PSAC Petroleum Service News Summer 2015

SUMMER 2015

2015 Drilling Activity Forecast update

Advice on accessing capital through the downturn

Canada’s Energy Blueprint Forum

Tackling inefficiencies in the industry’s general safety orientations

StreamliningSAFETYTackling inefficiencies in the industry’s general safety orientations

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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Photo courtesy of Beaver Drilling Ltd

Times are tough. And so are you.

Successful oilfield services companies know the importance of adapting quickly to volatile markets. MNP’s Oilfield Services team delivers the financial management and business advisory tools you need to become more cost efficient, effective and competitive. By optimizing business fundamentals, we help your operation become more resilient—and better equipped to overcome the toughest times.

Contact David Yager, MNP’s National Oilfield Services Leader at 403.461.8566 or [email protected]

000PSN-MNP-FP.indd 1 2015-01-27 8:32 AMPSAC_Summer_2015-p02-03.indd 2 2015-05-15 2:43 PM

WWW.PSAC.CA 3

Features

Departments59

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262830

COVE

R

S U M M E R 2 0 1 5

ALL ABOARD With a new eGSO and a revamped

BSO, can the safety orientation

process be further streamlined?

CANADA’S ENERGY BLUEPRINT FORUMMore natural gas and carbon footprint

reporting, fewer oil sands mega-projects

are in store for our energy future

10

18

MESSAGE FROM THE CHAIR

IN THE FIELD News, notes and events from the industry

BUSINESS MATTERS Financial experts offer advice on accessing

capital through the downturn

2015 DRILLING ACTIVITY FORECAST

PSAC IN ACTION

MEMBER PROFILE

A LOOK AT LEADERSHIPGetting to know PSAC Board members Bill

Darling and Tom Whalen

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WWW.PSAC.CA

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CONTENTS

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Photo courtesy of Beaver Drilling Ltd

Times are tough. And so are you.

Successful oilfield services companies know the importance of adapting quickly to volatile markets. MNP’s Oilfield Services team delivers the financial management and business advisory tools you need to become more cost efficient, effective and competitive. By optimizing business fundamentals, we help your operation become more resilient—and better equipped to overcome the toughest times.

Contact David Yager, MNP’s National Oilfield Services Leader at 403.461.8566 or [email protected]

000PSN-MNP-FP.indd 1 2015-01-27 8:32 AM PSAC_Summer_2015-p02-03.indd 3 2015-05-22 4:23 PM

Oil and gas companies face greater challenges today as they focus on maximizing profitability and shareholder value. As a result, they need practical advice and strategies from professionals who understand the issues that they are facing.

Our dedicated BDO Natural Resources team works closely with businesses like yours to provide quality services in audit, business and financial advisory, domestic and international tax, risk management, and business processes.

Assurance | Accounting | Tax | Advisory

www.bdo.ca

Calgary 403 266 5608

Edmonton 780 461 8000

Grande Prairie 780 539 7075

Lethbridge 403 328 5292

Red Deer 403 342 2500

BDO IS PROUD TO SERVE THE BUSINESSES OF ALBERTA

000PSN-BDO-FP.indd 1 2015-01-27 11:44 AMPSAC_Summer_2015-p04-09.indd 4 2015-05-15 3:09 PM

MESSAGE FROM THE CHAIR

HE WORLD AS WE KNOW IT HAS CHANGED dramatically since I took on the role of PSAC Chair late last fall.

Plunging oil prices have forced companies in our sector to make

some tough decisions about their people and operations. But

while we have heard of layoffs, I know too that many companies are striving

to retain their skilled workers, recognizing that keeping top talent is the best

route to recovery and growth when oil prices and industry activity rebound.

It isn’t easy. We in the services, supply and manufacturing sector are

constantly challenged to streamline our operations and keep prices low

for our customers. At the same time, we must stay ahead of technological

advancements, investing in R&D to devise the latest innovations that make

our operations faster, smoother, cleaner and safer. This is our daily modus

operandi: to maintain it in a normal price environment is tough enough, but

now we are being asked to be even leaner. Kudos to companies that are able to

keep good people, find more efficiency and continue to innovate during these uncertain times.

Whether companies are able to achieve this or not, the fact is we are trying hard, with a rigorous

focus on our internal operations. As such, we have limited time and resources to address any

external issues or pressures. This is where PSAC membership truly shows its value. While we as

individual companies are managing our own way through this downturn, PSAC is managing the

big picture on our behalf, by advocating with governments, producers, media and the public.

PSAC also helps members build knowledge that guides business planning. The Energy Blueprint

series is a great example of that. The latest Blueprint session featured Peter Tertzakian, who shared

his ideas on what our industry will look like over the next three, five and 10 years. By providing

direct access to experts like Peter, PSAC helps members hone their thinking to better prepare for

what likely lies ahead.

The cost of PSAC membership may seem like a luxury during these belt-tightening times,

but just stop to think how much it would cost each company to accomplish what PSAC does in

government advocacy, public relations and knowledge leadership. For many members, PSAC is

their only government relations team or marketing department. Larger companies may have these

resources on staff, but they lack the lobbying power PSAC wields, and the respect and recognition

it has, as it acts on behalf of more than 230 services sector companies and their 70,000 employees.

PSAC membership always delivers value, but in tough times that value is even more apparent.

As members, we can rest assured that PSAC is tackling our external challenges as we focus our

energy on our own companies. We all know this ride is going to be rough and it may last a while,

but I am confident that with our people, drive and innovation – and PSAC at our backs – services

companies will come out of this stronger than ever.

Best regards,

Wally Dumont, PSAC Board Chair

TFocusing Our Energy

Wally Dumont, PSAC Board Chair

5WWW.PSAC.CA

Oil and gas companies face greater challenges today as they focus on maximizing profitability and shareholder value. As a result, they need practical advice and strategies from professionals who understand the issues that they are facing.

Our dedicated BDO Natural Resources team works closely with businesses like yours to provide quality services in audit, business and financial advisory, domestic and international tax, risk management, and business processes.

Assurance | Accounting | Tax | Advisory

www.bdo.ca

Calgary 403 266 5608

Edmonton 780 461 8000

Grande Prairie 780 539 7075

Lethbridge 403 328 5292

Red Deer 403 342 2500

BDO IS PROUD TO SERVE THE BUSINESSES OF ALBERTA

000PSN-BDO-FP.indd 1 2015-01-27 11:44 AM PSAC_Summer_2015-p04-09.indd 5 2015-05-15 3:15 PM

SUMMER 2015 VOL 15 • No.1

PETROLEUM SERVICES ASSOCIATION OF CANADA 1150 800 6TH AVENUE SW

CALGARY, AB T2P 3G3TEL: 403.264.4195FAX: 403.263.7174

EMAIL: [email protected]

PRESIDENT AND CEO: MARK SALKELD

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: LYNDSIE BOURGONCONTRIBUTING WRITERS: ROBIN BRUNET, LISA CATTERALL,

SÉAMUS SMYTHART DIRECTOR: CHARLES BURKE

ASSOCIATE ART DIRECTOR: ANDREA DEBOERPRODUCTION MANAGER: BETTY FENIAK SMITH

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

ACCOUNT EXECUTIVES: PEGGY BOGDAN, KATHY KELLEY, DENNIS McCORMACK

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

EDMONTON AB T5J 1E3. [email protected] PUBLICATIONS AGREEMENT #40020055

CONTENTS © 2015 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 230 member companies, employing close to 70,000 people and contracting almost exclusively to oil and gas exploration and production companies.

