WINTER 2010

PSAC introduces
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NEWS for your magazine

PLUS: Results from the 2010 Drilling Activity Forecast • Challenges to consider as recruiting ramps up
Fuel management company safeguards its workers • Message from PSAC’s new president

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 CONTENTS
WINTER 2010

Departments
MESSAGE FROM THE CHAIR 4
2011 DRILLING ACTIVITY FORECAST 7
Could increased activity be on the horizon
for 2011?

IN THE FIELD 8
All the news, events and latest announcements

PSAC REACHES OUT 22

PSAC reaches out on behalf of the services
sector in its Public Outreach Program

PSAC IN ACTION 23
The latest developments in what PSAC is
28 doing for its members and industry

BUSINESS MATTERS 26
Features 26
Ramp up your recruitment without getting
employees down

MEMBER PROFILE 28
10 FROM THE DRILLING Environmental Refuelling System Inc.’s
ACTIVITY FORECAST EVENT Frac Shack keeps workers safe in tough conditions
PSAC’s annual event continues
to draw crowds YOUR COMMUNITY 30
911 Industrial Response Inc.
15 OIL AND GAS SERVICE
COVER

IS BIG BUSINESS
PSAC delivers the report on the
10 32
services sector, and we’re all in
for some big surprises

20 HEAD OF THE CLASS

Announcing the winners of PSAC’s
Education Fund

20
PETROLEUM SERVICES NEWS 3
MESSAGE FROM THE CHAIR
Ready to Raise Our Profile

I
AM HONOURED TO BE WRITING TO YOU as the incoming 2010-2011 Chair of
the Petroleum Services Association of Canada. I look forward to my job of raising
the profile of the oilfield services sector as we come out of what could arguably be the
worst economic downturn of our time.
I started in the services sector during the boom times of the late ’70s in Fort St.
John, B.C., as a mud man with Halliburton and have endured at least three downturns, and
the National Energy Policy, but this latest political and economic firestorm has affected the
industry like no other. Regardless of what this winter drilling season brings, I know that
the resilience and dedication of PSAC member companies will continue to rebuild and
empower their employees as this quantum shift from deep gas to shale gas and heavy oil
creates new opportunities for the future.
Safety, climate change and the social licence to operate are important factors that
have become the “new norm” as we move forward in the pursuit of hydrocarbons. PSAC
member companies champion these causes as they work with producers, the public and
government agencies in reducing the oil and gas industry’s impact on the environment.
Brian Coston, PSAC Board Chair
As the Chair of PSAC for 2010-2011, I feel it is paramount that we raise the profile of the
services industry in the eyes of the public and the government, and continue to keep the
discussion about the significance of the oilfield services sector top of mind. Many of you will be aware
that PSAC recently undertook an extensive project and commissioned the Canadian Energy Research
Institute (CERI) and Mission Capital Inc. to identify our industry’s contributions to Canada’s gross
domestic product as well as the revenues we’ve generated, not only at home but through our extensive
technological expertise employed elsewhere in the world. Our secondary and post-secondary
institutions can and will use this information to direct curriculum that will provide qualified
personnel for years to come.
The results of the PSAC studies, revealing $65 billion of Canada’s GDP is generated by the oilfield
services sector and $13 billion in revenues is generated abroad by Canadian-based oilfield service
companies, indicate the sector is the single largest services industry contributor to GDP. Our 800,000
employees, or 4.8 per cent of the Canadian workforce, were negatively impacted two years ago by
policy changes focused on exploration and production companies and their royalties, taxes and profits.
Awareness and education will hopefully ensure that PSAC and the oilfield services sector are consulted
prior to any significant changes in the future. E&P companies also recognize that the “Big Oil” label
has made it difficult, if not impossible, for them to garner public support for ongoing projects
without the support of the services sector. Working together, we can provide the direction,
funding and technological advancements required to maintain our status as the best-run and
most environmentally friendly oil industry in the world.
I have a great group of board members representing a wide variety of large and small service
companies all focused on championing the interests of our member companies in the pursuit of
new and exciting opportunities in this wonderful industry we call the “patch.” I encourage all of my
colleagues to get involved in committees and initiatives to make the most of their membership in the
vibrant leading edge association we know as PSAC.

Sincerely,

Brian Coston
PSAC Board Chair

4 PETROLEUM SERVICES NEWS

 WINTER 2010 VOL 10 • No. 3 Wellsite Supervision
The Petroleum Services Association of Canada is the national trade association and
representing the service, supply and manufacturing sectors within the upstream
petroleum industry. PSAC represents a diverse range of over 250 member companies, Project Management
employing more than 52,000 people and contracting almost exclusively to
oil and gas exploration and production companies. PSAC member companies • Drilling, Completion, Construction Supervision
represent over 80 per cent of the business volume generated in the petroleum
services industry. • Production Asset Management / Optimization
• Drilling, Completion, Production Engineering
PETROLEUM SERVICES ASSOCIATION OF CANADA • International and Offshore Supervision
1150 800 6TH AVENUE SW • Safety Programs and Audits
CALGARY, AB T2P 3G3
TEL: 403 264 4195
FAX: 403 263 7174

SENIOR VICE PRESIDENT: ELIZABETH AQUIN Suite 300 Iveagh House T 403 264-1197
EDITOR: HOLLY KERR 707, 7th Avenue S.W.
F 403 264-1584
Calgary, AB Canada
PETROLEUM SERVICES NEWS IS PUBLISHED FOR PSAC BY
T2P 3H6 www.pajakeng.com
VENTURE PUBLISHING INC.
10259-105 STREET,
EDMONTON, AB T5J 1E3
TEL: 780-990-0839 000PSN.Pajak_1-4_nBL.indd 1 11/11/10 1:21:26 PM
FAX: 780-425-4921
TOLL-FREE: 1-866-227-4276
CIRCULATION@VENTUREPUBLISHING.CA
This is what we do.
PUBLISHER: RUTH KELLY
ASSOCIATE PUBLISHER: JOYCE BYRNE
MANAGING EDITOR: STEPHANIE SPARKS
EDITORIAL INTERN: CAILYNN KLINGBELL
CONTRIBUTING WRITER: KRISTIANA INDRADAT
ART DIRECTOR: CHARLES BURKE
ASSISTANT ART DIRECTOR: COLIN SPENCE
PRODUCTION COORDINATOR: BETTY-LOU SMITH
DISTRIBUTION: JENNIFER KING
ACCOUNT EXECUTIVES: LESLIE HASTMAN, DENNIS MCCORMACK

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Phone: (403) 279-6615
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CONTENT MAY NOT BE REPRINTED OR REPRODUCED WITHOUT PERMISSION FROM PSAC. Experience, Quality & Service.

7320 30 Street S.E. Calgary, Alberta T2C 1W2

WWW.PSAC.CA 5
000PSN.Compass_1-4_nBL.indd 1 11/16/10 12:18:46 PM
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000PSN.PSACStars_1-2H_nBL.indd 1 11/19/10 9:30:07 AM

6 PETROLEUM SERVICES NEWS
 DRILLING FORECAST
On the Up and Up
9,000
FORECASTED NUMBER OF WELLS DRILLED FOR 2011

7,000

PSAC FORECASTS INCREASED OIL PATCH ACTIVITY FOR 2011

T
5,000

HE 2011 CANADIAN Drilling Activity Forecast, released

by the Petroleum Services Association of Canada (PSAC) on 3,000
November 1, 2010, forecasted a total of 12,250 wells drilled
(rig released) across Canada for 2011. This is more than the
expected fi nal tally of 11,350 for 2010.
1,000
“Drilling activity levels are increasing,” says Roger Soucy, outgoing
President of PSAC. “This past year has been a turnaround year for the
Alberta B.C. Saskatchewan Manitoba
industry. We are anticipating a 35 per cent increase in wells drilled over 7,915 (+5%) 700 (+1%) 3,050 (+16%) 550 (+10%)
2009 to 11,350. Although still a long way from the almost 25,000 wells of
2005, it represents a new beginning on a number of fronts.” forecasting increased drilling in oil areas like Saskatchewan and north-
PSAC estimates that on a provincial basis for 2011, Alberta will eastern Alberta. Gas pricing, on the other hand, remains relatively low
see 7,915 wells drilled, and 700 will be drilled in British Columbia, and we are not expecting any significant gas price turnaround in 2011.
representing an increase of five per cent in Alberta and an increase of This, combined with industry’s focus on shale gas drilling, has led us
one per cent in B.C. over expected 2010 drilling levels. Saskatchewan’s to forecast an 11 per cent drop in the conventional shallow gas drilling
drilling rate in 2011 will see a 16 per cent increase to 3,050 wells. In area of southeast Alberta.”
Manitoba, drilling levels will increase 10 per cent to 550 wells. PSAC is basing its 2011 Drilling Activity Forecast on average natural
“Oil and gas activity is predicated on price,” continues Soucy. “In gas prices of $4 per thousand cubic feet (AECO) and crude oil prices of
2011, oil prices will be adequate to sustain oil activity. As a result, we are US$80 per barrel (WTI).

