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Publication Mail Agreement No.: 40039458
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February 2009 Volume 10, Number 1
afety is a key issue for PSAC and its members. Despite our best efforts, accidents
S can happen – and most often occur in very remote locations, far from emergency
medical services. While we hope that none of our workers will need the service –
it’s comforting to know that a STARS air rescue team is only a phone-call away.
That’s something industry worker Aldean Sehlstrom knows all too well. His wife
Maureen was driving to the Eckville Public Health Unit, where she worked as a nurse,
when her car hit black ice. Her vehicle rolled violently three times before crashing into
a post.The impact broke her neck and back, fractured her pelvis in three places and frac-
tured one of her legs.
Aldean, an employee of Lonkar Inc., was working at a remote site when he got the
news. His wife was in bad shape and needed medical attention quickly.
Maureen had been airlifted by STARS to Edmonton. Her condition was dire, but thanks
to the quick efforts of STARS, she would be okay. After several weeks in rehabilitation
she returned home, and eventually recovered, shortly thereafter becoming a mom.
The Sehlstrom’s story serves as a vivid reminder that at any moment your phone
could ring with news of an incident where one of your field employees or a family mem-
ber is critically injured. It’s a call that no one wants to get, but when it happens, chances
are that the Alberta Shock Trauma Air Rescue Society (STARS) already has one of their
shiny red choppers on the way.
Often, these bright red beacons of hope and the emergency medical response team
they carry can mean the difference between life and death, especially in a remote loca-
tion. That’s why PSAC is proud to support the Shock Trauma Air Rescue Service (STARS)
Foundation to ensure that their emergency medical transport helicopters are able to stay
in the air.
What began 15 years ago as an industry/community partnership to support safety
has grown into the PSAC STARS & SPURS Gala, renowned as one of the longest running
and most successful single-night fundraising events in Alberta. Each year, the event deliv-
ers a night to remember, with chart-topping country music performers, a delightful din-
ner and dance, and an array of indulgent activities and treats. The Gala brings together
more than 1,000 individuals from the service/supply sector, the E&P sector, government,
and otherwise, all in an effort to support this important community cause.
This year’s Gala, held January 24, 2009, marks the 15th year of this partnership,
through which PSAC has become STARS’ largest corporate supporter – having now well
surpassed the $3 million mark. In honour of this ongoing partnership, the PSAC logo is
proudly displayed on the STARS helicopters as a symbol of the role that the Association
and its members have played in supporting this tremendous cause.
In honour of the 15th Anniversary, PSAC would like to thank all the organizations and
individuals who have contributed to the success of the Gala over the years. While the
organizations and individuals who have supported this event are too numerous to rec-
ognize individually, PSAC does wish to acknowledge those companies recognized as a
part of the Anniversary Gala for their long-term and significant support of the event.This
includes Benefactors: Trican Well Service Ltd.; EnCana Corporation; and FirstEnergy
Capital Corporation, along with the following Honorary Patrons: JuneWarren
Publishing/Nickle’s Energy Group, Canadian Mountain Holidays, and Cargill Foods.
Even in times of economic uncertainty, industry has remained steadfast in its support
of this event, and for that we are both proud and grateful.Throughout industry’s ups and
downs, this event has continued to grow, and so on this – our crystal anniversary year, Subcribe today
PSAC felt it appropriate to thank everyone who has supported the Gala – both past and
present, for being a part of something great.
subscriptions@oilgas.net
www.oilgas.net
W
ith the Recession in full swing, cratered commodity prices and the general mood of doom new AW139 helicopter arriving later this year. “It is an exciting time as we antic-
and gloom said to pervade Canada’s oilpatch, I must confess I am rather looking forward to ipate the arrival of the new helicopter. It will fly farther and faster and help save lives
this years’ crop of annual reports and AGMs. through an advanced medical interior as well as the capacity to carry two critical patients,”
Having “authored” five annual reports for a “major Canadian energy producer” almost a decade STARS President and CEO Dr. Greg Powell said at the lottery launch.
ago, I still delight in these staples of spring. For an investor and even the casual observer, there’s no The lottery is offering five grand prizes worth over $3.3 million retail, including four
better way to learn how a company truly sees itself than by reading their AR and attending their AGM. beautiful showhomes in Calgary, Red Deer, Edmonton and Lethbridge. The fifth prize is
As early as the late 90s, pundits were predicting the demise of the printed annual report; secu- a ‘home away from home’ truck and trailer worth $116,000.
rities regulations continue to evolve but it hasn’t happened yet. If anything, today’s AR is even more
important – meeting a regulatory requirement but, for many, also serving as a company’s central
marketing piece.
It’s an urban myth, perhaps, that PR & corporate communications is one of the first disciplines to
suffer during a downturn.That may be true, but on the flipside, it’s never been more important for com-
panies to project a positive, professional image in light on the economic challenges that lie ahead both
short and long term.
So if you’ve already toasted your communications department, here’s some free advice – the things
I’ll be looking for when this year’s reports hit the street.
THE COVER
P
roducing gas in tight shale formations often requires
major pumping investments. Traditionally, An operator
didn’t have many good choices when fracturing a tight
gas or oil well. One option was to simply pump frac fluid into
the open hole and hope for the best, which resulted in frac
fluid flowing mainly to the area of least resistance, reducing
production along the rest of the wellbore.
Another choice was to isolate each zone along a horizontal
wellbore by repeatedly cementing, plugging, perforating, and
fracturing. That meant multiple trips downhole, the expense
and risk of perforating, and the cost of having pumping trucks
on standby for days at a time.
Baker Oil Tools has developed a better option. The Baker
Oil Tools Frac-Point Open-Hole Fracture Completion System
allows you to pinpoint fracture placements without cement-
ing. That means improved initial productivity, accelerated
reservoir drainage, and a faster return on your investment.
Baker Oil Tools sets the standard for innovation, perform-
ance, and reliability in completion technology. With the Frac-
Point™ Open-Hole Fracture Completion System, Baker Oil
Tools delivers a solution that can improve production in tight
shale reservoirs and turn otherwise unprofitable projects into
moneymakers.
