PSAC Petroleum Service News Fall 2013

PSAC member company volunteers essential to rebuilding

A FLOOD of suppOrt

FALL 2013

PSAC golf tourney tees up scholarships for students

2013 Drilling Activity Forecast Update

Pason field workers help in missing children search

PM#40020055

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

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Located just north of Calgary in Rocky View County,Balzac offers tremendous advantages to businesses and industrieslooking for relocation opportunities.

Alberta’s oil and gas sector is the lifeblood of the Alberta economy.When it flourishes, every citizen in Alberta benefits. Rocky View County plays a key role in this success story by facilitating growthand development of this vital industry. Rocky View has become a prime location for new business in Alberta.

Take advantage of the Rocky View County success story.Take your operation to the next level. Take it to Balzac.

www.thinkingalberta.com

Cultivating Successes

Rocky View_PrintReady.pdf 7/23/13 4:16:59 PM

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000PSN-PHR-FP.indd 1 8/9/13 10:39:34 AM

Located just north of Calgary in Rocky View County,Balzac offers tremendous advantages to businesses and industrieslooking for relocation opportunities.

Alberta’s oil and gas sector is the lifeblood of the Alberta economy.When it flourishes, every citizen in Alberta benefits. Rocky View County plays a key role in this success story by facilitating growthand development of this vital industry. Rocky View has become a prime location for new business in Alberta.

Take advantage of the Rocky View County success story.Take your operation to the next level. Take it to Balzac.

www.thinkingalberta.com

Cultivating Successes

000PSN-RockyViewCounty-FP.indd 1 7/23/13 4:17:33 PMPSAC_Fall _2013-p02-03.indd 3 8/22/13 9:01:23 AM

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corporatetraining

Your Plan for Success!We are committed to supporting the growth of Alberta business by providing innovative training programs specific to your industry. By supplying you with the right training, we give you the essential tools to grow your workforce, strengthen partnerships in the industry, and expand your business.

We will work with you to identify your training needs and recommend effective and affordable training solutions, customized to your exact requirements. You will receive:

Rodney Holt at 403.342.3550

www.rdc.ab.ca/corporate_training

immediate innovative impactful

000PSN-RedDeerCollege-FP.indd 1 7/31/13 10:31:27 AMPSAC_Fall _2013-p04-05.indd 4 8/22/13 9:02:15 AM

WWW.PSAC.CA �

Features

Departments69

11

22

25

28

30

COVE

R

F A L L 2 0 1 3

PitChing in PSAC members and staff on the front

lines in post-flood Alberta clean-up

EduCAtiOn At thE FOREA golf tourney drives up scholarship

fund for petroleum services and

trade sectors

13

20

MESSAgE FROM thE PRESidEnt

in thE FiELd News, notes and events from the industry

2013 dRiLLing ACtiVity FORECASt uPdAtE Slight spike over 2012 levels

PSAC in ACtiOn Advocacy initiatives from PSAC

BuSinESS MAttERSInnovate Calgary helps oil and gas,

hi-tech sector companies grow

MEMBER PROFiLEPason Systems signs on to

help locate missing children

A LOOk At LEAdERShiPUp close and personal with PSAC board

members Mike Edmonds and Lucas Mezzano

13

WWW.PSAC.CA

25

22

CONTENTS

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corporatetraining

Your Plan for Success!We are committed to supporting the growth of Alberta business by providing innovative training programs specific to your industry. By supplying you with the right training, we give you the essential tools to grow your workforce, strengthen partnerships in the industry, and expand your business.

We will work with you to identify your training needs and recommend effective and affordable training solutions, customized to your exact requirements. You will receive:

Rodney Holt at 403.342.3550

www.rdc.ab.ca/corporate_training

immediate innovative impactful

000PSN-RedDeerCollege-FP.indd 1 7/31/13 10:31:27 AM PSAC_Fall _2013-p04-05.indd 5 8/22/13 9:03:01 AM

� FALL 2013 PetroLeum services news

Mark Salkeld, President & ceo

t’s cLeAr From the APPLicAtions the Petroleum

Services Association of Canada (PSAC) received for this year’s PSAC

Education Fund scholarships that the future holds a lot of promise

for the petroleum services sector. This year, PSAC awarded five regu-

lar member scholarships to students across Canada pursuing post-second-

ary education and the 2013 PSAC Roger Soucy Legacy Scholarship Funded

by KPMG to Ryan Kearns, who is pursuing a career in power engineering

and has demonstrated outstanding commitment to his community of Lac

La Biche, Alberta.

The PSAC Education Fund has given over $200,000 in scholarships and

grants since its inception over a decade ago. The PSAC Education Fund

Golf Classic is the primary fundraiser for PSAC’s scholarship program and,

yet again, had another successful fundraising effort this year which will en-

able the Fund to continue to support the development of a labour pool for the petroleum services sector.

Supporting the development of a labour pool to address the ongoing labour shortage our industry faces

is a key activity for PSAC. PSAC has stepped up our advocacy efforts with both provincial and federal

governments to find long-term policy responses that will assist in helping to build a future workforce.

PSAC is seeing the results of its efforts. In June, PSAC and the Government of Alberta launched a pilot

project which will assist PSAC members in accessing government services and programs related to attract-

ing much needed workers, and will also help PSAC members to navigate the processes involved in federal

foreign worker programs.

We are also working hard to continue to deliver value to our members on other fronts as well. PSAC will

also continue to produce its industry-leading publications and events, to help its members with their busi-

ness planning needs. On Wednesday, October, 30, 2013 PSAC will hold its annual Industry Insights event.

Designed to provide industry representatives with the information they need to plan for the year ahead,

this three-part event is comprised of the PSAC Annual General Meeting, the 2014 Canadian Drilling

Activity Forecast and the Industry Insights dinner.

PSAC will also take the opportunity to update our members on the Working Energy Commitment

initiative. Launched in February, this program is being led by PSAC and 12 of our member companies in-

volved in hydraulic fracturing, and aims at increasing public confidence in hydraulic fracturing operations

and outlines principles under which its members conduct themselves.

PSAC together with representatives from those 12 companies, producers and the regulators have met with

community members across Alberta and British Columbia to gather feedback that will help to inform the

development of a Hydraulic Fracturing Code of Conduct. This program is already having a positive impact on

further opening the lines of communication with local communities about our members’ operations, and we

have met with more than 70 community representatives ranging from landowners to local elected officials.