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WWW.PSAC.CA 7
 IN THE FIELD News, events and activities in the industry

Goodbye OnStream,
Hello Petroleum
Services News
OUR QUARTERLY MAGAZINE, formerly known as
OnStream, is the official voice of PSAC. It has evolved since its
early days as a hand-typed newsletter to a tabloid-style printed
newsletter to the full-fledged industry magazine most of you are
probably familiar with today. This trade publication discusses issues of
importance to PSAC’s members, to the wider oil and gas community and
to government, with a mandate to increase awareness of salient industry
issues and to lobby for policy changes that will benefit PSAC’s members.

Results of Our Reader Survey

Having reached an exciting turning point with OnStream earlier this
year, we have made some changes. PSAC is pleased to announce a new
name, a new look and a new publisher for your member magazine. We
know you’ll be impressed with this first issue of Petroleum Services News,
bringing a strengthened focus on providing relevant, topical information WE ASKED, YOU ANSWERED and we listened! PSAC ran an
about the petroleum services sector. The new name is intended to OnStream reader survey over the summer months and received some terrific
reinforce the importance of the oilfield services sector for the economic feedback. Overall, you told us that you look for stories covering industry
health of Canada. With 800,000 employees and $9 billion in taxes, the issues, news and events and regulatory information; your main reason for
industry is vital to the country. Petroleum Services News will ensure reading the magazine is to better understand services sector issues; most
that government officials, regulators, producers and the financial of you pass the magazine on to others in your organization; and many of
community understand this. you would like to receive a digital version. All of this valuable information
In this inaugural issue of Petroleum Services News, we present the is helping us take the magazine, now Petroleum Services News, in new and
highlights of our recent study on the economic contributions of the oilfield exciting directions. Thank
services sector to the Canadian economy. In addition, you will still fi nd you for your thoughtful
the information you want on trends, issues, business practices and feedback.
technology. We will highlight the innovation of our members and keep And congratulations
you up to date on what your Association is doing for you. We are to Brenda Arbeau, an
very excited about the changes in the magazine and look forward to OnStream reader in New
your response. Brunswick, whose name
Venture Publishing Inc., the award-winning publisher of Alberta was drawn as the winner
Venture and Alberta Oil, is our new partner on the magazine. If you are of an Apple iPod Touch
interested in learning more about advertising opportunities in Petroleum in the “Help Us Rename
Services News, please contact an advertising account executive at Venture. OnStream” contest.
In Calgary, contact Dennis McCormack at 403-228-4337 ext. 222 or We received many
dmccormack@albertaoilmagazine.com. creative magazine name
In Edmonton, contact Leslie Hastman at 780-990-0839 ext. 246 or suggestions, and although
lhastman@albertaoilmagazine.com. You can also visit: the jury ultimately did
www.advertisewithventure.com. not choose any of the
submissions as the new
name, PSAC thanks all
entrants for their IPOD TOUCH WINNER: Brenda Arbeau’s daughter
participation. Megan holding her new prized possession

8 PETROLEUM SERVICES NEWS

 COMING EVENTS

PSAC STARS & SPURS Gala

Message from New
January 22, 2011, BMO Centre,
Stampede Park, Calgary, Alberta
www.psac.ca/events
PSAC President
PSAC Spring Conference FROM MECHANIC to a masters degree in business administration to
April 12 & 13, 2011 President and CEO of PSAC, that’s me in a nutshell and I can assure you MARK A. SALKELD
Red Deer, Alberta that I am truly looking forward to the challenges and opportunities ahead.
www.psac.ca/events I came to the Canadian oil patch roughly 30 years ago and not long after, like many in our
PSAC Mid-Year Luncheon industry, I experienced firsthand the negative effects of the National Energy Policy, and the first of
and Drilling Activity Forecast three or four setbacks for the Canadian oil and gas services sector that over the ensuing years I will
April 2011, Calgary, Alberta dedicate all efforts in helping to avoid as much as possible for the PSAC membership.
www.psac.ca/events Roger Soucy is leaving a spectacular 29-year legacy and my legacy will be based primarily on his
first words of advice to me as the incoming President and CEO: “We are here to serve the PSAC
Petroleum Safety Conference membership first and foremost.” I have taken these sage words to heart. In previous services sector slow-
May 4-6, 2011 downs, I was fortunate enough to remain in the patch. However, it was through overseas contracts that I
Banff, Alberta kept connected to an industry that I truly love and realized that the Canadian oil patch is second to none.
www.enform.ca/events I have worked off-shore Europe, western Siberia and Australia twice (west and east) and as interesting as it
was to work in these other areas, I must admit that there’s no place like home.
NEW MEMBERS I look forward to working with Brian Coston, PSAC’s incoming Chair, and give thanks to David Yager,
our outgoing Chair for the role he played in further instilling in me an excitement and enthusiasm to
REGULAR MEMBERS lead PSAC.
Black Diamond Group Ltd. Cheers,
DNV Energy Canada Mark A. Salkeld
E-MAC Corrosion Inc. PSAC President
North American Pipeline Inc.
Triple T Oilfield Services

ASSOCIATE MEMBERS
Ditch Hitch
PSAC and KPMG Announce New Scholarship
Integrated Risk Management
Techworks Solutions Providers Inc.
PSAC IS PLEASED to announce that a new honour someone who has put in a lot of time
scholarship is being made available to students and effort to support and grow an industry that
as part of the PSAC Education Fund. The PSAC is integral to Alberta and Canada.”
Roger Soucy Legacy Scholarship Funded by Travis Strube, PSAC’s Education Fund
For Roger’s a KPMG will be available to students starting in
2011. KPMG is providing $2,500 per year over the
Committee Chair, acknowledged KPMG’s
contribution, stating, “Students and the petroleum

Jolly Good next five years for this new scholarship.

Fellow…
ALL THE BEST to Roger Soucy as he
retires after 29 years at the helm of PSAC.
His retirement party was held on October 28
at the Sheraton Suites Eau Claire in Calgary.
The event was attended by colleagues,
co-workers and friends who toasted Roger
and wished him well. A brief trip through
photos of Roger’s legendary time at PSAC
was enjoyed by all.
For more photos of the festivities, visit
www.psac.ca/events.
It was created to honour Roger Soucy, who has
been President of PSAC since its founding in 1981
and who retired on November 1, 2010.
Rhys Renouf, National Energy Services Leader
at KPMG, says, “KPMG places a high value on
education. We work with a large number of clients
in the energy services sector and understand the
important role that Roger has played over the
past 29 years. We admire the work that Roger
and PSAC’s members have contributed toward
advancing education in western Canada over the
past nine years through the Education Fund.”
Renouf adds, “KPMG wanted to augment the
goals of the Education Fund in our own way and
acknowledge Roger’s dedication at the same
time. And so the PSAC Roger Soucy Legacy
Scholarship Funded by KPMG is a great way to
industry will both benefit from KPMG’s generous
support of the Education Fund.”
PSAC’s Education Fund is dedicated to
encourage learning and building the future work-
force of the oil and gas industry. Enabling students
to take advantage of educational opportunities is
the central aim of the fund; it helps ensure that
future generations will have the knowledge and
tools to thrive, and is just one example of how the
petroleum services industry supports Canadian
communities in which it works.
Since it was established in 2001, the Education
Fund has invested over $140,000 in the future
of Canadian students. Students pursuing a
certificate, diploma or degree at an accredited
post-secondary institution are eligible to apply for
the annual scholarships, which are made available
in January of each year.

