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June 2009 Volume 10, Number 3
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here are a lot of things that industry is doing right, and a lot that industry is doing wrong, “Industry is doing a lot of things right. We just never seem to take the opportunity to talk
say the employees of PSAC Member companies, and in both cases employees need a lot about these positives,” says Soucy. “There are some great examples out there of how industry is
more information than they’re getting. That’s the message that came through loud and working to protect the environment, proactively responding to issues of community concern,
clear from employees in a PSAC survey conducted of Member company employees. Continued on page 7
The survey, which incorporated the views of over 1,200 respondents – a respectable repre-
sentation of the PSAC member company employee base, was conducted as a means to listen to
industry’s own workers on their views of the industry and that of their friends, family, and com-
munity members in places where they work. The survey provided an opportunity for employ-
ees to voice their opinions, share their concerns and provide valuable information on a number
of key indicators.
The survey was undertaken through PSAC’s Public Perception Program, on the premise that,
with 88 per cent of Albertans supporting royalty hikes, it was clear that some of those people had
to work in or with the oil and gas industry. The PSAC Board felt it was important to give these
workers a voice to better understand their mindset and to show them first hand that industry is
listening.
“Our workers are both the backbone and the frontline of our industry. They are the ones in-
teracting with the greater community on a daily basis, and they have a tremendous potential to
be our first line of defense in protecting industry’s social license to operate,” says Roger Soucy,
PSAC President.
Overall, it was apparent that workers hold the industry in relatively high regard, but feel that
their family, friends, and members of the community do not view industry as favorably.
Interestingly, a majority of survey respondents (79 per cent) are concerned about this. Workers
cited a lack of awareness and understanding of the industry as one of the root causes behind
this issue and called for greater industry outreach and communication to remedy this.
When it comes to understanding industry’s economic contribution, employees indicated
that both they themselves as well as the general public understand and value the contribution
that industry makes in terms of employment, economy, and investment to local communities. It
was also noted that industry’s products are also highly valued.
At the same time, workers indicated a number of questions that they receive in their daily
interactions, which most felt ill-equipped to answer. Such questions included those related to
gasoline pricing (keeping in mind that the survey was conducted when gasoline prices were
at an all-time high), industry’s environmental impact, royalties, why record profits from the E&P
sector don’t appear to trickle down to benefit employees and communities, and what its like
to work in the industry. Respondents also indicated that they hear a lot of questions and con-
cerns from local communities regarding anticipated industry activity levels and the related im-
pact to communities.
“It is very clear through this survey that, as an industry, we have got to do a better job of
getting the right information to our people, so that they are in a better position to communi-
cate effectively about industry and the issues that our stakeholders care about,” says Soucy.
In addition to questions they frequently hear, survey respondents also identified a number
of issues around which they feel improvement is necessary. Overall, industry came under heavy
fire from its workers (60 per cent of them) for not connecting effectively with communities,
and for not being responsive to issues of community concern. Interestingly, workers self iden-
tified those issues as including the transient nature of industry’s employees who move through
communities, industry driving habits, the impact of waste, and a general lack of courtesy when
workers are in local communities.
The difficult lifestyle created by long shifts and the cyclical nature of work in the indus-
try was also cited as a major concern. Many employees noted the associated risks of divorce,
drug use, alcohol, and burn-out, especially in the case of younger workers, as negative aspects
of the job.
Accordingly, employees actually called for stricter regulatory involvement related to employ-
ment and workplace standards, safety, and other key areas impacting industry, including envi-
ronment and water usage, which were also ranked as a top area of concern.
“It was fairly shocking that our own people want to see more regulation of industry, and I
would say that this is a fairly clear indicator that we have got to do some work to clean up our
own backyard,” Soucy says.
Interestingly though, employees ranked their own companies much higher than they did the
industry’s performance overall on almost every key indicator in the survey. E&P companies
were ranked the lowest, and, in fact, came under heavy fire in a number of key areas – partic-
ularly when it comes to the relationship with industry suppliers and contractors, an area it
seems, which has deteriorated significantly of late.
In its survey, PSAC asked service sector employees if they would be willing to change their
habits, such as by closing gates and slowing down to reduce dust, in order to make a positive
difference in the communities they work in. Eighty-four per cent of respondents said yes, but
with the caveat that they would expect more support from companies in all industry sectors
to ensure that their individual actions were supported by a collective effort.
“That’s fair enough,” said Roger Soucy, PSAC President.“We can’t ask each employee to go it
alone. We need to provide them with information and tools that will help all employees, and
the companies they work for, to strengthen our social license to operate.”
While the survey certainly has brought to light some key areas which industry must now
address, the results were not all negative. Workers gave industry an extremely positive review
in a number of areas including protecting public health, keeping workers safe, and investing in
communities where it operates.
Corner
A Time to Fight Back
Will emotion and hype continue to win the battle
over logic and reason? visit us at GO EXPO GAS AND OIL EXPOSITION
F
or a moment, I am going to forget my badly
charred resource portfolio, real estate invest- an area the size of Florida, but 80% of that devel-
ments that look all-too real, and those worth- opment is in-situ or underground as opposed to sur-
less stock options used so ingeniously by HR to
convince me to stay put for the past five years. I
face mined. 12th Annual BC Natural Gas Symposium
guess I’ve learned -- like so many others -- that even Myth #3: Developers are “destroying the boreal forest.”
I
n 2008 B.C. saw record land sales. For the first time ever land sale figures
when times are good, treading water is the same Reality: the entire mineable area is less than 1% of topped Alberta! All of the excitement is around unconventional gas in the
thing as sinking like a stone. It’s the journey, right? this forest. Less than 1/16th of that 1% has been dis- Northeast. B.C. has a great environment to incent activity - great geological
Yeah, right. turbed to date. And reclamation is a regulatory reserves and a government that wants to encourage business opportunities. Of
For a moment then, like the impressionable requirement. course, all of this opportunity does come with challenges.
young grunt played by Charlie Sheen in Platoon -- Attend The Canadian Institute’s 12th Annual BC Natural Gas Symposium
who realizes he’s made a terrible mistake trading Myth #4: Developers are “depleting fresh water where you can expect to hear some of the province’s most prominent stake-
his middle-class lifestyle for the realities of jungle resources to produce oil.” holders and players discuss what is being done to overcome challenges and cap-
warfare in 1960s Vietnam -- I am going to attempt Reality: Up to 90% of water is recycled; saline/non- italize on opportunities surrounding BC natural gas plays.
to climb from this personal abyss and begin to potable water is used whenever possible and there
rebuild. Find some positives in this dark and dirty are strict limits on fresh water withdrawals. Conference Title:
Recession we are experiencing. The Canadian Institute’s 12th Annual
This is exactly the same position the Canada’s Myth #5: “Development is contaminating rivers and BC Natural Gas Symposium
embattled and embittered oilsands sector finds itself putting people and habitat at risk.” Date: Location:
in – never lower, despite some glorious years when Reality: Testing shows that rivers adjacent to oil- June 4 & 5, 2009 The Fairmont Palliser, Calgary
it seemed the sky was truly the limit. sands projects have lower contaminant levels than
And just as I’m seeking a way out and back up other rivers in the region with no industrial oilsands
on a personal level, so too is the industry. activity near them; bitumen is naturally present on
For the past couple of years, the hammering in the banks and in the Athabasca River.
the media against the oilsands “juggernaut” has been Continued from page 5
relentless – driven by emotional triggers activated Myth #6: Oilsands activity is three to five times
so skillfully by increasingly strident and well-fund- more intensive than conventional oil. inventing new technology which ben- PSAC will also be unveiling an em-
ed environmental non-government organizations Reality: On a “wells to wheels” basis (from extrac- efits the end-user, and otherwise. We ployee engagement toolkit for its
(ENGOs) whose only aim is to destroy the fossil fuel tion to end use), the oil sands are less carbon in- need to start sharing these stories”. Members, in an effort to get the infor-
economy (and thereby the entire world economy). tensive than Venezuelan crude and comparable to With this input from its Member mation employees called for in the sur-
The “Dirty Oil” campaign, you must admit, is bril- oil shipped from the Middle East and California company employees, PSAC is now vey out to workers so that they are
liant in its simplicity and unfortunately, as any PR heavy; Canada accounts for 2% of world’s overall preparing a number of tactics and better able to be ambassadors for in-
agency worth its salt will tell you, it has legs. emissions and the oilsands is less than 5% of that tools through its Public Perception dustry in their day-to-day work.
