Well Construction Journal - Sept/Oct 2013

The offcial publication of the Canadian Association of Drilling Engineers
SEPTEMBER / OCTOBER 2013

PM#40020055
Atlantic provinces put themselves
on the map with plays ongoing
offshore and onshore
Safety frst: Workers stay out of
danger with some intensive training
and cautionary measures
PLUS
Down the pipe: West-east pipeline
poised to carry a steady surge of
crude to Atlantic Canada
WCJ_Sept-Oct_13_p28-01.indd 1 8/26/13 9:43:11 AM
irectienal rilling
Pacesetter is a technicaI Ieader in the directionaI driIIin industry.
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www.cadecanada.com september/october 2013
The offcial publication of the Canadian Association of Drilling Engineers
DEPARTMENTS
4
Presidents Message
6
tHe draWing BOard
Editors note, members
corner, news and notes,
technical luncheons
9 MeMBer PrOFiLe
10 stUdent PrOFiLes
24
BY tHe nUMBers
26 driLLing deePer
FEATURES
12 eastern PrOMises
Atlantic region a mixed bag
of petroleum production with
more on tap
18 dangerOUs territOrY
Offshore safety can be
chalked up to special
training, constant awareness
and quick recovery time to
potential risks
20 tHe east energizes
West-east pipeline poised to
boost jobs and spark global
oil markets
The mandate of the Canadian Association of Drilling Engineers is to
provide high-quality technical meetings and to promote awareness on
behalf of the drilling and well servicing industry. With more than 500
members from more than 300 companies, CADE represents a broad
spectrum of experience in all areas of operations and technologies.
Through CADE, members and the public can learn about the tech-
nical challenges and the in-depth experience of our members that
continue to drive the industry forward. For drilling and completions
specialists, CADE currently offers one of the best networking and
knowledge sharing opportunities in the Canadian petroleum industry.
Canadian assOCiatiOn OF driLLing engineers
1100, 540 - 5 Avenue SW
Calgary, AB T2P 0M2
Phone: 403-532-0220
Fax: 403-263-2722
www.cadecanada.com
President: Robert Jackson
Past President: Eric Schmelzl
WeLL COnstrUCtiOn JOUrnaL editOr: Christian Gillis
WeLL COnstrUCtiOn JOUrnaL is PUBLisHed FOr CADE
BY VentUre PUBLisHing inC.
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assOCiate PUBLisHer: Joyce Byrne
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art direCtOr: Charles Burke
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Ryan Van Horne
SEPTEMBER/OCTOBER 2013
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CONTENTS
2013 CADE. NOT TO BE REPRINTED OR

REPRODUCED WITHOUT PERMISSION.
9
26
12
Well Construction Journal september/october 2013
New Drilling Season
Brings New Challenges
Labour shortages, new well design techniques, natural gas prices
and pipelines are among concerns for the industry
Am very excited And proud to be
serving as the CADE president for the 2013-
2014 term. Im grateful to the CADE executive
and membership for this opportunity. The
CADE executive is a dedicated and enthusiastic
team, and Im looking forward to what this season
will bring.
I wanted to use this issues Presidents Message to
talk a little about the challenges ahead of us, and
some potential solutions.
Challenge #1: The Petroleum Human Resources
Council estimates the Canadian oil and gas indus-
try will need to add up to 84,000 workers by 2022.
Well need more partnerships between the indus-
try and educational institutions in order to ensure
graduates are adequately trained.
Mentoring can help provide a foot in the door
for individuals new to the industry. Last year, we
were involved with SAIT and University of Calgary
students to hold the frst CADE Student Industry
Night. The students left with a better understand-
ing of the industry and new connections. I think
the industry attendees (myself included) left very
impressed with the knowledge and enthusiasm of
the new individuals joining our industry. CADE
also has long supported a scholarship program for
students of SAIT, NAIT, the U of C and U of A, as
well as a bursary program.
Challenge #2: Well design is becoming more
complex, and the silo model does not work any-
more. Drilling engineers today require a very good
understanding not only of drilling-specifc topics,
but also the implications of their design on every
facet of the wells life cycle, right through to aban-
donment. The most critical portion of this under-
standing and dialog is with completions. To that
end, CADE has been moving to provide a blend of
drilling and completions technical presentations at
our monthly luncheons.
Challenge #3: Lower gas prices have made it
very diffcult to proftably drill new gas wells. With
most industry forecasts showing little relief on the
horizon, the main driver in the economics of these
plays is capital expenditure. Thus, the goal of the
drilling engineer is (as always) to do it fast, do it
cheap, and do it well. Often these are competing
interests and it requires a great deal of innovation,
hard work and new technology to reach that goal.
While there is no silver bullet, being well connect-
ed through industry groups will make you aware
of whats being attempted, and if there may be a
solution to help achieve those goals. On the net-
working front, CADE is hosting its second-annual
golf tournament on September 16; please see our
website for details.
Lastly, big differentials and the political climate
are a challenge. As you know, the price for heavy oil
in western Canada is often signifcantly lower than
the WTI price that serves as the benchmark. This is
primarily due to a lack of pipeline capacity to mar-
kets. This differential hurts the economics of west-
ern Canadian projects and reduces the royalty and
tax revenues of our governments, so it has a wide-
spread effect. Several options have been proposed
to increase export capacity, but one I feel merits the
most discussion is the Keystone XL pipeline. The
Keystone XL has been proposed to connect western
Canadas production to these Gulf Coast refneries.
Objections seem to be set up as a straw man argu-
ment where there is some unnamed perfect energy
source that could be used instead of bitumen. In
reality, the Keystone XL pipeline would displace
oil currently coming into the Gulf Coast refneries
on tankers, from places with much lower environ-
mental standards than Canada. An IHS Cera study
has shown there would be no material increase in
emissions from this project. The project would help
improve North American energy security as well.
Is the project perfect? Are the oil sands perfect? Of
course not. But in the real world there often is no
perfect option, only a best option.
I encourage you to start a dialog with your friends
and/or neighbours on this issue. We, as profession-
als, have a duty to explain the why.
Jeff Arvidson
CADE President
MESSAGE
Presidents
I
The Multstage Unlimited frac-isolaton system is setng records for fast, economical well
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reduced frac equipment requirements, and less tme needed to bring stmulated wells into
producton. Learn more at ncsfrac.com.
ncsfrac.com 403.969.6474 (Canada) 281.453.2222 (US) info@ncsfrac.com
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Akita Drilling Ltd.
#900, 311-6th Ave SW
Calgary, AB
T2P 3H2
403-292-7939
fred.hensel@akita-drilling.com
President Jeff Arvidson 403 232-7100
Past President Bob Jackson 403 615-9504
Secretary Tammy Todd 403 613-8844
Technical Chair Ryan Richardson 403 984-6644
Membership Chair Andy Newsome 403 532-0220
Education Chair Linden Achen 403 539-9338
Social Chair Dan Schlosser 403 531-5284
WCJ Editor Christian Gillis 403 265-4973
Sponsorship & Marketing Christy Delaney 403 828-0844
IT Chairperson Matt Stuart 403 605-3790
Member at Large John Garden 403 265-4973
Administrator Kali Charron 403 532-0220
BOARD
The Drawing
A Look Eastward
ur 5
th
edition of the WCJ this year takes us baCk
to the East Coast to see what is happening in the
other big part of the Canadian oil and gas industry.