Model Well #2
A
JM Petroleum Consultants released its first oil and gas price or lower per gallon,” observed Ralph Glass, AJM’s Vice President of Mr. Glass believes that while external forces will con-
forecast for 2009 with the prediction that short-term prices Operations. “If President-elect Obama’s plans to put America back tinue to cause near-term volatility and oscillation in
will remain volatile as fossil fuels play a key role in helping to work through infrastructure revitalization begin to materialize, prices, basic supply and demand and the cost to bring
the world climb out of recession. fossil fuels will be the engine driving the Americans to prosperity. on new production, will provide a truer picture of oil
“While we’ve seen a drop in demand for fossil fuels, Americans Factors like these suggest that crude oil is currently at its bottom and natural gas pricing for forecast purposes.
are being lured back to the roads with gasoline sitting at US$1.70 average price, and a climb is soon to begin.” AJM’s Q1 2009 price forecast, established effective
December 31, 2008, shows crude oil prices in constant
dollars based on a WTI forecast of US$55.00/bbl for
2009, rising to US$75.00/bbl in 2010, then reaching
US$100.00/bbl by 2013 and holding at this level for the
balance of the forecast. The AECO US NYMEX natural
gas price in constant dollars is expected to average
US$6.50/Mcf in 2009, rising with oil to a long-term
price in 2013 of US$9.50/Mcf. The Canadian priced
AECO forecast is expected to average C$7.00/Mcf in
2009 rising to C$9.00/Mcf in 2013, corresponding with
the expected recovery of the Canadian dollar over the
same period. Complete forecast tables, commentary and
documentation for AJM’s December 31 Price Forecast
are available for download on the AJM Petroleum
Consultants website at www.ajmpetroleumconsul-
tants.com.
AJM Petroleum Consultants, a privately owned
Calgary-based company, has extensive experience in
corporate reserve evaluations, acquisition and divesti-
ture evaluations, and evaluations of unconventional
reserves such as coal bed methane, tight gas, shale gas
and bitumen/heavy oil. Diverse engineering and geo-
logical capabilities combined with a forward-thinking
approach to technology have allowed AJM to provide
innovative solutions to clients in the upstream sector
of the oil and gas industry in Western Canada, North
America and internationally. Over time, the company’s
price forecasts have proved to be more realistic than
others in the industry.
Upcoming
Event
I
nternational energy services company, John Wood with 36 per cent utilization. We didn’t see utilization levels go headed because the first quarter is usually the busiest drilling
Group PLC (“Wood Group”), has launched its spon- to 55 per cent until 1993,” said Herring. season, he added. Back in the fall, CAPP predicted a 20 per cent
sorship of a professorial chair in arctic engineering In the first week of 2009, utilization levels were at 36 per cent expenditure drop for 2009, but that may have to updated as
at the Memorial University of Newfoundland (MUN) in in Alberta. Herring said 50 to 55 per cent utilization is consid- things play out.
St John’s, Canada. ered a break-even point for industry, so that puts it in sub-eco- The slowdown in the petroleum industry has hit Alberta the
Mike Straughen, Group director & chief executive of nomic conditions. hardest, according to statistics compiled by the Petroleum
Wood Group’s Engineering activities, said, “I am de- “Our current forecast calls for about 14,000 wells drilled in Services Association of Canada (PSAC).
lighted to announce that, over a five-year period, we are 2009. We’re suggesting utilization will be around 39 or 40 per Once a leader in drilling activity, Alberta has slipped to third,
investing C$500,000 to sponsor a new academic Chair cent and that may be slightly optimistic because the numbers with the highest drilling numbers for 2009 expected to come
at MUN, which will be known as the ‘Wood Group Chair we just got for 2008 show utilization at 40 per cent.” from unconventional gas plays in British Columbia, followed by
in Arctic and Cold Region Engineering’. We already col- This year will see a continuation in the trend for higher days the Bakken play in Saskatchewan.
laborate with the university through J P Kenny and IMV, per well because of the focus on deeper natural gas wells, the PSACs 2009 Canadian Drilling Activity Forecast shows a four
our engineering company based in St Johns. Our goal is CAODC reported. The estimate for slightly more than 14,000 per cent decrease in total wells drilled compared to 2008. In
to develop leading edge technology so we can source well completions in 2009 is down six per cent from 2008 and Alberta though, that decrease is expected to be 11 per cent.
new engineering solutions for our clients operating in 25 per cent from 2007. In 2005, utilization was a healthy 69 per “Alberta will see a drop of 1,350 wells, due in large part to
these emerging, strategic regions. MUN is a recognised cent and wells drilled were 22,000. the province’s new royalty regime.The new regime simply makes
leader in this area, with a track record for research into This year is going to be quite different. it more attractive for companies to diversify into places like B.C.
the unique challenges of ocean and ice engineering such Greg Stringham, vice president of markets and fiscal policy and Saskatchewan that are now seen as being more competitive,”
as seabed ice gouging and ice loads on ships. for the Canadian Association of Petroleum Producers (CAPP), said Roger Soucy, PSAC president.
“The combination of MUN’s expertise with Wood said 2009 is going to be a year of “a great deal of uncertainty. In the pipeline side of the industry, things will be slightly
Group’s experience working in the cold regions of Planning has been very, very difficult.” more level than the drilling side because the projects take so
Canada,Alaska and Russia, through our IMV, Mustang and While everyone believes commodity prices will eventually go long to be pulled together, explained Brenda Kenny, president
J P Kenny engineering companies, will enable us to joint- back up, the big question is when, he said. of the Canadian Energy Pipeline Association (CEPA).
ly find safe, cost-effective solutions for these untapped Calgar y-based Tristone Capital released a forecast in “It’s somewhat steady as she goes,” she said. “It’s too early
reserves,” added Mike Straughen. “Exploration in the December predicting that oil will average $50.30 US per barrel to tell, but there may be a year of two of pushing back some
Arctic is still in its infancy and surveys produced by the in 2009. projects.”
US Geological Agency suggest that the area may contain
as much as one fifth of the world’s yet-to-be discovered
oil & gas reserves. It is estimated that the Arctic may hold
as much as 90 billion barrels of undiscovered oil reserves
and 1,670 trillion cubic feet of natural gas.”
The professorial chair will be associated with MUN’s
Ocean Engineering Research Centre in the Faculty of
Engineering & Applied Science and will benefit both
undergraduate and post- graduate engineering students.
