSAC travelled to Ottawa with Alberta

Deputy Premier Doug Horner and Assistant Deputy Minister of Human

Services, Immigration Maryann Everett to support the province in its

advocacy efforts on labour solutions for Alberta. PSAC participated in

a number of meetings including one held with members of the federal

government’s Alberta caucus to discuss the labour shortages and

potential federal government responses that might ease the situation.

The Alberta delegation also met with the Honourable Diane Finley,

Minister of Human Resources and Skills Development, to discuss labour

issues including the Temporary Foreign Worker Program (TFWP) and

time delays in accessing foreign labour pools because of the months it

can take to obtain a Labour Market Opinion (LMO). PSAC highlighted

challenges with worker eligibility arising from the specifi c National

Occupation Classifi cation (NOC) codes. Minister Finley committed

her department to work with PSAC and key offi cials from the Alberta

government on recommendations to deal with the issue.

A meeting was also held with the Honourable Jason Kenney, Minister of

Citizenship, Immigration and Multiculturalism, with whom PSAC has met

previously on labour issues, to discuss options to alleviate labour shortages.

Minister Kenney has authorized a task force with his Chief of Staff, the

Province of Alberta and PSAC to address the diffi culties with the NOC codes.

Before the provincial election, PSAC met with offi cials from the Alberta

government including Deputy Premier Doug Horner, Deputy Minister

of Advanced Education and Technology Annette Trimbee and Assistant

Deputy Minister of Treasury Board and Enterprise Justin Reimer to discuss

the results of a survey conducted by the Alberta Industrial Alliance (AIA).

The AIA is a collaboration of 14 associations, including PSAC, to improve

the competitive landscape in the province. The survey results identifi ed

priority issues regarding workforce, regulatory compliance and taxation.

PSAC has been holding meetings with offi cials from the Saskatchewan

Ministry of Finance to discuss issues with and goals in revising PST

Bulletin 13. A sub-committee of PSAC’s Corporate Finance Committee

will be held to discuss the information provided by the Ministry of

Finance and further meetings with government will be held.


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always creates

concerns about safety and the environment at a well site.

Prudential Energy Services Ltd.’s sales and marketing

coordinator Max Rossiter fi gured there must be a way of

storing fl uids on site that didn’t require spending up to two days building a

berm. Rossiter consulted various oilfi eld companies and assisted industry

veteran Mike Hopp, who designed a solution that was safe and cost

effective. The end result of the 18-month process is a patent-pending trailer

system with a dual-wall containment system for invert drilling fl uid.

Each unit looks similar to a trailer waiting to be hitched to the back of

a semi-truck and can store up to 116 cubic metres of fl uid. The storage

tanks remain inside the self-contained trailer, which also includes a

hydraulic system to pump fl uids in and out of the tank. To maintain the

integrity of the double-wall design, all hoses and pipes come out of the

roof of the trailer.

Fluid Storage on Wheels

H The master unit on a drill site has a partition,

creating two compartments and allowing

companies to store both light-weight and heavy

drilling fl uids in a single tank. The master

unit controls operations on a site, while more

units can be added for extra capacity. “They

are also equipped with digital monitors, so

that the engineer on a lease can monitor his

fl uid levels in the tank and how much fl uid he

has or doesn’t have,” says Steve Ferguson, fi eld

manager with Prudential in Grande Prairie.

The trailer system was designed to store

drilling fl uids, but Prudential says the tanks can

also be used to store other fl uids needed on site,

such as diesel or hydraulic fracturing fl uids. A

full trailer can weigh almost 120 tonnes but it

travels empty to a site, so Prudential says they

comply with transportation regulations and

no special permits or pilot trucks are required

when travelling on the highways.

Rossiter says the trailers can be moved from

one site to another in a single day. Once on a

lease, the trailer is lowered to the ground using

two levers. The tank system can be set up with

two employees in less than 10 minutes, which

eliminates a couple days of work and a full crew

constructing a berm. “If you take people out

of the situation, you greatly reduce your safety

factor,” Rossiter says. “This was very important

to the energy companies. The other thing just

as important was the environmental impact.

We now have a double-wall tanker that is self-

contained.” Fluid storage tanks are a marked

environmental improvement from the days of

drilling pits and companies such as Prudential

are fi nding ways to make implementing these

improvements on a well site even easier.


Well, I spend most of my life traveling the world, but I have not yet

been to Africa.

Skiing in the interior of B.C.

Singing, cannot hold a tune or memorize lyrics.

Dance.

Maybe a better hard drive or processing system in my brain. I have

a lot of information, just sometimes problems locating it in a timely

manner.

Be in better shape.

My health, everything else is immaterial without it.

1961 Cadillac.

I make pretty good braised beef short ribs, simmered all day long in a

red wine broth, similar to Osso Bucco.

Steak, chocolate, red wine. Signature meal: Caesar salad, steak

tenderloin, baked potato, chocolate mousse, Opus (red wine), port and a

cigar to fi nish.

Positive rebound; however, still remaining on pins and needles.

2012 will be a much better year than the news predicts.

Chef. I enjoy cooking so I always thought I would like to give it a go.

Farmer.

Eye of the Needle, by Ken Follett.

Atlas Shrugged, by Ayn Rand.

Pulp Fiction with John Travolta.

Das Boot

Ralph Klein, Pierre Trudeau and Red Skelton, just to add some

fl avour to the dinner.

Ronald Reagan, Winston Churchill, Pamela Anderson.

Workforce to meet current and growing future demands. This is a

better problem than being in a recession.

Pipelines and ports to overseas markets.

Having helped build and grow a business with a great group of co-workers.

(For business) growing KUDU in an extremely competitive market.

(For personal) raising great kids.

Treat people the way you like to be treated.

Nil Nisi Optimum. (Translation: nothing but the best.)

Vice President Operations

Clean Harbors Energy & Industrial Services Inc.

Years in Services Sector: 34

CEO

KUDU Industries Inc.

Years in Services Sector: 26

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petroleum services association of canada news summer 2012

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