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October 2009 Volume 10, Number 5
Contents
5 The Mega-Merger Hangover
6 70% of Canadian energy companies expect oil prices
to increase over the next year: PwC survey
7 Public Survey Yields Surprising Results
7 Latest Chinese Purchase Big News for Oilsands
8 SAIT welcomes first students to new energy diploma
program
9-11 No Surprise – Oil Industry Profits Down from 2008
Record Levels
12 The Canadian Association of Petroleum Producers
(CAPP) released its 2009 crude oil production forecast
and markets and pipelines outlook
14 IHS CERA: World Oil Demand Set to Resume Growth;
Return to Pre-recession Levels by 2012
15 One-time field data capture: now a reality
16 EnCana proceeds with plan to split into two distinct
and independent energy companies
Small Business Week 2009;
18 Experts reveal why this recession is a great time to
go green
18 Small Business Week
18 Young Entrepreneur Awards
21 Colfax Unveils Alternative Fluid-Handling Strategy
for Crude Oil Transport
21 Calgary technology companies ensure lone worker
safety from the convenience store to the oil field
21 Nexen helps build the next generation classroom
23 PFM Manufacturing, Inc. Build one of The Most
Versatile, Most Extreme, Heavy Duty Remote Access
Vehicles for Oil and Gas Exploration
24 The New RTV1100 - Factory Cab Utility Vehicle
25 New Prinoth Go-Tract™ 4500 Carrier
25 The new RTV1140 is the newest released vehicle
form Kubota
26 Don’t be too quick to sign those pink slips
26 Oil Rigs Delivered in Record Time
27 Historical drilling records now digitized and online
27 Wood Group Offers High-Pressure, High-Temperature
Well Cement Bond Logging Service
28 Laid-off professionals get help transitioning their
careers
29 BGAN Demonstration
30 Moyno® Progressing Cavity Pumps Offer Dependable
Performance & Low
30 Global Heat Transfer Ltd. announces a breakthrough
in lightweight cooling systems
Photos courtesy of Sanjel
Oil & Gas Network, October 2009 3
 Coll’s

Corner
The Mega-Merger Hangover
When the dust finally settles, if indeed it does, what you wind up with looks very
different from what you thought you were going to have

A
lthough the Petro-Canada name will live on at its handsomely branded retail outlets,
the company that many loved to hate (at least in its infancy) is gone, absorbed by
Suncor, a company with an even longer history and, as you’d expect, a much better
historical track record. With a market cap hovering around $50 billion, the new Suncor is
about 20% bigger than EnCana, the monster created in 2002 by the so-called “merger of
equals” — AEC and PanCanadian.
But if anyone at Suncor is feeling particularly satisfied about being the undisputed
domestic energy lynchpin, they should be aware that from the EnCana example that their
status as number-one may well be short-lived.And the taste of champagne can leave a wicked
hangover.
The powers that be will pretend everything can be neatly wrapped up in a bow by a cer-
tain date, but the turmoil created within a newly merged enterprise so large and complex is
ongoing. When the dust finally settles, if indeed it does, what you wind up with is very
different from what you thought you were going to have.
How we’d end up in this business? Why did we sell that? Who hired that guy?
Just ask EnCana, which announced in May 2008 that it planned to divide itself into two
separate companies; after postponing the deal a few months later in the wake of the global
credit crunch, it was put back on the table in September 2009.
To think that such a plan would emerge within just a few years would have been pre-
posterous at the time of EnCana’s creation – when it was claimed with a great deal of flag-
waving fanfare that a certain “critical mass” was necessary, if not for survival alone, then to
offer investors improved liquidity, access to capital at lower costs and higher share prices
relative to cash flow.
Suncor is using essentially these same arguments today, ironically to absorb the com-
pany that virtually patented the flag-waving takeover in the early 80s.
But it’s apparent now that “bigger is better” no longer works for EnCana.
And so the question has to be asked: if the same market that was rewarding size above
all else just a few years ago has now discovered that “more value” can be created by split-
ting EnCana along distinct business lines, why is the Suncor-Petro-Canada merger hailed
as such a wonderful thing? Won’t that same fate ultimately befall Suncor once all its post-
merger asset shuffling is finally concluded?
There are differences in the two deals beyond the mere passage of time but, if anything,
the Suncor deal is way more complicated than EnCana’s ever was, given the merging of
downstream as well as upstream assets. It’s easy to foresee Suncor eventually splitting at
least the upstream and downstream and perhaps bringing the weaker, regional Sunoco brand
under the national Petro-Canada name and marketing umbrella.
That leaves a final question that can also be asked of the EnCana split – at inception, would
the production and net asset value of the new entity be that much greater than what could
have been generated had the businesses that went into its creation been left to grow undis-
turbed?
I have a sneaking suspicion the numbers might be closer than one would think. You can
scoff at the notion and toss out a bunch of actual and projected numbers to make your case,
but the reality is that no one will ever truly know. Precious little speculative comparison ever
sees the light of day.
There is also a huge body of data out there that would make anyone question the ulti-
mate value of these large deals, financially, operationally and socially. The latter is often over-
looked, yet many a study cites social/cultural/communication issues as the number-one cause
of failed mergers. It’s one thing to say you’re going to integrate two cultures and quite an-
other to actually achieve the integration. (Suncor has its hands full with Petro-Canada –
they’re very different animals).
In the end I can’t help but wonder if, in reality, the only people who ultimately benefit
from these big deals are those who finance and broker them, those who are in a position to
determine whether they proceed or not and can carefully orchestrate the timing, and the
armies of lawyers, forensic accountants and others who back them up and thereby garner a
hefty commission or dubious promotion for their loyalty to the cause and a few late evenings
on computer.
I’d compare it all to the formation of the so-called rock and roll supergroups of the late
60s and 70s – the hype outweighed the substance and the music itself, after the initial shine
wore off, was flat and unmemorable.