The strengthened focus on public outreach and community engagement is an important part of how

PSAC is working to champion the interests of all its members, and PSAC looks forward to ongoing com-

munication as that program evolves. We look forward to providing our members with further updates on

all of these initiatives and the other great work we are undertaking on their behalf at our Annual General

Meeting in October.

There’s no doubt that the petroleum services sector will continue to face challenges and tremendous

opportunities, but there’s also no doubt that PSAC will continue to provide the leadership, knowledge and

advocacy in the year ahead to support our members’ success.

Cheers,

Mark Salkeld

President & CEO

IMESSAGE From the PRESIDENT

Building and Planning Ahead

PSAC_Fall_2013_p06-07.indd 6 8/22/13 9:04:07 AM

WWW.PSAC.CA 7

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Publication: PSAC

Art Deadline: Oct 26, 2012

Size: 4.75” (w) x 9.875” (h)

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FALL 2013 VOL 13 • No.2

PETROLEUM SERVICES ASSOCIATION OF CANADA 1150 800 6TH AVENUE SW

CALGARY, AB T2P 3G3TEL: 403.264.4195FAX: 403.263.7174

PRESIDENT AND CEO: MARK SALKELDVICE PRESIDENT, COMMUNICATIONS: KELLY MORRISON

COMMUNICATIONS COORDINATOR: LINDA ALDRIDGE

PETROLEUM SERVICES NEWS IS PUBLISHED FOR PSAC BY

VENTURE PUBLISHING INC. 10259-105 STREET,

EDMONTON, AB T5J 1E3TEL: 780.990.0839FAX: 780.425.4921

TOLL-FREE: [email protected]

PUBLISHER: RUTH KELLYDIRECTOR OF CUSTOM CONTENT: MIFI PURVIS

MANAGING EDITOR: SHELLEY WILLIAMSONCONTRIBUTING WRITERS: ROBIN BRUNET, LISA RICCIOTTI

ART DIRECTOR: CHARLES BURKEASSOCIATE ART DIRECTOR: ANDREA DEBOERASSISTANT ART DIRECTOR: COLIN SPENCEPRODUCTION MANAGER: BETTY-LOU SMITH

PRODUCTION TECHNICIANS: BRENT FELZIEN, BRANDON HOOVER DISTRIBUTION: KAREN REILLY

ACCOUNT EXECUTIVES: PEGGY BOGDAN, KATHY KELLEY, DENNIS McCORMACK, RACHELLE WATTS

PRINTED IN CANADA BY RHINO PRINT SOLUTIONS. RETURN UNDELIVERABLE MAIL TO 10259 105 ST.

EDMONTON AB T5J 1E3. [email protected] • PUBLICATIONS

AGREEMENT #40020055 CONTENTS © 2013 PSAC. NOT TO BE REPRINTED OR

REPRODUCED WITHOUT PERMISSION.

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 260 member companies, employing more than 80,000 people and contracting almost exclusively to oil and gas exploration and production companies.

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News, events and activities in the industryIN THE FIELD

PSAC PArTiCiPATEd for the second

time in a tour of oil and gas operations in

farming communities in Alberta, for residents

and farmers hailing from Quebec. The tour

brings together Alberta and Quebec farmers and

landowners for an open discussion about impacts

of oil and gas operations. In addition to touring

a high-tech dairy farm near Rosemary, Alberta,

the guests from Quebec toured multistage

fracturing equipment in a yard and had a chance

to meet with Alberta’s surface rights and farmers’

advocate groups. The July 15 event capped off

with a press conference hosted at PSAC’s offices

in downtown Calgary.

PSAC Joins the Second Annual Quebec Farmers’ Tour

PSAC mEmbErS mAkE uP the

majority of the 50 companies listed by

revenue in Alberta Oil ‘s annual 100 + 50

Energy Service list. The list boasts 27 PSAC

member companies, with several notable

stories including Precision Drilling Corp.

with the largest capital expenditure budget;

Pason Systems Inc. with 2,000 rigs equipped

with its devices around the world; and Black

Diamond Group Ltd., with a purchase of

interests in Australian building companies.

Congratulations.

PSAC Members Make the Top 50 List

COMING EVENTS

PSAC PRE-DRILLING SEASON MEETINGSeptember 12, 2013

Fort St. John, B.C.

PSAC ANNUAL GENERAL MEETINGOctober 30, 2013

TELUS Convention Centre

Calgary, Alberta

2014 CANADIAN DRILLING ACTIVITY FORECASTOctober 30, 2013


Calgary, Alberta

PSAC INDUSTRY INSIGHTS DINNEROctober 30, 2013


Calgary, Alberta

ENERGY TECHNOLOGY BLUEPRINT BREAKFAST FORUMDecember 3, 2013

Westin Hotel

Calgary, Alberta

STARS & SPURS GALA PRESENTED BY PSACJanuary 25, 2014

BMO Centre, Stampede Park

Calgary, Alberta

For more information about PSAC events,

visit www.psac.ca/events

NEw MEMBERS

REGULAR MEMBERSEnzo Energy Services

Element Technical Services Inc.

Keane Completions CN Corp.

Targa Energy Services Inc.

ASSOCIATE MEMBERSCenturyVallen

Wells Fargo Energy Group

Aviva Canada Inc.

TELUS

Ryder Transportation & Logistic Solutions

Gowlings

THE NorTH AmEriCAN FATiguE mANAgEmENT ProgrAm (NAFMP) for

commercial vehicle drivers and carriers, after many years of research and development is now

available. Designed to address the issue of driver fatigue with a comprehensive approach, the

NAFMP includes:

Information on how to develop a corporate culture that facilitates reduced driver fatigue

Fatigue management education for drivers, drivers’ families, carrier executives and

managers, shippers/receivers, and dispatchers

Information on sleep disorders screening and treatment

Driver and trip scheduling information

Information on Fatigue Management Technologies

To learn more about this program visit, www.nafmp.com.

