W IN TER 201 4

2015 Drilling Activity

Forecast Update
Four ways your digital presence
can bring in business
T H E O F F I C I A L V O I C E O F T H E P E T R O L E U M S E R V I C E S A S S O C I AT I O N O F C A N A D A

Highlights from the 2014

Industry Insights Forum

The industrys workers are its best

knowledge ambassadors

PM#40020055

Strategies Produced for

Today and Tomorrow
From volatile commodity prices to changing client spending plans to erratic
weather, Oilfield Service companies face ongoing challenges. From financial
planning, taxation and technology strategies to corporate finance solutions
and insights on trends shaping the M&A landscape, MNPs industry
specialists help OFS companies focus on the factors within their control. By
optimizing the financial efficiency of your operation, we help raise profits
and keep your opportunities flowing.
Contact David Yager, MNPs National Oilfield Services Leader,
to attend a complimentary 2015 forecasting and planning session
at david.yager@mnp.ca or visit mnp.ca/OFSseminars

Photo courtesy of Beaver Drilling Ltd

The moment of truth:

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BDO IS PROUD TO SERVE

THE BUSINESSES OF ALBERTA
Oil and gas companies face greater challenges today as they focus on maximizing
profitability and shareholder value. As a result, they need practical advice and
strategies from professionals who understand the issues that they are facing.
Our dedicated BDO Natural Resources team works closely with businesses like yours
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403 266 5608
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Edmonton
780 461 8000

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780 539 7075

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403 328 5292

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403 342 2500

CONTENTS
WINTER 2014

Departments
MESSAGE FROM THE CHAIR
IN THE FIELD

7
10

News, notes and events from the industry

2015 DRILLING ACTIVITY

FORECAST UPDATE
BUSINESS MATTERS

13
21

How to attract business in the online world

PSAC IN ACTION

14

Features
CONNECTING CANADIANS
How oil and gas companies and their
employees can work to win the hearts
and minds of their fellow Canadians

22

COVER

14

30

MEMBER PROFILE

26
28

A partnership in video game technology

helped Snubco address workplace safety

A LOOK AT LEADERSHIP

30

PSN takes a personal look at

leaders in the oil and gas industry

THE INDUSTRY INSIGHTS

FORUM
Highlights from this years conference

28

22
23

10
WWW.PSAC.CA

Leaders never rest.

No matter what the hour, or how many hours they have in front of them,
leaders stay the course. Through good times and bad, weve done just that,
custom building solutions to help our clients do what they do bestlead.
Because Alberta means the world to us.
atb.com/Leaders

TM

Trademarks of Alberta Treasury Branches.

MESSAGE FROM THE CHAIR

PSAC Brings
Canadians Together

M PLEASED TO BE THE INCOMING CHAIR for

PSACs 2014-2015 year. Over the years that I have been involved
with the PSAC Board of Directors, I have gained a great respect for
both the staff and board members of this organization, and feel
truly honoured to be stepping into this position. Additionally, I would
like to express my appreciation for the existing PSAC board members
efforts and contributions to this great organization. On this note, we
welcome our incoming board members who will round out the talent,
experience and insight around the boardroom table.
PSACs vision is to be the voice of the upstream petroleum service,
supply and manufacturing sectors. We achieve this by both growing
membership and staying the course on advocating key issues to the
public, government, industry and media. In order to maintain and
Wally Dumont, PSAC Board Chair
excel in these areas, one of my key priorities for the upcoming year are
to continue to grow our membership across Canada. This is very important in ensuring we
continue to have good representation from all geographical regions, as well as the various sectors
PSAC represents. The power of a collective voice is more important than ever, so growing
membership and engaging our existing members more will ensure we are meeting the needs of
our members and industry through our advocacy initiatives.
In todays society, public perception is very important and continuously changing as social
media continues to facilitate the exchange of ideas. In the year ahead, PSAC will stay the course
in producing materials that help inform conversations with Canadians about the responsible
development of our vast natural resources and our industrys commitment to excellence in our
operational and environmental performance.
We know that, in addition to being an integral part of the national dialogue, we have work
to do on the ground in communities where we operate. Programs such as our Working Energy
Commitment (dealing with hydraulic fracturing) and Community Partners, which help
industry and communities work and live together, are key PSAC initiatives. Our community
outreach also includes the celebrated 21-year partnership with STARS through the STARS &
SPURS Gala which has raised more than $10 million and also supports PSAC and our members
commitment to safe and vibrant communities.
Finally I would also like to take this opportunity, as the STARS & SPURS Gala committee
chair, to mention that the gala is booked for Saturday, January 24, 2015, with entertainment
provided by Corb Lund. This is a great event, and I encourage everyone to take a break from
winter and come out and enjoy this evening event.
I look forward to the year ahead, spent working alongside my peers and PSAC staff in the
continuation of building a strong and recognizable voice for PSAC members.
Best regards,

Wally Dumont
PSAC Board Chair

WWW.PSAC.CA

013

h)

You Gotta
See thiS
FrackinG
thinG!

Winter 2014 VOL 14 No.3

The Petroleum Services Association of Canada is the
national trade association representing the service,
supply and manufacturing sectors within the upstream
petroleum industry. PSAC represents a diverse range
of nearly 250 member companies, employing close to
75,000 people and contracting almost exclusively to oil
and gas exploration and production companies.
PETROLEUM SERVICES ASSOCIATION OF CANADA
1150 800 6TH AVENUE SW
CALGARY, AB T2P 3G3
TEL: 403.264.4195
FAX: 403.263.7174
EMAIL: info@psac.ca
PRESIDENT AND CEO: MARK SALKELD
VICE PRESIDENT, COMMUNICATIONS: KELLY MORRISON

PETROLEUM SERVICES NEWS IS PUBLISHED FOR PSAC BY

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VENTURE PUBLISHING INC.