At MUN, Wood Group plans to invest in research proj-
ects focusing on topics including ice mechanics, arctic
pipeline design and arctic structures to advance tech-
nology for engineering in arctic and cold regions for the
oil & gas industry.
“We are extremely pleased about this collaboration
with Wood Group,” said Eddy Campbell, acting president
and vice-chancellor, Memorial University, “It is very
important for an engineering school to have strong links
with industry as this exposes students to a world outside
the university. Our staff within the faculty will also ben-
efit from similar exposure, especially when working in
frontier regions.”
Given MUN’s geographic location and current aca-
demic research & development programmes, there is an
opportunity for Wood Group to raise its profile by col-
laborating with the University. Wood Group companies
IMV and J P Kenny already collaborate with MUN on the
Co-Operative Engineering programme, in which engi-
neering undergraduates combine academic terms with
extensive industrial internships in the oil & gas industry.
This sponsorship is the latest in a series of similar
arrangements Wood Group has made with universities in
Aberdeen, Australia, Dubai and Kazakhstan, to invest in
the future of the next generation of engineers and con-
tribute to advances in technology and industry sustain-
ability.
G
eoLOGIC systems ltd. announced it has attained Gold “We congratulate geoLOGIC systems ltd. for achieving and focus partners bring to a particular solution set. Microsoft
Certified Partner status in the Microsoft Partner Microsoft Gold Certified Partner status, demonstrating their Gold Certified Partners that have obtained this competency
Program with a competency in Independent Software commitment to delivering innovation and value to customers,” have a successful record of developing and marketing packed
Vendor/Software Solutions recognizing geoLOGIC’s expertise said Lora Gernon, Director, Partner Group, Microsoft Canada software based on Microsoft technologies.
and impact in the technology marketplace. As a Gold Certified Co.“The Microsoft Partner Program delivers tools and resources “Solutions competencies are an important way for Microsoft
Partner, geoLOGIC has demonstrated expertise with Microsoft to help technology providers such as geoLOGIC succeed and to better enable ISVs to meet customer needs,” said Sanjay
technologies and a proven ability to meet customers’ needs. make an impact on the marketplace.” Parthasarathy, corporate vice president of the Developer and
Microsoft Gold Certified Partners receive a rich set of benefits As one of the requirements for attaining Gold Certified Platform Evangelism Group at Microsoft Corp.“They allow ISVs
including access, training and support, giving them a competi- Partner status, geoLOGIC had to declare a Microsoft to keep and win customers through their deep knowledge of
tive advantage in the channel. Competency. Microsoft Competencies are designed to help solutions-based Microsoft platform technologies. Microsoft has
A recognized leader with 25 years of experience supplying differentiate a partner’s capabilities with specific Microsoft a long history of working closely with ISV partners to help
knowledge management services to the oil and gas industry, technologies to customers looking for a particular type of them deliver compelling solutions and applications to our
geoLOGIC is a leading provider of value-added oil and gas data solution. Each Competency has a unique set of requirements mutual customers, and the Microsoft Competencies are an
and decision support tools based on Microsoft technologies. and benefits, formulated to accurately represent the specific important step in continuing to enhance vital relationships
“Achieving Gold Certified Partner status in the Microsoft skills and services that partners bring to the technology with ISVs worldwide.”
Partner Program is just one more way we are demonstrating our industry.Within select Competencies, there are Specializations The Microsoft Partner Program was launched in October
commitment to provide single-source solutions that can be that focus on specific solution areas that recognize deeper 2003 and represents Microsoft’s ongoing commitment to the
reliably and effectively integrated company-wide,” said expertise within that Competency. Serving as a specialized success of partners worldwide. The program offers a single,
geoLOGIC Vice President of Operations and Technology, Sean path to earning those Competencies, Specializations give integrated partnering framework that recognizes partner
Udell,. “The benefits provided through our Gold Certified direct access to the tools and resources that support that spe- expertise, rewards the total impact that partners have in the
Partner status will allow us to continue to enhance the offer- cific area of focus. technology marketplace, and delivers more value to help part-
ings that we provide for customers.” The ISV/Software Solutions Competency recognizes the skill ners’ businesses be successful.
T
here are many facilities that
need to monitor for hazardous
gas leaks in areas where it is
not possible to install cabling for
power or signal. In these scenarios,
the products must operate independ-
ently. They must have self-contained
power supplies and methods of send-
ing out alarm messages when gas con-
centrations reach alarm levels. This
becomes essential when detecting gas
in areas surrounded by residential
communities.
Lately, more exploration and pro-
duction is occurring in areas that
were never considered. Exploratory
drilling is occurring in backyards,
school yards and community parks. In
many communities, well heads or
pumping units are being installed
within or very close to residential
communities. It is important that the
members of these communities feel Permanent pole mount
safe and not threatened by gas expo-
sure. To protect these areas, remote monitoring systems can be easily deployed while drilling
occurs, or placed permanently while the wells are producing oil and gas.
These units require no cabling and can be powered by battery packs and solar arrays. Gas
detectors are used to detect hazardous levels of either toxic or combustible gases. When alarm
conditions are met, the units will dial out via an internal modem and report the alarm con-
dition via e-mail and cellular phone to emergency response personnel.These systems can also
be equipped with GPS or other sensors to measure and report wind speed, or wind direction.
With this information, responders can see where the release is heading, and plan any necessary
evacuations.
Industrial Scientific is able to offer such a system for monitoring several gas wells in North
America. Each location required both combustible as well as toxic monitoring at remote loca-
tions within their facilities. The detector (iTrans) carries a Class 1, Division 1 explosion proof
approval, and can be located in classified areas.
Sample architecture:
The gas detectors were connected via a 4-20 mA signal to a small control device that was
used for remotely monitoring gas levels. The control device has 4 inputs and can monitor gas
concentrations, level, flow, pressure, temperature, or any 4-20 mA transmitter. A unique GSM
interface allows the control systems to upload information at pre-determined intervals. It can
Upcoming Event
The Canadian Energy Research Institute is holding the following
conference in the spring of 2009.
Most of the OECD economies went into recession late last year and the
growth in the overall world GDP is expected to be minimal this year. The
oil demand is going through a similar path and the future outlook does not
seem promising. The 29th Annual CERI Oil Conference has invited promi-
nent experts to address important issues affecting the global oil markets.