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North American Fatigue Management Program Now Available


When the going gets tough, the tough stay put. Through the credit crunch, depressed commodity prices and global economic turmoil, we’ve done just that. We never left the side of the people who’ve made Alberta an economic powerhouse, and we continue to custom build solutions to help them do what they do best…lead. Because Alberta means the world to us.

atb.com/Leaders

TM Trademarks of Alberta Treasury Branches.

Leaders don’t flinch.

000PSN-ATB-FP.indd 1 8/6/13 3:14:17 PM

I


WWW.PSAC.CA 11

When the going gets tough, the tough stay put. Through the credit crunch, depressed commodity prices and global economic turmoil, we’ve done just that. We never left the side of the people who’ve made Alberta an economic powerhouse, and we continue to custom build solutions to help them do what they do best…lead. Because Alberta means the world to us.

atb.com/Leaders

TM Trademarks of Alberta Treasury Branches.

Leaders don’t flinch.

000PSN-ATB-FP.indd 1 8/6/13 3:14:17 PM

Slow and Steady

DRILLING ACTIVITY FORECAST UPDATE

Note: Total includes activity in Northern and Eastern Canada.

PSAC’S DrIllINg ForECAST ExPECTS CoNTINUED groWTh

N ITS ThIrD UPDATE to the 2013 Canadian Drilling

Activity Forecast, the Petroleum Services Association of

Canada (PSAC) expects to see a three per cent increase over

2012 drilling levels. The revised 2013 forecast estimates a total

of 11, 415 wells (rig releases) to be drilled, which represents a slight

increase of 15 wells from PSAC’s original 2013 forecast released in early

November 2012.

PSAC is basing its updated 2013 forecast on average natural gas prices

of $3.40 CDN/mcf (AECO) and crude oil prices of US$90/barrel (WTI)

and the Canadian dollar averaging (on par with the U.S. dollar) $1.

“This updated forecast is a reflection of a continued healthy pace for our

industry,” says PSAC President and CEO, Mark Salkeld. “Our forecasted

activity levels for this year meet PSAC members’ expectations given they

are looking for a steady pace of activity compared to last year, despite

experiencing a wetter than normal spring resulting in an extended

breakup.”

On a provincial basis, the July revision to the April update includes

a decrease expected in Alberta from 7,563 to 7,190, representing a five

I per cent change. As well, the updated outlook anticipates an uptick in B.C.

from 457 wells to 506, an 11 per cent increase, a decrease of activity of six

per cent in Saskatchewan to 3,081 wells, as well as a decrease of nine per

cent to 613 wells in Manitoba.

“There are many factors at play that are having an effect on activity

levels,” says Salkeld. “Among those having the biggest impact are on-

going low gas prices, current higher prices for oil and tightening of the

differential which has resulted in some uptick in the number of oil wells

being drilled as industry shifts the operations toward oil plays.

Overall, the expected levels of drilling activity, coupled with

increasing efforts to get product to new markets, points strongly to

a positive sign for steady growth over the next few years.” PSAC will

release the 2014 Canadian Drilling Activity Forecast on October 30 in

Calgary.

The Canadian Drilling Activity Forecast can be used with the

PSAC Well Cost Study to effectively determine potential drilling and

completion market sizes, as well as pricing and activity direction. For

more information, contact PSAC at [email protected] or 403.264.4195.


Managing succession

You’re proud – and rightly so - of what you’ve achieved. You’ve led the way. Now it’s time for others.

Whether it’s the handover to the next generation, or a sale to new owners, you want a smooth transition and you want to maximize value.

KPMG’s Corporate Finance network is the global leader in mid-market M&A transactions.* Together with KPMG’s powerful network of tax, transaction and accounting advisors, we will help you close the deal and secure the future.

kpmg.ca

Passing the baton

*Source: Thomson Reuters SDC; mid-market transactions (under $1 billion - USD)

© 2013 KPMG LLP, a Canadian limited liability partnership and a member fi rm of the KPMG network of independent member fi rms affi liated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Rhys RenoufManaging Director,KPMG Corporate [email protected]

Deb MacPhersonPartner, KPMG Enterprise, [email protected]

Alex HendersonPartner, Transaction [email protected]

000PSN-KPMG-FP.indd 1 7/24/13 4:04:07 PMPSAC_Fall_2013_p12-21.indd 12 8/22/13 9:14:00 AM

WWW.PSAC.CA 13

Managing succession

You’re proud – and rightly so - of what you’ve achieved. You’ve led the way. Now it’s time for others.

Whether it’s the handover to the next generation, or a sale to new owners, you want a smooth transition and you want to maximize value.

KPMG’s Corporate Finance network is the global leader in mid-market M&A transactions.* Together with KPMG’s powerful network of tax, transaction and accounting advisors, we will help you close the deal and secure the future.

kpmg.ca

Passing the baton

*Source: Thomson Reuters SDC; mid-market transactions (under $1 billion - USD)

© 2013 KPMG LLP, a Canadian limited liability partnership and a member fi rm of the KPMG network of independent member fi rms affi liated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Rhys RenoufManaging Director,KPMG Corporate [email protected]

Deb MacPhersonPartner, KPMG Enterprise, [email protected]

Alex HendersonPartner, Transaction [email protected]

000PSN-KPMG-FP.indd 1 7/24/13 4:04:07 PM

by Lisa Ricciotti

PSAC members and staff are on the front lines, post-flood Alberta

n ThurSdAy, June 20, Ed Oke found himself flying right into the raging storm. Returning from a business trip to Denver, the vice-president of Human Resources at Calfrac Well Services Ltd. anxiously surveyed the landscape below as his plane approached Calgary.

Farmers’ fields lay covered with massive “lakes” that didn’t exist when he left. He’d heard some updates that schools had closed and talk of a mandatory evacuation for parts of the city. Then, as his taxi headed for Calfrac’s corporate headquarters downtown, he caught his first glimpse of the Bow River, flowing furiously at heights he’d never imagined. “That’s when I started thinking, ‘this is not going to be good,’ ” recalls Oke. “And it wasn’t; it got real bad, real fast.”

O

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14 FALL 2013 PetroLeum services news

serviceAT YOUR

UFA.com

©2013 UFA Co-operative Ltd. All rights reserved.02/13-20751

Bulk Fuel and Oil DeliveryThe right products, at the right time. UFA Bulk Fuel and Oil Delivery gives you the fuel, lubricants and fluids you want, when and where you need it. Our Fuel Quality Assurance Program ensures we meet or exceed the demands of your equipment through continual monitoring. On a job site, for your shop or out in the field – talk to your local UFA Petroleum Agent today.