10259-105 STREET,
EDMONTON, AB T5J 1E3
TEL: 780.990.0839
FAX: 780.425.4921
TOLL-FREE: 1.866.227.4276
CIRCULATION@VENTUREPUBLISHING.CA
PUBLISHER: RUTH KELLY
DIRECTOR OF CUSTOM CONTENT: MIFI PURVIS
MANAGING EDITOR: LYNDSIE BOURGON
CONTRIBUTING WRITERS: ROBIN BRUNET, SEAMUS SMYTH,
RYAN VAN HORNE
ART DIRECTOR: CHARLES BURKE
ASSOCIATE ART DIRECTOR: ANDREA DEBOER
PRODUCTION MANAGER: BETTY FENIAK SMITH
PRODUCTION TECHNICIANS: BRENT FELZIEN, BRANDON HOOVER
DISTRIBUTION: KAREN REILLY
ACCOUNT EXECUTIVES: PEGGY BOGDAN, KATHY KELLEY,
DENNIS McCORMACK

icsgroup.ca

1-866-247-4460
Calgary s Edmonton s fort mCmurray s SaSKatoon s winnipEg

8 WINTER 2014

PRINTED IN CANADA BY RHINO PRINT SOLUTIONS.

RETURN UNDELIVERABLE MAIL TO 10259 105 ST.
EDMONTON AB T5J 1E3.
CIRCULATION@VENTUREPUBLISHING.CA
PUBLICATIONS AGREEMENT #40020055
CONTENTS 2014 PSAC. NOT TO BE REPRINTED OR
REPRODUCED WITHOUT PERMISSION.

PETROLEUM SERVICES NEWS

SMART FINANCING
IS ONLY THE BEGINNING.
GE Capital is Albertas partner in growth.
Breaking new ground or exploring new opportunities, weve been
a part of Albertas economy for several years. Every one of the
$350 million that GE Capital has invested to companies last year
was backed with an intimate knowledge of the sector, and its showing.
Find out why we believe in Alberta.
What we know can help you grow.

GECapital.ca/partners
Copyright 2014 General Electric Capital Corporation

IN THE FIELD

News, events and activities in the industry

Congratulations to the 2013-2014

PSAC Technical School
Scholarship Winners
ITS A VERY GOOD
FEELING TO BE
REWARDED FOR
HARD WORK, AND [IT]
PROVIDES ME WITH
THE MOTIVATION TO
CONTINUE TO DO SO
IN THE FUTURE. TO BE
GIVEN THIS AWARD
MAKES MY TIME AT
SIAST AND WORK
VERY REWARDING.
2013-2014 PSAC
SCHOLARSHIP WINNER

AS PART OF THE PSAC

Education
Fund, we are pleased to provide scholarships for
Canadian students pursuing post-secondary
education in petroleum-related or trades
programs at five western Canadian colleges.
This years recipients are:

NORTHERN LIGHTS COLLEGE

Kyle Morin, Welding Level C
Joe Courtoreille, Welding Level C
Austen Thompson, Heavy Duty/
Commercial Transport Technician
Kyle Laursen, Welding

KEYANO COLLEGE
Jonathan Balducci, Millwright Apprentice
Cliff Batt, Heavy Equipment Technician
Apprenticeship
Bangoni Ndlovu, Welding Apprenticeship
Grady Pilon, Mobile Crane & Hoist Apprentice

SAIT
Dane Bowden, Millwright
Joseph Clark, Instrument Technician
Jesse McKinnon, Petroleum Engineer
Manjot Singh Basi, Diesel Equipment

NAIT
Jean Leopold Ndeugueu, Petroleum Engineering
Technology
Boon Kim, Machinist
Andrew Pietsch, Heavy Equipment Technician
Jordan Rachar, Equipment Technician

10 WINTER 2014

SIAST
Shawn Carrier, Heavy Duty
Equipment Mechanic
Aaron Haas, Instrumentation
Engineering Technology
Cody Istace, Welding
Matthew Kolody, Heavy Duty
Equipment Mechanic
Tuan Nguyen, Welding
Megan Williams, Truck and
Transport Mechanic

COMING EVENTS

STARS & SPURS GALA PRESENTED BY PSAC

January 24, 2015
BMO Centre, Stampede Park
Calgary, Alberta
For more information, visit www.stars.ca
PSAC 2015 SPRING CONFERENCE
April 7 & 8, 2015
Sheraton Red Deer Hotel
PSAC MID-YEAR LUNCHEON
April 2015
Calgary, Alberta
PSAC EDUCATION FUND GOLF CLASSIC
July 16, 2015
Calgary, Alberta
For more information and to register, visit
www.psac.ca/event

NEW MEMBERS
REGULAR MEMBERS
CFR Chemicals Inc.
Falck Safety Services Canada Ltd.
Logco Wireline Services Ltd.
Pacesetter Directional Drilling
Warrior Manufacturing Services Ltd.
ASSOCIATE MEMBERS
DivestLINK Advisory Partners LP
ESI International
Finning (Canada)
LeaderSharp Group
PFM Capital Inc.
SunCity Chem & Polymers Canada Inc.
Volvo Trucks Canada

PETROLEUM SERVICES NEWS

Its a done deal

Mergers & Acquisitions
Winning the deal is easier when you hold all the cards.
At KPMG, our network of mergers and acquisitions
professionals possess the experience and forward
thinking necessary to help you meet the time
constraints of the deal.