Is the worst over for the industry that carries (i.e. 1/10th of 1% of world’s emissions). Program that will be launched over the “Even in a tight economic market,
North America’s energy future on its back? In the days and months ahead, you’re going to be next number of months. This will in- the PSAC Board and Members recognize
Will emotion and hype continue to win the bat- hearing a lot more about these myths but more clude a new section on the PSAC web- the value of this long-term initiative,”
tle over logic and reason? importantly about these realities. If I were an en- site with information on the industry summarized Soucy.“We will continue to
When will the industry start fighting back and terprising reporter (past life), I’d be jumping all over and its issues, geared towards commu- do whatever we can to help the indus-
take meaningful action to reclaim its voice in this this stuff before my competitors do. nicating with the public. try strengthen its public support.”
high-stakes debate?
No one has the answers to these questions right
now but be assured the industry has been gearing
up through groups the Canadian Association of
Petroleum Producers, the Oil Sands Developers
Groups and other initiatives that will surely come
to light in the near future, to counter the many false
claims that continue to make front-page news all
around the world and make Canada look like a
Draconian industry backwater.
You can’t help but feel there are sinister eco-
nomic forces at work here, but I’ll save the Angels
and Demons conspiracy theory column for a future
issue.
Instead, let’s focus on a theme that’s beginning
to crop up and has manifested itself in recent
speeches by Alberta Energy Minister Mel Knight,
OSDG President Don Thompson, and Syncrude
President and CEO Tom Katinas among others.That
theme is embodied in the title of Thompson’s
speech: Setting the Record Straight and revolves
around correcting the myths perpetuated primarily
ENGOs about oilsands development.
Thompson talked about 10 myths, while Knight
has his Six ways to tell you’re not getting the whole
oilsands story – for the sake of space, I’ll use the lat-
ter which I’ve adapted Coles-notes style:
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his is our 27th year in consulting, and 4th (or more?) signifi (with a hiccup in winter ‘06/07). In my opinion, this surge origi- Two other factors were at play. At the peak, oil
cant recession. One of the characteristics of longevity is nally reflected the fundamental economics of growing demand and traded at least 15 times each physical barrel, so it is
experience (which is not necessarily wisdom).With that cau- more expensive supply, then acquired a ‘political premium’ clear that financial markets, including hedge fund and
tion, some of my observations follow. regarding supply uncertainty, impacted initially by the war in Iraq, commodity speculators, played a key role in setting
The last decade saw a prolonged oil price uptrend, from the which tightened supply, and enhanced the impact of other uncer- prices, including the volatility of technical trading mod-
low teens in winter ‘98/99 to all time highs reached in mid-July ’08 tainties such as unrest in Nigeria, and politics in Venezuela. els. For the majority of world producers, a weak US dol-
lar (resulting from the ‘easy money’ policy of the US
Federal Reserve Bank) depreciated the value of what
they received and fed higher commodity prices in
North America.
The oil price reached a crescendo when oil reached
$145/Bbl in July ’08 --- over 10 times its ’98 low, in just
a decade! While this price may not be expensive com-
pared to bottled water, it was far too costly for the world
economy to absorb (notwithstanding Alan Greenspan’s
comments to the contrary). With the sharp world eco-
nomic downturn, an oil price free fall ensued, which has
brought us far (perhaps halfway) below the break-even
point for new reserves virtually anywhere.
During the last decade, the strong demand for oil and
gas strained human and physical resources, creating
huge cost increases, in sectors as diverse as deep off
shore drilling rigs and the Alberta oil sands. Operators’
prime focus was on the incremental barrel, ‘cost be
damned’, as pundits from the financial institutions fore-
cast oil at $200/Bbl (in our view, defying gravity).
Unfortunately today, high costs for many energy base
goods and services are now deeply engrained, and
reversing the status quo to achieve reasonable serv-
ice costs will be difficult and painful. This process has
begun; however, has a long way yet to go.
Many senior executives have bemoaned the tyranny
of Wall Street, with its expectations of unreasonable
growth of profits many times the inflation rate, and for
its ‘flavor of the month’ lens for evaluating company
strategies and performance, vs. a longer term perspec-
tive, which reflects the investment realities of the oil
business (or most other businesses, for that matter).
Short term performance is not a sound basis to grow real
businesses. Excessive power is concentrated in the hands
of relatively few analysts, many with little real industry
experience.The true substance, and leverage, of many of
these high flying investment firms and banks has been
laid bare --- if these firms are really so smart, why are so
many of them in deep trouble, requiring large bailouts
in most countries of the developed (and undeveloped)
worlds? This is similar to the Enron follies (CEO Jeff
Skilling’s disdain for real assets, like oil and gas wells,
and pipelines), and the ‘dot.com’ period.
The common theme: unreasonable Wall Street ex-
pectations drives excessive risk taking by public com-
panies. This performance greed (‘bonfire of the vanities’
lives on) lies behind the fiasco of ‘Asset Backed Paper’,
which has ensnared many corporations, pension funds,
and individuals. The ‘rating’ of risk by several bond rat-
ing agencies (talk about concentration of power!) in a
‘laissez faire’ world of regulation (where was the US
e
Field Exploration LLP has announced the com-
gas projects. Columbia. pletion of their first Offshore Airborne Survey - a
Wellons is currently working on a crude oil heating system for powerful new “De-Risking Tool” for the Oil & Gas
a major pipeline and merchant tank operator in Alberta. The heart The skid scope included operating and standby pumps, primary Exploration Industry. Contracted by a Norwegian JV,
of project scope is two Wellons 40MM BTU/hr gas fired skid loop piping, PLC based HMI control system, motor control center, the survey in the Nordland area of the Norwegian Sea
assembled glycol heaters. and gas combustor c/w combustion air fan flame arrestor. This was used to rapidly assess the potential of multiple
Wellons project scope also includes two glycol- to-crude oil equipment was shop blocks for the Norwegian Petroleum Directorate’s 20th
heat exchangers, glycol and crude oil circulating pump skids, and assembled and located in an enclosure on the skid. The enclo- Licensing Round.
a prefabricated control room module. Wellons Canada also recent- sure was supplied with flanged pipe connections and electrical Flying over 100 miles offshore and over water up
ly supplied a 12MM BTU/hr gas fired thermal oil heater for a new interconnection panels for easy site tie-ins. to 1000 feet deep, Passive Electromagnetic and High
Resolution Magnetic data acquisition was completed in
less than one week with a specially designed sensor
package.
eField Aircraft based at Brønnøysund, Norway for
the survey.
“Conventional methods such as Marine Seismic or
CSEM would have taken months and costs would have
been prohibitive” says Ed Johnson, president of eField.
“Our Offshore Airborne System can cover up to 500
line miles per day at a fraction of the cost of a marine
survey.”
Johnson further noted that “eField’s platform in-
corporates multiple sensors including high resolution
magnetics and electromagnetics recording data from
the air-ocean interface to sub-f loor penetration.
Satellite data is then added to provide valuable natural
seep mapping.