The East Coast is a totally different culture than
that of the WCSB, it has more of an international feeling.
As we have seen in the past, many exciting initiatives that
come out of the East Coast are Canadian content driven.
Our 2013 Technical Luncheon Presentations are getting
ready to start back up and we are working on continuing
to bring informative and technical presentations to our
members and guests. Our frst presentation will be held
on October 9, 2013. Please watch for announcements
with the upcoming topics and dates. Please dont hesitate
to contact us if you have any ideas for upcoming topics
or issues youd like to see presented at the luncheons or
in print. We are also looking for topics that tie into our
journal focus for each month. We hope to see more of this
over the course of the year and hope you, the member-
ship, will participate and continue to make these events
interesting and successful. If you have any issues youd like
to see covered, please e-mail me and we will do our best to
get the story.
The second-annual CADE golf tournament will be held
at Bearspaw Golf Club on Monday, September 16. Visit the
CADE website for more information and to register as a
O
E D I T O R S N O T E
CADE Executive
Team 2013/2014
E X E C U T I V E T E A M
group, single or hole sponsor for the event.
Dont forget; we would like to publish any of your
information and announcements on new products,
new technologies and senior personnel changes for
publication each month. Please forward any announce-
ments to us, as we would be excited to run them in our
new feature section.
We appreciate your continued support and look
forward to seeing you at the upcoming luncheons.
Christian Gillis, Editor
Canadian Well Construction Journal
christiang@hawkeyeengineering.ca
403-265-4973
september/october 2013 www.cadecanada.com
Welcome NeW members
Linden Achen
OLOwAtOsin AdebAyO
MicheLLe bALkO
ALLAn bOuwers
OsOndu hArrisOn chukwueMeke
rOss cLAncy
tien dAng
siAvAsh MOrtezAee FArd
Mike hAzeLtOn
brent kAwALiLAk
PAxtOn LivingstOn
Mehdi nOOrMOhAMMAdi
keLvin eFeturi ObukOFe
Augustine OMObhude
ruturrAj PAAtiL
kevin PLAyFAir
scOtt sherMAn
brAd sMeAtOn
tyLer stePhensOn
tyLer thOMPsOn
christiAn tOAnchinA
Why become a caDe member?
As of 2013, the Canadian Association
of Drilling Engineers (CADE) has been
active for 38 years. With more than
500 members from more than 300
companies, CADE represents a large
spectrum of experience in all areas of
operations and technologies.
For drilling and completions spe-
cialists, CADE currently offers one of
the best networking and knowledge
sharing opportunities in the Cana-
dian petroleum industry. The skills and
knowledge obtained by your participa-
tion in CADE will beneft you and your
employer, with direct application to
your professional career.
CADE offers various means for
members to connect and share their
insights. Monthly technical lun-
cheons are held with topical industry
presentations. Other membership
benefts include our monthly pub-
lication Well Construction Journal
and a membership directory, which
is the whos who of the Canadian
drilling industry. Our website www.
cadecanada.com is an excellent
focal point for industry events, blogs
and other news. We are also active on
LinkedIn and Twitter.
Who caN become a caDe member?
CADE members can be anyone em-
ployed in the drilling and completions
industry or with merely an interest in
the industry.
Typical members include drilling
and completions engineers, geologists,
technical personnel, sales personnel
and students. Student memberships
are available to any post-secondary
student interested in learning more
about drilling and completions.
Please feel free to share information
about CADE with all the people in your
organization who are interested in the
drilling and completions industry.
caDe membership reNeWals
CADEs membership year is from Sep-
tember to September. During the sum-
mer, CADE members will receive an
email and link for the renewal process
on our website.
Please remember the benefts of be-
ing a CADE member include APEGAs
professional development hour, stay-
ing abreast of technological and in-
dustry advances, drilling conferences
and a great opportunity to network.
Thank you for your support.
caDe membership chaNges
Log on to www.cadecanada.com to
become a member or to update your
contact information.
ME MB E R S C O R N E R
BOARD
The Drawing
T E C H N I C A L L U N C H E O N S
Save the Date
Luncheon Tickets
MEMBERS: $47.50 (plus GST)
NON-MEMBERS: $55 (plus GST)
FULL TABLES OF 10: $475 (plus GST)
STUDENT: $20 (plus GST)
WALK-UP: $55 (plus GST)
N E WS A N D N O T E S
CNRL picks up Barrick Energy Inc. for $173M
Canadian natural resourCes limited (Cnrl) has aCquired
Barrick Energy Inc., a subsidiary of Barrick Gold Corporation,
for $173 million and royalties on certain lands at Nipisi,
according to a news release. This acquisition further strength-
ens Canadian Naturals light oil asset and production base in
key operating areas and contributes to the light oil balance
in the Companys diversifed portfolio, says CNRL president,
Steve Laut. We look forward to working together with the
staff currently employed by BEI.
The current production, before royalties, from the working
interests acquired is about 4,200 barrels per day (bpd) of
light crude oil and NGLs and 4.4 million cubic feet per day
of natural gas. The assets include Alberta-area properties of
Worsley, Puskwa, Sturgeon Lake, Retlaw and Red Earth, plus
approximately 92,160 net acres of unproved land at Nipisi.
CNRL funded this acquisition with operating cash fow
and available bank facilities, the release says. The senior
oil and natural gas production company has operations
in Western Canada, the U.K. portion of the North Sea and
Offshore Africa.
Our popular Technical Luncheons will resume October 9,
2013. We are in the process of planning an exciting new se-
ries for 2013/14. What topics would you like to see covered
in the upcoming year? Membership input is valuable to us
and we want to make sure we are covering the topics that are
important to you.
GST REGISTRATION #R123175036
Visit www.cadecanada.com
for all ticket purchases
Please call or email with your great ideas:
Christian Gillis, Managing Editor,
Canadian Well Construction Journal
christiang@hawkeyeengineering.ca
(403) 265-4973
Talisman Energys Q2 proft falls 51 per cent
talisman energy inC. posted a q2 loss, Citing weak
production from its North Sea operations. The company,
Canadas No. 5 independent oil producer, has added its
Norwegian oil felds to the list of properties up for sale.
Talisman says it has opened a data room for potential
buyers of its assets in Norways North Sea, which produce
13,000 barrels of oil per day, adding to current plans to
sell stakes in two Canadian shale-gas felds and its stake in
Colombias Ocensa pipeline.
Initial interest is strong, says Hal Kvisle, Talismans
chief executive operator. Theres a number of interesting
attributes to our Norway business over and above the
production volumes.