Michael McKerracher
National Energy Leader
(403) 691-8056
mmckerracher@kpmg.ca

Rhys Renouf
Managing Director,
KPMG Corporate Finance
(403) 691-8426
rrenouf@kpmg.ca

Alex Henderson
Partner, Transaction Services
(403) 691-8140
alexanderhenderson@kpmg.ca

kpmg.ca

2013 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. 2249

YOUR WORK IS

mobile. SO IS OURS.
Working remotely? UFA delivers the goods and storage solutions
to your job site. We are committed to the timely delivery of your
fuel, lubricants, coolants and DEF requirements because we
understand the importance of keeping you up and running.
Talk to your local UFA Petroleum Agent, visit UFA.com or
go to our mobile Locations Directory app at m.UFA.com.

2014 UFA Co-operative Ltd.

UFA.com

11/14-22781

Fueling your business, when and where you need it.

DRILLING ACTIVITY FORECAST UPDATE

Looking At The Year Ahead

PSAC FORECASTS 10,100 WELLS TO BE DRILLED IN 2015
2015 CANADIAN DRILLING ACTIVITY FORECAST
(NUMBER OF WELLS)

ALBERTA: 5,740

SASKATCHEWAN: 3,365
BRITISH COLUMBIA: 555

MANITOBA: 430

TOTAL IN CANADA: 10,100

Note: Total includes activity in Northern and Eastern Canada.

N ITS 2015 CANADIAN DRILLING

Activity Forecast,
the Petroleum Services Association of Canada (PSAC) forecasts
a total of 10,100 wells drilled (rig releases) across Canada for
2015. This is a slight decrease from the expected final tally of 10,
830 wells drilled (rig releases) for 2014.
We are forecasting only a small slump in activity for the year,
despite the fairly rapid decline in the price per barrel, says Mark
Salkeld, president and CEO of PSAC. We are anticipating a cold
winter again this year, so expect that we will see a typical ramp up of
Q1 activity, and of course, slower activities in the spring with break up.
However, we expect the last two quarters of 2015 to see an uptick to
finish another year with strong performance.
There is a lot at play out there, but commodity pricing and market
access are two of the biggest drivers behind forecasted activity levels,
Salkeld adds. But we are optimistic that 2015 will bring some resolve
and positive movement on both those fronts.
PSAC is basing its 2015 Forecast on average natural gas price of
CDN$3.80/mcf (AECO) and crude oil price of US$85.00 barrel (WTI).
On a provincial basis, PSAC estimates a decline in activity levels across
the board in western Canada. In Alberta, PSAC is forecasting a total

WWW.PSAC.CA

of 5,740 wells to be drilled, or just over a six per cent decrease over 2014
activity levels. British Columbia is forecasted to have the largest decline
down 20 per cent from 690 to 555 wells (rig releases) for next year. PSAC
is forecasting 3,365 wells to be drilled in Saskatchewan and 430 wells in
Manitoba, or a five per cent and four per cent decline respectively.
We are forecasting that 2015 will see nearly 90 per cent of well
completions in favour of oil which is being driven by commodity prices
still, Salkeld says. We are also forecasting total meterage drilled at just
over 24 million metres. So while we are drilling close to 60 per cent fewer
wells than we had been a decade ago, we are drilling only 20 per cent
fewer metres total.
Meterage is becoming a key indicator of activity and the technological
gains our industry continues to deliver. Our 2015 forecast has the average
meters/well doubling from 1,232 in 2005 to just over 2,400 metres.
The Petroleum Services Association of Canada (PSAC) is the national
trade association representing the service, supply and manufacturing
sectors within the upstream petroleum industry. PSAC represents a
diverse range of close to 250 member companies, employing more
than 70,000 people and contracting almost exclusively to oil and gas
exploration and production companies.

13

14 WINTER 2014

PETROLEUM SERVICES NEWS

CONNECTING

CANADIANS
How oil and gas companies and their employees can
work to win the hearts and minds of their
fellow Canadians
BY RYAN VAN HORNE

N MAY, CALGARY ECONOMIC

just a few sentences in the 59-page report, which compiled the results
Development (CED) of 873 people surveyed nationwide. But Court Ellingson, manager of
research and community sustainability for CED, says there were no
surveyed the residents specific questions about the oil and gas industry in the survey, and he
of five Canadian cities was surprised by the medias attention to that detail.
in a bid to understand
Eleven per cent of the respondents said that their impression of
how the rest of the country perceives Calgary had changed negatively, according to Ellingson. Of those 11
Calgary. Its aim was to understand per cent, 18 per cent said it was because of the oil and gas industry.
Ellingson says CED and Calgary City Council are working with
perceptions of the city in order to industry on ways to alter perceptions surrounding the oil and gas sector.
improve a strategic plan for the citys One of the main things they want to do is inspire a full conversation,
economic expansion.
instead of controlling the message.
Unless people work for the sector, they dont actually know a
While the report did not focus on the oil and
natural gas industry in particular, in September lot about it and maybe theyre misinformed, he says. Incredible
advancements are being made in the energy
sector and people dont know about them.
Marise Auffray, the manager of marketing
and communication for Calgary-based Trican
Well Service, says energy literacy is poor. Its
even poor among some who work within oil
and gas, she says. If you ask people: Where
does most of your energy come from? a lot of
the CBC led its coverage of the report by saying people dont know. Auffray says one thing companies can do is enlist
that, although the oil and gas industry is a the help of their employees. But first, they have to educate them.
Theyre not equipped with the answers, so we created this booklet
cornerstone of Calgarys economy a new
survey suggests its reputation outside the city called Talking Oil and Gas. It starts off high level, and then we got into
could be a liability. The line was based on more detail, she says. The booklet provides general information about