Fueling your life on the road, in the fields and everywhere in between.

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By the time Oke arrived home at midnight, he’d decided to close

Calfrac’s downtown office and put the company’s business continuity

emergency response plan into action. On Friday, many other businesses

in Calgary’s central business district – headquarters for many of Canada’s

oil companies and oil-patch service providers – did the same. Power to

the downtown core was cut and the largest evacuation order in the city’s

nearly-120-year history came into effect. As 75,000 residents scrambled to

find temporary homes, waters rose in the Saddledome, covering the first

10 rows of seating in the home of the Calgary Flames.

High River was hit hard and 32 other communities declared states of

emergency, including Red Deer, Medicine Hat and Lethbridge, as well as

several First Nation reserves. Insurers estimated this catastrophic flood

could require $3 billion to $5 billion – or about 20 to 30 times what was

paid out for southern Alberta’s 2005 “flood of the century,” which up to

now was the second-costliest natural disaster in Canadian history.

Despite its magnitude, the southern Alberta flood story will also be

remembered as a time when the human spirit shone, when individuals,

companies and organizations rallied to help total strangers. And

members of PSAC –such as Calfrac, National Oilwell Varco (NOV),

Tervita and Trican Well Service, all headquartered in Calgary – were

among them.

As Mayor Naheed Nenshi asked Calgarians to stay out of downtown,

many businesses kept their doors open electronically, giving employees

the option of working remotely from home. The first order of business,

however, immediately changed from day-to-day operations to ensuring

all staff members were safe and had roofs

over their heads, to helping those who didn’t.

“At Calfrac, everyone wanted to know what

they could do to help,” says Oke. “We realized

we had a pool of company vehicles sitting in

garages and a lot of employees sitting at home.

We decided to put them together and asked for

volunteers.”

By Tuesday, June 25, Calfrac had eight

pickups loaded with volunteers heading

out on a clean-up mission. Equipped with

masks, gloves, goggles and other personal

protective equipment (PPE) to shield them

from contaminated waters, mold and other

health hazards, volunteers were ready to

haul out garbage, rip up basement carpeting,

move furniture and wash walls. Calfrac asked

employees to create an ad hoc list of people who

needed help. Then the company divvied up the

list and off the trucks went.

“That first day in Elbow Park we didn’t get

past the first address on our list; we just kept

working our way round the block,” explains

Oke. “By the end of the day we were dirty, tired

and sore but felt great knowing we’d made a

volunteers from a number of PsAc member companies were helping with cleanup within days.

Su

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serviceAT YOUR

UFA.com

©2013 UFA Co-operative Ltd. All rights reserved.02/13-20751

Bulk Fuel and Oil DeliveryThe right products, at the right time. UFA Bulk Fuel and Oil Delivery gives you the fuel, lubricants and fluids you want, when and where you need it. Our Fuel Quality Assurance Program ensures we meet or exceed the demands of your equipment through continual monitoring. On a job site, for your shop or out in the field – talk to your local UFA Petroleum Agent today.

Fueling your life on the road, in the fields and everywhere in between.

000PSN-UFA-FP.indd 1 4/15/13 9:45:23 AM

Su

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So What’s the Problem?Is it because...

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difference. People were so appreciative.”

As Calfrac’s office re-opened the next day,

trucks of volunteers headed out again and again.

Other employees borrowed PPE supplies from

Calfrac and organized relief efforts on their

own to help friends and neighbours. “None

of us had a real appreciation of the damage

until we went out and saw homes covered with

mud, watermarks up to ceilings, and piles of

destroyed personal belongings,” says Oke. “It

was like A Tale of Two Cities. Some areas of

Calgary weren’t affected at all, and where life

went on as normal it was hard to imagine the

devastation in other neighbourhoods. But inside

the flooded areas, it was like a war zone.”

While floodwaters receded quickly in Calgary,

High River was another story. “And there we

were, a pressure-pumping services provider with

all this pumping equipment,” Oke says.

Calfrac brought in a crew from Red Deer

equipped with secondary pumps and for nine

days, a dozen employees worked around the

clock in two rotating shifts. Oke says “They

moved a lot of water, 60 million gallons. We

estimate Calfrac’s total cost for that project was

around $200,000.” Back at the office, Calfrac set

up a matching-funds internal fundraiser that

resulted in a $15,000 donation to Red Cross.

Mike Doepel, an area manager for NOV Wilson

Canada’s national field sales and operations, was

also away on business as the waters rose. He heard

how his Okotoks neighbourhood near the Sheep

River was threatened, how everyone was pitching

in to help – and then how a neighbour was

tragically killed after being thrown from his ATV

while checking sandbags.

“That really hit me,” says Doepel. “Here’s a

man who risked his life – and lost it – to help

while I couldn’t do anything. He became my

inspiration. I vowed I would help unconditionally

with flood relief when I got back, because I was

returning home while another man with a wife

and six kids wasn’t.”

Before returning to Calgary, Doepel still had

travel to Houston, where parent company NOV

is headquartered. There, he received approval to

take NOV Wilson’s “We Care” campaign to all

divisions across Canada, increasing fundraising

efforts from around 900 employees to 3,500

nationally.

Finally back in Calgary, Doepel became the

natural leader for company activities already

underway and created a succinct catchphrase to

describe how employees could get involved: Time, Talent and Treasury.

“We really wanted to get the message out that everyone can find some

way to participate,” Doepel explains. “We set our goal at $200,000, but it’s

not just about money. That sum represents a cash equivalent of however

people choose to pay it forward – by volunteering their time or their

talent or by giving cash or a donation in kind.”

By the end of July, NOV’s “We Care” campaign had already passed

the half-way point. Cash donations were accumulating from staff

across Canada (which will be matched by NOV); client companies had

contributed $28,000; volunteers were manning a flood relief information

booth every weekend at Crossroads, Calgary’s largest year-round market,

collecting donations from the general public; and volunteer work crews

“ NoNe of uS hAd A reAl APPreCiAtioN of the dAmAge uNtil We WeNt out”

– ed oKe, viCe-PreSideNt of humAN reSourCeS At CAlfrAC Well ServiCe ltd.