The company has scaled down its exposure to the North
Sea operations, selling a 49 per cent stake in its UK felds to
Chinas Sinopec for $1.5 billion in December.
But the operations in Britains North Sea contributed to
Talismans surprise loss. The company said in March it ex-
pected North Sea production of 41,000 to 46,000 barrels of oil
equivalent per day (boepd), but now it expects the region to
average 34,000 boepd in 2013.
Talisman says full-year production would likely be at the
lower end of its forecast range of 375,000 to 395,000 boepd as
unreliable facilities at its UK felds cut output.
The company also cut its outlook for cash fow, saying
it now expects cash fow of between $2.1 billion and $2.3
billion for the year, down from its prior expectation of
$2.5 billion.
september/october 2013 www.cadecanada.com
PROFILE
Member
By Shelley Williamson
Andy Newsome
B
Click before you dig
efore drilling a well, its important to
do your research frst.
Thats the premise behind what XI Tech-
nologies does, according to the companys
vice-president of drilling services, Andy Newsome.
There are a lot of companies that offer data within
the oil and gas industry. We all do something differ-
ent, he says. Our niche is addressing the specifc
needs of our clients, in a unique way.
A software company with a hybrid data and anal-
ysis focus, XI Technologies is intent on saving its cli-
ents time. Over the past 15 years the company has
built up a current roster of about 180 clients, many
of them with some pretty big names. The company,
itself, has grown from a three-man entrepreneur-
ship to its current staff of 28, and has seen plenty
of changes in technology over the years. When I
joined, we were just stepping into the world of digi-
tal delivery, Newsome muses.
Data is great, but you can get overwhelmed with it,
he notes. Nobody wants to spend $2 million to drill
without having done some research. But research
takes time, which means money, says Newsome.
Were able to help our clients quickly digest and
make sense of the information that is out there.
A passion project for Newsome over the past year
has been the building of XIs newest tool, Offset
Analyst, providing instant access to drilling data for
over 100,000 wells drilled across Western Canada.
It gives clients a portal to learn everything they need
to know about the drilling of historical wells with a
few clicks of a mouse. All the drilling information
that is captured on a tour sheet at the rig site typi-
cally available in PDF format is now delivered to
clients digitally within this web-based application.
Access to this information eliminates ineffcien-
cies and minimizes the cost associated with tour
research, when searching for offset wells. From bit
records, mud records and time log summaries to
drill curves and well comparisons, it lets users view
the history of a single well, or compare multiple
wells. Theres lots of data out there. Im focused on
helping clients quickly fnd answers to the questions
related to offset research, says Newsome.
All data in Offset Analyst is pulled from TourX-
change, XIs interactive database that includes infor-
mation from more than 80 operators, including BP
Canada, Imperial Oil, Suncor Energy and Talisman
Energy. It allows users to research pacesetters, under-
stand historical problems and analyze competitors
drilling practices, while being able to look at wells
via Google Earth as well.
Newsome says access to this digital data eliminates
the need to order reports on nearby wells from the
Alberta Energy Regulator (formerly the ERCB), wait
for them to arrive and then pore over the research.
Clients are telling us this can cost up to 40 man
hours, and were now able to get that same work
down to a matter of a couple hours, maybe even
minutes, he explains. Time is money, and thats
why the major operators in the oil and gas drilling
business turn to XI Technologies, says Newsome.
XI Technologies and Newsome have been active
in the Canadian Association of Drilling Engineers
(CADE) nearly since the companys inception, host-
ing technical luncheons and supporting CADE as a
gold sponsor for the past fve years. Newsome also
joined the executive recently and now wears hats
of membership and communications chair. I have
been a card-carrying CADE member for 12 years,
he says. CADE has been where Ive connected with
people Ive watched, learned from, and worked with
throughout my entire career. Its great to be able to
now give back and help the association.
Andy Newsome and XI Technologies bring well data to
drillers fngertips with web-based search software
Well Construction Journal 10 september/october 2013
T
yler StephenSon completed hiS BSc
in Materials Engineering at the University
of Alberta in 2010 with a specialization
in nano and functional materials. Ty-
ler immediately began pursuing his PhD for
Materials Engineering and is currently studying
at the University of Alberta in the fnal year of
that program. His research has centred around
nanomaterials for energy storage applications,
anti-corrosion coatings for nuclear reactors
functioning under supercritical conditions
and phase identifcation sensors for wellbore
logging tools.
His current research project pertains to the study
of fouling behaviour of heavy oil and bitumen in
Young Talent
Highlighting tomorrows best and brightest
Student
PROFILE
Tyler Stephenson
Materials Engineering
University of Alberta
HELP WANTED: Career Department
WhatS your pay Grade?
While careerS in oil and GaS are knoWn to pay Well,
compensation varies from employer to employer, province to prov-
ince and job to job. Rates of pay are usually dependent on your
level, but here is a sample of pay scales in the industry, according to
careersinoilandgas.com.
Professional Engineers:
The average salary for professional engineers in the oil and
gas industry ranges from $50,940 to $215,000 per year, which
varies based on the engineering occupation, designations re-
ceived, level of experience and responsibility in the position.
Drilling and Service Rig Operators:
The Canadian Association of Oilwell Drilling Contractors (CAODC)
recommends minimum wage schedules for individuals working in
the drilling and service rig industry. Compensation varies based on
job title and experience. Drilling rig crews are paid hourly base wages,
ranging from $27/hour for leasehands, to $42.20/hour for drillers.
Service rig positions range from $22/hour for trainee positions, to
$33/hour for operator jobs. Some companies offer subsistence allow-
ances, overtime, shift differentials, and bonuses to workers employed
in camps.
Engineering Technology Professionals:
Base salaries for junior technicians and technologists in oil and gas range
from $67,990 per year for junior positions to $156,972 per year for ex-
perienced senior manager or specialist/team lead positions. Some com-
panies offer overtime and bonuses. Salaries are also dependent on level
of experience, education and level of professional designation achieved.
Geologists and Geophysicists:
The average salary for geoscience professionals in oil and gas ranges
from $51,615 to $199,700 per year for geologists, and $78,400 to
$200,000 per year for geophysicists. Salaries vary and are dependent
on designations received, level of experience and responsibility in
the position.
refnery infrastructure. He is the co-founder and
president of the University of Alberta Inventors
Club, as well as a co-founder of the Alberta Col-
laboration of Entrepreneurial Students (ACES).
Tyler is well-versed in the felds of petroleum
chemistry and materials characterization, and
plans to continue to leverage his talents in the oil
and gas industry here in Alberta.
Tyler also has strong aspirations to become
an entrepreneur, and to that end, has recently
become the director of technical services and
research for Camber Resource Services, a
start-up company which provides production well
chemical treatments to producers in the Western
Canadian Sedimentary basin.
DRILLING SLANG
If you want to walk the walk on a drill site,
it helps to talk the talk. Here are some terms and
phrases often heard out in the feld.