H
oneywell has joined the Control Systems Integrators Association (CSIA) optimize their access to capital. The key is under- comes along. A lender with a specialized asset man-
www.controlsys.org/index.htm , North America’s largest organization standing what is available and how a smart financing agement team, such as GE Capital, can help companies
for independent control systems integrators. solution can enhance financial ratios, provide surplus find equity in their existing capital equipment and turn
CSIA includes more than 300 member companies dedicated to sharing and cash flow and protect the longevity of a business. it into cash for their business.The company can require
developing systems integration best practices. In addition to providing a forum Align long-term assets with long-term debt. Many that this cash be available on a standby revolver while
for members to discuss common business issues, the group publishes its Best companies currently use their operating line to cover ensuring long-term balance sheet treatment. Having
Practices and Benchmarks reference guide and offers its renowned Certified the costs of long-term investment opportunities, such cash available during uncertain times can provide
Member program used to help manufacturers identify leading integrators. as equipment, because it’s readily available and perhaps assurance that businesses make it through difficult
“Honeywell is a natural fit for CSIA because the company has made integra- a lower-rate alternative. Operating lines are typically economic times.
tion a cornerstone of its strategy for helping manufacturers of all sizes improve secured by short-term assets, which can be extremely Don’t stop at rate, invest in a solution. When shop-
operations,” said Norm O’Leary, executive director of CSIA. “With deep expert- volatile in value, such as natural gas reserves, receiv- ping around for financing, it is important to remember
ise in integration, system design and the unique needs of various industries, we ables, or inventory. In this economic environment, an that there is more to it than simply rate. It is critical that
expect that Honeywell will contribute a wealth of knowledge to the group and operating lender may try to protect his position by companies find a partner who is willing to take the
help strengthen its resulting research.” reducing lending ratios, increasing rates, charging fees time to understand their unique needs. When it comes
Honeywell, a past winner of the System Integrator of the Year Award from for even small covenant breaches, rolling back lines of to financing, one-size does not fit all. It is important to
Control Engineering magazine, has more than 3,000 project engineers and credit, or calling the loan on demand. One way around question “off the shelf” products sold by those who
designers who work worldwide through a network of 50 design centers. the risk of being subjected to any such actions is to aren’t asking questions about the business’ objectives.
Honeywell provides a wide range of technology platforms and instrumentation consider long-term financing structures secured by the A lender who can collaborate with a company to struc-
that enable manufacturers to coordinate previously disparate systems. For asset the company is investing in. In doing so, the ture a solid financial solution that will not only provide
example, the company’s award-winning process control platform, Experion® monthly obligations are much better aligned with the liquidity but also protect the business, is worth a sec-
Process Knowledge System (PKS) <http://hpsweb.honeywell.com/Cultures/en- revenue the asset is earning over the duration of the ond look. It may be surprising to find out how much
US/Products/Systems/ExperionPKS/ExperionPlatformOverview/default.htm> , useful life of the asset. In addition, this strengthens the the amount of interest paid can pale in comparison to
coordinates critical subsystems dispersed throughout a manufacturing facility company’s balance sheet with stronger current ratios the money a company can make or save with the right
to provide greater visibility into plant operations. The latest solution in the and frees up short-term capital for short-term needs. A financing structure. Companies should challenge their
Experion product line, Experion LS <http://hpsweb.honeywell.com simple mini-restructure like this can make a big differ- lender to prove it to them.
/Cultures/en-US/Products/Systems/ExperionLS/default.htm> , allows integra- ence and will be more attractive to lenders. In the quest of strategic partnerships, GE Capital is
tors to offer customers the power and reliability of a traditional distributed Monetize your assets. A good buffer of readily avail- proactively seeking opportunities, across all industries,
control system (DCS) in a smaller, flexible package more commonly associated able cash can go a long way in today’s uncertain envi- to help companies re-structure their balances sheets
with Programmable Logic Controllers (PLCs). ronment. On the one hand, it can help a company and improve their cash flow positions through flexible
“Organizations such as CSIA are critical for advancing our industry because ensure steady operations through temporary unex- financing solutions. As one of General Electric’s largest
they build great knowledge bases that shed insight into the new challenges our pected downturns. On the other hand, cash can help growth engines in Canada, GE Capital offers lending
customers face,” said Harsh Chitale, vice president of strategy and global mar- advance a company’s competitive advantage when op- products, growth capital, revolving lines of credit,
keting for Honeywell Process Solutions. “Helping to set high standards for sys- portunities arise. Companies need to look no further equipment leasing, cash flow programs, asset financing
tems integration will help manufacturers meet those challenges in a for this than their full inventory of equipment - be it gas and other financial services. Companies can expect
cost-effective manner, which ultimately means better business results for every- compression equipment, equipment for heavy trans- reliable, well-capitalized and competitively priced
one involved.” port, loading or digging, as well as manufacturing and financing solutions – and the personal attention that
www.honeywell.com/ps. many other types of equipment. Existing equipment they deserve.
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I
n North America, one in six men will develop prostate cancer in Energy TV is proud to announce the keynote speaker for the Boxer
their lifetime.The good news is that the mortality rate from prostate Blues will be Canadian petroleum icon W. Brett Wilson, who will share
cancer in North America has been falling in recent years. The bad his journey with prostate cancer.Wilson is the co-founder of FirstEnergy
news is that the fight against prostate cancer is not over yet because an Capital Corp.
average of about 500 Canadian men will be diagnosed with prostate can- He is also an award winning entrepreneur and philanthropist with
cer each week. accolades including:Top 40 under 40,Top 20 Deal Makers, and Top M&A
The oil and gas industry will gather together to help “Knock out Specialists. Alberta Venture Magazine selected Wilson as the Business
Prostate Cancer” during a unique fundraising/networking event that will Person of the Year for 2008. Wilson is currently the managing director
be hosted by Energy TV during Go-EXPO.This fun-filled evening, known and president, Prairie Merchant Corporation, a private merchant bank
as the Boxer Blues, has been created to increase awareness and raise focused on business opportunities. Recently, his entrepreneurial savvy
funds for prostate cancer. landed him a role as a panelist on CBC’s Dragons' Den.
“Prostate cancer has become one of the most common cancers that Wilson’s life took a new turn when he was diagnosed with prostate
affect our male population today and in a male dominated industry like cancer at 43 years old. Since then, he has become one of Canada’s most
the petroleum sector, it seemed like a perfect fit to host an event with sought-after public speakers sharing his story about the path to success
that focus,” says Shelly Brimble, Boxer Blues project manager. in business and life – with a focus on his struggle with prostate cancer.
During the Boxer Blues, the Prostate Cancer Institute,
Calgary will unveil a unique community outreach project
that has been in the works for the past three years known
as the “Man Van.”This mobile unit can collect blood sam-
ples in the community then bring then provide results in
less then 30 minutes. Blood samples are one of the most
important tools used to diagnose prostate cancer other
than the digital rectal exam (DRE). Prostate specific anti-
gen (PSA) are a markers found through blood that un-
cover hidden cancer.
Linda MacNaughton, community relations coordina-
tor, Prostate Cancer Institute, says they are planning to
start with four three hour mobile baseline PSA blood test-
ing clinics per month in various locations in and around
Calgary. The Prostate Cancer Institute has imported mo-
bile PSA testing units into Canada for use with the Man
Van and each unit can provide a result within 30 minutes.
This rapid detection is key to survival because like
any other cancer, the chances of successful treatment in-
crease with early detection. Many men go undetected be-
cause quite often prostate cancer show little symptoms
until the disease has progressed.This is why regular PSA
testing can reduce prostate cancer death by 20 per cent.
According to the largest study ever conducted on prostate
cancer screening (European Randomized Study of
Screening for Prostate Cancer) the screening is working
because 48 men were treated for the presence of prostate
cancer out of every 1,408 men tested.
Funds to battle prostate cancer will be raised during
Boxer Blues through various activities including a boxing
zone. Participants can challenge amateur boxers from
Calgary-based Impact Boxing Club on Nintendo Wii sta-
tions. Louie Raposo, owner/operator, Impact Boxing
Club, will bring a championship belt for the best player.
Calgary Women in Energy, a networking group in the pe-
troleum industry, have also volunteered to provide staffing
support for the event.
Silent auction items are also being collected to raise
funds and items will be accepted until the day of the
event.“We have been touched by so many personal sto-
ries from people in the energy industry that have been
impacted by this disease and are graciously giving items,”
adds Brimble. “One man who recently recovered from
prostate cancer is also an artist. He is currently creating
a painting just for this event.”