PHOTO: DARRYL PROPP

INDUSTRY IS HELD TO A MUCH HIGHER

EXPECTATION. BUT WE WELCOME THE SCRUTINY.
WE WANT TO BE AS GOOD AS WE CAN BE.
MARISE AUFFRAY

WWW.PSAC.CA

15

16 WINTER 2014

PETROLEUM SERVICES NEWS

the company and the industry at first. Then, as the employees provide
feedback about the sorts of questions and comments theyre getting, the
company passes along more specific information. She says its designed
to help employees answer the questions that people ask in the media, at
dinner parties, barbecues or over coffee.
Employees make good ambassadors, and Auffray concedes that they
might have more credibility among the general public because theyre
not in public relations. When educating employees, its important to
create a balanced conversation, one that highlights how oil and gas
employees are also fellow citizens.
Still, this doesnt mean the industry can rely on employees alone to
overcome inaccurate or incomplete information. There is a requirement
for industry to speak truth, Auffray says. They better have proof
points and scientific data backing it up. She notes that the industrys
detractors are often not held to the same standards. Industry is held
to a much higher expectation, she says. But we welcome the scrutiny.
We want to be as good as we can be.
We all live on this planet, Auffray says. We all drink water and
we all breathe air.

person still likes to have a hot shower, a warm house and to get from
point A to point B.
Resource Works touts itself as a non-profit society that brings factbased information to the public discourse about the natural resource
sector and its role in B.C.s future. Muir says its important to build a
shared common ground, and the surest way to build that is through a

ITS A STORY THAT YOU AND THE MILLIONS OF

OTHER CANADIANS WHO WORK IN THE RESOURCES
SECTOR ALREADY UNDERSTAND. AND IT IS ONE
THAT WE ARE DETERMINED TO TELL.
PERRIN BEATTY

civil discussion. Otherwise youre just going to get into Youre wrong,
Im right. Nothing is ever accomplished by that, he says. Heated
arguments never help.
Muir says there is potential to create ambassadors, and offers some
practical ways to make it happen, like using social media. Another tactic is
STEWART MUIR, EXECUTIVE DIRECTOR OF THE VANCOUVER-BASED THINK-TANK to take the argument that we are a consumer society and flip it on its head.
Resource Works, suggests that in addition to a fact-based approach, Resource Works has a program that provides bumper stickers to employees
the oil and gas industry needs to appeal to people on a different level in the resource sector that say: Im a provider.
Youve got to ask, if everybody is doing the consuming, whos doing
specifically those who seem unwilling to believe anything the oil and gas
the providing? he says. This allows people to let your friends know,
industry will say.
What you do in response to that is have a conversation, and it has to Hey, Im a provider; Id be happy to talk to you about the industry
be about values and what it is thats important to us, Muir says. That and your values. The Petroleum Services Association of Canada

WWW.PSAC.CA

17

(PSAC) also has a website which offers a number of product videos and
explanations that describe how we all use oil and gas in our lives.
Muir says theres a feeling in Canada that there is just too much resistance
to resource development, even though our regulatory structures give us a
lot to be proud of.
Perrin Beatty, the president of the Canadian Chamber of Commerce
and a proponent of the National Energy Strategy that was ratified by the
countrys premiers at their annual meeting in Prince Edward Island this
past August, said at a speech to an LNG conference in September that
resource industries are vital to our economy: Canadas huge advantages
our abundant natural resources, our skilled labour force, our strong
commitment to environmental protection will count for very little
without the infrastructure to extract and move our energy, mineral, forest
and agricultural products to the markets that need them the most.
His organization is trying to build a network of local chambers,
forming a partnership that will promote resource trade. So far, 100 local
chambers across Canada representing more than 60,000 small, medium
and large businesses are helping to spread the word.
Weve been asking these chambers to get the word out to their
communities through op-eds, letters to their members and events,

We Facilitate Protecting Lives & Mother Earth

Beatty says. Were making the case to our network that the natural
resource sectors are a significant source of value added to the Canadian
economy.
Canadians have made business from our natural resources since the
land was first colonized by Europeans. Beatty has long maintained that
Canadas energy inheritance, one that other countries around the world
look at with envy, is a cornerstone of our prosperity and competitiveness
in the 21st century.
Its a story that you and the millions of other Canadians who work in
the resources sector already understand, Beatty says. And it is one that
we are determined to tell.

KNOW YOUR OIL AND GAS

The Petroleum Services Association of Canada (PSAC) has
set up a website that offers a number of product videos and
explanations that describe how we all use oil and gas in our lives.
See more at www.oilandgas.ca

North America: 1-800-840-2877

International: 1 (780) 414-6083

info@katchkan.com
katchkan.com

Winner in the Category of Energy Services

2014 EY Entrepreneur of the Year Award
Katch Kan works with operating
companies and drilling contractors to
proactive solutions to prevent the loss
drilling sites.

CELEB
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ATIN

20

YEAR S

With Our Loyal Customers

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positive impact on the environment.