W
hen venting from coalbed methane (CBM) wells in southwestern Colorado tural and social venue operated by the Fort McMurray Historical Society.
became a community issue, Weatherford’s local Controlled Pressure Drilling & Chevron Open Minds is an internationally recognized educational initiative that advances student
Testing (CPD&T) team knew they had an answer. It just required some inge- learning by moving students out of regular school classrooms into enriching community environments
nuity, a bit of retooling and a client that was willing to come onboard. Some viewed vent- for a full one-week period. Heritage Park now joins other Chevron Canada Open Minds Programs in
ing as a visual pollutant in the more populated areas and as a fire concern in the dry southern Alberta, including the Calgary Zoo and Glenbow Museum, as well as a new site being
western environment. For beleaguered operators, the venting also meant lost gas sales launched at The Rooms in St. John’s, Newfoundland and Labrador.
revenue potential. “Chevron Canada is delighted to partner with the Fort McMurray Historical Society to give stu-
They all needed a solution; so a process that eliminated the venting and captured the dents in the Wood Buffalo Region a wonderful opportunity to immerse themselves in the diverse
gas for sale looked like a win-win situation to the Weatherford engineers. history of northern Alberta,” said Mark Nelson, president of Chevron Canada. “By following the
proven educational model of Open Minds, participants will gain hands-on experiences that will
Reducing Methane Emissions help them to develop vital critical thinking, problem solving and writing skills.”
Methane gas flowed back after hydraulic fracture stimulation poses a potential envi- “We appreciate Chevron’s generosity which has enabled Heritage Park to implement this
ronmental risk. Produced by the well, the gas mixes in the wellbore with sand and fluid exceptional education program,” said Roseann Davidson, executive director of Heritage Park. “The
remaining from the stimulation treatment. The wellbore cleaning or flowback removal Open Minds Program will provide students with the opportunity to discover our community’s rich
process, typically used in conjunction with compressed air, gas and foam techniques, results history and culture. Our museum site, exhibits and collections will enlighten and connect the stu-
in venting the returned gas. dents to the natural and social history of our region.”
Vented to the atmosphere, this greenhouse gas is potentially a serious enough pollutant From January 19-23, Heritage Park will welcome its first Open Minds class, comprising 20 stu-
to warrant an ongoing industry-wide emissions reduction program. In addition, dangerous dents in Grade 3 from Good Shepherd School. During their week-long stint, the students and their
gas build-up in the venting area or in low-lying areas may increase the chance of a fire or teacher will study artifacts, experience the life of a trapper and learn about the skill of weaving
explosion. Venting the gas during the short-term cleanout operations typically takes care of and spinning wool.
methane emission concerns. But burning was not the solution favored by many residents It’s anticipated that a total of five classes will participate in the 2009 pilot year, with an equal
living atop the Fruitland formation, source of the world’s largest CBM field— with about number of classes participating in 2010 and 2011.
55 trillion cubic feet of original gas in place—and the target of abundant drilling and stim- The Chevron Open Minds Program began in 1993 with the introduction of the first school at
ulation activity in the prolific San Juan Basin since the early 1950s. the Calgary Zoo. It has since expanded to three other facilities in the Calgary area, including the
Glenbow Museum, TELUS World of Science and the Cross Conservation Area, and has won over 30
national and international awards.
For additional information on the program, please visit http://chevronopenminds.ca
T
relleborg Sealing Solutions announces the launch of its new
log
Turcon® Varilip® PDR range for the oil & gas industry. These in-
G
arlock Sealing Technologies, a leader in fluid sealing technology for more than 100 dustrial seals are the optimum solution for high-speed rotating
isti
years, adds the custom-engineered 8400-HT style expansion joint to its existing line applications, as this range has exceptional low-friction characteris-
cs
of flue duct products. tics, reducing torque.This in turn cuts power consumption, which
and
Available in a variety of configurations and material combinations, each component is de- can contribute to lower equipment running costs and ulti-
signed and fabricated to meet specific system requirements. Ideal for low-pressure, light- mately decreased energy bills.
weight piping and ductwork applications, the 8400-HT expansion joint can also withstand Turcon ® Varilip ® PDR (Performance, Durability,
equ
temperature excursions from -75oF to +2,200 oF (-60 oC to +1200 oC). Reliability) rotary shaft seals are constructed from one
Reflecting environmental focus on emissions control, the 8400-HT can be constructed with sealing on or multiple Turcon® PTFE based sealing elements
ipm
a proprietary blend of fluoro- the shaft, which are mechanically retained in a precision
polymers and reinforcing ma- leading to ex- machined metal body. The metal body gives a
ent
terials that provide high cellent perform- robust static seal against the housing,
cu
resistance to corrosive gases ance at high rotary preventing thermal cycling, while the
such as SO2 and H2SO4, mak- speeds. Characterized
ttin
G
eneral Electric is expanding its award winning telematics solu- perform multiple design checks therefore eliminating errors.Accurate materials information eliminates over-ordering and
tion to Canada, the company announced today. The offering, delays on site due to a lack of required materials or information.
which was rolled out in the United States in 2006, gives com- Effective Globally Dispersed Design Teams
panies with fleets of vehicles the critical line of sight into how their PDMS allows geographically separate design teams to work together although they were in a single office. The envi-
assets are performing in real time. ronment offers the designer centralised administration, control, and protection from communication limitations or fail-
“Now more than ever, businesses are looking for smart, efficient ways ures. Project teams can be quickly assembled and mobilized.
to reduce operating costs while simultaneously increasing productivity. Higher Design Efficiency
Our solution provides an answer, offering a powerful suite of back-of- High levels of automation, intelligent behaviour and rule-based features deliver increased productivity across all dis-
fice fleet support services with robust analytics all on one easy to use ciplines. The ability to share component information and to reuse design data between projects reduces man-hours and
integrated platform,” says Stephen Ulanoski, General Manager, GE Capital schedule time.