6 SUMMER 2015 PETROLEUM SERVICES NEWS

Leaders never rest.

No matter what the hour, or how many hours they have in front of them, leaders stay the course. Through good times and bad, we’ve done just that, custom building solutions to help our clients do what they do best…lead. Because Alberta means the world to us.

atb.com/Leaders

TM Trademarks of Alberta Treasury Branches.

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INSURANCESOLUTIONSfor oil & gas service companies

Whether your company provides energy sector services here at home or internationally, we can deliver the insurance you need for every part of your business.

rogersinsurance.ca/albertaenergy

600 - 1000 Centre St N Calgary, AlbertaLocal 403.296.2400Toll Free 1.800.565.8132

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Leaders never rest.


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000PSN-ATB-FP.indd 1 2015-01-19 1:45 PMPSAC_Summer_2015-p04-09.indd 7 2015-05-15 3:09 PM

©2015, NCS Multistage, LLC. All rights reserved. Multistage Unlimited and The Technology are trademarks of NCS Multistage, LLC.

The most efficient field frac network starts with predictable frac spacing and

predictable propped volume.

The Multistage Unlimited® frac-isolation system combines single-point injection with cemented casing sleeves to deliver predictable, verifiable frac spacing and predictable, verifiable propped volume. Add real-time frac-zone pressure monitoring, and you have the best frac-delivery method for achieving an optimized frac network that delivers maximum reservoir stimulation. Learn more at ncsmultistage.com.

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News, events and activities in the industryIN THE FIELD

Two Videos Added to Energy in Your Life seriesPSAC HAS ADDED two more videos to

its Energy in Your Life video series. The new

videos focus on gasoline and other fuels. All the

videos can be found in the Products section of

oilandgasinfo.ca

COMING EVENTS

THE ECONOMIC CONTRIBUTION OF THE OIL AND GAS SERVICES SECTOR IN CANADAMonday June 15, 2015

11:30 am to 1:30 pm

Location: Westin Hotel, Calgary, AB

CANADA’S ENERGY BLUEPRINT: ENERGY LITERACY, RESEARCH AND PUBLIC POLICY Thursday June 25, 2015

Location: Event Centre, Downtown Campus, University of Calgary

PSAC 2015 EDUCATION FUND GOLF CLASSICThursday July 16, 2015

Location: Carnmoney Golf Club, DeWinton, AB

2015 INDUSTRY INSIGHTS AND 2016 CANADIAN DRILLING ACTIVITY FORECASTTuesday November 3, 2015

Location: TELUS Convention Centre, Calgary, AB

For more information and to register, visit: www.psac.ca/event

NEW MEMBERS

REGULAR MEMBERSAmperage Energy Inc.

Chemscape Safety Technologies Inc.

Magnum Energy Services Ltd.

ASSOCIATE MEMBERSBusiness Development Bank of Canada

First Reserve Momentum

GridStone Marketing Inc.

KR Petroleum Equipment and Service Co., Ltd.

Parker Hannifin Canada

XI Technologies Inc.

From left to right, Marcus Peiritsch and Paisley Hayes with their scholarships from PSAC’s annual golf tournament

The winning team from this year’s PSAC golf tournament

WWW.PSAC.CA 9

©2015, NCS Multistage, LLC. All rights reserved. Multistage Unlimited and The Technology are trademarks of NCS Multistage, LLC.

The most efficient field frac network starts with predictable frac spacing and

predictable propped volume.

The Multistage Unlimited® frac-isolation system combines single-point injection with cemented casing sleeves to deliver predictable, verifiable frac spacing and predictable, verifiable propped volume. Add real-time frac-zone pressure monitoring, and you have the best frac-delivery method for achieving an optimized frac network that delivers maximum reservoir stimulation. Learn more at ncsmultistage.com.

ncsmultistage.com

Unpredictable: plug-and-perfPredictable: Multistage Unlimited casing sleeves

Consistent frac placement makes optimization possible.

000PSN-NCS-FP.indd 1 2015-02-12 10:18 AM PSAC_Summer_2015-p04-09.indd 9 2015-05-15 3:09 PM


PSAC_Summer_2015-p10-13.indd 10 2015-05-15 2:47 PM

WWW.PSAC.CA 11

T’S MEANT TO BE straightforward:

general safety orientations (GSOs)

provide a solid basis for new,

young, inexperienced and trans-

ferred workers who are entering an

organization and jumping into a new world of

supervisors, co-workers, work areas and jobs.

But consider this: a consistent overlap of

information and the sheer number of GSOs

required by different providers in the petroleum

sector is such that, in one extreme scenario, one

worker was obliged to undertake 30 different

orientations last year – a considerable expendi-

ture of time and money.

This was the most glaring example of GSO

inefficiency uncovered by Bruce Tarbet, Pres-

ident of JBCC Consulting Inc., who last year

launched a study on safety orientations on

behalf of the Petroleum Services Association

of Canada (PSAC). “Even though 30 sessions

is rare, the average number of GSOs workers

“THERE’S A PALPABLE DESIRE ON THE PART OF NEW AND EXPERIENCED WORKERS TO TAKE ONE COMPREHENSIVE,

ALL-INCLUSIVE SAFETY ORIENTATION.” -TIM GONDEK, EXECUTIVE DIRECTOR OF

THE OIL SANDS SAFETY ASSOCIATION

BY ROBIN BRUNET

With a new eGSO and a revamped BSO, can the safety orientation process be further streamlined?

I take yearly in our industry is between eight and 10, at a cost of about

$420 per orientation per person,” he says. “Smaller companies wind up

spending tens of thousands of dollars on the process and larger com-

panies spend millions – but unfortunately the information is fairly

redundant, and worse, after about two or three sessions our respon-

dents said they tend to tune out, which suggests a lot of GSO providers

are wasting their time.”

Patrick Delaney, PSAC’s Vice-President of Health and Safety, says

the association will be using Tarbet’s findings to open discussions with

other oil and gas representatives about reducing duplication.

An indication that the daunting task of unifying standards may be

possible comes from Tarbet’s study. “Overall,

over 70 per cent of our respondents are very

favourable to orientations because they provide

a cultural aspect to safety training,” he says. “In

other words, they respond strongly not only to

being told how to conduct themselves, but why

the behavior is important.”

Tarbet targeted 30 service companies and oper-

ators for his study and obtained the participation

of 24 of them, including three operators. “Essen-

tially, respondents believe general orientations are great for people

entering the industry, but if they had their choice they would lean more

towards site-specific orientation on the grounds that, in their opinion,

GSOs have about a one-year validity before they need to be upgraded.”