- Operations Manager for Ensign Drilling Inc

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Worldwide Patents & Patents Pending

18 WINTER 2014

@KatchKan
PETROLEUM SERVICES NEWS

CM

MY

CY

CMY

WWW.PSAC.CA

19

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OUR PROGRAMS
SUPPLY CHAIN MANAGEMENT
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20 WINTER 2014

1-866-610-4089

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PETROLEUM SERVICES NEWS

BUSINESS MATTERS

The Digital Snare

HOW TO ATTRACT BUSINESS IN THE ONLINE WORLD
BY ROBIN BRUNET

AVING AN ONLINE

presence in the energy

sector is becoming more important as the digital age
evolves. People no longer use phone directories to
find companies; they all look online. There are many
ways for companies to market themselves online and it may become
confusing as to where to start. How can PSAC members use digital
marketing to expand their customer base towards a global market?
Having a company to guide your online presence and provide
expert opinions is a good way to start. FP iMarketing Technology,
a Calgary-based online marketing company, has plenty of advice to
share to enhance your online presence:
YOUR WEBSITE IS MORE THAN A CORPORATE BROCHURE
Your brand image can be spoiled with a poor or outdated website.
Your messaging absolutely has to match your perceived expertise,
says Fred Yee, CEO at FP iMarketing. Yee finds it counterintuitive
that many energy sector companies act globally but think locally
online. Sponsoring local golf tournaments and giving away hockey
game tickets is good for staff morale, but showcasing these things on
your site doesnt work in terms of global marketing.
CLEARLY STATE YOUR CASE
People reading about [your
company] online wont waste time
trying to figure out what you do or
provide, says Yee. You have to tell
them clearly, on your homepage.
This especially applies to large
organizations, because the bigger
they are, the more things they are likely involved in.

Canadian expertise. In addition to a

new website, Yee and his colleagues
deployed SEO and online advertising so
that Pajak appeared in both the natural
and paid search results when relevant
keywords were searched. The use of
YEE
analytics and monthly reports made
visitor volume and activity predictable
and actionable. As a result, PajakEng.com was ahead of competitors
in Google search and traffic rankings only four months after the
sites deployment.

YOUR BRAND IMAGE CAN BE SPOILED

WITH A POOR OR OUTDATED WEBSITE. YOUR
MESSAGING ABSOLUTELY HAS TO MATCH YOUR
PERCEIVED EXPERTISE.
FRED

MAKE IT EASY FOR PEOPLE TO FIND YOU

This should be the single most important objective for any business.
FP iMarketing provides FP Max, a pay-as-you-go solution that
helps clients get found online. The company uses search engine
optimization (SEO) techniques, which influence search engine
results to boost a companys ranking. FP iMarketing also uses online
tools to aid in a companys success, like ActiveConversion, which
identifies and tracks website visitors and where they came from.
In 2011, the marketing firm created an online presence for
Calgary-based Pajak Engineering, which showcased the companys

WWW.PSAC.CA

CHOOSE YOUR MARKETING FIRM WISELY

Not all online marketing consultants are created equal, so how do you
select the right one?
The best way to find a reliable company with trusted advisors is to
look for certifications. For example, FP iMarketing is a PSAC member.
Its also accredited by the Better Business Bureau, has been Google
AdWords certified since 2005 and is a member and sponsor of the
Canadian Marketing Associations Calgary chapter.

21

INDUSTRY INSIGHTS 2014

A Celebration of Pride
THIS YEARS INDUSTRY INSIGHTS FORUM WAS A DAY OF INSPIRATION FOR PSAC MEMBERS

T
Mark Salkeld, PSACs President and CEO,
delivers the 2015 Canadian Drilling Activity
Forecast to a sold-out crowd

PSACs outgoing Chair, John Gorman, Area

Vice President at Halliburton Group Canada,
provides outgoing remarks at the Industry
Insights dinner

22 WINTER 2014

HIS YEARS INDUSTRY

Insights Forum was a sellout, with

the crowd being one of the biggest
PSAC has hosted in years. The day
kicked off with PSACs 2014 Annual General
Meeting (AGM), which gave the association
the opportunity to recognize the incoming
2014-15 Board of Directors and the recipients
of this years Distinguished Service Awards,
given to PSAC members who volunteer their
time through committee work. It was also
an opportunity to highlight many of the
accomplishments of the past year, including
PSACs continued efforts to connect with
Canadians through the Working Energy
Commitment program. Following the AGM,
the 2015 Canadian Drilling Activity Forecast
portion of the program took place, with almost
400 people in attendance. No doubt the crowd
was eager to hear the forecast for next year,
given the uncertainty percolating across the
industry due to recent downward trends in
commodity pricing and other market forces
that point to a future dip in activity. Mark
Salkeld, PSACs president and CEO, presented
the forecast with Dave Collyer, CEO of the
Canadian Association of Petroleum Producers
(CAPP), Jeff Fetterly, principal oilfield services
analyst at Peters & Co., and Eugenio Alemn,
director and senior economist at Wells Fargo
& Company.
Dave Collyer detailed CAPPs forecasted well
count, which was only 100 fewer than PSACs
forecast at 10,000, and capital spending for the
producer community. But in addition to growth
opportunities, he touched on a very important
factor facing the industry around public
confidence. Collyer explained that while polls
of public opinion certainly indicate a rising tide
in support for the industry, there is still work to
be done to reach out to the public. One key way
to achieve greater public confidence, he noted,
is through encouraging a greater level of pride
among industry employees in what they do and
the industry they work for.
The theme of greater pride hit centre stage at
the Industry Insights Dinner later that evening.