Junk basket: A large, rectangular steel box, usually with
sides made of expanded metal to facilitate seeing what is
inside. The junk basket is used by the rig crew to store an as-
sortment of relatively small parts of the drilling rig, ranging
from drill bits to crossover subs to lifting subs to spare kel-
lys. Dimensions vary, but a typical junk basket on a land rig
is 2.5 metres wide by one metre deep by nine metres long.
blind ram: A thick, heavy steel component of a conven-
tional ram blowout preventer. In a normal pipe ram, the
two blocks of steel that meet in the centre of the wellbore
to seal the well have a hole (one-half of the hole on each
piece) through which the pipe fts. The blind ram has no
space for pipe and is instead blanked off in order to be able
to close over a well that does not contain a drillstring.
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HELP WANTED: Career Department
heIping maximize your reservoir vaIue.
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operaliug ecieucy, decrease risk, aud uaxiuize hydrocarbou recovery.
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bakerhughes.com/canada
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ENGINEERS CANADA hAS CREAtED A NEw wEbSItE, fuNDED by
Citizenship and Immigration Canada, to provide international engi-
neering graduates information on how to become a licensed engineer
in Canada. The site was created with the support of the 12 provincial
and territorial regulators of the engineering profession, in response to
the common complaint newcomers are not well informed about the
licensure process, are often unaware of the length of time it takes for
licensing and that engineering requirements can vary by province.
The website, at http://newcomers.engineerscanada.ca, was
created to help international students overcome challenges and com-
mon roadblocks to integration into the Canadian engineering work-
force. The site is written in plain English so those who may not be na-
tive English or French speakers can manoeuvre the site and gain useful
information on getting licensed, fnding jobs and integrating into the
engineering profession in Canada.
The new Academic Information Tool also allows users to compare
their undergraduate engineering education to programs in Canadian
engineering schools, to see how they measure up and are likely to be
received in the country and industry.
ONLINE hELP fOR INtERNAtIONAL ENGINEERS
REPORT
Special
september/october 2013 13 www.cadecanada.com
ts common to lump the four AtlAntic provinces
together, but when it comes to petroleum develop-
ment they are unique.
New Brunswick is embracing its onshore poten-
tial and has new regulations for hydraulic fracturing, but
boasts no offshore development. Nova Scotias onshore
development is in a holding pattern as it reviews fracking.
While its offshore production is dwindling, the Play Fair-
way Analysis is jump-starting exploration.
Newfoundland and Labrador has a healthy offshore in-
dustry with four felds in full swing, but the absence of a
pipeline prevents the commercial production of natural
gas. And Prince Edward Island is at a standstill, with no
exploration licences and no call for bids.
locAtion: Atlantic Canada (N.B., N.S., N.L.)
resource: Oil, natural gas
estimAted recoverAble reserves: Natural gas
137.6 Bcf; Crude (refning capacity), 300,200 Bbl/d
(N.B.); Natural gas, 275.4 Bcf; Crude (refning capac-
ity), 81,800 Bbl/d (N.S.); Crude 914.2 MMbbl (N.L.)
production: Crude, 266,628 Bbl/d (N.L.);
Natural gas, 273.7 MMcf/d; LNG, 6,318.2 Bbl/d (N.S.)
mAjor producers: BP Canada, Chevron Canada
Resources, Canadian Hibernia Holdings,
ExxonMobil Canada, Contact Exploration, Nalcor
Energy, Shell Canada, Statoil, Suncor Energy
*Source: Canadian Centre for Energy
i
By Ryan Van Horne
Eastern
Promises
hough change is in the air with
future plays and a proposed west-east pipe-
line, New Brunswick and Nova Scotia face
mounting debts (New Brunswicks is $11 bil-
lion and Nova Scotias, $14 billion), while trying to
slay post-recession defcits. There is pressure in both
provinces to create jobs and generate revenue.
In a January 2012 report of the N.B.-based
Atlantica Centre for Energy, president John
Herron outlined the challenges New Brunswick
faces, which also apply to
Nova Scotia. Our govern-
ments shortfalls in annual
revenues, reliance on fed-
eral support, and our loom-
ing demographic crisis combine for a very daunt-
ing forward outlook, Herron writes. The centre
has proposed a change of royalty regimes and sup-
ports maximizing revenue from non-renewable
resources. Still, it recognizes the need to be com-
petitive with other jurisdictions so that it can
attract investment.
new Brunswick
Shale gas is driving the bus in New Brunswick,
which hopes to duplicate the success U.S. states
such as North Dakota have experienced. New
Brunswicks potential in the oil and gas sector is
immense. Studies performed on our deposits in the
southern areas of the province have shown our po-
tential rivals major oil and gas producing jurisdic-
tions, says Craig Leonard, the provinces minister
of energy and mines.
New rules introduced in February have
changed the game after a thorough public con-
sultation process that developed strict regulations,
which even industry embraces. What they require
is clarity in the rules under which they operate to
ensure they meet the expectations of government
and the public, Leonard says.
He says there are fears about fracking based on
practices that occur elsewhere, but which could not
occur in New Brunswick. The provinces rules re-
quire companies to use recycled wastewater or non-
potable water to reduce the drain on freshwater
resources and lay out strict guidelines on the most
important aspect of fracking
the construction of the well
bore. Well bore integrity en-
sures what is intended to stay
within the well, stays within
the well and our standards and monitoring will
constantly confrm that is the case, Leonard says.
Increased local natural gas consumption means
less gas is going to New England via the Maritimes
& Northeast Pipeline. In 2012, total gas consump-
tion in the Maritimes represented 90 per cent of the
regional supply. While most of that has come from
Nova Scotia, Corridor Resources McCully feld near
Sussex, N.B., has bolstered that supply. The McCully
feld taps into the Hiram Brook sandstone and has a
gas reserve of 103 billion cubic feet (Bcf). McCully
was drilled in 2000 and began gas production in
2003, making it the frst well to produce natural gas
in New Brunswick in 90 years.
In 2007, Corridor built a lateral line to con-
nect to the Maritimes & Northeast Pipeline.
Corridor is just scratching the surface. In 2009, it
hired GLJ Petroleum Consultants of Calgary to assess
Corridors other lands and GLJ estimated 67 trillion
cubic feet (Tcf) of natural gas are in place in the Sus-
sex/Elgin sub-basins.
T
REPORT
Special
Atlantic region a mixed bag of petroleum production
with more on tap
By Ryan Van Horne
new Brunswicks potential
in the oil and gas sector is
immense.
new Brunswicks potential in the oil
and gas sector is immense.