The respondents also favoured electronic GSOs as a beneficial tool

for newcomers – though they’re not appropriate for experienced work-

ers. eGSO is a free online general safety orientation video available on

the Enform website that supports employers’ new worker orientation

programs. The 30-minute video meets industry general safety orien-

tation requirements and was developed specifically for the new young

ALL ABOARD



workforce entering the upstream oil and natu-

ral gas industry.

Delaney says the impetus for an eGSO came

from discussions at the Enform Board of Direc-

tors. “The eGSO was intended to be a one-stop

window for a general safety orientation for all

workers entering the industry and to replace

myriad general safety orientations the oper-

ating companies require their contract work-

ers to complete,” he says.“It was developed in

response to concerns raised by contractors over

the cost and time required to put their workers

through all these operating company orienta-

tions, and the orientation fatigue their workers

were experiencing.”

While Delaney believes the eGSO process

is working to some extent, he points out that

it hasn’t been universally embraced: “We still

have a lot of operators using their own orienta-

tions who either don’t know about the eGSO or

are deciding for various reasons not to accept

it.” This is contrary to Enform’s intent, which

was that all workers in the upstream industry,

regardless of experience, would be required to

complete an eGSO by July 2014.

A portion of Tarbet’s report describes occa-

sional overlaps between the content of the eGSO

and individual operating company orienta-

tions. “Because the operating companies do not

require their workers to complete the eGSO,

they really don’t have any idea of the time and

costs for a service company that has to put their

entire field workforce through the eGSO as part

of the industry requirements – only to have these

same workers take individual client orientations

that, in many cases, are a duplication of much of

the e-GSO material,” says Delaney. “Because the

operators don’t feel the direct impact of these

costs, it’s been very difficult to engage them in

discussions about the negative view many work-

ers have of their orientations.”

Delaney’s observations raise a larger ques-

tion: when it comes to general safety orien-

tations, is it possible (and feasible) for an

industry-wide agreement that streamlines the

process to be reached?

The answer is unclear, but one thing is cer-

tain: the desire for a unification of standards is

near universal. “Industry is extremely focused

on reducing training duplication and stream-

lining the movement of workers,” says Tim

Gondek, Executive Drector of the Oil Sands Safety Association (OSSA).

Gondek is referring to OSSA’s owner-members – Shell Albian Sands, Suncor Energy, Syncrude

Canada and Canadian Natural Resources Limited – who are working together with Keyano Col-

lege to develop a new basic safety orientation (BSO) course for contract workers in the Wood

Buffalo Region. Effective July 1, 2015, the new BSO replaces the existing one-hour OSSA Regional

Orientation.

The BSO is considered a major improvement to the content and delivery of safety orientation

training for OSSA, its member companies, key stakeholders and other potential partners and

organizations. “The four-hour awareness session is interactive and actively engages participants

for an enhanced learn-

ing experience,” says

Gondek. Participating

OSSA member sites will

remove duplicate con-

tent from their site-spe-

cific personal safety ori-

entations, which will be

covered by the new BSO.

This means contract

workers will no longer

have to go through duplicate basic safety awareness at OSSA member sites. (The BSO curriculum

is based on the new and overarching OSSA Regional Safety Rules, which include the seven “Life

Saving Rules” being implemented this spring by OSSA members.)

Sheree Boyer, OSSA member and Program Director for the Personal Safety Collaboration Pro-

gram, says the BSO couldn’t have arrived at a more appropriate time. “This is a great example

of four owners actively collaborating to remove duplication, eliminate confusion and enable our

workers to move seamlessly from site to site,” she says. “Up until now, a lot of the same personal

safety rules and standards have been communicated differently at each site, both in terms of

verbal and graphic communication. This causes confusion and can make it hard for workers to

remember all the safety rules and procedures.”

While eGSO experiences growing pains, Tim Gondek and his colleagues in the Wood Buffalo

Region keenly anticipate the summer months when their new BSO goes into full swing. “It was

a satisfying process to sit down at the table with all four OSSA member and contractor company

representatives, take a hard look at our existing safety awareness content and co-create the new

BSO,” he says.

“We viewed it as a terrific opportunity for standardization, and we hope other associations in

other regions will be able to have similar successes,” Boyer adds. “There’s a palpable desire on the

part of new and experienced workers to take one comprehensive, all-inclusive safety orientation.

What it requires is the willingness of all policy-makers to agree on a common standard and then

follow through.”

“UP UNTIL NOW, A LOT OF THE SAME PERSONAL SAFETY RULES AND STANDARDS HAVE BEEN COMMUNICATED DIFFERENTLY AT EACH SITE, BOTH IN TERMS OF VERBAL

AND GRAPHIC COMMUNICATION.”- SHEREE BOYER, OSSA MEMBER AND PROGRAM DIRECTOR

FOR THE PERSONAL SAFETY COLLABORATION PROGRAM.


WWW.PSAC.CA 13



WILDLIFE AWARENESSBE MINDFUL OF YOUR SURROUNDINGS

FIND OUT MORE ABOUT ENFORM’S ONLINE TRAINING COURSE

www.enform.ca/wildlife

Petroleum News Service Magazine half page horizontal.indd 1 2015-02-09 5:13 PM

Emergency Response Assistance Canada (ERAC)

Assistance d’Intervention d’Urgence du Canada (AIUC)

Emergency Response Assistance Canada (ERAC) is built by industry for industry.

ERAC is a not for profit, national emergency preparedness and response organization.

Our Plan Participants are made up of oil and gas producers, retailers, wholesalers and carriers.

ERAC responds to flammable liquid and liquefied petroleum gas road, rail and stationary tank incidents anywhere in Canada. We are the largest Transport Canada approved Emergency Response Assistance Plan provider in the country.

For more information on ERAC, please contact us at Tel: (403) 587-349-5880 Fax: (403) 543-6099

Email: [email protected] Web: www.erac.org

20 Years Excellent!1995-2015

Excellenceon our roadways

Partners In ComplianceMember organizations exceed

benchmarks developed by industry leaders, Alberta Transportation and Enforcement. PIC members have transformed their safety programs into safety cultures.

To learn more about what membership might mean for you please call

1·877·448·7456 (Northen Alberta)1·800·267·1003 (Southern Alberta)

www.partnersincompliance.com

2015 05 08 psac ad.indd 1 5/8/2015 11:03:29 AM

I


WWW.PSAC.CA 15

RE-EXAMINE THE STOCK EXCHANGE: Canada’s newest stock exchange,

Aequitas NEO, aims to reshape Canadian capital markets and facilitate

easier trading of debt or equity, allowing private companies across the

country to have greater exposure to new markets. The exchange, which

was developed with the backing of investors like RBC Capital and CI

Financial, will balance the needs of brokers, investors and issuers. “It

really wants to establish a stock market for small- to medium-sized

businesses,” says Roger Straathof, Managing Director for the National

Client Group at the Royal Bank of Canada. “So this is another great

initiative to make it easier for companies that have good ideas and

know how to execute them to have access to capital.”