WWW.PSAC.CA 9
 FROM THE
Drilling
Forecast ACTIVITY
PSAC’S AGM, 2011 DRILLING ACTIVITY FORECAST AND
INDUSTRY DINNER CONTINUE TO DRAW CROWDS
E ACH YEAR, PSAC’S ANNUAL GENERAL MEETING, Drilling
Activity Forecast and Industry Outlook Session
present outstanding opportunities for networking and
the gathering of valuable knowledge. This year began
with a media conference where PSAC officially released its 2011
Canadian Drilling Activity Forecast. Following the media
conference, this year’s AGM was well attended by PSAC
members as the association bid farewell to Roger Soucy after 29
years of steady leadership in his role as President. Members then
welcomed incoming President Mark Salkeld, who brings 30
years of industry experience to PSAC, including various roles
overseas with Nabors Drilling.
STAND AND DELIVER
Outgoing Chair David Yager
presents his Year in Review
10
Member company representatives reviewed
financial statements, elected new board members
and heard about PSAC’s accomplishments over
the past year from outgoing Chair for 2009-2010,
David Yager. The incoming Chair for 2010-2011,
Brian Coston, was introduced and welcomed.
More than 70 individuals and companies were
acknowledged for their enthusiastic commitment
and participation in PSAC initiatives and were
recognized with Distinguished Service Awards
and Long-Standing Member Awards.
2011 CANADIAN DRILLING ACTIVITY FORECAST
AND INDUSTRY OUTLOOK
It was standing room only at PSAC’s 2011
Canadian Drilling Activity Forecast as more than
300 people crowded into the presentation hall to
hear about the upcoming year and the expected
activity levels from four industry experts: Roger
Soucy; Dan Macdonald, Analyst, oilfield services,
RBC Capital Markets; Chris Theal, President and
CEO, Kootenay Capital Management Corp.; and
Kerry Guy, Manager of Natural Gas Advocacy
for the Canadian Association of Petroleum
Producers.
While there is no doubt the industry will
continue to face challenges ahead, overall the
news presented at this session was optimistic:
PETROLEUM SERVICES NEWS
 DAF AND AGM

INDUSTRY OUTLOOK
A crowd of 300 await the
perspectives of industry
experts on drilling activity
levels for 2011

• Drilling activity levels are “WITH PSAC’S HELP, A MORE WELL-INFORMED GOVERNMENT AND
increasing.
• The use of horizontal wells has been
PUBLIC WILL PROVIDE THE PLATFORM REQUIRED FOR ALL OF US
on the rise, with a record number of IN THE OIL AND GAS INDUSTRY TO GROW AND PROSPER IN THE
horizontal wells being drilled in WESTERN CANADIAN SEDIMENTARY BASIN.”
every province, and this trend is
– Brian Coston, 2010-2011 PSAC CHAIRMAN
expected to continue.
• Land sale activity is strong.
• Expect gas market rebalancing by mid-2011.
All speakers agreed that while we will not SHAKE ON IT
soon see the record 25,000 wells we saw in 2005,
Outgoing President Roger Soucy
the changes anticipated ahead represent a new
welcomes incoming President
beginning and optimism on many fronts. Mark Salkeld

INDUSTRY DINNER
PSAC hosted its annual industry dinner to a full
house of about 300 guests. The keynote speaker
was Robert Ineson, Senior Director with IHS
Cambridge Energy Research Associates (CERA).
Ineson is leader of CERA’s North American
natural gas team, and presented “The Shale
Gale and What it Means for the Canadian Gas

WWW.PSAC.CA 11
 DAF AND AGM
DS AWARD RECIPIENTS PSAC THANKS OUR SPONSORS FOR THEIR GENEROUS
AND ENTHUSIASTIC SUPPORT OF OUR EVENTS:
Heather Barratt Champion Technologies Ltd. Rachael Lusk Sanjel Corp.
Martin Blair Weatherford Canada Partnership Stacey Marr Weatherford Canada Partnership CANADIAN DRILLING ACTIVITY FORECAST SESSION
Clyde Bonnell National Oilwell Varco David McHattie Tenaris Global Services Inc. SPONSOR:
Jesse Clifford Stream-Flo Industries Ltd. Lucas Mezzano DYNAenergetics Canada Inc.
Todd den Engelsen Canyon Technical Services Ltd. Lorraine O’Donnell Nabors Canada
Harold Drok Flint Energy Services Ltd. Dave Osborne CEDA International Corp.
Lee Emond Import Tool Corp. Ltd. Brian Paisley Nabors Canada
MEDIA SPONSOR:
Brian Farmer Trojan Safety Service Gail Purdy National Oilwell Varco
Fred Farmer Halliburton Group Canada Mark Ravlich Essential Energy Services
Glen Gibling Halliburton Group Canada Rob Ryan Hallmark Tubulars Ltd.
Tracee Gillman Prudential Energy Services Stacy Saunders Kodiak Wireline Services Ltd.
Doug Klaning Halliburton Group Canada Warren Schick Sanjel Corp. INDUSTRY DINNER CO-SPONSORS:
Robert Knowles Weatherford Canada Partnership Greg Steffensen Newalta Corporation
Murray Lambkin Sanjel Corp. Travis Strube Topco Oilsite Products Ltd.
Garry Lane (ret.) Strike Energy Services Inc. Renee Vanderwolf National Oilwell Varco
Ron Logan Strike Energy Services Inc. Wendy Watson Trican Well Service Ltd.
Ross Whelan High Arctic Energy Services

Industry,” with reference to opportunities in the Western Canadian
Sedimentary Basin.
The annual dinner event was an opportunity for many to wish
Roger Soucy all the best as he retires from PSAC and moves on to new
endeavours. Brian Coston spoke about his intentions to help raise
awareness of opportunities for young people in the oilfield services
sector through PSAC’s Education Fund.
“Given the information uncovered this year by PSAC and the
Canadian Energy Research Institute about the economic contribution
of the oilfield services sector to the Canadian economy – that it is a $65-
billion industry employing some 800,000 people – I intend to lobby the
secondary and post-secondary institutions to raise the awareness of the
limitless opportunities our industry can provide to young people that
will hopefully interest them in becoming involved in what we know as
the best industry in the world.”
He adds, “With PSAC’s help, a more well-
informed government and public will provide
the platform required for all of us in the oil and
gas industry to grow and prosper in the Western
Canadian Sedimentary Basin.”
Coston also indicated the Association will
continue to work on strengthening relationships
between the producing sector, the services sector
and the public through PSAC’s Public Outreach
Program. He pointed out that, as always, PSAC
will continue to focus on members’ most pressing
concerns, which are labour, safety, technology
and the bottom line.

PSAC LONG STANDING MEMBERS 2011

25-YEAR ANNIVERSARY F I Oilfield Services Canada Piston Well Services Inc.
B.W. Rig Repair & Supply Columbia Oilfield Supply - A Division Powerstroke Well Control Ltd.
Sanjel Corp. of Precision Drilling Corp. Canyon Technical Services Ltd.
15-YEAR ANNIVERSARY LRG Catering - A Division of Precision Kos Oilfield Transportation
Arresting You Ltd. Drilling Corp. Northern Snubbing Inc.
Bri-Chem Supply Ltd. Newalta Corp. Smithbrook Mud Services Ltd.
Brine-Add Fluids Ltd. Rostel Industries - A Division of Summit Wireline Inc.
Fire Power Oilfield Fire Precision Drilling Corp. Tyco Valves & Controls Canada
Fighting Ltd. Shallow Well Enterprises Ltd. Inc.
Formula Powell LP Windward Resources Ltd. Strata Energy Services Inc.
Phoenix Technology Services LP Wood Group ESP (Canada) Ltd. Central Alberta Well Services Corp.
10-YEAR ANNIVERSARY Abandonrite, a Service By Nabors Iron Horse Energy Services
Canadian Special Service Ltd. Production Services Leader Energy Services Ltd.
Principle Services Inc. GTO (2002) Ltd. Strike Energy Services Inc.
Snubco Pressure Control Ltd. 5-YEAR ANNIVERSARY Stinger Wellhead Protection
Precision Drilling Corp. Raybo Well Control Ltd. (Canada) Inc.
Wesco Testing and Wireline Inc. Team Snubbing Services Inc. Tarpon Energy Services Ltd.