PSAC celebrated longstanding members

those companies who celebrated a milestone
(five, 10, 15, 20, 25 or 30 years) anniversary in
the past year.
The dinner also gave PSAC the opportunity
to award a Chairmans Award to Wally Kozak
at Calfrac Well Services, for his longstanding
commitment and dedicated support of the
associations work.
The day finished with a bang, as PSAC had
the great pleasure of welcoming Rex Murphy
for this years keynote address. In his typical
fashion, Mr. Murphy delivered a thoughtprovoking and pride-inspiring address
calling on industry to stop apologizing for
itself and to wear all the benefits the industry
delivers as a badge of pride. The dinner
finished with a standing ovation for Mr.
Murphys call to action.
2013-2014 DISTINGUISHED SERVICE AWARD RECIPIENTS
For his continued participation and contribution to
the PSAC Education Fund and the Special Events
Committee: Travis Strube.
The following individuals for their contribution to the
Special Events Committee, which organizes the only
fundraiser for the annual Education Fund Golf Classic:
Karoline Beninger, Clyde Bonnell, Lee Emond, Brian
Farmer, Garry Lane, Blake Lawrence, Graham
Maglio, Brett Noble, Marty Price, Glenn Walker and
Michael Van Olm.
Education Fund Committee: Darcy Brown, Terri
Larson, Ted Nelson, Tamara Nelson, Linda Van Son,
Dieter Wentzel.
For chairing the Health & Safety Committee:
Kevin Crumly.
For contributions to the Health & Safety and
Transportation Issues Committees: Stacy Saunders
Contributions to the Transportation Issues Committee:
Chris Mackenzie.
For participation on the Oilwell Perforators Working
Group: Robin Cote, Brent Rudy, Duane Fairhurst,
Russell Hayden and Vince Kozak.
For participation during the Spring Conference:
Doug Smith.

PETROLEUM SERVICES NEWS

PSAC 2013-2014 LONGSTANDING MEMBERS

Celebrating 30 years
Firemaster Oilfield Services Inc.
NWP Industries Inc.
Prairie Mud Service
URS Flint

Precision Well Servicing, A Division of

Precision Limited Partnership
Tenaris Global Services (Canada) Inc.
Total Production Services o/a Total
Enerflex Welltec Canada

Celebrating 25 years
Sandys Oilfield Hauling Ltd.
Tuboscope Vetco Canada ULC
United Safety Ltd.

Celebrating 10 years
Bonnetts Energy Services L.P.
Boss Wireline Services
Flexpipe Systems Inc.
GE Oil & Gas Pressure Control
Canada Inc.
Kodiak Wireline Services Partnership
Nalco Champion, An Ecolab Company
Road Train Oilfield Transport Limited
Wespro Production Testing Limited

Celebrating 20 years
Air Liquide Canada Inc.
Baker Hughes Canada Company
Enerchem International

Wally Kozak, Director of Government and

Industry Relations at Calfrac Well Services,
accepting the 2014 PSAC Chairmans Award

Celebrating 15 years
AMGAS Services Inc.
Hallmark Tubulars Ltd.
High Arctic Energy Services Inc.
Owen Oil Tools, A Division of Core
Laboratories Canada Ltd.

Celebrating 5 years
BOS Solutions Ltd.
CEDA
Ferus Inc.
Goliath Snubbing Ltd.

Renowned Canadian commentator Rex Murphy

delivers the keynote address

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23

NEW FACES
WELCOME THE PETROLEUM SERVICES ASSOCIATION OF CANADAS 2014-2015 BOARD OF DIRECTORS
PSAC is pleased to announce its 2014-2015 Board of Directors. PSACs Board of Directors represents the diversity of Canadas
upstream petroleum services, supply and manufacturing sectors, and brings unparalleled expertise to the strategic direction
of the association. To learn more about PSACs directors, visit psac.ca.

OFFICERS
CHAIR: Wally Dumont
Senior Vice-President Industrial Service
Technology, Clean Harbors Energy
& Industry Services

DIRECTORS
Duncan Au
President and CEO, CWC Energy
Services Corp.

January McKee
President, AMGAS Services Inc.

Bill Darling
Director, Mustang Well Services Ltd.

Dave Reed
Vice President, Canadian Region,
Weatherford Canada Partnership

Chris Gall
Vice-President, Global Supply Chain,
Calfrac Well Services

Grant Stevens
President & CEO, Grant Production
Testing Services Ltd.

THIRD VICE-CHAIR: Doug McNeill

CSO, Stream-Flo

Scott Hauck
President Distribution Services Canada,
National Oilwell Varco-Distribution
Services Group

John Taskinen
President, Snubco Pressure
Control Ltd.

PAST CHAIR: John Gorman

Vice-President Canada,
Halliburton Group Canada

Ian McConnell
Vice-President, Corporate, ProTechnics, a
Division of Core Laboratories Canada Ltd.

PRESIDENT: Mark Salkeld

President and CEO, Petroleum Services
Association of Canada

David McHattie
Institutional Relations Director, Canada,
Tenaris Global Services (Canada) Inc.

FIRST VICE-CHAIR: Trevor Haynes

President and CEO, Black Diamond
Group Limited
SECOND VICE-CHAIR: Deborah Close
President, Production Services,
Tervita Corporation

Scott Van Vliet

Co-President, Environmental
Refuelling Systems Inc.
Tom Whalen
President, Baker Hughes Canada
Company

BACK ROW:
(from left to right):
Trevor Haynes,
Bill Darling,
Ian McConnell,
Tom Whalen,
John Gorman,
Mark Salkeld,
John Taskinen,
Doug McNeil,
Duncan Au,
FRONT ROW:
(from left to right):
Scott Van Vliet,
Deborah Close,
Wally Dumont,
January McKee,
David McHattie,
MISSING:
Chris Gall,
Scott Hauck,
Dave Reed,
Grant Stevens