SEEK ADVICE: Traditional financing options like business loans are just

one of the services offered to small- and medium-sized businesses by the

Business Development Bank of Canada (BDC). Growth and transition

N THE WAKE of low oil prices, businesses are examining

their balance sheets in order to find and reduce redundancies

while working to stay profitable.

PSN spoke to financial industry experts and asked them

for tips on accessing capital until the economy turns around. Top

advisors from the Business Development Bank of Canada, ATB

Financial and Royal Bank shared the following advice:

TAKE ANY AVAILABLE OPPORTUNITIES: When oil prices were high,

businesses may have been in a position to refrain from making deals

if their ideal conditions were not meant. Now that the markets have

changed, passing on an opportunity is a much higher-risk gamble.

“Don’t hold out - the companies that are going to succeed through

this year are those that are willing to get a deal done,” says Bruce

Edgelow, Vice-President of Energy at ATB Financial.

Treading WaterFINANCIAL EXPERTS OFFER ADVICE ON ACCESSING CAPITAL THROUGH THE DOWNTURN

BY LISA CATTERALL

BUSINESS MATTERS

I



Maintaining in a downturn market means knowing how to leverage your options. KPMG’s Deal Advisory team can make the complex manageable. We are forward-looking specialists with business acumen, deep sector knowledge and technical know-how, helping companies stay ahead of the issues and make the best decisions.

• Mergers & Acquisitions

• Due Diligence, Buy-side and Vendor

• Corporate Carve-outs

• Integration and Separation Services

• Cash and Working Capital Management

• Capital Raises

• Cost Optimization

Actionable insight delivered at deal speed and a seamless offer running from strategy through execution to real results.

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

Rhys RenoufManaging DirectorKPMG Corporate [email protected]

Neil HonessPartnerRestructuring & [email protected]

Alex HendersonPartnerTransaction [email protected]

kpmg.ca/energyservices

© 2015 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 9228

SUCCEEDING in troubled times

000PSN-KPMG-FP.indd 1 2015-05-08 8:10 AM

capital are also available to encourage businesses looking to develop

their services. “We have been one of the industry’s best kept secrets,”

says Michael Selci, Senior Vice-President of financing and consulting

for BDC’s Prairie region. “But we don’t want to be a secret anymore. We

want those in the oil and gas services industry to understand that we can

partner with them.” The BDC’s recently introduced oil and gas relief

program, which allows businesses in the industry to postpone payments

and access working capital loans in order to encourage growth and

survival, displays their commitment to the industry.

BUILD CRITICAL STAKEHOLDER RELATIONSHIPS: Having a relationship with more

than one financial institution and quizzing them about their services is

critical. “It’s no different than having more than one supplier,” says Selci.

“Entrepreneurs need to be aware of the financial solutions available to

them in the marketplace. Some of our solutions look like equity, and

some look like debt. These are things that are customized to the client,

and if they don’t ask about them they might not have the information

available to them about what others are doing.”

REMEMBER THE IMPORTANCE OF HUMAN CAPITAL: Often, cutting staff is one

of the first survival mechanisms companies turn to. But some experts

mentioned the importance of retaining highly-skilled tradespeople

in order to keep business running smoothly. Negative outlooks may

also encourage employees to look at other industries, so it is important

for businesses to encourage skilled workers to stay. “Although there

is a lot of focus on technology and innovation, I think we also need

to remember to develop well-skilled tradespeople,” says Russell

Barnes, Director of RBC’s energy services National Client Group.

“The industry needs to communicate that it is a vibrant industry with

a great future.”

PLAN FOR THE WORST CASE, HOPE FOR THE BEST CASE: Stringent planning will be needed in order to secure capital through the remainder of the year and into 2016. Businesses that prepare for the worst, and communicate these contingency plans with senior management and executive teams as well as shareholders, employees, landlords and banks will be better positioned to get through. “What’s the low case, and how tough is this potentially going to be? It’s time to look at that, and renegotiate everything possible on the cost side,” says Edgelow. “Communicate well, and often, with no surprises. Be as transparent as you can. In this environment, those that communicate well enough will be rewarded, because no one wants surprises.”

“COMMUNICATE WELL, AND OFTEN, WITH NO SURPRISES. BE AS TRANSPARENT AS YOU CAN.

IN THIS ENVIRONMENT, THOSE THAT COMMUNICATE WELL ENOUGH WILL BE REWARDED, BECAUSE NO

ONE WANTS SURPRISES.” – BRUCE EDGELOW, ATB FINANCIAL


Maintaining in a downturn market means knowing how to leverage your options. KPMG’s Deal Advisory team can make the complex manageable. We are forward-looking specialists with business acumen, deep sector knowledge and technical know-how, helping companies stay ahead of the issues and make the best decisions.

• Mergers & Acquisitions

• Due Diligence, Buy-side and Vendor

• Corporate Carve-outs

• Integration and Separation Services

• Cash and Working Capital Management

• Capital Raises

• Cost Optimization

Actionable insight delivered at deal speed and a seamless offer running from strategy through execution to real results.

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

Rhys RenoufManaging DirectorKPMG Corporate [email protected]

Neil HonessPartnerRestructuring & [email protected]

Alex HendersonPartnerTransaction [email protected]

kpmg.ca/energyservices

© 2015 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 9228

SUCCEEDING in troubled times

000PSN-KPMG-FP.indd 1 2015-05-08 8:10 AMPSAC_Summer_2015-p14-17.indd 17 2015-05-15 3:10 PM


THOUGHT

FUELFOR

N APRIL, Peter Tertzakian, Chief Energy Economist and Managing

Director, of ARC Financial Corp., gave a riveting keynote presenta-

tion as part of PSAC’s Energy Blueprint series. In his presentation,

“The Future of Canada’s Oil and Gas Industry,” Tertzakian shared

his vision of how Canada fits into the world energy market in light of cur-

rent low oil price circumstances. He also presented on what Canada’s oil

and natural gas industry will look like three, five and 10 years from now,

based on a series of technology, labour and finance discussions he had with

experts in petroleum services technology and innovation, senior educators

and academics, oilsands producers, leading financial analysts and govern-

ment ministers and senior staff.

Tertzakian provided attendees with a number of important takeaways.

He first suggested that natural gas – the greenest of fossil fuels – will be the

fuel of the future. As efforts ramp up to address climate change issues and

create efficiencies in renewable energies, oil will likely be supplemented as

an energy source with alternative energies such as wind and solar.

In his natural gas-focused scenario, Tertzakian sees the number of long-

term megaprojects – particularly those in the oil sands and offshore space

– diminishing dramatically due to the volatility of commodity prices and

the resulting uncertainty of long-term capital investments. He noted that,

as these large projects are reduced, there will be a rebalancing between oil

sands and conventional oil exploration and production activity.