Solutions Telematics program. Improved Quality
Visibility, Knowledge, Competitive Advantage 3D multi-discipline working environment improves communication between teams and facilitates “right-first-time”
GE’s comprehensive telematics solution provides web-based access design. Clash checking, integrity checking and rule-based checking tools ensure higher quality designs and less work.
to vehicle asset performance metrics including CO2 emissions as well Database driven drawing production achieves consistency between drawings, reports and design data.
as related alerts, trend charts, exception reports, and customizable map- Reduced Schedule Times
ping. The integrated solution not only allows customers to see in real Reduced site work, concurrent multi-location engineering, higher design efficiency and higher quality all combine to
time where their assets are; it offers clear strategies for improving per- reduce schedule time. Greater ability to react to major project changes, including the capability to change the project structure
formance and puts them on their way to greening their fleet operations. during project execution and to dynamically add in new locations or remove existing ones, all protect he project schedule.
GE’s six-sigma trained fleet telematics experts compile more than 100 All these features lead to even more accurate, complete and clash free designs thereby ensuring reduced project costs.AVEVA
customized reports.These allow businesses to take into account stop fre- PDMS delivers major innovations to our customers, ranging from improved productivity for individual designers through to
quency, stop duration, and drive time, along with many other critical data increased overall project savings that result from significant improvements in data management and control.
elements demanded by diverse fleet types.The reports and analysis helps
customers understand the impact of each on their business.
“For example, if it takes 30 minutes to visit one customer and 60
minutes another, the data and our analysis helps our clients understand
what’s behind that. Once that’s captured and the costs are understood,
Garlock Valve Stem Packing Tested to
we help our clients take proactive steps—whether it is better route
planning or more strategic resource allocation and pricing—to opti-
API 622 Fugitive Emissions Standard
mize the operation. The results are immediate and significant, deliver-
G
arlock Sealing Technologies, a leader in fluid sealing technology for more
ing the competitive advantage our customers want and need, especially than 100 years, has successfully tested its Style 1303-FEP valve stem packing
now,”Amit Jain, Product Manager, GE Capital Solutions Telematics for compliance with the newly adopted API 622 Fugitive Emissions Standard.
program. Measured leakage confirmed the packing meets the requirements of
Big Results the most stringent U.S. state air quality laws and consent decrees.
Flexpipe Syste
Augmented with additional current fleet Yarmouth Laboratories, an independent testing facility
data, actionable recommendations pro-
rint. and in Yarmouth, Maine, conducted two iterations of
vided by dedicated telematics con-
otp ms MA K the test.
sultants enable significant
al fo is E yo The new API 622 standard reflects the
operational improvement
ent ur p unique operating environment in
in a fleet’s perform-
nm ip e l today’s hydrocarbon processing
now
en
manage- as the medium, the
pr o
a divis
s the the je c t
mo
ce
Garlock
d u Style 1303-FEP
re p
re ro f i
ion of ShawC
customers have real- through the same equipment. To model the min-
b i
ized double-digit percent- imum desired packing life in difficult refinery envi-
i
www.flexpipesystems.com
x
capacity, fuel consumption, carbon The 5-ring Garlock Style 1303-FEP packing sets exhibited excep-
d
a
an
emissions, accident rates, and over- tionally low leakage rates, averaging just 41 PPMv and 53 PPMv in the
p
time costs.
th erf two iterations of the test. Refineries can obtain engineered set perform-
Moreover, because delivery, sales ect g ance from this fire-safe, spooled braided packing without the time and
and service calls are completed more comb st ren expense of having to measure the valves. As such, it shortens turnaround win-
efficiently, businesses using telematics are ination o f dows by providing a more timely and cost-effective “build-in-place” repacking
better able to meet their customer service solution.Additionally, 1303-FEP carries a five-year warranty, assuring continued com-
level agreements. This strengthens customer pliance from turnaround-to-turnaround and eliminating the costs associated with
loyalty and drives more revenue. on-line leak sealing, environmental penalties and valve replacement.
L
ong horizontal sections and the maximum number of high-volume fracs per section are
the keys to operators’ success in the Montney shale gas play. This lesson has been driven
home since the first horizontal Montney well was drilled in 2005 and completed with
Halliburton’s CobraMax® pinpoint stimulation service.
On that first horizontal well, the CobraMax service fractured five intervals. The result: pro-
duction 600 percent higher than the operator’s offset vertical well. Since then, with over 50 suc-
cessful wells, the advantages of using the CobraMax service have become even more compelling
for operators in the Montney.
CobraMax technology is well suited for fracturing multiple-interval horizontal sections com-
403.475.0146 pleted with unperforated, cemented casings. It perforates and fracs in the same trip, without using
millstonecommunications.ca mechanical plugs that must be removed
later. Instead, it uses gel/sand based plugs
to isolate intervals, and these can be cir-
culated out of the hole with the coiled
tubing. And it uses a long-life bottomhole
assembly that can perforate 22 sections
before change-out. These features make
CobraMax ideal for an environment that
needs precise, high-volume fracs in mini-
mum time.
Fifty wells stimulated with CobraMax service help build reservoir understanding
Shale gas plays are complex geological and technical challenges, and Montney is an espe-
cially difficult and heterogeneous basin. Halliburton’s CobraMax team now has the experience
of stimulating over 50 Montney wells and has captured a significant amount of reservoir
understanding. The team is also fortunate to be part of Halliburton’s continent-wide network
of shale gas tech teams that share experiences and accelerate learning. Halliburton’s accumu-
lated experience in other basins has contributed to the CobraMax service team’s success in
the Montney.The combination of local experience and knowledge gained in shale plays all over
North America enables the CobraMax service team to contribute to the well completion plan
at a level beyond the stimulation process alone.
S
tructured processes account for less than 20 percent of all work performed today in most Office follows the audit trail on all assigned action items and creates a central repository for
organizations. The other 80 percent of work is completely tacit and therefore dynamic. assigning, tracking and resolving all of E.ON’s actions.
Human Process Management (HPMS) focuses on the human side of business processes – E.ON is using the HPMS as a way to focus on business processes when dealing with compli-
managing the human interactions that take place as part of an implied, dynamic or unstructured ance and regulations. Businesses spend resources in making sure they are compliant with health,
business process where humans play the key role. The role of a Human Process Management safety, environmental and financial regulations standards, procedures, directives and regulations.
Solutions (HPMS) are to help an organization effectively manage the 80 percent of business A HPMS is designed for the auditor, compliance officer, CFO and the process owners involved
processes not handled by Business Process Management (BPM) or other automated systems in the organizational process of adhering to industry standards or regulations.