Craig Leonard, New Brunswick minister
of energy and mines
Eastern
Promises
Further east and south of Moncton lies the Stoney Creek oilfeld,
which is operated by Contact Exploration. First discovered in 1909,
the reservoir lies in the Dawson Settlement sandstone and has tight
oil and gas with estimated reserves of 1.9 million barrels (MMbbl) and
7.9 Bcf. Contact announced in March it has partnered with Pieridae
Energy Limited to build a liquefed natural gas (LNG) export facility in
Goldboro, N.S. There is an estimated 10.9 Tcf of natural gas in the area
that Contact will develop on its land. Two months later, Pieridae an-
nounced that it inked a 20-year deal with E.ON Global Commodities SE
to sell fve million tons of LNG per year from the Goldboro plant.
Stephen Rankin, a spokesman for Maritimes and Northeast, says it
is an open-access system and welcomes the opportunity, to provide
viable transportation solutions to key developments in our region.
At moment, most gas fows from Canada to the U.S., but if an LNG
export facility were built in Goldboro and more gas came on-stream in
New Brunswick, a reversal could be an option.
Meanwhile, TransCanada Corp. announced in early August it would
build a pipeline to ship 1.1 million barrels per day of crude oil from
Alberta to Montreal, Quebec, and Saint John, N.B. The same day, Irving
Oil unveiled plans to expand its Canaport facility and add a marine
terminal. The joint venture with TransCanada will cost $300 mil-
lion and provide a deepwater, ice-free harbour for exporting Western
Canadian crude.
Nova Scotia
Canadas Ocean Playground lives up to its nickname when it comes
to oil and gas, as Nova Scotia is still looking for its frst onshore
producer. Every play has been offshore starting with the tapped-out
Cohasset-Panuke oilfeld from the 1990s. The Sable Offshore Energy
Projects gas reserves are dwindling as it completes its 14th year of
production and Encanas long-awaited Deep Panuke, which fnally
got the green light to fow gas in early August, complete the roster.
The Play Fairway Analysis has jump-started interest in Nova
Scotias offshore. Since January 2012, Shell and BP Canada have
WELL HiStoRY iN NEW BRUNSWicK
TotaloilandgaswellsdrilledinNewBrunswick:324
Firstwelldrilledin1859.
Thereare30producingnaturalgaswells.
Since1990,ninehorizontalwellshavebeendrilled
(fouroilandfvenaturalgas)
Since1990,49wellshavebeenhydraulicallyfracturedin
NewBrunswick.
Allknownnaturalgasissweeti.e.Nohydrogensulphide,
tracecarbondioxide(<0.05%)
Jack-up drilling platform Rowan Gorilla III, left, and
Seajacks Kraken liftboat are berthed in Halifax harbour
prior to being dispatched to Deep Panuke.
REPORT
Special
committed to spend $1 billion each to explore
some deepwater offshore parcels.
Our Play Fairway Analysis suggests that both
Shell and BP are going after signifcant oil po-
tential, says Sandy McMullin, the executive
director of the Petroleum Resources Branch of
the Nova Scotia Department of Energy.
The Play Fairway Analysis provided a fresh
look at the geology and was done to a stan-
dard that super-majors were accustomed to see-
ing. The result is a better understanding of source
rocks and a compelling story that we have lots of
potential outside Sable Island, McMullin says.
Shell is already doing seismic testing in the
Shelburne Basin and is using 3-D wide-azimuth
technology. Its not blindingly new, says Shell
spokesman David Williams, But its the frst time
its been done in offshore Canada.
The seismic program will continue until next
year, with results determining a potential drilling
program in 2015 or 2016. BPs four blocks cover
almost 14,000 square kilometres and are 300 kilo-
metres off the coast, but nearer to Sable Island than
Shells parcels. (Its) a signifcant piece of geology,
one of the most promising new deepwater areas to
be licensed in recent years, said Mike Daly, BPs
executive vice-president of exploration.
Onshore, the government has said it will not ap-
prove any projects involving hydraulic fracturing
until some studies are completed. That hiatus will
last until early to mid-2014, McMullin says.
That has made it diffcult for operators such as
Forent Energy to fnd a partner for its Alton Block.
Forent drilled for oil and is seeking a partner to con-
tinue work. While its quest for oil in the Gays River
Reefs is a conventional play, there is some Horton
shale gas potential in the rest of the block. (That)
brings interest from other parties and certainly
makes partnering with us more attractive if the
potential resources can be turned into producible
reserve in the future, says Forent Energy president
Richard Wade.
The outcome of the hydraulic fracturing review
will play a big part in any new companies entering
Nova Scotias onshore scene. In all honesty, a lot
of people are waiting for clear, defned guidelines
for doing business, Wade says.
Eastrock Resources Limited holds two conven-
tional exploration agreements in Cumberland
County area near the New Brunswick border. The
company drilled an exploration well in December
2011 and didnt discover anything, but Michael
Volcko, Eastrock president, says it plans to drill two
to four additional wells in the gas-prone block.
We are looking for a partner to share some of the
risk, Volcko says. And were still continuing with
our geological analysis of the plays.
Elmworth Energy, the Canadian subsidiary of
Triangle Petroleum Corporation, has a production
lease for Nova Scotias frst onshore shale gas devel-
opment, but it is on hold while it awaits regulatory
changes.
NewfouNdlaNd aNd labrador
The Rock has been the source of much oil over the
past 15 years as the provinces three oilfelds in the
Jeanne dArc Basin have produced 1.35 billion bar-
rels. With the majority of main felds past peak
production, it is important to continue to develop
near feld discoveries as well as to encourage explo-
well HISTorY IN NoVa SCoTIa
TotaloilandgaswellsdrilledinNovaScotia:
133onshoreand207offshore.
Firstwelldrilledonshorein1869;frstoffshore
welldrilledin1967
Todate,23signifcantandeightcommercial
hydrocarbondiscoverieshavebeenmade
offshoreNovaScotiawithadditionalwells
encounteringnumerousoilandgasshows.
26wellshavebeendrilledonshoreinthelast
eightyears.
Noexplorationwellshavebeendrilledoffshore
NovaScotiasinceDecember2005.
Statoils West Aquarius drilling rig.
Well Construction Journal september/october 2013 17
WELL HISTORY IN NEWFOUNDLAND & LABRADOR
TotaloilandgaswellsdrilledinNewfoundland'soffshore:330
(between1966and2010)
Explorationbeganinthelate1950s;frstwellwasdrilledin1966;
frstdiscoverywasin1979.
TherearethreeproducingoilfeldsinNewfoundlandand
Labrador(Hibernia,WhiteRose,andTerraNova)withafourth
Hebronscheduledtobeginproductionin2017.
AllproducingfeldsandHebronareintheJeanned'Arcbasin.
StatoilhasfoundoilintheFlemishPassBasin.
Productionrate:Productionpeakedin2007,butitisstill300,000
barrelsperdayfromthreefelds.
Since1964,2.1millionsquarekilometresofseismicdatahasbeen
recordedintheoffshore.
Nonaturalgas:Newfoundlandoperatorsre-injectnaturalgasback
intotheground,butthereissometalkofproducinggas,including
apreliminaryproposalfromHuskyEnsergyearlierthisyear.
ration, says Tom Marshall, Newfoundland and Labradors minister
of natural resources.