The only large projects Tertzakian expects to be considered in the near

IMore natural gas and carbon footprint reporting, fewer oil sands

mega-projects are in store for our energy future

term would be those related to liquefied natural gas (LNG), adding that

Canada has the potential to be a key player in the world of LNG because of

the nation’s vast resources. Still, he noted that LNG projects face enormous

challenges in the future, like securing favourable tax regimes, finding and

keeping skilled labour and managing local First Nations issues.

Another key point Tertzakian made centred on the carbon footprint

made by the fossil fuel industry. He says there are investment firms, foun-

dations and universities with diminishing appetites for investing in petro-

leum industry companies that produce a larger-than-necessary greenhouse

gas (GHG) footprint, and he expects that perspective to spread. Going

forward, he can see companies reporting their carbon footprints in a very

detailed way for investors – much like a food label – breaking down the

GHG contribution of each operating activity, whether in the field, vehicle,

warehouse, machine shop or office. Tertzakian added that the need for pro-

ducers to reduce their GHG emissions presents a solid business opportunity

for services companies.

Toward the end of his presentation, Tertzakian highlighted charts that

represented potential investment capital that defies the overall sense of neg-

ativity for the Canadian oil and natural gas sector. To Tertzakian, this data

indicated that as much as, or potentially even more, capital is available now

than what was realized during the relative “high time” in Canada, prior

to the last quarter of 2014 and the rapid decline in oil prices in early-2015.

Tertzakian wrapped up his presentation by assuring participants that the


WWW.PSAC.CA

Bruce Edgelow, Vice-President Energy, ATB Corporate Financial Services, at left, introduced Peter Tertzakian at PSAC’s Energy Blueprint event.

The overflow crowd was riveted by Tertzakian’s presentation.

Mark Salkeld, PSAC’s President and CEO, welcomed attendees to the event.

Peter Tertzakian, ARC Financial Corp., gave an engaging presentation titled: The Future of Canada’s Oil and Gas Industry.

economy will indeed turn around, and when it does, petroleum industry

companies will be faced with all the usual challenges that are currently on

the back burner, including skilled labour and escalating wages.

Tertzakian thanked PSAC for being one of the first organizations to

invite him many years ago to be a keynote presenter and for continuing to

involve him in services sector events. He spoke for an hour and a half, and

the overflow crowd of PSAC members and other attendees were focused

on every single word. Everyone agreed they got more than their money’s

worth from this timely and insightful Energy Blueprint session.

PSAC’s Energy Blueprint was sponsored by ATB Financial.

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19



S PART OF THE Global Petroleum Show, and in partnership with the Explorers

and Producers Association of Canada (EPAC), PSAC proudly hosted the Working

Energy Investment Forum in early June. The forum fostered informed discussion

about petroleum services companies and their cutting-edge innovations, recognized

performance and opportunities for investment.

The intensive, informative event gave participants direct access to key leaders within the private

and public services companies profiled here. Audience members appreciated the focused format

and took advantage of the unique face-to-face forum by asking a number of questions.

The timing of the event was interesting, given the 2015 economic climate. PSAC realized the

importance of showcasing how member companies are managing their way through the economic

downturn, by streamlining operations and keeping prices low for customers while devising

innovations that make their operations faster, smoother, cleaner and safer. That truly is the

“working energy” that makes our member companies successful.

PSAC recognizes our sponsors – ATB Corporate Financial Services and Simmons & Company

International – for the support of our members and the event. We also thank EPAC for inviting us

to join them in this joint producer-services company investment forum.

A

Working Energy Investment Forum showcases services companies


WWW.PSAC.CA 21

PRESENTING COMPANIES:

BLUE SPARK ENERGYBlue Spark Energy, headquartered in Calgary, is a private company that enables customers to economically accelerate production and improve the recovery rates of their oil and gas wells. Blue Spark’s unique technology, experienced team and collaborative approach in assisting customers improve their economics and reduce their environmental impact is attracting customers worldwide. www.bluesparkenergy.net

CIVEO CORPORATIONCiveo is a global workforce accommodation specialist that helps people maintain healthy, productive and connected lives while living and working away from home. Our unique approach focuses on guest well-being, operational efficiency, community building and a property development mindset – making us a leading provider of accommodation solutions. www.civeo.com

DISTRIBUTIONNOWDistributionNOW is an industry-leading provider of pipe, valves and valve automation, fittings, mill and industrial supplies, tools, safety products and artificial lift systems to the upstream, midstream, and downstream and industrial markets. It is also recognized as a leading supply chain solutions company, providing value-added services, including supply chain management, project management and e-commerce solutions. The company’s associates have extensive knowledge, broad experience and a thorough understanding of our customers’ process and business drivers. www.distributionnow.com

EVENT SPONSORS

PRESENTED BY:

ATB CORPORATE FINANCIAL SERVICESATB Corporate Financial Services, a division of ATB Financial, is a full service financial institution serving the needs of mid- and senior-market businesses with operations in the province of Alberta. Offering a wide range of business solutions from credit, deposit, cash management, financial markets and syndications, ATB provides highly responsive relationships to our clients through industry expert Relationship Management teams. Focusing on the sectors that drive Alberta’s economy, like energy, real estate, construction, food and forestry, ATB is proud to be a financial partner that stays the course for its clients. Through the credit crunch, depressed commodity prices and global economic turmoil, ATB is focused on building custom solutions to help our clients do what they do best: lead. Because Alberta means the world to us. www.atb.com/corporate

PANEL SPONSORS:

PWCAs the leading Canadian energy industry professional services firm, our energy practice has more than 1,000 partners and members delivering industry-specific solutions to more than 1,600 energy companies of all sizes. PwC includes energy and public sector specialists and economists from across Canada. The team audits six of the top 10 public oil and gas producers (based on revenue), and provides professional services to more than 65 per cent of the Canadian oil and gas companies. www.pwc.com/ca/energy

SIMMONS & COMPANY INTERNATIONALSimmons & Company is a leading financial advisory firm for the energy industry, with four offices and over 150 professionals. Its headquarters are in Houston with other offices in Aberdeen, London and Dubai. The firm’s corporate finance group specializes in mergers and acquisitions, and raising debt and equity capital. Simmons & Company covers the entire spectrum of the energy industry and its clients range from small private companies to large public entities. Our equity research team provides our clients with proprietary, fundamental market analysis on domestic and global macro energy issues, as well as in-depth coverage of approximately 145 U.S. and European companies. Our research is complemented by a securities sales group which is consistently highest-rated in the energy industry, and an experienced trading group with best-in-class technology, providing speed, versatility and dependability for our clients. www.simmonsco-intl.com



PRESENTING COMPANIES:

ENSIGN ENERGY SERVICES INC.Ensign Energy Services Inc. is a global leader in oilfield services, headquartered out of Calgary and operating in Canada, the U.S. and internationally. It is one of the world’s top land-based drilling and well servicing contractors serving crude oil, natural gas and geothermal operators, and its premium services include contract drilling, directional drilling, underbalanced and managed pressure drilling, rental equipment, well servicing and production services. www.ensignenergy.com