Boxer Blues (www.energytv.com) will be hosted on
June 10, 2009, within walking distance from Go-EXPO
at Hotel Arts. About 450 people from the petroleum
sector will help raise funds to battle prostate cancer
from 6 p.m. to 10 p.m. All proceeds raised on site will
be donated to: Prostaid Calgary (www.prostaid.org),
the Prostate Cancer Institute, Calgary (www.prostate-
calgar y.com) and the Prostate Cancer Canada
(www.prostatecancer.ca).
“Everybody knows that this is a hard time for the oil
and gas industry, but when the going gets rough, the
industry pulls together. We hope to host a fun-filled
event while successfully raising funds for a great cause.
We challenge Go-EXPO participants to join Energy TV
and W. Brett Wilson to hit a TKO against prostate can-
cer during the Boxer Blues,” adds Brimble.
The Power
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T
he current drilling environment continues to put
after a long and impres- pressure on producers to create production effi-
sive career at a Major ciencies on existing wells and find ways to work
where he served last as with a shrinking skilled work force. Zedi invites producers
Director, Gulf of Mexico to revisit the retrofit advantage of putting electronic flow
Deepwater Operations. measurement (EFM) devices on their wells. Zedi’s surveil-
Participants will re- lance offerings, Smart-Alek® and Zedi EFM Walk-up™ help
ceive confidential, blind- producers become more efficient and consequently save
ed, asset-level cost com- them time and money.
parisons versus compara- Customers confirm that a key advantage of moving from
ble assets, as well as de- charts to EFM is that an operator’s work week is restruc-
tailed cost driver analysis. tured to support more effective work practices. Well visi-
“Study participants receive a detailed diagnostic report on each asset, compared on a ‘like kind’ tation changes from daily to ‘as required’ – freeing up time
basis with peer assets and identifying potential savings in each cost category.” Historically, for value added activities like preventative maintenance. A
Ziff Energy’s studies have helped Operators in 20+ countries pinpoint areas to achieve signifi- more efficient work structure ultimately leads to opera-
cant savings on operating costs. After the study is completed, Ziff Energy meets with each client tional cost savings and a higher well to operator ratio.
regarding areas for future action plans to assist them achieve these efficiency savings, as well as For new drills or retrofitting, producers may also want
for best practices to gain production. to add an element of control. Zedi Connect™ is the next generation of Zedi’s optimization
Ziff Energy is a leading benchmarking firm, focused in operating costs and practices for the solutions combining surveillance and control. It allows users to remotely control and monitor
Gulf of Mexico, and around the world in 2 dozen countries. Our offshore operations database in- well site equipment through the web. Built as a unique technology that’s compatible with
cludes 600 Shelf fields worldwide and 50+ Deepwater assets. Last year, Ziff Energy established a industry field devices, it is designed to upgrade optimization applications remotely eliminat-
Center for Benchmarking Excellence in Calgary, staffed with full-time experienced engineers to ing the need for site visits.
ensure the highest quality and efficiency in conducting benchmarking analysis. Learn more at Zedi’s GO Expo booth #1113.
G
lobal mergers and acquisitions (M&A) up- After considerable consolidation among
I
n March 1987, then Alberta treasurer Dick Johnston -- back when finance min-
stream transaction value fell to $104 bil- Royalty Trusts in 2007, activity in the sector was isters were called treasurers -- told Albertans they enjoyed the highest per-
lion from an annual average of nearly $160 moderate (reflecting weak equity and credit mar- capita program spending in the country.
billion in 2005-2007, according to the 2009 Global ket conditions) ahead of the income trust tax- Albertans also enjoyed a $3.3-billion deficit the previous budget year as a
Upstream M&A Review prepared by IHS Herold status transition in 2011. The only major acquisi- result of such spending; Johnston’s response was to tell Albertans to pay up.
Inc., an IHS company (NYSE: IHS), and Harrison tion involving a trust was the US$1.3 billion stock- Thus, Johnston’s remedy to red ink leaned heavily in the direction of in-
Lovegrove & Co., Ltd., a Standard Chartered group for-stock merger between ProEx Energy Ltd. and creased taxes. In his 1987 budget, he raised corporate taxes by one-third, health-
company. This review provides a comprehensive Progress Energy Trust, with the merged entity con- care premiums by 28 per cent, and fees in nursing homes by 40 per cent. He
analysis of more than 280 significant upstream verting to a corporate E&P structure. also raised personal income taxes in the hopes $1 billion could be added on the
transactions that were announced in 2008. Oil Sands transaction value plunged from revenue side. In all, Johnston raised or introduced 23 separate taxes.
Canadian M&A upstream transaction value de- US$18 billion in 2007 to US$2 billion in 2008. Balancing the budget with tax increases was impossible. It was an experiment
clined to just US$14.5 billion from a record Three oil sands deals were among the ten largest in taxing one’s way out of a budgetary imbalance and guaranteed to fail. While
US$45.5 billion in 2007 in Canada, but each was in the modest US$400MM- a government might slip in a barely noticeable tax increase without an effect
Canadian asset transaction value in 2008 sank US$600MM range. NOCs/Sovereign Wealth entities upon incentives, a 23-item tax hike of a billion dollars is akin to smothering an
almost 75 percent to a six-year low while corpo- were absent from the Canadian M&A market after ill patient with chloroform.
rate deal value declined by two-thirds from the an active 2007. That reality left the spending side to help balance the books. In 1987, the treas-
prior year as activity fell off dramatically in the last Transacted proved (1P) and proved plus proba- urer did promise some budget cuts; Premier Don Getty and his treasurer had long
four months of the year. Fifty-five significant deals ble (2P) reserve volumes declined precipitously to hinted at and occasionally pruned spending after the collapse of energy prices
(over US$10MM) were announced in the first eight five year lows. Outside of oil sands, gas accounted in 1986. But compared to the tax increases of about 13 per cent above existing
months of 2008, but just ten from September for the majority of acquired 1P and 2P reserves for revenues, the spending cuts at a predicted four per cent of program spending
through December. Canadian transactions account- the third consecutive year. The Shell/Duvernay were underwhelming.
ed for less than 15 percent of total worldwide M&A transaction considerably lifted total region weight- The 1987 actions were part of a plan launched the year before to balance
value, the lowest percentage since 2005 and less ed average implied reserve values from US$21.42/ the books by 1990. “A deficit of this size cannot be allowed to continue,” said
than half of the record 30 percent in 2007. barrel of oil equivalent (boe) to US$31.81/boe, with Johnston in his 1987 budget remarks.
Royal Dutch Shell’s US$5.8 billion all-cash cor- corporate pricing at a substantial premium to asset Except that it did. The province incurred $2.1 billion in red ink in 1990--the
porate acquisition of gas-weighted producer deal pricing. Excluding oil sands, 1P asset deal pric- planned year for balanced books, followed by deficits of $1.8 billion in 1991, $2.6
Duvernay Oil was one of only two deals over US$1 ing was 15% higher, fueled by a nearly 60 percent billion in 1992, $3.3 billion in 1993, and almost $1.4 billion in 1994.
billion. Corporate deals outnumbered asset trans- rise in pricing for gas-weighted transactions. Pricing It wasn’t until 1995 that a surplus was produced and only after a deficit binge
actions for the fourth consecutive year, although was flat for 2P assets, indicating lower valuations that left Alberta $22.7 billion in debt.
the average corporate transaction value, excluding placed on upside potential in a low commodity What finally turned the corner was not another 23-point tax hike; it was pub-
the Shell-Duvernay deal, was less than US$200MM. price environment. lic clarity, first, followed, second, by a political awakening in the Liberal party and
then in the Tories that spending had risen to unsustainable heights and must be
brought down.
Flexpipe MAKES solution Total program expenses in 1990 amounted to $13.8 billion and continued to
s. Flexpipe Sys climb, hitting a peak of $16.2 billion in 1993; program spending was cut back to
Commodity Price cre The provincial government was only helped in a small way by rev-
enues, which were at their lowest level in 1990 and at their highest
in 1995, the latter due to a significant uptick in resource revenue.