Su

bm

itt

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ph

oto

Cleanup was a big part of the volunteers’ efforts.



were pitching in to help in High River and on Siksika First Nation. A

barbecue was held for High River residents, where 50 staff showed up

with their personal grills to flip burgers and roast hot dogs. And plans

were in the works for a NOV Barbecue Week, when 120 locations across

Canada would host fundraising barbecues.

As well, one of NOV Wilson’s high-profile employees had more than

done his part: Tom Jackson, vice-president of business development/

Dreamcatcher oil spill technology (more widely known as Tom Jackson,

singer, songwriter, actor and humanitarian) brought together top

performers from the Alberta Ballet to Susan Aglukark to Olympian

Kaillie Humphries for a sold-out Halo High Water benefit concert and

telethon, held August 4 at the Southern Alberta Jubilee Auditorium.

“Hopefully that event will raise millions, but we won’t count those

proceeds toward our goal,” says Doepel. “Still, I feel confident we’ll reach

$200,000 and personally I’m aiming for $500,000.”

For Jaime MacDonald and her co-workers, there was no question about

getting involved. “It was a no-brainer decision; it’s part of our culture,”

says Trican’s director of talent management. “We wanted to do more than

make a financial donation.”

Since MacDonald is part of Trican Cares, the company’s community

involvement committee, she and other members naturally became

the co-ordinating committee for volunteers. “Our past experience has

been doing things like making sandwiches for the Mustard Seed and

organizing fundraisers for breast cancer or United Way,” she explains.

“We had to create some unique roles this time, like a PPE co-ordinator.”

Trican mobilized its volunteers quickly and work crews were out cleaning

up Calgary just days after the flood hit. Its volunteers also teamed up with

partner companies to make an even greater impact, joining NAL Resources

volunteer crews and their water pumps to tackle flooded basements and

overflowing sewage systems. From a command

centre set up just east of High River, Trican

and Pengrowth provided PPE, volunteers and

equipment to pump out flooded basements and

perform bleach-water washes on damaged homes.

Up to 12 combo vacuum/pressure wash trucks,

two dump trucks and a loader were kept busy

daily as volunteers cleaned up homes and cleared

out garbage.

“It was our privilege to help out,” says

MacDonald. “It was humbling to see how gracious

people were, even though they’d lost everything.”

She’s proud of how employees demonstrated

that Trican’s core values are more than words on

paper and, although the clean-up has now shifted

to contracted companies, employees continue

finding ways to help, hosting a week of pancake

breakfasts and rounding up books, DVDs and

CDs for the Calgary Public Library’s donation

fundraiser to replace 20,000 books and other

materials damaged during the flood.

Tervita mobilized its people and expertise

to ensure The Greatest Outdoor Show on

Earth would go on. When floodwaters washed

over Calgary (and Tervita’s downtown offices,

which were under water for three days),

the Calgary Stampede was just weeks away.

As an environmental and energy services

company with expertise in reclamation, site

rehabilitation, and the cleanup of hazardous

materials, Tervita was well equipped to take

on the seemingly hopeless task of restoring the

flood-damaged Stampede grounds within a

very short time frame.

“It’s our business, it’s what we’re good at,”

explains Stacie Dley, Tervita’s communications

advisor. “We never had time to consider the

possibility of failure. The Stampede is such a

quintessential Alberta event, we had to succeed.”

Tervita pulled in crews and specialized equipment

from its network across Canada, and managed 10

subcontractors. And they got the job done.

Tervita also helped stabilize damaged rail

lines near Canmore, Exshaw and Okotoks

and was contracted by the Government of

Alberta for six months of specialized recovery

and reconstruction work in High River. “The

impact of the southern Alberta flood was

overwhelming,” Dley says. “But the human

response, as so many pulled together to help

out, is equally overwhelming. It speaks to the

powerful energy of our city and Albertans’ great

resilience and compassion.”

trican volunteers’ efforts included setting up a command centre east of High river.

Submitted photo




A golf tourney drives up scholarship funds for petroleum

services and trade sectors

he PsAc educAtion Fund has more cash coming its way with another successful Golf Tournament held on July 18, at the Calgary Elks Lodge and Golf Club. The more than $50,000 raised will provide scholarships to students pursuing post-secondary education, including

those enrolled in university or trades programs related to the petroleum services sector.

T

EducationAT THE

Fore

Laurie taskinen (left), a university of Alberta student affiliated with snubco Pressure control Ltd. and meghan Kruger (right), a university of calgary student affiliated with tenaris Global services (canada) inc., were two of five PsAc regular member scholarship recipients who were presented cheques by PsAc education Fund chair, travis strube.


WWW.PSAC.CA 21

Education

The tournament delivered perfect golfing weather and a

lot of fun contests and games, including the ever-popular

“beat the PSAC president” longest-drive contest, a draw worth

$2,000. Additional tournament highlights included cheque

presentations to Meghan Kruger, a University of Calgary

student affiliated with Tenaris Global Services (Canada) Inc.

and Laurie Taskinen, a University of Alberta student affiliated

with Snubco Pressure Control Ltd., who were each awarded a

$1,000 PSAC Regular Member scholarship.

Three other 2013 PSAC Regular Member Scholarships

have been awarded to Nicole Bulan, a Seneca College

student affiliated with Halliburton Group Canada;

Connie Ho, a University of Alberta student affiliated

with Stream-Flo Industries Ltd.; and Patricia Sanchez, a

University of Lethbridge student affiliated with Precision

Drilling Corporation.

The PSAC Education Fund also manages the KPMG-

funded $2,500 Roger Soucy Legacy Scholarship, which

was awarded to Ryan Kearns, a Portage College power

engineering student affiliated with Sanjel Corporation from

Lac La Biche, Alberta. This award is given to a student who

demonstrates academic achievement and commitment to

community while pursuing a post-secondary education in a

petroleum-related or trades-related program.

Since 2001, the PSAC Education Fund has awarded more

than $200,000 in scholarships and grants to deserving

recipients. PSAC will begin accepting applications for the

2014 scholarships in January 2014. For more information

about PSAC’s scholarship program, visit www.psac.ca

Thank you To our SponSorS and donorS

Major SponSorSATB Financial

Calfrac Well Services Ltd.