12 PETROLEUM SERVICES NEWS

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CELEBR ATING

YEARS

PETROLEUM SERVICES NEWS


Service
rvices
THE OIL AND GAS
ubular Solutions
IS
Big Business
PSAC MEMBERS KNEW IT – NOW THE REST OF CANADA KNOWS
Wellbore OF THE WHOPPING ECONOMIC CONTRIBUTIONS MADE BY THE
UPSTREAM OIL AND GAS SERVICES SECTOR
T
HE NUMBERS ARE IMPRESSIVE: A $65-billion
business, 800,000 employees, $9 billion
in annual taxes. Even better, the
Canadian oil and gas service, supply
and manufacturing sector can be proud
to call these numbers its own.
That’s right. A comprehensive study commissioned by
PSAC has quantified what many in the sector knew in their
gut – the oil and gas services sector is big business.
If we already knew it, why did we need the study? David
Yager, the 2009-2010 PSAC Chairman, and Chairman and
CEO of HSE Integrated Ltd., explains, “The energy policy
debate about the role of the oil and gas industry in Canada
is primarily focused on exploration and production
companies, including the royalties and taxes they pay and
the profits they reap. While many people understand the
essential role the services sector plays in supporting oil and
gas development, most do not realize the degree to which this
sector drives jobs, investment and economic opportunity.”
WWW.PSAC.CA
DAVID YAGER
PSAC CHAIR, 2009-10
SECTOR
And when governments and the public don’t
understand the services sector’s economic
contributions, they can easily make decisions that
are detrimental to everyone working in and with the
sector – and the industry as a whole. (Case in point:
the Alberta Royalty Review of 2007.)
So PSAC commissioned the Canadian Energy
Research Institute (CERI) and Mission Capital Inc. to
conduct the study and produce the resulting report,
“The Contributions of the Canadian Oil and Gas
Services Sector to the Canadian National Economy.”
The study’s services sector data incorporates all of the
products and services used in direct support
of exploration and production (E&P) activities,
including exploration, drilling, completion,
production, construction, processing, transportation,
logistics, manufacturing, maintenance and
fabrication.
In October 2010, PSAC proudly released the results
of the surprising study. Here’s a snapshot of the im-
pressive statistics that were uncovered.
15
 SERVICES SECTOR CONTRIBUTION TO GDP
In 2006 (the latest year of available data), the oil and gas services sector
contributed a whopping $65 billion to Canada’s gross domestic product
(GDP). That’s 4.8 per cent of Canada’s total GDP. Compare the service
sector’s $65 billion to the 2006 GDP of some other sectors:
• Oil and gas production: $86.6 billion
• Residential construction: $30.8 billion
• Automobile manufacturing: $17.6 billion
• Non-residential construction: $15.2 billion
• Agriculture: $9.0 billion
• Forestry: $6.5 billion
Out of Canada’s biggest industrial and resource sectors, only the producers
contribute more to Canada’s GDP than the oil and gas services sector.

SERVICES SECTOR CONTRIBUTION TO TAXES

That same year, the oil and gas services sector paid $9 billion in personal and
corporate taxes to federal and provincial governments. That’s 4.1 per cent of
all taxes paid that year.

SERVICES SECTOR CONTRIBUTION TO EMPLOYMENT

In 2006, the Canadian economy employed 16.5 million workers in total.
The oil and gas services sector employed 800,000 workers, or 4.8 per cent of
Canada’s total labour force.
These numbers are huge, but what’s even more impressive is that more
than half of the sector’s GDP contribution (52 per cent) and the sector’s
employment (54 per cent) comes from activities and industries located
throughout the country. That means that the sector’s benefits stretch further
than western Canada.
Now, let’s look at how this kind of data may have affected the outcome
of the Alberta Royalty Review. At the time, PSAC representatives were
invited into the conversation, but the panel’s primary focus was producer
profitability, oil prices and the impact on consumers. At that time, PSAC
did not have the oil and gas services sector numbers to broaden the debate.
“If we had walked in and said, ‘We’re a $65-billion-a-year industry with
800,000 workers paying $9 billion a year in taxes – and your decisions will
affect all of this immensely,’ it would have made a huge difference,” says
Yager, a self-described “data guy” who chose to spearhead the data project
when he became PSAC Chair in 2009.
Because Statistics Canada is the primary source for the report’s data, the
report is a “snapshot” of the sector in 2006, the last census year. As we all
recall, the oil and gas industry was experiencing its biggest boom ever that
year – quite a different scenario from today. “The odds are pretty good that
it’s shrunk since then,” agrees Yager, “but our sector’s contribution to the
overall economy remains substantive.”
Nisku Industrial Park, one of the largest industrial business parks in
western Canada, is a compelling example of the services sector’s economic
clout. Nisku is home to 400 businesses and 6,000 employees, over 70 per cent
of them in the oilfield services sector.
“We attract attention from around the world,” says Pat Klak, Executive
Director of the Leduc/Nisku Economic Development Region, home of the
Nisku Industrial Park. “China, the U.S., Europe – we’ve had interest from
those countries and many more because they know how much value our

16 PETROLEUM SERVICES NEWS

innovative oilfield services companies bring to Canada. With the
release of the PSAC report, now the rest of Canada will see how
important the industry is as well.”
The report makes it clear to policy makers that another
major component of the oil and gas business – beyond
PUBLIC ADDRESS
producers – needs to be factored into decisions. To
ensure decision makers are aware of the data, PSAC CERI Interim President Peter
executives have been actively delivering copies of Howard shares the results of
the report directly to elected officials, ever since it the PSAC report
was released. Ron Liepert, Alberta Energy Minister,
Thomas Lukaszuk, Alberta Employment and
Immigration Minister, and Christian Paradis, federal
Natural Resources Minister, all received the report
“FOR YEARS WE’VE BEEN TRYING HARD TO CONVINCE THE PEOPLE TO
from Elizabeth Aquin, PSAC’s Senior Vice President, GIVE US A SEAT AT THE TABLE OR INCLUDE US IN THE ENERGY POLICY
at events in Calgary this fall. “Delivering the report DEBATE. WITH THIS COMPELLING DEMONSTRATION OF ECONOMIC IMPACT,
in person allows us to convey key messages from this THE SERVICES SECTOR SHOULD NOW EXPECT A GREATER ROLE IN ANY
groundbreaking study and urge elected officials to
read the report in full,” explains Aquin.
DISCUSSIONS THAT IMPACT THE WELL-BEING OF THE ENERGY INDUSTRY.”
PSAC hopes government officials and policy – David Yager, 2009-2010 PSAC CHAIRMAN
makers will take the time to review the report and
understand its key message: the services sector is big when the economic downturn hit in 2008, the services sector – unlike
enough to deserve a separate voice from the E&P sector. Clearly, that’s some other sectors – didn’t demand a bailout. “What this industry does is
already happened in Alberta. On behalf of Minister Liepert, Tim Markle, motor along, in economic ups and downs and despite governments’
Public Affairs Officer for the Alberta Ministry of Energy, affirms, “The attempts to destroy it periodically with primitive tax and royalty policies,”
xoil and gas services sector industry is very important to Alberta. This says Yager.
document clearly shows how valuable it is.” Mark Salkeld, PSAC President, is immensely proud of the sector and its
That’s exactly the kind of response PSAC is looking for. PSAC knows its accomplishments. “I’ve worked in the oil and gas services sector my entire
lobbying efforts on behalf of its member companies will be much more career. If I had the chance to do it over, I wouldn’t change a thing. The
effective when governments and the public know about and value the full people in this sector are resilient, hard-working, smart and innovative.
economic contributions of the services sector. It’s no surprise to me that the sector’s employees and entrepreneurs have
Yager is also hoping that the report helps the sector gain a new
profile with the business community at large. Yager says that
certain jobs are “enshrined” in Canada’s culture, like the farmers,
fishers, automotive assembly workers, foresters and miners. But to his
dismay, oilfield services jobs don’t seem to have the same recognition.
“When people talk about the oil industry, all they talk about is big
profits. There doesn’t seem to be any cultural identification of this
enormous group of workers that does something valuable.” Greater
recognition of the important role played by the sector’s employees will
help companies recruit and retain the skilled workers they need now
and into the future.
“We need to be proud of what we’ve got,” states CERI’s Peter
Howard, the report’s author. Howard hopes the report will help
Canadians realize that “this is homegrown Canadian technology,
people and resources, developed over the last 50 years.”
Nisku Industrial Park’s Pat Klak agrees there’s plenty to be proud
of. “We live it every day, as we watch the sector continue to deliver
in good times and bad. Thousands of people work in the industry
because it’s good, important work. They’re proud of what they do and
they are a big piece of Alberta’s prosperity.”
No question, this is a sector to be reckoned with – one that clearly
holds its own among Canada’s heavy hitter industries. What’s more,