(e.g. ERP). The HPMS enable managers to initiate and engage in human business processes that are usu-
E.ON is a subsidiary of E.ON AG, the largest privately owned power and gas company in the ally handled through documents, Microsoft Excel check lists and e-mail correspondence. It pro-
world, active in markets across Europe, Russia and the U.S. The company needed a way to track vides managers with real-time status and full visibility over the whole process, optimizing
all business critical actions in order to gain full control over audit and compliance management. resources and enhancing communication and collaboration with effective reporting, alerting and
This initiative supports E.ON’s corporate strategy of creating an integrated business and cen- syndication.
tralized corporate knowledgebase. With a HPMS, managers and process owners have the process visibility needed to make
E.ON generates and distributes electricity, and retails power and gas to millions of customers. informative decisions and react in time, not when it is too late. The organization gains a system
E.ON needed an off-the-shelf action tracking solution that supported a collaborative approach of record for all of its business critical human processes, and can be driven by best practices and
to corporate accountability and responsibility for achieving operational excellence. ActionBase, benchmarks for its human processes. Solutions like HPMS provide workplace software that un-
a provider of HPMS, was deployed as a part of E.ON’s Action Tracking initiative in an effort to derstands human work patterns and supports the inherent spontaneity of human interaction. It
seamlessly integrate organizational processes within E.ON’s operations and regulations. does not focus on “straight-through” business processes, but rather on the way people really work
Working in a complex environment in the oil and gas industry causes actions to come from - via interactions, which lead to commitments, which in turn lead to actions. The key to manag-
many different cross organizational processes such as operations and regulations, internal and ing human processes is to harness those human interactions and give people the collaborative
external audit reviews, HSE, incident management, etc. The HPMS integrated with Microsoft framework they need to interact and work on a process, but in a manageable way.
C
anada Energy Partners Inc. has commencement of gas sales from eight wells on its 50,788-
acre Peace River Coalbed Methane Project Canada Energy owns a 50 per cent working
interest in the Project and GeoMet, Inc. through its wholly-owned subsidiary Hudson’s
Hope Gas, Ltd., owns the other 50 per cent and is the Operator. This significant achievement is
the first commercial CBM project in British Columbia and is a result of eight years and more than
$45 million cash invested by the Company and its partners into acquisition of lands, exploration
and development.
In conjunction with the announcement, Honourable Richard Neufeld, Minister of Energy,
Mines and Petroleum Resources of British Columbia, commented: “I would like to congratulate
you and your entire exploration and production team for reaching this significant milestone.This
event signifies the first commercial production of coalbed gas in the Province of British Columbia
and, as such, it is especially noteworthy. Unconventional gas development plays an important role
in British Columbia’s future energy security. Investment in coalbed gas development and the
realization of gas royalties and taxes from coalbed gas production and sales will help fuel the
Province’s economy.The Ministry of Energy, Mines and Petroleum Resources acknowledges your
accomplishment in coalbed gas development and looks forward to continuing to work with
industry to allow the sector to succeed, while balancing economic and social priorities and pro-
tecting our environment and quality of life.”
Ben Jones, Canada Energy President and Chief Executive Officer, commented: “After eight
years of tremendous collaborative effort, it is a distinct pleasure to see this milestone
achieved. I believe this project will be of a great value to our shareholders and will benefit
the community, region and the Province of British Columbia. We look forward to its contin-
uing development.”
Darby Ser?, GeoMet President and Chief Executive Officer, commented: “We are excited to
achieve the first coalbed methane gas deliveries in British Columbia.We expect to increase gas sales
from the Peace River Project for many years as we continue the development of the project.”
Canada Energy also holds a 50 per cent interest in the gas treating and compression facilities
installed on the Project. The facilities are scalable and modular and can be expanded with an in-
creasing production base. The Company believes that in addition to the processing of the CBM
these mid-stream facilities will be strategic in the commercialization of the Moosebar Shale, the
Montney Shale, and other deeper formations. Exploration programs on Moosebar Shale and
Montney/Doig formations are currently underway on the lands covered by the Project.
The current eight wells on production represent the first phase of a scalable project with 315
potential well locations (based on 160 acre spacing). The Company expects to have an updated
independent reserve report including the recent activities completed on the CBM Project later
this February 2009.
The 2009 CBM development program will be finalized with the joint venture partner in Q1
2009 and the Company anticipates an additional multi-well production drilling program to start
in July 2009.
A
s of November 24, 2008, North
Rig Catwalk Technologies
Ltd. is the proud owner of
the Power Catwalk designs of
Hunterwood Technologies Ltd.
Former General Manager and Vice
President of Hunterwood, Adrian
Prudden, is the principal of the new
catwalk company. North Rig will
continue to build on the strong fif-
teen year reputation of Hunterwood
by providing first class power cat-
walks (pipe handling equipment) to
the Oil & Gas Industry.
North Rig Power Catwalks differ
significantly in three distinct areas
from most other catwalks being
built today.
• The open belly design of North
Rig’s catwalks allows the catwalk to
move over existing well heads as the
rig moves from hole to hole on loca-
tion. Expensive, time consuming
teardown/set-up of the catwalk, sep-
arate from the rig, is unnecessary.
• Built into the V-door is a lift-up
system (patent pending) for optimal
pipe presentation to the drilling
floor. Available on the C22 and the
C26, the hydraulic lift extends up
from the V-door, bringing the pipe
to a comfortable working height as
predetermined by the operator and
programmed into the PLC for con-
venient remote operation.
• The self contained power pack houses an electric motor North Rig will provide their clients with the ultimate in safe-
and hydraulic pump combination which makes up the “Hydraulic ty and performance designed systems to achieve production
Load Sense System”, unique to very few manufacturers. This sys- targets in a competitive market. All products are designed using
tem allows the hydraulic system to run in a low pressure mode, 3D CAD modelling systems and are manufactured with the high-
saving power, until a demand is sensed and the system kicks into est production standards.
high gear to accomplish the task at hand.
S
chlumberger has inaugurated a
new oilfield technology center in
Calgary, Alberta. The state-of-the-art
center will work directly with oilfield
technical teams and regional research
facilities to help customers increase
heavy oil production, reduce technical risk
and minimize environmental footprint.