24 WINTER 2014

PETROLEUM SERVICES NEWS

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Safety

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Utilities

Land Surveying

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Oil and Gas Services

Infrastructure

Environment

100 Year History On Budget

Consultation

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t. +1 780 410 2580

WWW.PSAC.CA

25

PSAC IN ACTION
THE PETROLEUM SERVICES ASSOCIATION OF CANADA (PSAC) CONTINUES TO KEEP THE SERVICE,
SUPPLY AND MANUFACTURING SECTORS FRONT AND CENTRE THROUGH ADVOCACY AND OUTREACH.
PSAC CONNECTS WITH CANADIAN LEADERS
FEDERAL:
Closing out the summer, PSAC attended the Canadian Energy
and Mines Ministers Conference in Sudbury, Ontario. This
conference acts as a great forum for informal conversations with
energy ministers and their staff from across the country. This year,
PSAC had the opportunity to connect with federal and provincial
officials including Minister Greg Rickford, Natural Resources
Canada, Minister Diana McQueen, at the time with Alberta
Energy, and Minister Pierre Arcand, Quebec Energy and Natural
Resources.
PSAC presented on the theme of energy and technology to
the federal Alberta caucus in Canmore, Alberta. Minister of
Employment and Social Development Jason Kenney, Wetaskiwin
MP Blaine Calkins, Calgary-Centre MP Joan Crockatt, Yellowhead
MP Robert Merrifield, newly elected Fort McMurray MP David
Yurdiga, Medicine Hat MP LaVar Payne and Andrea Smotra,
Regional Affairs Advisor from the Prime Ministers Office were
present at the presentation.
PSAC met with federal Deputy Minister of Natural Resources Bob
Hamilton in Calgary to introduce PSAC.
PSAC met with federal Assistant Deputy Minister of Natural
Resources (Energy Sector) Jay Khosla in Ottawa.
PSAC met with representatives from Veterans Affairs
Canada (VAC) regarding veterans transitioning from
military to civilian industry employment on October 8. The
meeting was attended by Major Jo-Anne Flawn-LaForge,
Canadian Armed Forces (CAF), Chantal Picard, VAC
Director, CAF Integration and Transition Management and
Sandra Lambe, VAC Director, Program Policy & Outreach.
ALBERTA:
PSAC met with various deputy ministers in Edmonton,
including: Marcia Nelson, Deputy Minister of Innovation and

Advanced Education, Greg Bass, Deputy Minister of Jobs, Skills,

Training and Labour and Gitane De Silva, Deputy Minister of
International and Intergovernmental Relations.
BRITISH COLUMBIA:
On September 17, PSACs Board of Directors meeting was held in
Fort St John, B.C., and was attended by Rich Coleman, the Minister
of Natural Gas Development and Deputy Premier, Pat Pimm, Peace
River North MLA and Paul Jeakins, CEO of the B.C. Oil and Gas
Commission.
QUEBEC
PSAC recently had the chance to meet with Christyne Tremblay,
Deputy Minister of Quebec Energy and Natural Resources in
Quebec City, QC. This provided the opportunity to introduce PSAC,
our members and some of the key issues relevant in the province of
Quebec for our members and future resource development.
ATLANTIC PROVINCES:
Via conference call, PSAC met with Wes Foote, Newfoundland
and Labradors Assistant Deputy Minister of Petroleum
Development, to discuss the governments current outlook on
possible onshore development in the province.
PSAC travelled east to Nova Scotia and New Brunswick in
November. In Nova Scotia, PSAC had the opportunity to meet
with the Deputy Minister of Energy and other policy officials to
discuss current legislation that would ban deep well fracturing.
While in New Brunswick, PSAC had the opportunity to meet with
Minister Donald Arsenault the new minister of energy, his new
deputy ministers and other senior policy officials. As well, PSAC
presented on the Working Energy Commitment and Hydraulic
Fracturing Code of Conduct at the New Brunswick Mines and
Energy Conference.

MANUFACTURING DAY ON THE HILL

As a member of the CME-led Canadian Manufacturing Coalition,
PSAC recently participated in Manufacturing Day on the Hill and
had the opportunity to meet with the following:
Blaine Calkins, MP (CON) Wetaskiwin, Alberta.
Phil McColeman, MP (CON) Brant, Ontario. Chair of the
Parliamentary Committee on Human Resources, Skills and
Social Development and the Status of Persons with Disabilities.
Carol Hughes, MP (NDP) - Algoma Manitoulin-Kapuskasing,

26 WINTER 2014

Ontario & Deputy Critic for Aboriginal Health

Brian Masse, MP (NDP) - Windsor West, Ontario & Critic for
Federal Economic Development Agenday for Southern Ontario
Canada - UF Border & Great Lakes.
Carolyn Bennett, MP (LIB) St. Pauls, Ontario Critic for
Aboriginal Affairs
Justin Trudeau, MP (LIB) Leader of the Liberal Party
of Canada

PETROLEUM SERVICES NEWS

CHECK OUT PSACS OIL AND GAS IN YOUR LIFE VIDEO SERIES
PSAC has launched a series of short videos
showcasing the day-to-day products
that are made from petroleum. From
flip-flops to electronics, the number of
products is endless. Check the videos out at
www.oilandgasinfo.ca.

A clip from PSACs Oil and Gas in Your Life video, showcasing
everyday items that are made from petroleum products.

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27

MEMBER PROFILE

Levelling Up
AN INNOVATIVE PARTNERSHIP IN VIDEO GAME TECHNOLOGY
HELPED SNUBCO ADDRESS WORKPLACE SAFETY CONCERNS
BY SAMUS SMYTH

HE LAST VIDEO game

Troy LeBlanc played was Super

Mario Bros. In its heyday,
the game was flat, simple
and marketed towards children and while
LeBlanc grew up to become the vice-president
of Alberta-based Snubco, video games evolved
into a billion-dollar industry.
LeBlanc never expected video game technology to revolutionize the way his company
conducts work-safety training. Forging a unity
with Calgarys Serious Labs, the two companies
have developed an industry-changing technology that has made them leaders in safety and
game-tech innovation.
In the mid-2000s, the oil and gas industry
was booming in Alberta and snubbing was in
fierce demand. But with intense and growing
work requests, more work-related injuries
resulted. It came to a point where injuries
affected Snubcos ability to bid on jobs. The
company was also forging ties with industry
in China, and safety needed to become an
immediate and prudent priority.
So in 2008, the desire for a refreshed and
upgraded view on workplace safety education
led to a discussion with Serious Labs.
When Snubco began providing equipment to
clients in China, a potentially dangerous language
barrier became apparent. Safety measures and
standards were sometimes lost in translation with
international clients, until Serious Labs created
a world-class snubbing simulator that allowed
workers to act out scenarios they would confront
in the workplace. The simulator opened up a
whole new world, says LeBlanc.
Using gaming technology and platforms, Serious Labs created a simulation for competency
training. The simulator has control integration