Newfoundlands offshore regulator approved the Hebron project in
January. The joint venture of ExxonMobil, Chevron Canada, Statoil,
Suncor Energy and Nalcor is a $14-billion project scheduled to be-
gin producing oil in 2017, expected to produce 700 million barrels of
heavy crude.
Statoil, which in June announced the discovery of light, high-
quality oil in its Harpoon prospect, has started its drilling program in
the Flemish Pass Basin with the spudding of the Harpoon O-85 well.
We are optimistic that this will encourage increased offshore exploration
activity, particularly in the provinces deepwater areas, Marshall says.
Statoil plans to conduct additional appraisal drilling and continue
exploration efforts in the Flemish Pass.
We are still proving up the volumes, Statoil spokeswoman Caron
Hawco notes of the companys frst discovery in Newfoundlands off-
shore. This is really good news. Were on our way to becoming a
producer and operator.
In January, Shell won exploration rights in fve areas of the
Laurentian Sub-basin south of Newfoundland. Its an exciting entry
into a new deepwater basin, says Shell spokesman David Williams.
Old Harry, the largest known, undrilled offshore structure in the
Atlantic region, has the potential to contain up to fve billion barrels
of light oil but has been the subject of intense scrutiny since Corridor
Resources acquired the licence in 1996.
Corridor is preparing its fnal environmental assessment for the
parcel, which lies off the west coast of Newfoundland and Labrador
in the Gulf of St. Lawrence.
In other activity, Chevron has brought the drill ship Stena Carron
and planned to drill the Margaree Prospect in the Orphan Basin its
third well in the deepwater basin. Husky has tabbed several prospects
which are ready to drill in the Jeanne dArc basin.
A tugboat passes the Hibernia platform
off the coast of Newfoundland.
Out in the feld is an obvious place for natural gas
operators to look for cost savings, but rationalizing
offce operations can also help contain costs.
O
Dangerous Territory

Offshore safety can be chalked up to special training, constant awareness and
quick response time to potential risks
REPORT
Health & Safety
By Justin Bell
ff the coast of NewfouNdlaNd lies oNe
of the most prolifc offshore oil rigs in Cana-
dian history, Hibernia. It sits on the Hibernia
oilfeld, where more than a billion barrels of
oil remained locked under the sea 300 kilometres
southeast of St. Johns.
It can be a dangerous place to extract oil, with
massive rigs taking the brunt from angry seas and
sea ice posing an ever-present danger. And while
some concerns remain constant between both lo-
cations fres and explosions are an ever-present
danger on any drilling site offshore of Canadas
Atlantic coast requires special training, starting
with the simple act of getting to site.
Transportation to and from any offshore rig add
new dangers, while the environment itself poses
big concerns for drillers. But like any operation, any
risk can and will be mitigated.
When it comes to safety in our industry, most
of the lines of defence against any safety incident
is really no different offshore than it is onshore,
said Paul Barnes, manager of Atlantic Canada for
the Canadian Association of Petroleum Producers
(CAPP). When it comes to offshore, its not that
much different on the safety side; except in one
area, which is that you are working in a marine
environment that is quite a distance from shore.
Crew members working on offshore rigs go
through a fve-day basic training course to ensure
they are prepared to face any issues while on the
job. This includes reacting to offshore safety,
frefghting and helicopter safety, one of the most
important parts of the training.
Rigs off the coast of Newfoundland are up to an
hour away by helicopter, so ensuring worker safety
is a major part of any safety training. Helicopter is
Well Construction Journal september/october 2013 19
really the only way we transfer people to offshore
rigs, said Barnes. While the helicopter ride is up to
an hour, transferring staff by boat can take up to 14
hours, and crew [members] have to be lifted on to
the deck of the rig by crane
from the supply boat.
There is a bit more risk
by transporting people by
supply vessel as opposed to
helicopter.
As technology opens deep-
er waters to exploration, it adds to some of the risks
facing rig crews. Further offshore drilling means
longer transportation times from helicopters, add-
ing to the time in the air.
We can usually use the same helicopters, said
Barnes. They have auxiliary tanks onboard, space
normally taken up by passengers.
Part of the safety course is learning how to escape
from a helicopter overturned in the water. Workers
are taught how to use a compressed air unit, much
like a divers unit, and how to exit the aircraft after
it rolls over in the water.
Safety standards for helicopter transport in
Canada is regulated by Transport Canada and have
comparable standards as those used in the North
Sea and in the U.S., according to Jamie Long, presi-
dent of Hibernia Management and Development
Company Ltd.
Hibernia is one of the biggest oil platforms in the
world, and Long said they take safety at the rig seri-
ously. Training is a major part of the safety routine,
with specifc training and regulations for new staff
on the job.
When new workers arrive on the platform, they
receive a comprehensive orientation and a men-
tor who accompanies them for the frst few work
rotations, said Long. Training is tailored to the
workers specifc roles; some may require additional
training, such as fre team, frst responder, confned
space, working at heights, handling of hazardous
materials, well-control training, major emergency
management/command and control and compe-
tency checks on specifc operation or maintenance
procedures.
Staff are also encouraged to watch out for poten-
tial safety concerns. The rig itself was designed to
withstand the harsh operating environment off the
coast of Newfoundland, and maintenance at the rig
is put on a rigorous maintenance schedule.
We strengthen these efforts with an active risk
identifcation program, one that encourages all
employees and contractors to participate in iden-
tifying potentially unsafe conditions, said Long.
We continue this year-round by encouraging
employees and contractors to talk to each other
about any safe or unsafe
acts they may observe.
Major incidents at off-
shore rigs continue to get
press attention. The Deep-
water Horizon explosion
and spill in 2010 garnered
worldwide media attention, with some of that
focused on Canadas offshore drilling practices
and procedures.
Major incidents around the world do bring
focus to our local offshore here in Canada,
admitted Barnes. The Canadian government has
done a lot of review on offshore legislation.
Major incidents around the world do
bring focus to our local offshore
here in Canada.
Paul Barnes, manager, Atlantic Canada,
Canadian Association of Petroleum Producers
DIFFERENT TYPES OF DRILLING RIGS USED
JACK-UP RIG
Water depth: 10 - 100 metres
These rigs rest directly on the sea foor. The rig itself can be raised to a desired
height, based on the need to allow room for storm waves to pass below.
SEMI-SUBMERSIBLE RIG
Water depth: 70 - 1,000 metres using anchoring system; more than 1,000 metres
using dynamic positioning
These rigs foat in the water, never touching the sea bed. In slightly more shallow
areas they can be attached to the bottom with anchors and the tension on those
lines keeps the rig in place. In deeper waters, computer-controlled thrusters keep
the rig in place.
DRILL SHIPS
Water depth: 200 - 1,000 metres for anchoring, more than 1,000 metres using
dynamic positioning
The idea is the same as a semi-submersible rig, but the drilling system is mounted
on a ship. The derrick operates through a large hole, called a moon pool, in the
centre of the hull. These ships can operate in remote areas with all of the fuel, water
and supplies needed.