ENTREC CORPORATIONENTREC is an employee-owned integrated crane solutions provider to the oil and natural gas, construction, petrochemical, mining and power generation industries. Operating from 13 locations throughout Alberta, British Columbia and North Dakota, ENTREC currently employs approximately 700 employees and operates a fleet of 245 cranes, 830 multi-wheeled trailers and 250 tractors, as well as approximately 400 lines of specialized platform trailers. www.entrec.com

NCS MULTISTAGE NCS Multistage is an independent technology and services company specializing in multistage completions. Today the company is the world leader in coiled-tubing-deployed frac-isolation technology used to develop unconventional oil and gas resources. NCS has operated throughout North America, Mexico, Argentina, Australia, China and Russia, with a record of more than 5,700 field successes. ncsmultistage.com

PRECISION DRILLING CORPORATIONPrecision is a leading provider of safe, high-performance and high-value services to the oil and gas industry. Precision provides customers with access to an extensive fleet of contract drilling rigs, directional drilling services, well service and snubbing rigs, coil tubing services, camps, rental equipment and water treatment units backed by a comprehensive mix of technical support services and skilled, experienced personnel. Precision is headquartered in Calgary and is listed on the Toronto Stock Exchange under the trading symbol “PD” and on the New York Stock Exchange under the trading symbol “PDS”. www.precisiondrilling.com

STRAD ENERGY SERVICES LTD.Strad is a leading provider of equipment rental solutions for various sectors of the North American energy industry. The company’s priority is complete customer satisfaction through the delivery of quality products and services for producers active in unconventional resource plays, as well as for pipeline, power transmission and facilities construction projects. www.stradenergy.com

TERVITA CORPORATIONTervita is a leading environmental solutions provider. Its integrated earth, water, waste and resource solutions deliver safe and efficient results through all phases of a project by minimizing impact, maximizing returns. More than 2,500 dedicated employees are trusted sustainability partners to oil and gas, construction, mining, government and communities. Safety is Tervita’s highest priority: it influences the company’s actions and shapes its culture. www.tervita.com

PSAC_Summer_2015-p20-23 copy.indd 22 2015-05-22 4:57 PM

WWW.PSAC.CA 23

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The PSAC Member Special Includes: • Includes golf, cart and accommodation

• 2 night minimum and based on double occupancy in a standard room

1.800.979.7999 www.kokaneesprings.comSpectacular Golf, Epic Adventures, Unforgettable Experiences!

Available from August 23rd to September 11th

per person per night, plus applicable tax$11900



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WWW.PSAC.CA 25

DRILLING ACTIVITY FORECAST UPDATE

Mid-Year Activity UpdatePROLONGED LOW OIL PRICES RESULT IN FURTHER DECLINE IN DRILLING ACTIVITY

OUR MONTHS OF low oil prices have led to significant

declines in drilling activity, according to PSAC’s 2015

Canadian Drilling Activity Forecast mid-year update. As

of April 30, PSAC is forecasting a total of only 5,320 wells

drilled (rig releases) across Canada for 2015. This dramatic decrease

of 4,780 wells from PSAC’s original 2015 drilling forecast, released in

October 2014, represents an astounding 47 per cent drop.

PSAC is basing its updated 2015 forecast on average natural gas prices

of CDN$2.50/mcf (AECO), crude oil prices of US$53/barrel (WTI) and

the Canadian dollar averaging $0.77 per US dollar.

“Oil prices dropped from an average of US$84.40 in October 2014 to

an average of US$47.83 in March 2015,” says PSAC President and CEO

Mark Salkeld. “It’s no surprise that an almost 44 per cent drop in oil

prices has led us to forecast a similar decline in drilling activity for the

F year, compared to our October 2014 forecast.”

On a provincial basis for 2015, PSAC estimates 2,976 wells to be

drilled in Alberta, down from 5,740 wells in the original forecast. In

Saskatchewan, the expected well count is now 1,507 wells, less than half

of the 3,365 wells in the original forecast, while Manitoba is forecasted to

drill 270 wells, down by 160 wells from the original forecast. The outlier

is British Columbia, which is expected to have a marginally increased

2015 well count, from 555 wells to 560 wells.

“The interesting outcome from this downturn will be the innovative

actions taken by companies to lower costs and create efficiencies that

will better position Canada in the world of energy services, extraction

and production,” says Salkeld. “The smart companies are using this

downturn to prepare. When prices rebound, these companies will be

more than ready – no doubt about it.”

BRITISH COLUMBIA: 555

ALBERTA: 2,976

SASKATCHEWAN: 1,507

MANITOBA: 270

TOTAL IN CANADA: 4,780

2015 CANADIAN DRILLING ACTIVITY FORECAST(NUMBER OF WELLS)

5,000

4,000

3,000

2,000

1,000

0

Note: Total includes activity in Northern and Eastern Canada.



• PSAC was invited to host a small business roundtable with Hon.

Maxime Bernier, federal Minister of State (Small Business,

Tourism and Agriculture) and to facilitate a site visit with a PSAC

member. Six PSAC member companies attended the roundtable.

PSAC member Blue Spark Energy gave a tour of its facility and

demonstrated their technology.

• The Canadian International Trade Tribunal asked PSAC to appear

as part of its investigation into dumped imports of OCTG in

Canada by nine countries. PSAC provided information related to

current and future drilling activity levels, factors that contribute to

activity levels and the petroleum services sector.

PSAC PRESENTS

THIS PAST SPRING, PSAC PRESENTED TO:• CAPP’s Executive Policy Group for Fiscal and Economic issues,

regarding the impact of low oil prices on the services sector and how

producers and PSAC members can work collaboratively through the

downturn.

• A delegation of Department of Foreign Affairs, Trade and Development

commissioners representing Argentina, China, Israel, Lithuania,

Philippines and the United Kingdom, about PSAC and the Canadian

services sector.

• Battle Lake Watershed Synergy Group and West Central Stakeholders

group in Rocky Mountain House, on services sector roles and

responsibilities.

PSAC’S ENERGY BLUEPRINT SERIES – APRIL 2015In April, Peter Tertzakian, Chief Energy

Economist and Managing Director, ARC

Financial Corp., gave a riveting keynote

presentation: “The Future of Canada’s

Oil and Gas Industry.” In the presen-

tation, sponsored by ATB Financial,

Tertzakian shared his vision of what

Canada’s oil and gas industry will look

like three, five and 10 years from now.

PSAC members and other attendees ap-

preciated the keen insights and timeliness

of the session. See full story page 18.

Peter Tertzakian, ARC Financial Corp.

PSAC IN ACTIONTHE PETROLEUM SERVICES ASSOCIATION OF CANADA (PSAC) CONTINUES TO KEEP THE SERVICE, SUPPLY AND MANUFACTURING SECTORS FRONT AND CENTRE THROUGH ADVOCACY AND OUTREACH.

• The consultant hired to conduct a review of the eGSO and registry

processes presented a report to the PSAC Board of Directors in

March. The report has also been reviewed by the PSAC Health

and Safety Committee. PSAC will be using the information in

the report to initiate discussions with the other oil and gas

industry associations on ways to streamline the eGSO and

registries processes.