WWW.PSAC.CA 17
 been able to build a business that puts it in the league with Canada’s other
PARTNER REPORT ADDS UP SECTOR’S EXPORT CAPACITY
resource industry superpowers.”
A second report commissioned by PSAC focused on the PSAC is very pleased that its new report confirms what PSAC members
sector’s export capacity. PSAC wanted to understand the already knew: the services sector really does matter. Responsible for
sector’s export capacity because over the last six decades, approximately five per cent of all GDP and employment, and four per cent
Canadian advances in research and development, technology of all taxes, the sector makes significant economic contributions every
and equipment have strengthened the oil and gas industry year – significant enough to be considered when policies are being set and
from one that primarily imports its products to one that is opinions are being formed. PSAC hopes that with this data, the oil and gas
exporting to international markets. Alberta’s government has services sector will finally receive the attention it deserves.
long since pushed the idea of industrial diversification, and PSAC’s reports are available on the PSAC website at www.psac.ca.
David Yager, 2009-2010 PSAC Chairman, believes that it has
been achieved thanks to the efforts of the services sector.
For this report, called “PSAC Oil and Gas Support
Companies International Revenue Review,” Mission Capital Inc.
sought out information from the larger services companies
that are required to disclose their international revenues.
Data was tallied from the companies’ 2008 and 2009 annual
reports.
The report states that in 2009, 36 Canadian drilling and
well servicing, service and supply, and pipeline infrastructure
and processing companies earned $12.8 billion in revenue
outside of Canada. The international revenue of those
companies made up one-third (34 per cent) of their total
revenue. Interestingly, there was a 15 per cent drop in
revenue from 2008 to 2009, but only a nine per cent drop in
international revenue over the same period. That shows the
agility of the sector and its people to move to areas of highest
activity as required.
Overall, the report’s data proves that Canadian oil and gas
services sector people and technology are definitely
exportable. “We’re not just waiting around for oil companies to
decide they want to drill here,” says Yager. “We can go out and
work for other people in the world – and we do.”

18 PETROLEUM SERVICES NEWS


Are you TRULY protected?
T HERE IS MUCH CONFUSION IN THE
OIL AND GAS INDUSTRY ABOUT THE
true certification of the Protective Clothing worn by
workers. Almost all coveralls, shirts, pants and jackets
sold to hydrocarbon workers will have labels sewn
in the clothing stating that “This garment meets the
performance requirements of CGSB 155.20-2000
Workwear for Protection against Hydrocarbon Flash Fire”.
Do these garments actually meet this standard or don’t
they? That is the critical question!
Certification provides the assurance that all the
components including fabrics, thread and fastening
systems have been tested by accredited labs and have
met the criteria for protection against FlashFire as set out
in CGSB155.20. Only components that have had the lab
test reports verified by CGSB on an annual basis can be
deemed to be LISTED as certified.
This program extends to the Certification of Finished
Garments. Only finished garments that have been
examined by CGSB and found to meet the criteria
can bear the CGSB logo on the label. In order to
verify compliance CGSB performs an annual audit of
manufacturers that have actually submitted garments for
verification of compliance.
MWG Apparel Corp of Winnipeg is the ONLY manu-
facturer of Flame Resistant clothing that is entitled to
display the CGSB Certified label in our clothing.
If at any time it is found that the components or the
finished garments do not pass subsequent testing, CGSB
can and will pull the certification.
There are similar certification programs for hard hats,
work boots and other safety products that the majority of
For more information about CGSB certification and how to protect yourself
and your fellow workers, please contact:
info@mwgapparel.com or call (204) 786-0246
WWW>PSAC>CA
MWGAPPAREL
ADVERTISING FEATURE
manufacturers of these products certify their products.
At present MWG Apparel is the only certified
manufacturer of GARMENTS for Protection from FlashFire.
For additional information please see the CGSB website
at: http://www.tpsgc-pwgsc.gc.ca/cgsb/prgsrv/certprg/
program/c155_020-2000_index-e.html
In comparison, other garment manufacturers state that
their clothing “Meet the performance requirements
of CGSB155.20” There has been no verification of this
claim and the only person declaring that the garment
meets the standard is the person sewing the label into
the garment, with NO third party verification. These other
garment manufacturers merely rely on the fact that fabric
mills test their fabric in accordance with CGSB criteria
and then leave you the purchaser and wearer of
protective clothing to decide if the garment meets the
standard or not.
DO YOU HAVE THE KNOWLEDGE
TO MAKE THIS DECISION?
Bill C-45 states that “Every one who undertakes, or has
the authority, to direct how another person does work or
performs a task is under a legal duty to take reasonable
steps to prevent bodily harm to that person, or any other
person, arising from that work or task.” As a responsible
employer by supplying your workers with CERTIFIED
garments you will have demonstrated due diligence in
the unfortunate event of your workers being exposed to
a FlashFire incident.
Look for this Logo.
If the garment does not display
this symbol, then it is NOT fully certified.
CORP.
19
 Head
OF THE

Class
PSAC EDUCATION FUND ANNOUNCES SCHOLARSHIP
AND GRANT WINNERS

T
HE PSAC EDUCATION FUND awarded 10
students and 10 schools $1,000 each for a
total of $20,000 in scholarships and grants
this year. PSAC is pleased that these
annual awards will enable student recipients
to pursue their educational goals and help
small schools in western Canadian communities enhance their
learning programs.
Since being established in 2001, the Fund has invested over $140,000 in
the futures of Canadian students. Students pursuing a certificate, diploma or
degree at an accredited post-secondary institution are eligible to apply for the
scholarships. Proposals for grant funding are submitted by schools aiming to
enhance their learning opportunities in math, sciences or trades programs.
The goal of the program is to build awareness of and interest in careers in
the petroleum services industry. By offering financial support through the
PSAC Education Fund, the petroleum services industry helps to develop and
support future leaders in a tangible way. PSAC and its member companies are
committed to encouraging learning and building the future workforce.
Enabling students to take advantage of existing opportunities and helping
schools to create new ones is the central aim of the
PSAC Education Fund. The Fund helps ensure that
the upcoming generation will have the knowledge
and tools to thrive, and is just one example of
how the petroleum services industry supports the
Canadian communities in which it works.
Scholarship recipients were determined this
year through a random draw process while
grant recipients were selected by a committee
according to a predetermined set of criteria.
More information can be found starting in January
at www.psac.ca/community.
SCHOLARSHIPS
A total of 539 eligible applications were received
for PSAC scholarships in 2010. Applications
covered a variety of fields, including engineering,
medicine, technology, business, education, trades
and much more. This year’s recipients of $1,000
scholarships were:

MEMBER COMPANY SCHOLARSHIP RECIPIENTS

STUDENT NAME COMPANY AFFILIATION SCHOOL AREA OF STUDY

Yulia Abramovich Enerflex Ltd. University of Calgary Psychology
Stefano Arcovio Calfrac Well Services Ltd. Queen’s University Engineering
Angela Misuraca Sanjel Corporation University of Calgary Communications
Reto Mueller Master Flo Valve Inc. University of Alberta Engineering
Adam Thomson Weatherford Canada Partnership University of Alberta Engineering

20 PETROLEUM SERVICES NEWS

 PUBLIC SCHOLARSHIP RECIPIENTS

STUDENT NAME SCHOOL AREA OF STUDY

Andrea Buchfink University of Alberta Engineering
Chloe Curtis Northwest Community College Nursing
Stephanie Eely Langara College Nursing
Steven Hackman University of Alberta Engineering
Colleen Wilson Queen’s University Engineering