Recovery Anticipated into 2010
w
But the province couldn’t have relied on that luck to balance the
log
C
algary, AB, April 7, 2009 – Recent declines in the capital expenditures required to develop oil years, deficits would have been as common in the last
and
and natural gas will help drive commodity market prices up predicts AJM Petroleum half of the 1990s as they were in the first half.
Consultants in their current oil and gas price forecast, established effective March 31, 2009. Fast forward to 2009 and proponents of
“Some analysts believe world oil production peaked in 2008, but regardless of whether or not deficits appear to have dressed up in 1980s-
equ
you agree, it is generally accepted that the world’s supply of hydrocarbons is declining,” said Ralph style fiscal drag and the corresponding jus-
Glass, economist and Vice President of Operations at AJM Petroleum Consultants. “The current de- tifications.
ipm
crease in investment for oilsands projects and natural gas drilling projects will have the inevitable spend- But here’s the reality check for the
impact of less production coming on-stream. Less production will lower gas supply levels, and the ing would recent years: Had Alberta kept pro-
ent
resulting difference between supply and demand will force prices up.” have been gram spending tied to inflation
cu
Reduced drilling over the past two years in Canada’s natural gas sector has caused approxi- $25.6 billion in and population growth
mately 1 Bcf/d of production to fall off the market and, with the first quarter of 2009 seeing an the fiscal year just
ttin
United States saw a dramatic increase in gas supply levels in the latter part of 2008 due to high lev- March). Instead, pro-
els of drilling in shale gas plays, declines in drilling activity in 2009 will lead to just as dramatic pro- gram expenses (I’m not -50 ct
%o o je
n your pipeline pr
duction declines. This drop in supply will ultimately force natural gas prices to rise. including capital expendi-
AJM’s current price forecast shows crude oil prices in constant dollars based on a WTI forecast tures) were $11.2 billion higher
of US$55.00/bbl for 2009, rising to US$70.00/bbl in 2010, then reaching US$100.00/bbl by 2016 and at $36.8 billion in fiscal 2009. That
holding at this level for the balance of the forecast. The AECO US NYMEX natural gas price in con- was 43 per cent higher than can be jus-
stant dollars is expected to average US$4.50/Mcf in 2009, rising with oil to a long-term price in 2016 tified by population growth and inflation.
of US$9.00/Mcf. The Canadian priced AECO forecast is expected to average Cdn$4.50/Mcf in 2009 In 1986, at the beginning of the last provincial
rising to Cdn$8.50/Mcf in 2016, corresponding with the expected recovery of the Canadian dollar spiral into deficit financing, Premier Getty said that “The deficit can be handled.
over the same period. When compared with the forecast prepared by AJM at December 31, 2008, We are the strongest province financially. . . . Despite cutbacks we still have the
this current forecast features natural gas price predictions that reflect a drop of $1 - $2/Mcf until largest per-capita spending on our social services system of any province.”
2016. Complete forecast tables, commentary and documentation for AJM’s March 31 Price Forecast Back then, Getty, as with apologists for red ink now, missed the relevant point
are available for download on the AJM Petroleum Consultants website at www.ajmpetroleumcon- he himself introduced: That above-average spending would eventually have to
sultants.com. change if the province was to avoid a lengthy string of deficits.
ro
nership, or, as the con-
vi ine
ity. Contact us…
s the je c t
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d u ce Pricewaterhouse re p
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Canada)
replied affirmative compared FEI Canada is the all-industry professional membership associa-
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with 69% of companies with tion for senior financial executives. With eleven chapters across
p
Solution
ACTive Matrix to enable accurate depth place-
ment of the coiled tubing (CT) in each lateral using
real-time downhole measurements.
Results
Effective placement of the stimulation and divert-
ing fluid systems and real-time verification of the
treatment and lateral entry results.
Costly interventions in Western Canada
An operator needed to increase productivity of
two openhole legs in an existing multilateral gas well
in a naturally fractured dolomite formation in Western
Canada. The well produced 21% H2S and 5% CO2.
Operators in this area face economic challenges
in maximizing reservoir contact in these partially
depleted carbonate reservoirs. By using a multilat-
eral completion technique, the operators have been
able to achieve greater reservoir contact and access
isolated reservoir compartments with a minimal in-
crease in well construction cost or complexity.
Coiled tubing, which has been used to access and
treat the multilaterals, presents two challenges:
• ensuring efficient access and treatment of all lat-
erals during intervention
• existing downhole tools to operate in a subhydro-
static environment.
Accurate depth and placement of downhole tools
ACTive Matrix uses downhole measurements and
tools and chemical stimulation/diverting fluid sys-
tems to meet the challenges. These services enable
accurate location and placement of downhole tools
in the laterals to control stimulation of the individ-
ual legs.
CT was run in the hole to obtain downhole meas-
urements, which were used to stimulate the open-
hole legs. Acid treatments temporarily diverted and
treated the sections of the open hole that otherwise
would not have been stimulated. Pre- and post-treat-
ment distributed temperature survey (DTS) data were
used to optimize acid placement.
Accuracy and effectiveness of acid stimulation con-
firmed
Using the more reliable real-time bottomhole pres-
sure measurements rather than surface pressure
measurements increased the accuracy and effective-
ness of the stimulation treatments.
The initial acid treatment was confirmed and in-
jectivity points and other zones to be opened were
identified.Thermal analysis results were used to gen-
erate a revised pump schedule that provided details
of the appropriate diverter and acid stages, which
allowed temporary diversion of the initially stimu-
lated zones and better overall treatment of the mul-
tilateral leg.
A final DTS survey confirmed that the treatment
successfully diverted the acid and stimulated all the
targeted zones.
S
taying connected while on a job site or on the road is an dangerous environments. With Mike PTT, workers can instantly Rainbow Lake, Zama, High Level and Fort Vermilion, and south
uphill battle for many junior producers and small energy communicate safety concerns with a team member, or the en- along Highway 35 to Peace River.
service companies in the oil and gas industry. In fact, more tire crew with a push of a button. Having work-safe equipment • New coverage and enhanced services in areas surrounding
than 70 per cent of workers in the energy sector are mobile, is important, and many don’t realize the wireless devices they Fort McMurray and Fort McKay; and along Hwy 881 connect-
which can cause a huge disconnect and potential declines in use to make their job more productive can produce sparks, po- ing Lac La Biche, Conklin, and Anzac.
productivity when workers are away from the office. tentially igniting fuels and causing explosions. Mike is the only • New coverage in Wabasca and Red Earth Creek, and south to
Wireless communications tools play a key role in improv- Canadian provider of rugged, intrinsically safe Motorola hand- Slave Lake and High Prairie.
ing communication between the office and mobile workers. sets with PTT for workers in the utility, petrochemical and in- • New coverage in Grande Cache and Northeast to Hwy 43
By equipping mobile staff with wireless solutions, businesses dustrial sectors. They are designed to have low electrical and and Valleyview.
gain better visibility into their workforce, resulting in increased thermal output, which eliminates the risk of producing sparks • In Southern Alberta, extended coverage is also available along
productivity and improved safety for field workers. and, therefore, enhances worker safety. Hwy 11 between Red Deer and Nordegg and along Hwy 61 in
Small producers and operators can also improve worker Foremost and Manyberries. Northeast of Brooks, service is avail-
Boosting Productivity safety by using TELUS Tracking and Dispatch solutions to gain able in Jenner, Cessford and Sunnynook.