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JACK-UP RIG SEMI-SUBMERSIBLE RIG DRILL SHIP
20 september/october 2013 Well Construction Journal
T
The East
Energizers

A west-east pipeline is poised to boost jobs and spark global oil markets
REPORT
Market
By Jacqueline Louie
ransCanada Corporations EnErgy East
Pipeline project promises a secure source of
oil for New Brunswick, and the creation of
jobs and economic benefts in New Bruns-
wick and across the country.
The $12-billion pipeline project, announced in
early August, will connect crude oil from Western
Canada to refneries in Quebec and New Brunswick
using an existing pipeline. Energy East calls for
the conversion of natural gas pipeline capacity
to crude oil service in about 3,000 kilometres of
TransCanadas existing Canadian mainline, along
with construction of up to 1,400 kilometres of new
pipeline. The project has the capacity to transport
up to 1.1 million barrels of crude oil per day,
enhancing producer access to delivery points in
Montreal, Qubec City and Saint John, N.B.
According to TransCanada, the project will provide
Canadian refners in the east with a secure source of oil
from Western Canada and create jobs and economic
benefts in New Brunswick and across Canada. Energy
East, which is set to extend from Hardisty, Alberta to
The $12-billion pipeline project,
announced in early August,
will connect crude oil from western
Canada to refneries in Quebec
and New Brunswick using an
existing pipeline.
Saint John, would connect refneries in Quebec as
well as the Irving refnery in Saint John with access to
lower-priced, stable western Canadian oil, according
to TransCanada Energy East Pipeline president, Steve
Pohlod. The pipeline could
eliminate eastern Canadian
refneries reliance on crude
oil imported from overseas,
since Eastern Canada currently
imports more than 700,000
barrels a day 80 per cent of
its refnery feedstock from
countries including Saudi Arabia, Nigeria, Venezuela
and Algeria, notes Pohlod.
Alberta Premier Alison Redford is also pleased
the pipeline is moving forward. My government
made a commitment to the project as part of our
efforts to build new markets and get a fairer price
for the oil resources Albertans own, Redford states.
This is truly a nation-building project that will
diversify our economy and create new jobs in
Alberta and across the country.
For New Brunswick in particular, the benefts of
Energy East are considerable. Thats very signif-
cant, in that the refneries in Eastern Canada that
would be receiving this oil, today receive most of
their oil from the Middle East
and North Africa, at higher
prices than oil that is pro-
duced in Western Canada. So
it really is a win-win situation
for Canada, says John Van
der Put, Energy East pipeline
vice-president. Its a win for
western Canadian producers in that theyll have a
new market they currently dont have, which is able
to supply oil to refneries in Quebec and New Bruns-
wick. Its a win for those refners, because theyll have
access to a new source of oil to replace that higher
priced foreign-sourced crude with a more economic,
more stable oil supply from Western Canada.
In addition, Irving Oil and TransCanada will
form a joint venture to develop and construct a new
$300-million Canaport Energy East Marine Termi-
TransCanada Corp.s Energy East pipeline
will stop refneries like Irvings reliance on
overseas crude oil.
22 september/october 2013 Well Construction Journal
REPORT
Market
nal at the Irving Canaport in Saint John, which will
connect TransCanadas Energy East Pipeline to
an ice-free, deep water port and allow Canadian
producers direct access to world markets.
New Brunswick Premier David Alward called the
joint announcement Aug. 1, a game changer for his
province. New Brunswick is poised to become an en-
ergy powerhouse in North America, with Saint John
as the anchor of that powerhouse, says Alward.
With the deepest sea port on the east coast of
North America in Saint John, along with the largest
and most modern refning facility right here where
we are today, we are ideally suited to maximize the
benefts of this massive project.
This past spring, TransCanada held a binding open
season to obtain long-term commitments from pro-
spective shippers to place bids for space on Energy
East. The company expects an in-service date in late
2017 for deliveries to Quebec and 2018 for deliveries
to New Brunswick.
Craig Leonard, New Brunswicks Minister of
Energy and Mines, describes Energy East as a very
substantial construction project. Once the pipeline
is built, it would be a stable source of low-cost oil
for the Irving refnery, which will help that facility. It
would also open up opportunities for smaller value-
added activities such as upgrading.
Much of the product would be going to overseas
markets, Leonard notes, adding hed like to see any
value-added activities taking place in Canada, in New
Brunswick in particular, rather than offshore.
In terms of cost structure, its all driven by the
private sector, says Leonard. TransCanada would
build the pipeline and it would be oil producers
who would be flling the pipeline and paying tariffs,
he explains.
This project is also expected to create upwards
of a couple of thousand construction jobs, Lenora
says. For the longer term, he says, permanent em-
ployment would be dependent upon the level of
activity that takes place. It would be hundreds of jobs
monitoring the pipeline and the export facility.
The west-east pipeline is slated to deliver to
Quebec by 2017 and N.B. by 2018.
Calgary Sales:
403.873.1220
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Excellence Dedication Safety Integrity
The recent Lac-Mgantic, Quebec rail disaster
will be a strong argument for the Energy East
project. If this pipeline goes ahead, it will cer-
tainly help western Canadian oil producers, says
Larry Hughes, a professor in Dalhousie Universitys
Department of Electrical and Computer Engineer-
ing, who studies energy sys-
tems and energy security.
However, Hughes thinks
Energy East is not fuelled by
concern for eastern Canadi-
ans. Rather, its being driven
by a concern about how this
essentially landlocked oil can reach tidewater some-
where, he says.
According to Hughes, Canada should be looking
at the big picture. The big picture is not just about
energy security for the energy supplier, its also
energy security for the energy consumer, he says.
There is no guarantee the price of oil is going to
fall because of the pipeline coming to the east. There
is also the entire issue of greenhouse gas emissions,
with the continued combustion of oil products.
Hughes isnt saying oil shouldnt come to New
Brunswick. What Im saying, is that if we are going
to use oil, we should be using it more intelligently.
We should be trying to move Atlantic Canadians
off of oil onto other products and biomass.
Atlantic Canadians per capita use about 50 per
cent more refned oil than the rest of the country,
for space and water heating.
Expecting them to continue
using as much oil in the
future as theyve done in
the past makes little sense,
Hughes says.
According to Hughes,
another option would be to move oil by ship, from
either Montreal or Quebec City to Saint John. The
facilities already exist in Saint John for dealing with
oil by ship. So a pipeline is not necessary, but once
a pipeline is built it will be here probably for 50
years. If we go with shipping, we at least have the
option of throttling back on consumption. If we
decrease our consumption, we can use fewer ships
and we would need to ship less oil. If a pipeline is
there, the tendency is to keep the pipeline as full
as possible.
New Brunswick is poised to
become an energy powerhouse
in North America, with Saint John as
the anchor of that powerhouse.