PUBLIC SCHOLARSHIP RECIPIENTS

SCHOOL GRANTS
A total of 39 eligible applications were received for school grants in 2010. All of the schools are located in communities with populations of 30,000 or less
and have limited resources available for science, math and trades programs. The 10 schools that received PSAC Education Fund grants of $1,000 this year were:
SCHOOL PROJECT TOWN/PROVINCE
Atikameg School Purchase of educational rockets and launch pads Atikameg, AB
Beiseker Community School Purchase of TIG welder Beiseker, AB
Eagle Butte High School Purchase of Vernier probeware Dunmore, AB
Forestburg School Purchase of lab equipment, chemicals and model kits Forestburg, AB
Holy Spirit Catholic School Purchase of robotics equipment Devon, AB
Jessie Duncan Elementary School Undertake job shadow/oil & gas job bank project Penhold, AB
Rimbey Junior/Senior High School Purchase of double reel cable holder for welder Rimbey, AB
Saanich Adult Education Centre Sponsored science fair Brentwood Bay, BC
SPIDER Distributed Learning Sponsored field trip to Port of Vancouver petroleum facilities Gibsons, BC
Success School Purchase of measurement sensors and galvanometer Success, SK

Leaders in Safety and Training

for the Oil and Gas Industry
Enform is the safety association for Canada’s upstream
oil and gas industry. Established by industry for industry,
Enform helps companies achieve their safety goals by
promoting shared safety practices and by providing:
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 ffectivetraining,includingcoursesongeneral
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Email info @ enform.ca Calgary 403.516.8000 Toll-free 1.800.667.5557 www.enform.ca

000PSN.Enform_1-2H_nBL.indd 1 11/10/10 3:32:49 PM

WWW.PSAC.CA 21
 Psac
REACHES
Out
PSAC REACHES OUT ON BEHALF OF THE SERVICES SECTOR
IN ITS PUBLIC OUTREACH PROGRAM. HERE ARE THE LATEST
DEVELOPMENTS
O
UR PUBLIC OUTREACH
Program has gained
significant momentum
since we last provided an
update in the summer
issue of OnStream.
In June, we began distributing PatchWorks,
our series of monthly articles that provide
information, facts and statistics to industry
employees and the public. Since June, we
have provided articles on gasoline and crude
oil pricing, a two-part explanation of how the
royalty process works and an issue devoted to the
economic contributions of the oil and gas services
sector to the Canadian economy. Feedback
suggests that the articles are well-read and passed
along to many others. PSAC’s public website,
which is located at www.oilandgasinfo.ca,
is t he home for PatchWorks, along w ith
additional information about the oil and gas
industry. PatchWorks can be found at
www.oilandgasinfo.ca/patchworks.
22
COMMUNITY PARTNERS
PSAC has successfully gained the commitment of all the major oil and gas
industry associations to an industry-wide, “in-the-field” courtesy program
called Community Partners. The program was launched at a media event
on October 22 in Calgary with attendance by media representatives
and companies from various sectors publicly signing on to the program.
Plans to publicly launch the program in British Columbia and
Saskatchewan are underway. The program focuses worker attention on
local concerns related to oil and gas activity – dust, gates, garbage, noise,
driving safety and traffic. It also reminds oil and gas workers and
contractors to communicate openly with area residents, and treat
them and theirproperty with respect.
A collection of tools that will help remind employees and contractors
about respectful behaviour has also been produced. A one-minute catchy
jingle can be found on www.communitypartners.ca and also on
YouTube. Collateral items including vehicle air fresheners, windshield
decals, tailgate magnets and hard hat stickers are also available for
companies to order and distribute to their employees. Although the
Community Partners program was only developed in the latter half of
2010, a growing number of companies from various sectors have already
agreed to its guiding principles. These leading companies are recognized
on the program’s website at www.communitypartners.ca.
PETROLEUM SERVICES NEWS
 PSAC IN ACTION Keeping the services sector front and centre
Lights, Camera, Action
BRINGING YOU THE LATEST DEVELOPMENTS ON PSAC
ACTIVITIES ON BEHALF OF ITS MEMBERS AND THE
SERVICES SECTOR
S INCE THE LAST ISSUE of OnStream and the transition into
the new Petroleum Services News, PSAC has remained active
on behalf of the services sector. PSAC in Action rounds up the
latest happenings, from the Education Fund Golf Classic to
the presentation Wildrose Party leader Danielle Smith gave to the Board
of Directors in June. We’ve been working with CAPP, addressing privacy
concerns and getting members ready for the pre-drilling season.
Here’s what we’ve been up to.
REGULATORY ENHANCEMENT PROJECT (REP)
PSAC has been working closely with the Canadian Association of
Petroleum Producers (CAPP) on the Regulatory Enhancement Project
(REP), an important initiative by the Government of Alberta to further
address the competitiveness of Alberta’s oil and gas industry. The REP
came out of the royalty review process whereby the provincial
government made a commitment to renew the policy and regulatory
oversight system to ensure Alberta remains competitive globally.
Industry has made recommendations to increase competitiveness
and help the government make strategic changes to optimize Alberta’s
regulatory system. These changes include developing a highly integrated
single regulatory delivery structure, which would create a single window
approach for development approval of projects. The next step in the
process is to address particular industry issues.
PSAC MEETS WITH CALGARY CAUCUS AND ALBERTA CABINET
As part of an industry-wide delegation, PSAC met with the Calgary
Caucus in April and the Alberta Cabinet in May to update government
representatives about the status of the industry, including the major trends,
land sales, rig counts, jobs, seismic activity, royalties and fiscal regime. The
group also discussed the status of the Regulatory Enhancement Project
and the Alberta is Energy initiative, a joint industry campaign designed to
improve public opinion about the oil and gas industry.
WILDROSE PARTY LEADER DANIELLE SMITH PRESENTS TO THE PSAC BOARD OF DIRECTORS
In June, PSAC’s Board of Directors heard from Danielle Smith, leader
of the Wildrose Alliance Party, who spoke about the Party’s
understanding of the challenges to the industry, including the reputation
of the oil sands, the potential impacts of the Land Use Framework (Bill
36), the timing of regulatory approvals and the development of a natural
gas strategy.
WWW.PSAC.CA
STRATEGIZING FOR FUTURE GROWTH:
Gord McCormack from Hyduke Energy Services Inc. presents at the Investment Symposium in June
PETROLEUM SERVICES INVESTMENT SYMPOSIUM
In June, PSAC hosted its 17th annual Petroleum Services Investment
Symposium in Calgary. A key message delivered at the symposium was that
while the Western Canadian Sedimentary Basin activity is recovering this
year thanks to higher oil prices and technologies opening up new plays,
there is still a surplus of equipment built during the boom years, with the
exception of fracturing units, which are seeing very strong demand and
rapid expansion. Senior officials from 28 publicly traded PSAC member
companies presented their growth strategies to key members of the
North American financial community, including buyside analysts,
institutional investors, diversified fund managers, portfolio
managers and petroleum services industry sellside analysts. The two-day
event was well supported by sponsors and industry moderators, and was
opened up to private investors on day two of the Symposium.
PRE-DRILLING SEASON MEETING
Approximately 65 member company representatives attended PSAC’s
11th annual Pre-Drilling Season Meeting in Fort St. John, B.C., on
September 15, 2010. Presentations were made by WorkSafeBC, the local
detachment of the RCMP, Commercial Vehicle Safety and Enforcement
(CVSE) and the BC Safety Authority, and included data revealing that
the oil and gas services sector enjoys some of the lowest disabling injury
and fatality rates in the province, but on the flip side, the sector has one
of the highest short-term disability rates amongst all industries
operating in B.C., posing a significant cost to the industry. The RCMP
emphasized the need for employers to monitor transportation issues
such as high speed, seatbelt usage, alcohol consumption and the proper
use of winter tires and their collective relation to frequency and
23
TWO COUPLES,
ONE GOAL:
INSPIRING OTHERS.