28 WINTER 2014

and all of the snubbing equipment one would see on a work site, and is
essentially a snubbing stage mimicking reality. The simulator comprises
a control panel measuring approximately two feet wide and 10 inches
off the table, with a depth of 18 to 20 inches. It has a number of handles
protruding from the top, completely replicating a standard snubbing
controller. The machine has a 1:1 ratio with a real-world machine. With
muscle memory being a key skill to operate effectively, the flush ratio is a
massive advantage.
For Chinese clients, the simulator was equipped with a Mandarininscribed control panel, making the hands-on machine an effective
communication vessel between Snubco and the client.
Wade Carson, director of sales for Serious Labs, says the use of video
game technology has elevated the expectations for concise learning
methods. Chalk and talk methods do not work with the digital age
generation. Games are engaging and increase retention and reduce time
for comprehension, says Carson.
The simulator has been so triumphant that it was recently contracted
out by the Workers Compensation Board Alberta to dictate whether or
not injured workers are capable of operating equipment again. To LeBlanc,
this is only the beginning of the relationship between gaming and the oil
and natural gas industry.
I think that the idea of training with games is going to be the new
method [on which] all oil and gas workers will be trained. It is measureable,
it is something that can be tracked, and we are seeing that games are more
effective than instructor-led training, he says. This is the future.

PETROLEUM SERVICES NEWS

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A LOOK AT LEADERSHIP
PETROLEUM SERVICES NEWS TAKES A PERSONAL
LOOK AT LEADERS IN THE OIL AND GAS INDUSTRY.
IN THIS EDITION WE MEET:
MIKE DOYLE
President
Canadian Association of Geophysical Contractors
(CAGC)
GARY LEACH
President
The Explorers and Producers Association of Canada
(EPAC)

MIKE DOYLE
IF YOU COULD DO ANY OTHER JOB, WHAT WOULD THAT BE?
MD: A university professor.
GL: Make unwell people better.
WHAT IS YOUR FAVOURITE BOOK OF ALL TIME?
MD: Dune.
GL: I read a lot of books, mostly biographies and history. Biographies
of Churchill, Washington, Lincoln and Sir John A. Macdonald are
among my top picks.
WHAT ABOUT MOVIE?
MD: The Usual Suspects.
GL: My favourite is a trilogy, with the same continued plot and actors:
the Jason Bourne series.
IF YOU COULD INVITE THREE FAMOUS PEOPLE (DEAD OR ALIVE) TO DINNER,
WHO WOULD THEY BE AND WHAT WOULD YOU SERVE?
MD: Albert Einstein, Winston Churchill and Bill Gates. Id serve
Alberta beef.
GL: I would pick Churchill, Washington and Sir John A. Id grill up
some Alberta rib-eye steaks and serve it with a Caesar salad doused
in my own homemade dressing and loaded baked potato. I think they
would enjoy Alberta steak.
WHAT DO YOU THINK IS THE BIGGEST CHALLENGE FACING CANADAS ENERGY
INDUSTRY AT THIS TIME?
MD: We are losing the PR battle for the hearts and minds of the
general public.
GL: Overcoming a well-organized opposition to building new energy
pipelines. Part of the challenge is countering todays climate of
NIMBYism, and part comes from ideologically hostile opponents
feeding misinformation to the public about the risks of pipelines.
There is misunderstanding and naivet about the feasibility of
alternative energy sources supplanting oil and gas any time soon.

30 WINTER 2014

GARY LEACH

WHAT WOULD YOU SAY IS YOUR BIGGEST ACCOMPLISHMENT TO DATE?

MD: Raising my two sons.
GL: Thats easy: raising my two daughters to be wonderful young
adults. Theyve both recently graduated with business degrees from
two different Canadian universities. Actually, I have to give my wife,
Patricia, most of the credit here.
WHAT TALENT WOULD YOU MOST LIKE TO HAVE?
MD: Musical talent, through song, dance or instrument.
GL: I would like to have learned to play a musical instrument, maybe
something cool like the saxophone.
IF YOU COULD CHANGE ONE THING ABOUT YOURSELF, WHAT WOULD IT BE?
MD: Worry less.
GL: More patience.
WHAT IS YOUR MOST TREASURED POSSESSION?
MD: Family.
GL: Ive picked up a lot of interesting stuff travelling around the
world, especially antique maps of North America. But frankly the
most treasured is my 30-year marriage to Patricia.
IF YOU COULD TRAVEL TO ANYWHERE IN THE WORLD, WHERE WOULD YOU GO?
MD: Hot weather and ocean beaches.
GL: Ive been able to travel to some exotic destinations in Europe, the
Middle East, Asia and Africa, sometimes for work and sometimes on
vacation. I like some of the Pacific Islands Ive visited like Tahiti, Fiji
and Hawaii.
WHO ARE YOUR HEROES IN REAL LIFE?
MD: My wife.
GL: I admire people who take time to volunteer with organizations
that are helping children, seniors and others who are struggling with
special challenges in life.

PETROLEUM SERVICES NEWS

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