New Brunswick Premier David Alward
Canadian Rig Counts
Aug. 2, 2013
Drilling Down Total Utilization
Alberta 213 380 593 36%
B.C. 43 23 66 65%
Manitoba 12 12 24 50%
New Brunswick 0 0 0
Newfoundland 0 0 0
Northwest Territories 0 1 1 0%
Quebec 0 1 1 0%
Saskatchewan 70 68 138 51%
Totals 338 485 823 41%
Source: Divestco
NUMBERS
By the
Stats at a Glance
Alberta Rig Counts
Aug. 2, 2013
Northern Alberta 38 90 128 30%
Central Alberta 140 250 390 36%
Southern Alberta 35 40 75 47%
Totals 213 380 593 36%
Source: Divestco
Top 5 Most Active Operators
July 23, 2013
Active
Rigs
Canadian Natural Resources Ltd. 23
Progress Energy 23
Husky Energy 22
Cenovus Energy Inc. 16
Crescent Point Energy 14
Source: FirstEnergy Capital
Top 5 Most Active
Drillers in Western Canada
July 23, 2013
Active Total
Precision Drilling Corp. 77 188
Ensign Energy Services Inc. 49 117
Savanna Energy Services Corp. 33 70
Nabors Industries Ltd. 23 65
Trinidad Drilling Ltd. 33 60
www.cadecanada.com september/october 2013 25
Canadian Rig Counts
Aug. 2, 2013
Alberta 213 380 593 36%
B.C. 43 23 66 65%
Manitoba 12 12 24 50%
New Brunswick 0 0 0
Newfoundland 0 0 0
Northwest Territories 0 1 1 0%
Quebec 0 1 1 0%
Saskatchewan 70 68 138 51%
Totals 338 485 823 41%
Source: Divestco
Alberta Well Licences
Approval issued by the Alberta Energy Resources Conservation Board
Number of Licences Issued Jan. 2013 Feb. 2013 March 2013 April 2013 May 2013
Development 821 591 525 265 587
Exploration 74 66 26 14 33
Source: Alberta Department of Energy
Alberta Spudded Wells
July 2013
Number of Wells Spudded
2011 2012
July 812 625
August 964 464
September 1,018 706
October 955 535
November 971 605
December 754 363
2012 2013
January 946 1,756
February 2,021 1,705
March 980 904
April 276 153
May 374 214
June 518 246
Top 5 Most Active Operators
July 23, 2013
Active
Rigs
Canadian Natural Resources Ltd. 23
Progress Energy 23
Husky Energy 22
Cenovus Energy Inc. 16
Crescent Point Energy 14
Alberta Completed Wells
July 2013
Number of Wells Completed
2011 2012
July 245 488
August 728 541
September 1,531 524
October 904 692
November 834 750
December 940 692
2012 2013
January 381 381
February 718 640
March 717 812
April 672 701
May 486 343
June 254 272
Alberta Land Sales
Aug. 2, 2013
June 2013 June 2012 YTD 2013 YTD 2012
Oil and Natural Gas
Land Sales $20.5 million $57 million $405 million $643 million
Price Per Hectare $161.49 $564.29 $348.66 $461.69
Oil Sands
Land Sales $700,596 $516,566 $6.3 million $4.6 million
Price Per Hectare $48.87 $737.35 $81.16 $75.07
DEEPER
Drilling
By Ryan Van Horne
One Ocean,
Two Industries
Liaison group helps petroleum and
fshing workers net agreement
O
il and water dont mix, but one ocean
has proven the petroleum and fshing indus-
tries can collaborate.
In 2001, the Canada-Newfoundland Off-
shore Petroleum Board called the two groups together
for meetings and asked them to set up a liaison orga-
nization to enhance their work-
ing relationship. The next year,
One Ocean was born and has
proven some doubters wrong.
Maureen Murphy Rustad is
the director of One Ocean, based at the Fisheries and
Marine Institute at the Memorial University of New-
foundland. She often gets asked why the organization
has worked as well as it has. Its the commitment of
the members, she says. They make this work.
One of the keys to the increased collaboration
was a policy that was set early on by former director
Dr. Arthur May. The organization has equal represen-
tation from the fshing and petroleum industry, so
May recognized the futility of voting, which would
inevitably lead to stalemates. He would sit there
and make them agree, Murphy Rustad says. Voting
was too easy. We had to come up with a consensus.
We talk it out and we agree on the best way forward
for both industries.
Murphy Rustad says another reason why One
Ocean remains unique in the world is the structure
of the fshing industry. Fish harvesters and proces-
sors present a unifed front and their one-stop
shopping makes it easier for members of the Cana-
dian Association of Petroleum Producers (CAPP) to
communicate with them.
In Nova Scotia, for ex-
ample, there are as many as
100 fsheries organizations,
which can form a cumber-
some gauntlet.
Murphy Rustad said there was a realization from
both industries early on that they were going to
have to share some space.
They work together rather than working against
each other, she says. Both industries had to learn
about the other and One Ocean was the mechanism
to foster that.
There have been some rough spots, but One
Ocean has worked through them. One example is
both sides agreeing to protocols for seismic testing
instead of setting rules. One Ocean meets four
times per year more if necessary and the current
makeup is six members from each industry, but it
can go as high as 10.
we talk it out and we agree
on the best way forward for
both industries.
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Thank You to Our Sponsors
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Platinum Sponsors
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new products and services in the drilling industry, a CADE Sponsorship offers you a cost effective way to deliver your
message directly to the entire membership of the leading industry association for Well Construction Professionals in
Canada.
YOUR SPONSORSHIP INCLUDES:
Ads in Well Construction Journal, full of relevant industry news and
articles, presented in a high quality, well-read magazine
Your logo in the Thank you to our sponsors feature on the CADE
website and in every issue of Well Construction Journal
Your logo on the Thank you to our sponsors display at every CADE
Technical Luncheon
Authorized use of the CADE logo on your website and in marketing
materials
Connect with Canadas Drilling Industry
Become a CADE Sponsor
2013 SPONSORSHIP PACKAGES ARE NOW AVAILABLE
Contact CADE at 403.532.0220 or by email at info@cadecanada.com
www.cadecanada.com
Support CADE by sponsoring our technical lunches, our website and the Well Construction Journal.
Thank You to Our Sponsors
The support of CADE sponsors plays an integral part in our associations success.
Platinum Sponsors
NCS Energy Services Inc.
Schlumberger
Gold Sponsors
Global Steel Ltd.
Hardbanding Solutions
Pacesetter Directional Drilling Ltd.
QMax Solutions Inc.
XI Technologies Inc.
Ryan Directional Services
Silver Sponsors
Akita Drilling Ltd.
Baker Hughes
Cathedral Energy Services Ltd.
Import Tool Corp. Ltd.
Lory Oilfeld Rentals Inc.
Packers Plus Energy Services Inc.
Peak Completions
Tristar Resource Management Ltd.
Savanna Energy Services Corp.
Well Control Group
Energy Drilling
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