The Heavy Oil Regional Technology
Center (RTC) will provide a working
environment where clients can work
hand-in-hand with Schlumberger geosci-
entists and petroleum engineers to solve
key technical challenges associated with
heavy oil recovery. These research proj-
ects include, but are not limited to, inno-
vative geological and geophysical
services, advanced well placement strate-
gies, new formation evaluation and char-
acterization techniques, and novel
integrated completions and monitoring
programs.
“The Heavy Oil RTC will act as a focal
point for scientific and technological
advancement in Canada by communicat-
ing regional customer needs to the
worldwide research and development
organization of Schlumberger,” said
Ken Havlinek, RTC center manager,
Schlumberger. “Client-specific problems
can be fast-tracked to the right global experts, and solutions center, and an interactive collaboration space designed to Schlumberger RTCs specialize in addressing key issues in the
developed within a framework of local, integrated knowledge accommodate locally based scientists and engineers as well as drilling and production industry such as unconventional gas,
of heavy oil exploration and production processes.” short- and long-term visiting experts and clients. gas condensates, carbonates and sub-basalt imaging.
The Heavy Oil center features a 3D visualization center, a This is the seventh Schlumberger RTC to open and the sec- For further information about the Schlumberger commitment
high-performance computing cluster, a multi-use conference ond to focus on heavy oil. Located around the world, to heavy oil, please visit www.heavyoilinfo.com.
C
ygNet Software www.cygnetscada.com, a leading provider of enterprise operations software
monitoring and pressure calibration equipment. and solutions for the oil and gas industry, has announced it has expanded the size of its head-
The brochure reviews potential oil and gas sensing quarters in San Luis Obispo, Calif. and opened a new office in Calgary, Alberta, Canada. The
solutions, including APG’s HU <http://www.apgsensors. company’s growth includes the recent commissioning of CygNet software on an additional 6,000
com/hammer-union/hu.html> intrinsically safe miles of gas pipeline operated by CygNet clients and a more than 30 percent increase in employ-
Hammer Union pressure transmitter, PT-400 ee headcount during the past year. This expansion is a direct result of strong demand for its enter-
<http://www.apgsensors.com/pressure-transducer/pt- prise operations software, which drives market responsiveness and operational efficiency.
400.html> pressure sensor, PT-500 <http:// As energy companies face mounting pressure to maintain profit profiles in a volatile market
www.apgsensors.com/pressure-transducer/pt-500. environment, they have increased their focus on investments in improving operational efficiency
html> hydrostatic pressure level transmitter, PG-7 and productivity.
<http://www.apgsensors.com/digital-pressure-guage/pg-7.html> digital “The momentum that CygNet experienced during better economic times has only accelerated
pressure gauge, LPU-2428 <http://www.apgsensors.com/ultrasonic-sensor/lpu- as the oil and gas industry struggles with recessionary forces,” said Chris Smith, president and CEO,
2428.html> ultrasonic level sensor, LPU-2127 <http://www.apgsensors.com/ultrasonic- CygNet Software.“The ability to collect, manage and distribute large volumes of vital real-time pro-
sensor/lpu-2127.html> ultrasonic sensor, KA Kari <http://www.apgsensors. duction and contract information across the entire enterprise means our customers are able to work
com/liquid-level-sensor/ka.html> cable suspended f loat switch, PC-10K more efficiently and accomplish more with fewer resources. By investing in the most talented
<http://www.apgsensors.com/pressure-calibrator/pc-10k.html> hydraulic pressure com- technologists, engineers and professional services experts, we will ensure the continued delivery
parator/calibrator and the RPM <http://www.apgsensors.com/liquid-level- of breakthrough solutions that help our customers increase their competitiveness despite the tighter
sensor/rpm.html> resistive chain level sensor. The depth and breadth of APG’s sensing environment.”
solutions enables them to provide an unbiased technology recommendation in oil and CygNet’s new Calgary office is located at 525 Eleventh Avenue SW, Suite 410 in Calgary, Alberta,
gas applications. Canada. The sales and professional services personnel at the new facility will support CygNet’s
www.apgsensors.com <http://www.apgsensors.com/> . installed base and its targeted areas of growth.
W
hen Ormat Technologies recently demonstrated how it is generating geothermal ener-
gy from a producing oil well in Wyoming, the company had Southern Methodist
University geothermal expert Dr. David Blackwell to thank for it.
Blackwell and fellow SMU researcher Jason McKenna published a paper in Sept. 2005 propos-
ing that the hot water gushing as a byproduct from many oil and gas wells could be harnessed to
produce electricity. Pass the nuisance hot water through a small, specially designed binary power
plant, he wrote, and producers ought to be able to generate enough electricity to draw oil and gas
to the surface – nearly for free. Hook up a field full of these special geothermal mini-plants,
he concluded, and geothermal energy would produce enough electricity to light up nearby homes,
business and schools.
“Blackwell’s work to identify the potential of co-production from oil and gas wells dramati-
cally expands the scope and potential of geothermal energy in the US and around the world, said
Karl Gawell, executive director of the Geothermal Energy Association.“It is important for decision
makers to understand that geothermal energy is an enormous resource with widespread poten-
tial to help address our environmental and national security needs. Dr. Blackwell has been instru-
mental in delivering that message.”
Most people associate geothermal energy with extremely high heat – think geysers. But the
Geothermal Map of North America produced by Blackwell and SMU researcher Maria Richards for
the American Association of Petroleum Geologists in 2004 revealed locations all over the United
States where subsurface temperatures are high enough to drive a small, binary power plant and
generate electricity. This kind of power plant is similar to an air conditioning unit run backwards,
using heat to generate electricity. The hot water that runs through one chamber in the pump heats
fluid with a lower boiling point in an adjacent chamber, which expands into high-pressure vapor
and drives a turbine.
Blackwell’s “light bulb” moment came when he realized that oil and gas wells all over the coun-
try were spewing moderately hot wastewater, but petroleum company executives were unaware
of the resource they were pumping back into the ground.
Deep drilling through hard rock is expensive: that’s one reason traditional geothermal energy
development has lagged behind green technologies like wind and solar power.