SAIT Polytechnic thanks Connie and Murray Cobbe and Barbara and David Johnson for
their leadership and generosity. Both couples have donated $5 million each to education,
through the Promising Futures™ Campaign in support of SAIT’s Trades and Technology
Complex. In recognition of their gifts, the new home of the MacPhail School of Energy
will be named the Johnson – Cobbe Energy Centre. Both Mr. Cobbe and Mr. Johnson are
graduates of SAIT’s Petroleum Engineering Technology Program, and their combined
contribution of $10 million will help create a centre of inspiration and transform the lives
of many future students.

SAIT’s new Trades and Technology Complex will engage up to 8,100 more full and part-time
students each year in hands-on, career-oriented training. It will also turn Calgary into a
hub of learning and contribute significantly to our economy — thanks to the generosity of
the Johnsons and Cobbes.

sait-promising-futures.ca
PSAC IN ACTION: Keeping the services sector front and centre
Education Fund Golf Classic
severity of motor vehicle accidents. One of the CVSE’s areas of
concern is the high number of mechanical deficiencies found on
routine inspections of commercial vehicles. CVSE is initiating a pilot
project giving officers the authority to remove and withhold a licence
plate until the vehicle has been deemed roadworthy.
PSAC’S 2010 EDUCATION FUND GOLF CLASSIC RAISED $46,000 FOR EDUCATION
A crowd of 144 oilpatch employees and guests took to the fairways on
July 22 in Calgary for a day of fundraising and fun, generating $46,000
for education at the annual PSAC Education Fund Golf Classic.
The event, which took place at the Calgary Elks Lodge and Golf Club,
boasted a number of highlights including a special presentation to
guests of honour Stefano Arcovio, an engineering student at Queen’s
University, and Angela Misuraca, a communications student at the
University of Calgary. As a result of the tournament proceeds,
each student was awarded a $1,000 scholarship towards their post-
secondary studies. Arcovio and Misuraca are two of 10 students awarded
the scholarships through member companies as part of PSAC’s 2010
Education Fund. Both students plan to work in the oil and gas industry
upon completion of their studies. The fund also awarded $1,000 grants
to 10 schools in small western Canadian communities this year to
enhance their math, science and technology programs. The mandate of
the PSAC Education Fund is to create awareness of career opportuni-
ties in the petroleum industry and help to develop the future workforce.
(More detail in article on p.20)
PRIVACY CONCERNS ADDRESSED
In response to concerns raised by our members, PSAC has lodged a
complaint with the Alberta Information and Privacy Commissioner
relating to data being collected by ISNetworld on behalf of oil and gas
companies. The complaint relates to the collection, use and disclosure of
both contractor company fi nancial information and employees’ personal
information; safeguarding of personal information; potential for the
wider dissemination of personal information provided by Canadians
WWW.PSAC.CA
GROUNDBREAKING STUDY:
David Yager, PSAC Chair and Peter Howard of CERI present the findings of the impact of oilfield
services on the Canadian economy at a press conference
under the U.S. Patriot Act; and protection regarding access to personal
information collected by ISNetworld. The Privacy Commissioner is
currently conducting an investigation of the PSAC complaint, and PSAC
will advise members regarding progress on this issue.
MEMBER LUNCHEON
PSAC hosted 55 member company representatives at a member luncheon
in Fort St. John, B.C., following its 11th annual Pre-Drilling Season
Meeting. PSAC provided an update on the Association’s activities and
member services.
ALBERTA IS ENERGY PRESENTATION IN LLOYDMINSTER
As part of PSAC’s commitment to partner with the other trade
associations to ensure the industry is unified in countering negative press,
PSAC and CAPP made a presentation to an audience of 70 members of the
Chamber of Commerce in Lloydminster, Alberta, in August. They
presented the Alberta is Energy message, part of a joint industry campaign
designed to improve public opinion about the oil and gas industry. More
information on the campaign can be found at www.albertaisenergy.ca.
PSAC ANNOUNCES THE RESULTS OF TWO GROUNDBREAKING STUDIES ON THE ECONOMIC
IMPACT OF OIL AND GAS SERVICES
On October 5, PSAC announced to a sold-out crowd at Calgary’s Westin
Hotel the results of two studies into the economic impact of oil and gas
services on the Canadian economy. PSAC commissioned the Canadian
Energy Research Institute (CERI) and Mission Capital Inc. to undertake
these studies to create a better understanding among governments,
the public and the media of the significant fi nancial and employment
role this industry plays across Canada. The results indicate that
in 2006 the oil and gas services sector contributed $ 65 billion
to Canada’s gross domestic product, employed 800,000 workers
across Canada and contributed $9 billion in personal and corporate
taxes to federal and provincial governments. More information about
the project can be found on p.15 or at www.psac.ca.
25
 BUSINESS matters
Ramping Up Recruitment
how should emPloyers aPProach hiring efforts
following recent layoffs?
by CaIlyNN KlINgBEIl
A s the uncertainty and volatility
associated with last year’s financial
crisis continues to fade, many
petroleum services companies are
experiencing signs of post-recession recovery and
increasing staff accordingly. But with large numbers
of layoffs still very much in recent memory, staff
recruitment is an area teeming with challenges. We
talked to two industry sources about recruitment
issues and found that alongside the challenges,
many new opportunities also exist.
“Broadly speaking, it’s a mixed bag,” says
Cheryl Knight, Executive Director and CEO of the
Petroleum Human Resources Council of Canada,
describing the hiring climate in the coming year.
While gas prices are still relatively flat, a fact that
will likely continue to affect the activity in the
services sector, Knight notes hiring is happening in
specific areas. Unconventional gas opportunities
in British Columbia and Alberta using new
equipment and technology are creating a demand
for employees with a specialized skill set. The more
buoyant price of oil is making business very busy
in Saskatchewan and in the oil sands, where in situ
development will increasingly involve the services
sector. Overall, Knight says employment is ramping
up, though not yet reaching the levels seen in 2006
through to 2008. “It’s going [to be] more gradual,”
she says of the hiring climate.
Increasing a workforce right now opens up
myriad challenges, some brand new and others that
companies have likely seen before. Knight notes that
despite the remote locations or seasonal work of
many services companies, many are getting better
at diversifying the geographic areas they do business
in to provide more stable work to their employees.
An increasing problem surrounding training
employees also exists, as many skilled people were
lost during the recession. “Green hands create
challenges,” says Knight, adding it can be costly for
companies, especially smaller companies, to train
new employees in very specialized skill sets.
26
Kelly Burake, Logistics Manager at DMK Drilling Fluids Ltd., has witnessed
hiring challenges firsthand in recent months. While DMK’s Grande Prairie-
based operations are back up to nearly 40 employees, the company was down
to about 25 employees following layoffs in the spring of 2009. Restructuring
the drilling fluid service and supply business has produced positive results
and accompanying growth, but the recent recession is still very much on
everyone’s mind.
Job security is more of a factor than it was in the past, says Burake. “When
we were in the peak of a boom cycle, people were mostly interested in money.
Now they’re also interested in job security.” Burake and DMK also have to
contend with concerns that business is ramping up too quickly. “It’s something
management stays on top of. [We are] trying to prevent anything negative
happening in terms of growth,” says Burake.
So what can a company looking to hire do in these challenging times? “Right
now we are in an environment where there are available supply sources from
other sectors,” says Knight. Looking at construction, forestry and other sectors
that are still in decline can create opportunities for hiring new staff that possess
transferable skills.
Burake has seen results recruiting staff for DMK using referrals, rather than
the company’s previous strategy of actively recruiting. DMK aims to recruit
local people with an industry background, utilizing referrals from organizations
DMK works with and other sources.
Knight also warns of retirements that will hit the industry hard from 2013
onwards. She advises companies to broaden and diversify their recruiting
strategies now, looking not just at youth but other sources of supply. Along with
skilled workers from other sectors that have transferable skills, Knight suggests
tapping into the pool of skilled immigrants already in Canada. “When you lose
retirees, you’re losing very seasoned people, so to simply focus on hiring young
people means you’re going to have productivity and safety issues. We need to
focus on skilled sources of supply.”
Petroleum services news
 SOLUTIONS FOR EMPLOYERS RAMPING UP RECRUITMENT