Most junior producers and small service companies have visibility into the activities and locations of their mobile work- Rogers offers the most innovative lineup of smartphones
fewer than 100 employees. With such limited resources, these ers and assets. For example, TELUS Remote Fleet Tracker can including the BlackBerry Curve 8900, the BlackBerry Pearl Flip,
businesses need everyone to be as productive as possible, improve safety by monitoring driver speeds and protecting lone- the Apple iPhone 3G, the Nokia E71 and the BlackBerry Bold,
wherever they are working. TELUS’ Mike network has a num- workers with a man-down safety service. Moreover,Asset Tracker enabling users to stay connected to email and access desktop
ber of rugged mobile handsets with features that make it easy enables businesses to use real-time tracking to recover stolen ve- functions while away from the office. For those requiring a
for workers to stay connected and get work done faster. Using hicles and valuable assets. device in demanding outdoor work conditions, Rogers offers
Mike Direct Connect technology—commonly known as Push three exclusive ruggedized handsets: the Motorola Extreme, the
To Talk (PTT)—staff can connect with colleagues in less than Select the Right Wireless Solutions ZTE Rock, and the Samsung Rugby.
a second, making it easy for them to have short and efficient By helping staff overcome communication barriers, wire- Workers on the move can stay connected with the Rogers
conversations. less solutions enable small businesses in the oil and gas Rocket Mobile Hi-Speed Internet Stick.The device allows users
In addition to Mike, TELUS Tracking and Dispatch solutions industry to enhance the effectiveness of their mobile work- to connect their laptop to the internet from anywhere within
help small businesses boost their overall productivity and cus- force. Businesses that need help finding the right solutions a Rogers coverage area.
tomer service levels. By using TELUS Resource Tracker, dispatch can take advantage of the TELUS Wireless Solutions Roadmap. For business customers in industries needing integrated
staff can track the real-time location of the nearest mobile work- This tool helps companies understand how wireless tech- f leet management solutions, Rogers exclusively offers
er for a job, provide customers with more precise arrival times, nology can enhance their business, benchmark their wireless NelTrak. This industry-leading system provides GPS-based
and ensure accurate scheduling. investments against their peers, and create a personalized asset tracking, expense management capabilities, and lone
assessment. To access the TELUS Wireless Solutions Roadmap worker solutions.
Enhanced Worker Safety and learn more about TELUS’ solutions for the energy sector, For more information on products, services and network cov-
Mobile workers in the energy sector are often exposed to visit telus.com/fieldservices. erage, please visit www.rogers.com.
O
n land, in the air or at sea, Inmarsat effectively brings “Anyone beyond the reach of standard terrestrial
communication tools to people working in the most or mobile networks can take their BGAN terminal out, ice has been de-
remote or challenging corners of the world. Poised point it up to the sky, and literally within a minute ployed in over 185
at the tipping point for a new generation of technology, have broadband connectivity anywhere in the world,” says countries.
Inmarsat is the world’s leading provider of mobile satellite Simon Curran, Inmarsat’s business development manager. While BGAN offers all
communications. “Users can take comfort that wherever they are, no matter of these services on land, Inmarsat also
Primarily a satellite operator, Inmarsat boasts a constellation how harsh the conditions are, they are able to get connected.” provides FleetBroadband for use at sea.
of 11 satellites positioned roughly 36,000 km from the earth. BGAN is the only mobile satellite service which offers FleetBroadband provides similar levels of con-
The cornerstones of the Inmarsat satellite network are three simultaneous voice and broadband data transfers. nectivity, as a stabilized antenna enables users to
Inmarsat-4 (I-4) satellites. The I-4s are the most advanced and Guaranteed streaming data at 384kbps plus, video con- track the satellite offshore.
sophisticated satellites providing the world’s only mobile broad- ferencing, email, SMS messaging and analog phone
band network covering the entire globe. service are just a few examples of the possibilities for utilizing this The Stratos Advantage
Three satellites are required to span the globe.Two I-4s were device, anywhere on the planet. BGAN effectively brings con- Recently, Inmarsat acquired its distribution partner Stratos,
launched in 2005, while the third was launched in August, 2008. nectivity to people beyond the normal communication networks. which resells Inmarsat satellite services worldwide.
In February, a slight repositioning of the satellites optimized “Users have a broadband connection that will follow them With corporate offices in Bethesda, MD, U.S. and St.
Inmarsat’s global coverage. The I-4s are geostationary satellites anywhere around the world,” says Curran.“Anything they could John’s, NL, CAN, Stratos is uniquely positioned to serve the
allowing users to lock on to their position indefinitely. do at their desks in their offices, they could equally do out of demanding communications requirements of the oil and gas
their backpacks in the midst of Siberia.” industry.
Within the oil and gas industry the primary “Together (with Inmarsat) there are a lot of opportunities
use for the BGAN system takes place at explo- to offer customers a premium service,” says Hugh Donnan,
ration phase, says Curran. Yet applications for manager of enterprise vertical markets for Stratos.
development, production, supply and trans- Stratos provides industry-leading value-added services to
mission phases should not be overlooked. optimize communications performance with the Inmarsat-4
Teams required to work in remote loca- satellite network, says Donnan.The Stratos Advantage is a suite
tions, which can be seismically unstable, or po- of services that help elevate BGAN from Stratos far above
litically unstable, have the ability to send data baseline offerings. These value-added services, including
back to the main office in real time. This saves Stratos Dashboard, provide users with cost control, firewall
time and money, as teams are able to receive management, full traffic information, pre-paid facilities, high
guidance on location, circumventing delays in security options, easy VPN access, messaging services and full
the flow of information. IP range.
“Companies can save money on a project With a global network of 400 channel partners, Stratos pro-
by project basis,” says Curran. vides Inmarsat with insight into customer requirements and
The portability and simplicity of the BGAN markets. This partnership provides a unique platform for oil
terminal allows for rapid setup and takedown, and gas companies.
and enables the coordination of site develop- “We see a lot of operators looking for a backup system, or
ment. One BGAN terminal has the ability to another satellite network that offers a more global reach,” he
support 11 simultaneous users. says. “The entire land mass of the earth is covered by the I-4
From a project management perspective, satellites and there is no need for switching to different satel-
remaining in touch, sending photos, reports lites or satellite networks.”
and updates back to the project offices, par- “We see BGAN fitting in as a frontline solution, and defi-
ticularly if the site is remote, is the key to re- nitely a backup at a number of key receiving points for oil and
ducing costs and allowing for safety and risk gas companies,” he says. Stratos together with Addvalue
management. Technologies, was responsible for the development of the
“From a health and safety perspective, this Addvalue SABRE Ranger BGAN SCADA terminal.
is important,” says Curran.“From a welfare per- In terms of oil and gas exploration, the latest broadband
spective teams are able to maintain communi- solutions enable senior geologists to remain in the office, sav-
cations with their families and maintain their ing travel time and costs, while technicians are sent out into
lifestyles.” the field.
“Often with any development there is an “Technicians are able to collect the data and send it straight
affect on the local communities,” says Curran. back to the head office.Then work can begin immediately,” says
New mobile broadband satellite systems, such as BGAN from Stratos, offer A BGAN terminal with prepaid airtime may Donnan. “This allows companies to work smarter.”
voice and high-speed data connectivity via compact, lightweight terminals. help the community connect with the world, often “It’s a very interesting time in oil and gas, the newer gen-
allowing schools to meet educational needs. eration of services are collectively regarded as mobile broad-
“This is a way for oil and gas companies to band services, all available via the I-4 network,” says Donnan.
A 1.5 billion dollar investment, the I-4s are fully funded, pro- embrace corporate and social responsibility in a way that costs “Customers are finding more ways of utilizing BGAN to work
viding end users with a little bit of reassurance considering the are controlled,” says Curran. a little smarter.”
world’s current economical climate. The I-4’s life expectancy BGAN can also serve as a reliable back-up to any commu-
will reach well into the mid 2020’s. nications infrastructure. Inmarsat - On the Horizon
Working with a number of partners and service providers Once a site is developed, a permanent satellite solution such There are two new developments in the company’s future.
Inmarsat offers a wide range of voice and high speed data serv- as fixed VSAT, will enable higher data speeds. However, BGAN Inmarsat will be the operator of the European Space Agency’s
ices anywhere in the world. operates on the L Band, a frequency which remains stable despite Alphasat initiative. The Alphasat I-XL satellite will use additional
weather concerns. spectrum to provide advanced mobile services over Europe,
Broadband Global Area Network- True global coverage for With the SABRE Ranger, a BGAN terminal, unmanned inte- the Middle East and Africa.
oil and gas gration and remote monitoring are possible utilizing The second development is a global satellite handheld
Utilizing the I-4 satellites Inmarsat’s Broadband Global Area Supervisory Control And Data Acquisition (SCADA) applica- device, which will be introduced by Inmarsat in 2010.