Derrick Exhibit

Gibson Energy

Grant Thornton

Import Tool Corp. Ltd.

JuneWarren Nickle’s Energy Group

KalTire

KPMG

National Oilwell Varco

Sterling Western Star Trucks Alberta Ltd.

Stream-Flo Industries Ltd.

Strike Energy Services Inc.

Tenaris Global Services (Canada) Inc.

Weatherford Canada Partnership

hole SponSorS ARC Financial Corporation

Cole International

ComplyWorks Ltd.

Doran Stewart Oilfield Services

Enterprise Commercial Trucks

FP iMarketing

Halliburton Group Canada

Jim Peplinski’s Leasing

Lloyd Sadd Insurance Brokers Ltd.

Pajak Engineering Ltd.

Sanjel Canada Ltd.

Trojan Safety Services

Green SponSorSClean Harbors Energy and

Industrial Services

Di-Corp

Ensign OPSCO Energy Industries

FMC Technologies Company

RBC Royal Bank

Schlumberger Canada Ltd.

Topco Oilsite Products Ltd.

donorS and SupporTerS Community Natural Foods

Crowfoot Liquor

ExtraTech Automotive

HUB International Ltd.

Janet Horbacio Photography

Moving Forward Ltd.

Pazzer’s Saskatchewan Pub

Select Coffee Service

Sheraton Red Deer Hotel


Westin Calgary

Lucas Mezzano, chair, PSAC Board of Directors, and Mark Salkeld, president and CEO, PSAC, enjoy some fun and sun at the 2013 PSAC Education Fund Golf Tournament.

Education Fund Golf Classic committee volunteer Brian Farmer sports his “flower power” apparel.



the PetroLeum services AssociAtion oF cAnAdA (PsAc) continues to keeP the services sector Front And centre through AdvocAcy And outreAch

Other efforts to assist members with their labour requirements including

working with the federal Employment Insurance commissioner to see how

we might better connect unemployed and under-employed Canadians

with PSAC members’ job openings and participation on an Alberta

government committee, examining high school credentialing to ensure

future graduates better meet the needs of the oil and gas services sector.

On the foreign worker front, PSAC participated in a conference

call with federal Human Resources and Skills Development Canada

(HRSDC) Minister Diane Finley on the impact of changes announced

to the Temporary Foreign Worker Program (TFWP) and attended

a roundtable consultation. The event was hosted by Parliamentary

Secretary to Minister Finley, Dr. Kelly Leitch, as well as MP Joan

Crockatt (Calgary Centre) and MP LaVar Payne (Medicine Hat), to

discuss TFWP issues and impacts of the recent changes announced.

PSAC also been providing input and attended a consultation for the

federal Expression of Interest (EOI) program that is being developed

to improve the federal immigration system while at the same time,

assisting employers by providing access to a databank of applications.

IntroducIng a PIlot Project wIth the alberta government to address labour shortages PSAC is pleased to announce that, through its efforts to address labour

shortages and recruitment challenges of PSAC members, the Alberta

government has launched a pilot project that will assist members in accessing

government services and programs and navigating processes for federal

foreign worker programs. We hope members will take full advantage of

this opportunity and give us feedback on the results. For more information,

please visit the members’ area of the PSAC website or email [email protected].

PursuIng Further actIon on labour shortages

IncreasIng suPPort For members In saskatchewan

In recognition of the increasing importance of the growing

opportunities in Saskatchewan and the need for PSAC to work with

key players in developing solutions to obstacles to continued growth,

for the first time the PSAC Board of Directors held its monthly meeting

in Regina. This meeting was attended by the Saskatchewan Minister

of Energy, the Honourable Tim MacMillan, and his chief of staff,

Cole Schulz, who discussed Saskatchewan’s business climate and the

importance of the oil and gas industry to the future economic outlook

of the province.

While in Saskatchewan, PSAC members also attended the bi-

annual Saskatchewan Oil and Gas Show in Weyburn, which

provided many PSAC members the opportunity to display and

explain the technologies and innovations that are improving the

industry’s performance. During the show, PSAC brought together the

producer and services communities at the first-ever PSAC Southeast

Saskatchewan Business Forum.

PSAC member companies, producer companies and representatives

from the Saskatchewan Ministry of Energy and Resources met to get

a better understanding of supply chain challenges and opportunities

with the goal of discussing opportunities to grow a local services

sector in and around the Weyburn and Estevan areas.

PSAC also recently met with Nancy Perras and Rosanne Boyarski,

Saskatchewan Ministry of Finance, to advance ongoing discussions

related to the PST regime and the Ministry’s work to re-write

Interpretive Bulletin PST-13, which governs the application of the PST

legislation on the petroleum services sector.

rePresentIng Psac members at the canadIan energy strategy workshoPIn June, PSAC attended a Canadian Energy Strategy stakeholder

workshop organized by the Council of the Federation, which is

comprised of all of the provincial and territorial premiers. Workshop

participants discussed energy in Canada in three broad areas:

sustainability and conservation, technology and innovation, and

delivering energy. Key points from each of those discussions with be

provided as input for consideration in the development of a Canadian

Energy Strategy.

suPPortIng oPPortunItIes For manuFacturIng membersAt PSAC’s recent Manufacturing Committee meeting, PSAC hosted

Lynn Wyton, Senior Director, Alberta Enterprise and Advanced

Education, Supply Chain Development, Industrial Development

Branch, to discuss the Government of Alberta’s initiatives to assist oil

sands producers in finding manufacturing capacity outside Alberta.

The focus of the meeting was to ensure that PSAC member companies

have the opportunity to participate in these initiatives, possibly

through joint ventures, outsourcing or collaboration.

Psac in actIon


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000PSN-GrantThornton-FP.indd 1 8/20/13 11:36:47 AMPSAC_Fall_2013_p22-24.indd 24 8/22/13 9:25:47 AM

WWW.PSAC.CA 25

allowing operators to reduce the total energy requirements and cost of their

drilling process and reducing the associated environmental impact.