• In February, PSAC met with the Chief Inspector of Explosives in

Ottawa to discuss issues raised by PSAC members including:

- Magazine electrical requirements (gun loading facilities)

- Permitting requirements for the transportation of damaged/

deteriorated explosives

- Permitting requirements for the transportation of detonators

- Review of the Guidelines for Jet Gun Perforating Assembly Facilities

• The Alberta government has provided industry with comments

received during the public consultation process on proposed

changes to the OH&S Code, and specifically the comments on

HEALTH AND SAFETY

the industry’s proposals for changes to Part 37 – Oil and Gas. The

industry is preparing a joint response to the comments.

• Further to the meeting held in January between PSAC member

companies and representatives from the Saskatchewan Ministry of

Transportation, PSAC has been following up with CAPP on issues

related to the scheduling of drilling rig and heavy equipment moves,

the size and weight of equipment being transported and an invento-

ry of bridges in the province.

• The B.C. Commercial Vehicle Safety and Enforcement (CVSE)

branch has raised several concerns with the methods being used by

industry to transport coil tubing reels on low-beds, including: the

weight of this equipment, the trend toward bigger and heavier drill-

ing rigs and the impact that work on twinning highways in north-

east B.C. will have on the transportation of other heavy equipment

used in the oil and gas industry. PSAC raised these issues with the

PSAC Transportation Issues Committee (TIC) and will be meeting

with CAODC and CAPP to discuss an industry response.

From left to right, at Blue Spark Energy tour: Craig McDonald, Specialized Desanders; James Dyak, West Oilfield; John Taskinen, Snubco Pressure Control; Hon. Maxime Bernier, Minister of State for Small Business and Tourism; Dustin Menger, Logco Wireline; Elizabeth Aquin, PSAC; Todd Parker, Blue Spark Energy; Eric Dagenais, Director General, Industry Canada.


WWW.PSAC.CA 27

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PSAC continues to meet with government officials and senior staff

to ensure the petroleum services sector is well understood in terms

of challenges and economic contribution, especially in light of

anticipated provincial and federal elections and subsequent cabinet

shuffles. PSAC recently met with:

• Jay Hill, Alberta’s new Senior Representative to Saskatchewan,

British Columbia, the North and the New West Partnership,

to introduce PSAC and discuss the benefits of Canadian

competitiveness through harmonization of various regulations

across the western provinces.

• Deputy Chief of Staff to Leader of the Official Opposition

Thomas Mulcair, along with NDP parliamentary affairs

staff, to introduce PSAC. NDP staff were interested in the

effects on PSAC members of changes to the Temporary Foreign

Workers Program.

• Hon. Geoff Regan, Liberal MP (Halifax-West) and Vice-Chair

of the House of Commons Standing Committee on Natural

Resources, to introduce PSAC. Regan was very concerned about

hydraulic fracturing chemicals. PSAC will be following up with a

further meeting with the Natural Resources Committee.

GOVERNMENT RELATIONS LABOUR AND WORKFORCE MANAGEMENT

TO ADDRESS LABOUR ISSUES THAT IMPACT MEMBERS, PSAC MET WITH:• Athana Mentzelopoulos, new B.C. Deputy Minister of Jobs,

Tourism and Skills Training, to introduce PSAC and the sector,

and to discuss labour needs and challenges.

• The Director of the B.C. Ministry of Aboriginal Relations &

Reconciliation, regarding jobs in the services sector, employment

initiatives for First Nations people and connecting PSAC members

with Treaty 8 band members. PSAC members have indicated an

interest in finding ways to train and recruit more First Nations people.

• The Executive Director of Alberta Labour Attraction and Retention,

Jobs, Skills, Training and Labour, to discuss developing recommen-

dations on how the Canada Job Grant can be structured to accommo-

date oilfield services sector employers that conduct in-house training.

PSAC also contacted the federal Employment Insurance commis-

sioner to inquire about a work-share program for the services sec-

tor. PSAC then arranged for representatives to explain the program

to the HR Committee and answer members’ questions. Learn

about the program here: servicecanada.gc.ca/eng/work_sharing/

index.shtml.



HAT ON EARTH can

revitalise oil well technol-

ogy and inject precious

life into old wells, all

without the use of water, chemicals or explo-

sives? A new technology courtesy of Alberta’s

Blue Spark Energy might just have the answer.

Blue Spark has developed a wireline applied

stimulation pulse (WASP) technology that

converts, compresses and discharges electrical

energy as usable high-power hydraulic pulses

to improve connectivity between the well bore

A Shock to the Well

W and reservoir quickly, safely and efficiently. The technology has been

proven to enhance oil flow in new or poorly producing wells, recover

reserves from non-producing wells and increase flow in injector and

disposal wells. Essentially, Blue Spark’s method shocks the stagnant or

blocked oil and helps re-stimulate flow in the well.

The name Blue Spark derives from what one sees when the physi-

cal pulse goes into action. “When we have clients out to our Calgary

operations facility to view one of our demonstrations, we operate the

tool without the external membrane to allow clients to see the spark.

Clients typically make the Blue Spark connection right away after see-

ing the tool fire,” says Marci Hamilton, Blue Spark Energy’s Global Ser-

vices Manager.

Blue Spark is currently the only company in the province showing

off the technology. The lack of pollutants and use of resources sepa-

rates Blue Spark from the pack, although in today’s business world,

according to Hamilton, “being environmentally responsible is just good

business.

“It’s less about leading the charge to change and more about offering

alternatives through innovation. We want to continue developing tech-

nological advances in our sector that will be sustainable beyond future

environmental regulations,” she adds.

CALGARY ENERGY COMPANY’S NEW TECHNIQUE IS ELECTRIFYING

BY SÉAMUS SMYTH

MEMBER PROFILE

“WE WANT TO CONTINUE DEVELOPING TECHNOLOGICAL ADVANCES IN OUR SECTOR THAT WILL BE SUSTAINABLE BEYOND FUTURE

ENVIRONMENTAL REGULATIONS.” – MARCI HAMILTON, BLUE SPARK ENERGY’S

GLOBAL SERVICES MANAGER

Blue Spark Energy employees sit in their Calgary office.


WWW.PSAC.CA 29

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“IT IS DIFFICULT NOT TO GET DISTRACTED DURING A DOWNTURN, BUT I THINK IT IS CRITICAL TO

UNDERSTAND THE OPPORTUNITIES THAT THESE CHANGING CONDITIONS REPRESENT.”

– HAMILTON

Blue Spark Energy was formed in January 2011 by President and CEO

Todd Parker. This followed Parker travelling to France to meet with a

group of scientists working with high-pulsed power to discuss possible

applications in the oil and gas world.

“Todd is responsible for bringing the technology and our tools from

a drawing on a whiteboard

prototype to a commercial

application,” says Hamilton. It

was the fusion of technology and

Parker’s leadership that swayed

Hamilton to join the ambitious

atmosphere at Blue Spark.