Network service (BGAN) offers the oil and gas industry a unique tions. Remote SMS control allows for activation (or deactiva- Today, Inmarsat is in a position to offer mobile broadband
package: instant voice and high-speed broadband data transfers tion) to perform any SCADA operation. This robust terminal services on land, at sea and in the air. With numerous distribu-
from a terminal designed for portability and simplicity. may be left behind at a site for environmental monitoring. tion and service partners, such as Stratos, Inmarsat is well
The BGAN terminal is small enough to fit in a backpack- and BGAN is available from Inmarsat’s 16 distribution partners positioned to offer the oil and gas industry effective mobile
little technical expertise is required for set up. and a network of over 600 service providers around the world. broadband network services.
G
lobalstar, Inc. www.globalstar.ca, provider of mobile satellite voice and data services, an-
nounced that leading Simplex data integrator Axonn LLC www.axonn.com has launched
SMARTONE, the Satellite Managed Asset Ready Tracker. SMARTONE is Axonn’s newest
global asset tracking solution that utilizes the highly reliable Globalstar Simplex data network and
enables customers to track the location of their mobile assets virtually anywhere.
The SMARTONE device transmits real-time GPS location, alarm inputs and engine run-time data
over the Globalstar constellation of low earth-orbiting (LEO) satellites. The small size (6.5” x 3.25”
x 1”) and design allows it to be easily installed and field managed without the need for harnesses,
antennas, or external power. The device is powered by AA size lithium batteries providing up to
three years of battery life. Axonn's current asset management products are used on a variety of
mobile assets such as cargo containers, trailers and railcars, construction and service vehicles as
well as fixed assets like field equipment, generators, pipelines, and propane and fuel storage tanks.
“In preparation for the launch of our next-generation of enhanced satellite data services, we
are very pleased to announce the addition of the SMARTONE product to the suite of asset track-
ing solutions that utilize the Globalstar Simplex network,” said Jim Mandala, General Manager,
Globalstar Canada.“With the high messaging reliability of our Simplex data performance and the
continued expansion of our global Simplex coverage, Globalstar anticipates the introduction of
new and innovative Simplex data products and integrated solutions later this year and into 2010,
in conjunction with the deployment of our second-generation satellite constellation.”
“There was a pent up market demand for a sub $200 satellite asset management device that
operates on “off-the-shelf” batteries capable of providing years of service.” said Dave Biggs, CEO
of Axonn LLC. Mr. Biggs added, “We’ve met that need with the SMARTONE at a price point that
makes it economically feasible for customers to invest in a device to manage their high value as-
sets as well as their previously overlooked lower value assets.”
The Globalstar Simplex data offering is a low cost, one-way satellite data service that permits
customers to use satellite modems and integrated back office management solutions to track mo-
bile assets, such as vehicles, trailers, cargo containers and maritime vessels, using GPS or other
location-based technologies. The Simplex data network also provides a platform for personal
tracking and messaging solutions for commercial and recreational customers using products such
as the SPOT Satellite GPS Messenger™. Simplex data service can be used for a wide variety of
industrial and security applications to monitor and send information from fixed assets, such as
environmental measuring instruments, utility meters, or report the state of various mobile sen-
sor devices and their locations.
T
he Winegard Company’s Special Products Division is an-
swering the need for a robust two-way VSAT satellite
communications system designed for the rigorous con-
ditions of the energy and emergency response industries.
Winegard’s two-way satellite antennas feature extremely
heavy-duty construction and incorporate hydrophobically-
sealed motors and the strongest, most rugged actuators in
the industry. These features allow for maximum reliability in
extreme environments.
And now, its new, next-generation WX series of auto-aimers
offers more elevation and azimuth resolution for better fine
peaking, and incorporates a mounting option for an oversized
BUC (block up-converter) to achieve higher data rates when necessary.
Winegard two-way VSAT satellite communications systems are available in 0.96 meter, 1.2 meter
and 1.8 meter configurations, as well as a 0.84 meter size specially made for smaller vehicle
applications. All Winegard two-way systems are auto-deployable and provide phone, fax, internet
search, video, SNG (satellite news gathering), and VoIP (Voice over Internet Protocol) capabilities,
as well as cell phone backhauls. The antenna subsystem performance can be monitored from
remote locations.
The systems handle slopes of ?2? Other superior design parameters include exceptional snow
load (8" deep at 8lbs/cu.ft.), operational wind load (50+mph), temperature tolerance (-40oF to
122oF), and typical lock times of three to five minutes.
Unlike other systems weighed down with a cable harness, the Winegard two-way systems offer
single-wire hookup for control of the antenna. “The single-wire coaxial cable hookup is defi-
nitely an advantage,” noted Winegard Director of Engineering Jon Manley. “It’s quicker and easier
to install. And, since it’s standard material, it’s field-replaceable.”
The antenna controller is fully integrated, offers easy to use, single-button operation, and pro-
vides excellent user interface with the industry’s only color, interactive touch screen.
A built-in DVB receiver and GPS allow the Winegard controller to work on most platforms
available in the industry including HughesNet, iDirect, Spacenet, ViaSat, Nera and Comtech. The
rack-mountable controller requires no external PC for operation.
E
xpro, a leading international oilfield service compa- support mechanisms for clients using WellEz.NET. WellEz On- tive increases efficiencies for our clients and that is our priority.”
ny, announced today its plan to open a new perma- Demand provides clients with a combination of support tools, Through WellEz On-Demand, WellEz technicians are able to
nent including email reporting of inquiries, remote login by WellEz proactively provide support by diagnosing and addressing issues
facility in Kenai, Alaska. The new location will mark the technicians, on-line chat and phone support. Using the remote early, before they become critical. The service outreach program
company’s second Center of Excellence in North America, login capability, WellEz technicians are able to see the client’s is also proving to be an excellent means for clients to better
the first being in Broussard, La. screen and address questions immediately. evaluate their field information. WellEz On-Demand is expected
The Kenai location will become a multi-service base for “WellEz On-Demand has been designed to offer continuous to provide clients even greater operational reliability from the
Expro, with the first phase expected to be complete in July enhancement of the client experience, while identifying additional use of the WellEz.NET reporting system, while logging and track-
2009. The location will integrate well testing, surface sam- sources of value available to clients through WellEz services”, says ing support request. Part of the service outreach elements of
pling and data acquisition sub departments for testing and Charles Jeffery, President and CEO. “The WellEz On-Demand pro- WellEz On-Demand, the program also includes monthly reports
commissioning. gram is both immediately responsive and engaging with our that itemize inquiries and resolutions.
The estimated completion date for the second phase is
late 2009. Once completed, the new facility will integrate all
of Expro’s well integrity services and expertise in one loca- Record numbers bid on equipment in unreserved
tion, including its award-winning Cableless Telemetry System
for reservoir monitoring (CaTS™), EXCAPE® completion Ritchie Bros. Grande Prairie auction
process, downhole video technology, calipers and logging
R
itchie Bros. Auctioneers conducted the auction at its per- ended abruptly, leaving us with a large amount of surplus equip-
tools, slickline and e-line, providing customers with maxi- manent auction site in Grande Prairie on April 15 & 16, ment to liquidate,” said Mr. Coray. “We looked at our different
mum versatility. The new Expro base will also provide well 2009, setting new site records for total and online bidder options and realized we couldn’t afford to hang on to the equip-
integrity supervision and maintenance services and training, registrations, as well as online sales. One in four people registered ment and wait for it to sell piecemeal. We decided that selling by
well-site supervision, and abandonment planning services. to bid in real time over the internet; online bidders purchased auction was our best option, and if you're going to sell by auc-
“Alaska has been a growing market for Expro for the past almost CA$11 million (US$9 million) of equipment. Among over tion, there’s only one company you can rely on: Ritchie Bros.
five years,” said Brett Lestrange, Sr. Vice President, Expro 2,300 items sold: construction, agricultural and transportation They did a very professional job.We’ve been able to move on and
North America. “Proximity to our clients is of crucial im- equipment, consumer items and real estate. invest in a concrete and gravel operation.”