In July, nFluids completed a private round of financing from a group

of angel investors and Yaletown Venture Partners. “This partnership not

only provides us with capital, it also adds a partner with considerable

market intelligence and industry expertise,” nFluids president David

Edmonds says. “nFluids is ramping up operations through a series of field

tests that will support existing laboratory results and provide additional

data to bring the technology closer to market.”

Patented history“For me, joining the organization was a great way to give back to an

industry that has supported me over the years,” says Garrett, adding

Innovate Calgary’s 45-person team is largely comprised of profession-

als who were either previously entrepreneurs or were responsible for the

creation of start-up companies. “In other words, they’re not bureaucrats

and having a background in these specific fields makes communicating

with clients very easy because we know the difficulties they face and the

ambitions they have,” says Garrett.

Pooling resourcesInnovate Calgary was formed under a joint-operating agreement between

Calgary Technologies Inc. (a not-for-profit organization) and University

Technologies International (a wholly-owned subsidiary of the University

of Calgary). “The policy-makers of each organization realized a partner-

ship would create a substantial synergy between services, some of which

overlapped,” says Garrett.

he nAme InnovAte CAlgAry may only be three

years old, but for a growing number of entrepreneurs and start-

up companies it has become an invaluable and proven resource.

That’s because more than ever, Alberta’s oil and gas sector

is scrambling to meet core business objectives while complying with

changing regulatory and environmental standards. The sector is also

changing in key ways.

“Traditionally, innovation focused on geology and processing,” says

Peter Garrett, president of Innovate Calgary, whose programs have been

in place in some capacity for 30 years. “While this is still true today, more

innovations are revolving around high tech. We’re also seeing oil and gas

people looking outside of their industry to improve cost structures and

social licence.”

Innovate Calgary’s mandate is to accelerate commercialization of emerg-

ing technologies, facilitate and support the creation of technology-based

companies and assist in the growth of existing firms in southern Alberta.

“Our main objective is to support and build the oil and gas sector’s tech-

based economy,” says Garrett, adding the ultimate goal is to be the go-to for

commercialization and knowledge transfer.

creating viable venturesThree main client groups turn to Innovate Calgary: entrepreneurs and

small to medium-sized companies; inventors; and investors seeking

early-stage technologies opportunities. “For the first group, we help with

everything from creating boards of directors to drawing up business

plans,” says Garrett. “For inventors, we offer market assessment, patent

strategies and the co-ordination of licence agreements.”

As mundane as these services may seem, they are vital: new inventions

must address market needs better than competing technologies and in a

manner that allows for the creation of viable business ventures.

As for investors, services are all geared towards matching this type of

client with the appropriate partner or investment opportunity. Other In-

novate Calgary services include intellectual property protection and strat-

egy, company creation and incubation, and the mitigation of the financial

and resource risks associated with technology commercialization.

a case studyOne recent example worth noting is company creation client nFluids Inc., a

privately held University of Calgary spin-out firm. nFluids has developed a

nanoparticle oil and gas drilling fluid additive that reduces fluid losses dur-

ing drilling, while increasing lubrication, strengthening the well bore, thus

Getting Technical

T

KnoWledge trAnSfer ComPAny lendS exPertISe to oIl And gAS, teCh SeCtorS

by lisa ricciotti

business mAtterS



Combined, the organizations have more than 50 years of experience

supporting the tech community. Over the decades they have evaluated

more than 1,700 discoveries securing more than 680 patents, negotiated

690 technology agreements in 24 countries, are consistently ranked

within the Top 5 among 37 Canadian institutions in gross licensing

revenue (AUTM survey 2007-11) and have developed or assisted more

than 40 start-up companies.

Monthly Meet-upsThe offices of Innovate Calgary are located in the Alastair Ross

Technology Centre, a 120,000-square-foot facility dedicated to

supporting the high-tech sector (since it opened in 2000 it has

served over 600 tenants and corporate ID clients). “Many of our

tenant neighbours are also clients, so it’s a supportive and beneficial

arrangement,” says Garrett. The building is also the staging point for

a new Innovate Calgary initiative: a monthly “meet-up” social event,

the first of which occurred in April and attracted about 110 oil and gas

tech professionals. Garrett and colleagues also regularly attend other

regional events. “It’s at these networking gatherings where companies

seek mentorship,” he says.

However, Garrett concedes that Innovate Calgary’s ultimate success in

attracting clients will be through the Internet. “Our virtual presence is

already the main way people learn about us,” he says.

proMising partnershipsOn the investment side, expansion efforts are underway for the Alberta Deal

Generator, a joint venture between Innovate and TEC Edmonton that has

established the largest network of accredited investors in Canada, all of whom

are actively pursuing opportunities in Alberta’s early and growth-stage com-

panies. The additions of partnership agreements with the Canadian National

Stock Exchange and Wavefront have added immense value for its client base.

In the entrepreneurial investment sector, it is working with the University

of Calgary to increase focus on entrepreneurial opportunities. “Tradition-

ally, students have always relied on being snapped up by big companies when

they graduate, but today more and more of them are seeking to create their

own companies instead, and our goal is to aid them with practical business

strategies,” says Garrett. Additionally, Innovate is working with a number of

promising new ventures, and Garrett reports “tremendous engagement” in

the private sector with involvement in intellectual properties.

gaining energyCalgary leads the world with 123 international energy headquarters and

more than $20-billion in international capital being invested in the sec-

tor; moreover, one in 13 jobs pertain in some way to energy, and Garrett

doesn’t see growth slowing anytime soon. “Our future prosperity is in en-

ergy and, as the industry matures and new challenges arise, we’ll be there

to help,” he says. “We’re very excited about what the future holds.”

Business mAtters


WWW.PSAC.CA 27

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To register, visit psac.ca/events

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000PSN-MNP-FP.indd 1 7/25/13 3:01:42 PM

ew, iF Any, PeoPLe in Alberta’s energy sector

haven’t heard of or benefitted from Pason Systems Inc.

Launched in 1978 as a specialist in remote drilling chokes,

the company has evolved into a global provider of data

management systems for land-based and offshore rigs. Its rental

solutions, which include data acquisition, well site reporting and remote

communications, improve work efficiency and minimize operating costs.