Justify your hiring actions
Current employees who survived the layoffs may be extra sensitive
to new hires. Employers need to be aware of current employee concerns
that business is ramping up too quickly and new hires are not
justified. Kelly Burake of DMK Drilling says that by fostering a strong
organizational culture and keeping current employees in full
understanding of hiring practices, new people are openly welcomed
and accepted into the organization.
Shift your recruiting strategies
Recruitment strategies that worked before the recession may not show the
same results today. While DMK relied on active recruiting in previous
years, the company has shifted its strategies and is experiencing success
recruiting through referrals. DMK has also reacted to shifting employee
values. While money and pay was a defining factor in the past, Burake
says employees now seem to value job security above other benefits.
Tap into new markets
When looking for additional sources of labour, Cheryl Knight of the
Petroleum Human Resources Council of Canada suggests tapping into
downsized workers from other industries that are accustomed to similar
work, environments and possess transferable skills. The pool of skilled
immigrants already in Canada is another strong source of workers.
Profile yourself
Companies should remember to profile themselves not only to their
customers but also to future employees, says Knight. By having a website
where potential employees can see what programs and benefits the
company offers, the company can successfully profile itself as an
employer of choice.
Promote the positives
The seasonal nature of many services companies’ work and their
operations in remote locations continues to create attraction issues for
companies in the sector. According to a report by the Petroleum
Human Resources Council of Canada, there is a real need and
opportunity to promote the positives associated with a career in the
sector. Employers can highlight the opportunity to work with
high-tech equipment and cutting-edge science, the variety of
work arrangements, solid compensation and benefits available, and
the career opportunities within the sector, across the whole upstream
industry and internationally.

A UNIQUE OPPORTUNITY TO REACH BUSINESS

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 MEMBER PROFILE
The New Standard
EDMONTON COMPANY’S INNOVATIVE SYSTEM LESSENS
THE DANGERS OF FUEL MONITORING
BY KRISTIANA INDRADAT
E
NVIRONMENTAL REFUELLING
Systems Inc.’s modular hydraulic
fracturing (“frac”) fuel delivery system,
Frac Shack, has already been called an
industry standard. The self-contained unit that
removes workers from the hazards of working on a
hot frac pad and minimizes the risk of fuel seeping
into the environment is equipped with a patent-
pending, real-time fuel monitoring system – a
system that allows operators to see what’s
happening in frac pumper saddle tanks without
exposing themselves to danger.
Todd Van Vliet, President of the Edmonton-
based fuel management company says, “Nobody
has to worry about who is there and whether the
pumpers are getting low on fuel or whether they
are going to overfill them. It just takes the whole
concern over fuel right out of the equation so the
engineers and operators can then focus on just
getting the job done.”
SAFER CONDITIONS:
An overview shot of Nexen’s
massive Horn River Basin play,
Dilly Creek, where the Frac Shack
is used
28
With explosions and fires having been reported in areas such as the
Marcellus Shale in the northeastern United States, absolute safety and
precision is top priority for Environmental Refuelling Systems. Overfilling
tanks raises the likelihood of dropping diesel fuel on the ground or in the worst
case, Van Vliet says, spraying diesel fuel onto hot engines.
Up-to-the-minute data about fuel levels in the saddle tanks of each frac
pumper is transmitted to the control room in the Frac Shack via a wireless
reader on each of the refuelling heads. Audible and visual cues alert operators
when fuel levels are low or when fuel tanks are full. In the latter case,
automatic valves are programmed to close, removing the possibility of
overfilling the tanks.
A visit to operations in the Horn River Basin shale play in the summer
of 2009 prompted Van Vliet and his brother Scott, who is Executive Vice
President of the company, along with colleague Glen Brotzel to develop the frac
fuelling delivery system. “We’ve spent a lot of time and effort to try and make
it right,” says Van Vliet, who adds that many safeguards have been added to the
system to minimize risks as much as possible.
Frac pumpers often operate around the clock, pumping at 15,000 pounds per
square inch of fracturing fluid at their full capacity, says Van Vliet.
“If they’re pumping hard and one piece of pump gives way or there’s a hole
in something, somebody’s going to be seriously injured,” he says. Sometimes
PETROLEUM SERVICES NEWS
 FRAC SHACK SITES:
The company’s operating units at
a lease near Dawson Creek (left)
and at the Dilly Creek Site (right)

up to 30 frac pumpers are lined up so closely that walking in between them is
near impossible. Add to that mix of challenges the searing 300-degree Celsius
heat generated by the locomotive engine and the frac pumper it powers. The
environment is aptly called a hot zone.
Yet, Van Vliet saw workers endure those conditions in order to refill fuel
tanks or troubleshoot problems.
“They were doing a great job, but none of us want our people there,” he says.
“I was horrified.”
In addition to safety benefits, the “plug and play” feature of the fuel head and
the reduced downtime in refuelling pumper tanks has produced efficiencies in
the process that the company hadn’t expected.
“The theory is that when we pull into a site, it doesn’t take us long to rig up
because all we do is put on the right adaptor for the client’s system, throw on the
fuel heads and you’re ready to go,” says Van Vliet.
“When we worked with Nexen at their Dilly Creek operation, that frac took
them eight or nine days less than they had scheduled and one of the reasons
is they didn’t have to hold up any of the fracing
waiting for refuelling,” he adds.
The real-time monitoring system might help
avoid a costly bill as well. Van Vliet says a ruined
injector caused by a frac pumper running out of
fuel could set a company back $30,000 to $90,000
in repairs, never mind the economic damage of
possibly losing a frac completely.
Currently the company has three operating
units that have returned from fracs north of Fort
Nelson and south of Dawson Creek. “There are a
few things we can do to make them more efficient
and a little more comfortable for the operator,
but we’re really happy with the performance and
everyone that we’ve dealt with has been really
pleased too.”

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WWW.PSAC.CA 29
 COMMUNITY MATTERS
First
SAFETY
FORMER COMPETITOR RETURNS TO WINTER
GAMES WITH TEAM OF STAFF
A
MEANINGFUL EXPERIENCE that felt good – that is how Tanya
Janssens-Brewster sums up her company’s volunteer
work at the 21st Arctic Winter Games hosted by Grande
Prairie in March 2010. “It was really exciting and there
was just so much energy at the Games,” she adds.
Janssens-Brewster, President of 911 Industrial Response Inc.,
and 15 of her employees provided medical care to attendees,
including athletes, coaches and the public, for more than 30 shifts
throughout the week-long Winter Games. Such work is nothing
new for 911 Industrial, a Grande Prairie-based company that
provides emergency medical care for industrial sites and
frequently volunteers its services at events in the community.
The Games are a biennial sports competition for youth athletes
from around the globe living in communities north of the 55th
parallel. Janssens-Brewster was herself a former Artic Winter
30
IN MARCH, THE TEAM OF 911 INDUSTRIAL RESPONSE
PROVIDED MEDICAL CARE AT THE ARCTIC WINTER GAMES
IN GRANDE PRAIRIE
BY CAILYNN KLINGBEIL
Games competitor, participating in figure skating when she was
13 and the Games were held in the Yukon. She understands first-
hand the opportunity the Games present for youth living in the
world’s northern communities, many of whom she says might not
otherwise leave their home countries, let alone visit Canada. The
ability to be a part of the Games “on the other end” was behind
Janssens-Brewster’s motivation for volunteering her company’s
services. “They couldn’t have the Games without medical
coverage,” she says.
911 Industrial employees enjoyed the opportunity to give back
to their community and be a part of the celebration of sport,
social exchange and cultures. “Most of the people who work here
are involved in sports,” says Janssens-Brewster. “So to be able to
help out those kids and provide a safe environment for them to
compete in – it felt good.”
PETROLEUM SERVICES NEWS
 COMPANIES THAT
RESPOND
NEED COMPANIES THAT
RESPOND
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building
our future

The world is watching Alberta.

We are the kind of place that can attract and hold investment – whether it be time, money or human capital.
To realize our potential we need to remain competitive.

Being competitive means jobs for Albertans – not only in oil and gas production and construction, but also
hotels, restaurants, accounting firms, transportation companies and more.

Every dollar invested in the province’s oil and gas industry creates three dollars of value for Alberta’s economy.

Alberta is Energy is supported by several Alberta business associations, many of which are focused on the oil and gas sector.

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