portance, and the decision to establish a permanent Center “A lot of people are selling equipment right now because of Ritchie Bros. is also pleased to announce that it recently con-
of Excellence in Kenai demonstrates our commitment to the downturn in the local market, making it even more impor- tributed to the development of the new Montrose Cultural
grow the business in Alaska, as well as provide local opera- tant for them to reach beyond the region for buyers,” said Brian Centre in Grande Prairie, which will serve as the new home for
tors with more options and high-quality services from Podruzny, Ritchie Bros. Regional Manager. the Grande Prairie Public Library and the expanded Prairie Art
Expro’s extensive well flow management portfolio. Our ex- “A diverse range of quality equipment from reputable con- Gallery.The Company's donation will fund the Children’s Internet
panding presence in Alaska is more evidence of Expro’s com- signors and the knowledge that every item would be sold for fair Centre in the library.
mitment to invest in long-term opportunities in North market value on auction day attracted record numbers of bidders “We believe in giving back where our customers and em-
America.” to our Grande Prairie auction. Buyers from outside Alberta pur- ployees live, work and play,” said Kevin Tink, Ritchie Bros. Senior
Expro currently has 26 permanent employees in Alaska, chased more than a third of the equipment. It's clear that more Vice President. “We are a proud member of the Grande Prairie
and all the personnel are multi-skilled and cross-trained people are looking for used rather than new equipment at the mo- community and this project was an easy decision for us as this
to work with the full portfolio of Expro services.The com- ment - and they want to buy it in a fair, transparent environment.” will not only service the Grande Prairie region but also will be a
pany plans to recruit additional staff and a permanent base Terry Coray of Crater Enterprises in Grande Cache, Alberta, resource for all of the neighboring communities for years to come.
manager upon completion of Phase 2. was one of over 300 consignors in Grande Prairie. He sold mil- We applaud the efforts of the volunteers and all the individuals
Expro’s current client roster in Alaska includes Conoco lions of dollars of equipment at the unreserved auction as part that have worked so diligently to achieve this reality.This is a great
Phillips, Chevron, Anadarko, Marathon, Pioneer and of a major company realignment. opportunity for us to give back to the communities that have sup-
Armstrong, among others. “We were working at a major mining operation and that work ported Ritchie Bros for many years and we thank you.”
A
tlas Copco Drilling Solutions announces the introduction
of the Predator Drilling System at the Offshore Technology The Predator substructure is an integral part of the drilling sys-
Conference in Houston,Texas. The Predator Drilling System tem. A self-contained rig support system, it is designed to provide a
is a three-component, integrated package consisting of a mobile strong, structural base for the rig.The master bushing, hydraulic slips
drilling rig, substructure support system and a pipe handling skate. and iron roughneck are part of the substructure and travel with it.
Four hydraulic blocking jacks are provided to make leveling the sub-
Hydraulic carrier drive structure fast and simple. The large 190 ft2 (17.6 m2) work floor was
The Predator’s single 950 hp (708 kw) engine and hydraulic designed with drill-crew efficiency and safety in mind. Because the
system power both the carrier and the drill. The engine is substructure is a single load, it can be deployed with less assembly
capable of producing full torque to the wheels at any speed. The and manual labor, reducing time and cost.
hydraulic carrier features a dynamic braking system, which is both
quiet and efficient. It also has the ability to drive in “creep mode,” Skate
which provides precise control and vehicle placement in off-road The Predator skate is a single skid-mounted load. It is designed
or extreme driving conditions. to handle Range II (30') or Range III (40') oil field drill pipe as well
as Range II or Range III casing up to 24 inches (610 mm) in
Mobile drill rig diameter.The skate has foldout pipe racks on both sides fitted with
Predator is a mobile, self-contained rig with 200,000 lb (90718 hydraulic jacks so that pipe will roll onto or off of the pipe racks.
kg) hook load capacity. It incorporates a unique telescopic mast that reduces overall rig-trans- The control system for pipe handling can be located on the work floor and/or at ground level.
port length while maintaining the capability to handle Range II and Range III pipe and casing.
The Predator pipe handling and breakout system is virtually hands free. Its dual-range hydraulic New technology
top drive tips out to handle drill pipe and casing. Predator also uses an iron roughneck and hy- “Predator is an example of the next generation of mobile rigs,” said Ron Buell, manager of
draulic slips. The operator can set the top-drive torque limit so that every joint of pipe and cas- business development.“Its new and proven technology reduces time and cost but also enhances
ing is made up to specification. Predator is designed to push, pull, rotate and flush tubulars. safety, reduces manual labor and minimizes environmental impact.”
Predator’s mast and substructure are engineered to API 4-F. The hydraulic cylinder hoisting The Predator Drilling System offers contractors a lightweight, mobile package that can be
and pulldown system provides high mechanical and hydraulic efficiency, which may reduce mobilized and rigged up quickly. It targets vertical, directional and horizontal exploration and
operating cost. The electronic control system is designed to be precise and reliable. Predator’s production wells in the 6,000 - 10,000 ft (1800 – 3000 m) depth range. It is also well suited to
“on demand” hydraulic system allows the driller to allocate power to various drilling systems drilling and casing surface and intermediate holes for deeper wells.
as needed. This capability can improve drilling performance and reduce operating cost. The
operator’s console and monitor can be placed either on the work floor or in a drill cabin.
Predator provides the operator with real-time surface and down-hole information to maximize
drilling performance at all times.
Figure 1
2020 Western Canada
Gas Production
D
resser Waukesha, manufacturer of natural gas engines that uptime by integrating spark timing control, turbocharger control, speed governing, knock
deliver clean, cost-effective power, has introduced its detection, start-stop control, diagnostic tools, fault logging, engine safeties and
275GL™ Series engines, a new generation of high- air/fuel ratio (AFR) control. The ESM is factory-mounted, calibrated,
performance engines for the gas compression market. and tested to minimize on-site set-up requirements and allows
The new 275GL Series combines the robust construc- users to monitor critical engine functions in order to maxi-
tion and reliable operation of Waukesha’s ATGL® Series mize efficiency and minimize fuel cost.
with design and engineering updates and an enhanced The 16-cylinder (16V275GL) version of the 275GL
engine control system. The result is a new, high-performance engine is available now and is rated at 4500 bhp; the 12-
engine series that enables customers to maximize efficiency cylinder (12V275GL) model will be available in the fourth
and minimize fuel cost while greatly simplifying and improving quarter of 2009 and will be rated at 3375 bhp, eight
packaging, operation and service. percent higher than the 12-cylinder ATGL model.
The 275GL Series has been designed with factory-mounted “The market for higher horsepower engines for gas
lube oil and cooling systems, which reduce the time and cost compression applications is continuing to grow,” said
required to design, fabricate, and integrate the 275GL into a Bill Moore, senior vice president of operations for
compressor package. Other features include an upgraded oil Enerflex, Dresser Waukesha’s Canadian distributor.
filtration system with plate-type oil cooler and spin-on dis- Enerflex has worked closely with Waukesha in the
posable lube oil filter elements, and quick disconnects for development of the 275GL Series.
ignition coils and thermocouples. These improvements, along “The 275GL engines are equipped with the latest version of Waukesha’s
with new design features that are common to both the 12- and ESM engine control system, a key feature that will help these engines gain market acceptance,”
16-cylinder models, streamline and optimize the 275GL Series. Moore said. “For engines of this size, it all comes down to having an effective control system to
Standard on the 275GL Series is an enhanced version of Dresser Waukesha’s easy-to-use con- operate with maximum reliability in remote locations while meeting efficiency requirements.
trol system, the Engine System Manager (ESM®), which has been proven on the company’s VHP® With the introduction of the 275GL Series, Waukesha is delivering a product that Enerflex and
Series and the state-of-the-art APG® (Advanced Power Generation) Series. The ESM is a reliable other customers can successfully adopt in this market.”
total engine management system designed to optimize engine performance and maximize www.waukeshaengine.dresser.com
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