Pason’s main claim to fame is its Electronic Drilling Recorder

(EDR), developed in the early 1990s to link rig managers, crew,

geologists and other professionals (including those in head office) on

a common network, where they share drilling data, reports and well-

time information. “We still consider EDR to be our biggest innovation,

especially in these cost-conscious times with its ability to drastically

reduce crews travelling long distances to check data on-site,” says

David Holodinsky, Pason’s vice-president of operations for Canada.

But what many may not know about Pason is its passion for giving

back to the community. It’s a value the company has embraced since

its inception, which this year has manifested itself in a partnership

with the Missing Children Society of Canada (MCSC).

Since 1986, the non-profit MCSC has been reuniting missing

children with their families through investigations, public awareness

and family support programs. It’s a daunting task: in 2011 alone the

RCMP reported 46,718 cases of missing children in Canada, and

numbers such as this galvanized Pason when approached by MCSC for

support in March. “The data hit home on several levels, as did the idea

we could make a difference,” says Holodinsky.

Pason lost no time signing onto MCSC’s CodeSearch, a rapid response

program that engages corporate Canada with the society and law

enforcement in the search for missing children. CodeSearch participants

sign on as field agents and download a smartphone application; when

a child goes missing, MCSC sends out geo-targeted alerts to any field

agents in the area of interest. Holodinsky says Pason’s unique business

structure makes it an ideal CodeSearch partner. “Of our 300 employees,

about 80 of them are field workers located in rural areas from B.C. to

Manitoba,” he explains. “If there’s ever a kidnapping in a small town

somewhere, chances are we’ve got someone nearby who can help.”

The MCSC partnership comes on the heels of Pason donating

$100,000 to the Calgary Foundation to support its flood relief program

and matching employee donations up to another $100,000. Although

Pason doesn’t draw attention to the fact, each year it identifies a

Calgary playground in need of repair or rebuilding, and dispatches

money and manpower to the project.

From Hydrocarbons to Help

F

When asked why Pason is so enthusiastic about giving back, Holodinsky

replies, “I think everyone is – we’re just good at organizing and making

things happen. It’s also good for us in that it brings together everyone from

front-line people to upper management for a common cause.”

All of Pason’s initiatives, whether the products and services it provides

or its support of community organizations, are undertaken with the

same passion, based on the benefits of hydrocarbons, says Holodinsky.

“Hydrocarbons power the world, and we believe our efforts to make

their processing safer and more efficient is a noble cause.”

Not wanting to draw undue attention to Pason’s extracurricular

activities, Holodinsky shifts to the company’s future business objectives:

“The North American market is steady, and we recently diversified our

service capacity to include offshore rigs. We also see opportunities in

the Middle East and other regions. All in all, I would say we have a busy

future improving efficiencies and making things safer for existing and

new clients.”

PAson systems joins the hunt For missing chiLdren with codeseArch APP

by Robin bRunet

MeMbeR ProFiLe


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000PSN-TOG-FP.indd 1 8/6/13 8:30:55 AM

If you could do any other job, what would that be?Me: I love music and really appreciate the talent, skill and hard work

that goes into making it. I would have loved to earn a living playing

music.

lM: Granted that I can overcome my limitations in this regard, I

would like to be a writer.

what Is your favourIte book of all tIMe?Me: I have many. I’m a big reader and go where my mood takes me.

lM: Choosing a winner from my first two choices was a difficult task,

but the edge goes to The Ball and the Cross by G. K. Chesterton, an

excellent allegory of the modern world. For those wondering, the

close second is The Power and the Glory by Graham Greene.

what about a favourIte MovIe?Me: The Good, The Bad and The Ugly. Still enjoy watching it … less is more.

LM: Another tough choice, here the edge goes to Doctor Zhivago with

a close second in Gone With the Wind.

If you could InvIte three faMous people dead or alIve to dInner, who would they be and what would you serve?Me: One of the 12 Apostles, Leonardo DaVinci and my wife, Tracy.

Two people who changed the world forever and one who changed my

life. I’m not sure what the menu would be but we would finish with

Tracy’s gingerbread cake. There’s nothing better.

lM: I would invite a saint, a sinner and an artist from the 20th Century:

Monsignor Fulton Sheen, Charles Lindberg and Arturo Toscanini; I am

sure it would make for very interesting conversation! And they would

be stuck with barbecue, practically the only thing I can cook.…

what do you thInk Is the bIggest challenge facIng canada’s energy Industry? Me: Communication with all of the people who are affected by our

industry and who can affect the energy industry.

lM: Access to market; in a world where oil is a global commodity and natural

gas is fast becoming one, we cannot rely on having just one customer.

what would you say Is your bIggest accoMplIshMent to date?Me: I’ll let others write that.

lM: Keeping friendship and family ties that live a long distance away.

what Motto or phrase do you lIve by?Me: The Golden Rule: treat others as you would like others to treat

you.

lM: At least try to live by: “nunc et hodie” (now and today); a way of

reminding myself of doing what I have to do now and without delay.

what talent would you Most lIke to have?Me: The music thing.

lM: I would like to be able to play the piano; as a matter of fact, I

would like to be able to play any musical instrument!

If you could change one thIng about yourself, what would It be?Me: It seems I inherited a receding hairline gene.

lM: I would like to improve my living the virtue of order; not just

about material things, but also priorities in life.

If you could travel to anywhere In the world, where would you go?Me: I really enjoy the big cities and all they have to offer: New York,

London, Paris.

lM: China, the Far East, is the only place in the world that I haven’t

been to.

who are your heroes In real lIfe?Me: Teachers. They educate, motivate, inspire and inf luence the

future.

lM: Those who offer their lives for their friends.

In 10 words or less, what would you say about how 2013 Is goIng to turn out?Me: The compassion and sense of community resulting from the

f loods will change a generation.

lM: Good and steady year, neither a boom nor a bust.

MIke edMondsPresident

Import Tool Corp. Ltd.

Years in Services Sector: 15

lucas MeZZanoRegional Sales Director-Coiled Tubes Canada

Tenaris Global Services (Canada) Inc.

Years in Services Sector: 17

PetroLeum service news tALks with PsAc’s BoArd oF directors And tAkes A PersonAL Look At LeAders in the services sector

MIke edMonds lucas MeZZano

a Look at LeAdershiP


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ShawCor – when you need to be sure

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Documents

PSAC Petroleum Service News Fall 2013