But Blackwell’s mapping has proven that many existing oil and gas wells in Texas, Louisiana,
Mississippi, Alabama and some mid-continent states reach shallower depths where temperatures still
range from 200-300 degrees Fahrenheit. That’s hot enough for a binary power plant to do its job.
“This was just a flash of light,” Blackwell says. “It seemed to me it ought to work.”
Blackwell is not trying to convince anyone that piggybacking geothermal pumps onto existing
oil and gas wells is the answer to all of America’s energy needs. But the technology could gener-
ate enough electricity to power as many as 4.5 million homes, and make it possible for petroleum
producers to continue pumping low-producing wells that the high cost of purchased electricity
might otherwise force them to shut down.
“What is important about this work is its sense of vision of what is possible from geothermal
energy,” Gawell said.
T
he UOP Master Simulation Models are an exclusive series
award-winning process automation and control system of UOP process technology-based operator training sys-
that improves safety by allowing plant operators to carefully tems (OTS) delivered through Honeywell’s UniSim® fam-
coordinate process control, safety shutdown and fire and gas ily of process modeling and simulation technology. The UOP
mitigation steps. Through the unique safety instrumented sys- Master Simulation Models contain embedded UOP mathemat-
tem (SIS) integration, Experion provides crucial safety and fire ics and kinetics in the UniSim framework, so the simulation
and gas information, such as pre-shutdown alerts, directly to environment is as close to real-life refining operations as you
operators. Operators can easily access plant-wide SIS point data, can possibly get. UniSim improves plant safety and efficiency
diagnostics and system information, as well as alarms and by allowing manufacturers to design and test processes before
events, operator displays and sequence-of-event information. It they are implemented in their plants, as well as train operators
also decreases overall system and maintenance costs by reduc- to use those processes and reduce errors that could lead to
ing the amount of installed field sensor equipment. plant incidents. Because the UOP Master Simulation Models
Additionally, Experion R310 helps improve plant operations have the UOP intellectual property embedded in the software,
through embedded simulation capabilities used for training they are as close as a plant operator can possibly get to a real-
operators and validating controls, displays and procedures.The life refining operation.
system feeds data from critical plant subsystems directly to The UOP Master Simulation Models are based upon UOP’s
operators to help improve decision making in the control proprietary process design package which includes engineer-
room. The system also includes new integrated batch func- ing specifications for the process streams, equipment, reactors
tionality that can significantly increase production as well as and instrumentation. They are a high fidelity representation of
reliability for chemical and life sciences companies. The UOP’s process design. While they are not customized to the
embedded batch functionality allows chemical and life sciences communication protocol that allow safety engineers to design customer’s actual production capacity and tag naming con-
customers to execute batches at the control level, versus using and build plant-wide safety strategies while providing plant ventions, the general process configuration and operating con-
a separate server, which makes the system more reliable, less operators with crucial system information. ditions are similar to the customer’s actual installation.
complex and easier to maintain. Experion R310 is the most efficient system of its kind, and
Another key capability of Experion is a unique alarm shelv- that efficiency translates to safer, more reliable and more prof-
ing utility that allows operators to better manage and prioritize itable plants. Experion R310 provides crucial safety information
alarms on their displays.This capability is based on several years directly to operators using a common display. Experion R310
of collaboration between Honeywell and the Abnormal continues to deliver on Honeywell’s commitment to enhance
Situation Management® consortium in the interest of improv- safety by minimizing the impact of incidents, keeping plants on-
ing operator effectiveness during abnormal situations that can line longer and reducing the total cost of ownership.
lead to process upsets. For more information about Honeywell’s Experion solution,
Experion R310 more easily integrates with simulation visit http://hpsweb.honeywell.com/Cultures/en-US/Products
tools and safety systems. It features data exchange and control /Systems/ExperionPKS/default.htm.
OneWireless
H
oneywell’s updated version of its OneWireless™ in- Manufacturers have been asking for a secure and reliable
dustrial wireless network equipment is designed to multi-functional wireless network that can handle the thou-
be compatible with the end-user driven ISA100.11a sands of devices they use within their plants. Until now, the only
industrial wireless communication standard. The latest way to do so was with proprietary systems. The ISA100.11a
OneWireless release is the process industries’ first mesh net- standard will allow OneWireless users to achieve this vision
work with ISA100-ready hardware. The network can be easily using a standards-based network.
upgraded to the ISA100.11a standard, when it is completed, The new version also extends Honeywell’s product line of
through an over-the-air software update. transmitters with a new XYR™ 6000 Digital Input wireless
transmitter. OneWireless supports a broad range
of both wired and wireless transmitters,
including corrosion, gauge pressure, differential
pressure, high-level analog input and tempera-
ture transmitters. As a single network support-
ing both sensors and IEEE 802.11-based The regulatory control and safety systems integrated with
applications, OneWireless also supports mobile the process model are based upon UOP’s standard control
worker devices, such as Honeywell’s IntelaTrac strategies. The control package is used to interface the trainee
PKS and Experion Mobile Station, and can with the plant simulation through the operator station graph-
improve plant safety by helping customers ics, trends and alarm configurations.
quickly locate employees. UniSim has proven an effective tool for improving operator
In addition, the latest OneWireless release performance, which ultimately leads to a more efficient work-
expands the interface capabilities of the system, force and better business results. Because it captures UOP’s
supporting the HART protocol. HART is com- extensive process knowledge within UniSim, the UOP Master
monly used by asset management applications Simulation Models provide an even more realistic simulation
such as Honeywell’s Field Device Manager. environment.
OneWireless system management software Manufacturers from a wide range of industries use UniSim
makes any XYR 6000 transmitter communicate to train operators before new process units are commissioned,
to existing HART-enabled applications in the or before new processes are implemented in existing plants.
same manner as to a wired HART device.This Operators also practice start-up and shutdown sequences for
continuous evolution of the OneWireless plat- plant processes and learn how to sustain unit operation at peak
form highlights the multi-protocol capabilities performance levels.The results include safer and more efficient
of the Honeywell system. operation and less unplanned downtime.
For more information about Honeywell’s For more information about Honeywell’s UOP Master
OneWireless solution, visit http://hpsweb.hon- Simulation Models solution, visit http://hpsweb.
eywell.com/Cultures/en-US/ Products/wire- honeywell.com/Cultures/enUS/Products/ControlApplications
less/default.htm. /simulation/default.htm.