“When he formed Blue Spark,

I was interested in hearing more about the technology. He had shown

me a video clip of the work being done by a team in France and I knew

immediately this was something that I wanted to be a part of.”

Hamilton joined Parker in May of 2011 as the company’s second em-

ployee. Engineering manager Jesus Minakata joined a few weeks later,

and the company’s first field jobs were completed that July.

Although the current energy situation in Calgary is worrisome,

Hamilton views this as an opportunity for companies to re-evaluate

their business models and potentially be more open to a technology

that Blue Spark has to offer.

“It is difficult not to get distracted during a downturn, but I think it is

critical to understand the oppor-

tunities that these changing condi-

tions represent,” she says.

Blue Spark has helped improve

oil production in 200 wells

since 2011. Hamilton expects

the company to become a major

player in the energy market,

because its work speaks for it itself.

“The technology is successful on its own merits, because it does what

we say it will do,” she says. “After more than 300 jobs globally with an

average improvement of over 200 per cent, the results are reaffirming

that we are on the right path and will continue working with our tech-

nology towards new developments.”



SMART FINANCING GOES DEEPER THAN DOLLARS.Dig deep with GE Capital.

Our asset-based, cash fl ow and structured loans come with decades of GE industry experience. Collaboration within the supply chain on investment opportunities and innovation is only the start. GE Capital is more than just fi nancing, we are energy industry partners.

What we know can help you grow.

GECapital.ca/partners

Important Notice: Nothing herein shall be construed as an approval or commitment to finance or for provision of other service by General Electric Capital Corporation and its affiliates (GE) to any person. All transactions are subject to final investment/credit approval by GE and the execution of mutually satisfactory definitive documentation. Nothing contained herein shall be construed as any guarantee or promise of profitability or generation of revenue of any kind whatsoever. Nothing contained herein constitutes tax, accounting, financial or legal advice by GE to any person. © 2015 All rights reserved. General Electric Capital Corporation.

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IF YOU COULD DO ANY OTHER JOB/OCCUPATION, WHAT WOULD THAT BE? TW: Stock broker.

BD: Running a hot rod fab shop.

WHAT IS YOUR FAVOURITE BOOK OF ALL TIME? TW: Killing Patton by Bill O’Reilly.

BD: Atlas Shrugged by Ayn Rand was required reading growing up.

WHAT ABOUT MOVIE? TW: Titanic

BD: Shawshank Redemption

IF YOU COULD INVITE THREE FAMOUS PEOPLE (DEAD OR ALIVE) TO DINNER, WHO WOULD THEY BE AND WHAT WOULD YOU SERVE? TW: Bill Clinton, John Wayne and Elvis Presley. I would serve Canada

Grade A steak accompanied by mashed potatoes and steamed green

beans.

BD: I’d serve Jesus, Richard Rohr and Mother Theresa turkey with all

the trimmings.

WHAT DO YOU THINK IS THE BIGGEST CHALLENGE FACING CANADA’S ENERGY INDUSTRY AT THIS TIME? TW: The constraints of exporting LNG and oil to other markets

beyond the U.S.

BD: Access to markets is by far our greatest concern.

WHAT WOULD YOU SAY IS YOUR BIGGEST ACCOMPLISHMENT TO DATE? TW: Starting the oil sands chemical business for Baker Hughes in

2001.

BD: Building the first abandonment rig ever built.

WHAT MOTTO OR PHRASE DO YOU LIVE BY? TW: Learn to do by doing.

BD: Do unto others as you would have them do unto you.

IF YOU COULD TRAVEL TO ANYWHERE IN THE WORLD, WHERE WOULD YOU GO? TW: Greece

BD: Africa

IN 10 WORDS OR LESS, WHAT WOULD YOU SAY ABOUT HOW 2015 IS GOING TO TURN OUT? TW: 2015 is going to be a milestone year of tremendous change for the

oil industry.

BD: Challenging, thank heavens for abandonments and natural gas.

WHICH TALENT WOULD YOU MOST LIKE TO HAVE? TW: Musical ability.

BD: The ability to play guitar the way Stevie Ray Vaughan does.

IF YOU COULD CHANGE ONE THING ABOUT YOURSELF, WHAT WOULD IT BE? TW: Better work-life balance.

BD: More patience.

WHAT IS YOUR MOST TREASURED POSSESSION? TW: My photos.

BD: My road bike.

WHO ARE YOUR HEROES IN REAL LIFE? TW: My mother would rank as the most positive inf luence on my life.

BD: Anyone who suffers adversity and makes the best of it. Stephen

Hawking, and all cancer survivors.

WHAT FOOD DO YOU CRAVE? BETTER YET, WHAT SIGNATURE MEAL DO YOU MAKE? TW: Pork tenderloin.

BD: All sweets – I can’t cook.

TOM WHALENPresident and Managing Director

Baker Hughes Canada Inc.

BILL DARLINGGeneral Manager – Innovator Division

Mustang Well Services Ltd.

PETROLEUM SERVICES NEWS TALKS WITH PSAC’S BOARD OF DIRECTORS AND TAKES A PERSONAL LOOK AT LEADERS IN THE SERVICES SECTOR. THIS ISSUE WE MEET:

TOM WHALEN BILL DARLING

A LOOK AT LEADERSHIP


SMART FINANCING GOES DEEPER THAN DOLLARS.Dig deep with GE Capital.

Our asset-based, cash fl ow and structured loans come with decades of GE industry experience. Collaboration within the supply chain on investment opportunities and innovation is only the start. GE Capital is more than just fi nancing, we are energy industry partners.

What we know can help you grow.

GECapital.ca/partners

Important Notice: Nothing herein shall be construed as an approval or commitment to finance or for provision of other service by General Electric Capital Corporation and its affiliates (GE) to any person. All transactions are subject to final investment/credit approval by GE and the execution of mutually satisfactory definitive documentation. Nothing contained herein shall be construed as any guarantee or promise of profitability or generation of revenue of any kind whatsoever. Nothing contained herein constitutes tax, accounting, financial or legal advice by GE to any person. © 2015 All rights reserved. General Electric Capital Corporation.

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Considered by a growing list of companies to be the ideal location for development in Western Canada, Rocky View County offers the perfect environment for a range of industries.

Rocky View County is a critical part of Alberta’s economy. The development of warehousing, logistics parks and massive distribution centres have thrust Rocky View onto the stage of global logistics. This has been made possible by Rocky View’s direct access to major highways, the Calgary Ring-Road, rail and proximity to the Calgary International Airport. World-class retail development, a readily available talent pool and an expansive consumer base throughout the Calgary Region, have amplified these new opportunities.

Cultivate your company’s success and reap the rewards of relocating to Rocky View County.

www.thinkingalberta.com

Location, Location, Location

000PSN-Rockyview-FP.indd 1 2015-04-24 9:18 AMPSAC_Summer_2015-p30-32.indd 32 2015-05-15 2:55 PM

Documents

PSAC Petroleum Service News Summer 2015