Oil & Gas Network, October 2009 5

70% of Canadian energy companies expect oil prices to increase
over the next year: PwC survey
Crude oil and natural gas prices will have the most significant impact on the energy business in the next three years
W
hile 2008 was a year of two extremes, with oil and
gas producers experiencing boom and bust all with-
in 12 months and many responding by cutting their
capital spending plans for 2009 anywhere from 25% - 35%, they
still continue to plan for the future according to the Canadian
Energy Survey released today by PricewaterhouseCoopers (PwC).
– 70% of respondents expect prices to increase somewhat
over the next year and 11% believe prices will increase sub-
stantially. Approximately 16% said crude oil prices will stay
about the same in the year ahead.
– The majority of respondents said oil prices will have to
increase to at least US$70-$80 before they would consider in-
creasing conventional drilling programs, although an almost
equal number said prices will have to head north of US$80 be-
fore spending more on conventional drilling.
– Close to 57% of respondents said the ability to adapt to
change is a critical requirement for their long-term sustain-
ability; while 68% of respondents said attracting and retaining
top talent was viewed as critical for their long-term growth.
Technological innovation was seen by 40% of respondents as
critical for ensuring sustainable growth.
– Respondents also said they expect to increase their in-
vestment into research and development (R&D) over the next
two years, with 23% indicating they plan to boost R&D spend-
ing in 2011 versus only 4% this year and 22% in 2010.
6 Oil & Gas Network, October 2009
– 72% of gas producers believe prices should recover with-
in the next two years to a level that will lead them to increase
their drilling programs whereas 28% believed it might take
three years or longer for natural gas prices to recover to levels
that will result in more wells being spudded.
“The turbulent swing in energy prices from all-time highs
in the summer of 2008 to four-year lows in December is a pow-
erful reminder that the booms in commodities can quickly
evaporate,” says John Williamson, Partner and Canadian Energy
Leader at PwC.“At the mid-way mark of 2009, while gas prices
continue to languish, many believe natural gas fundamentals
point to a recovery in 2010, which will lead to improved
drilling activity levels. Crude oil prices have already rebound-
ed from year-end 2008 levels.”
Companies across the oilpatch are adopting a number
of measures to remain profitable, including capital budget
cutbacks, moving operations to other jurisdictions with
lower royalties, as well as salary freezes or rollbacks, and
layoffs.
While industry has cut staff, many energy companies pre-
fer not to lay off employees because so much time has been
spent training them. In the survey, attracting and retaining top
talent was viewed by 68% of respondents as critical for their
long-term growth. This driver was seen by respondents as the
most critical factor that will influence future growth.
Financing
The financial crisis has reduced access to both debt and
equity.As a result, 39% of survey respondents expect to rely on
cash flow to support their business over the next year, while
26% identified debt and 14% equity as their primary sources of
financing.
Two-thirds of respondents said access to capital and credit
is critical to sustain their growth over the long-term. But
respondents also feel that debt will likely be the most difficult
source of financing to obtain in the short-term (over the next
three years), with 63% saying it will be somewhat challenging
and 26% believing it will be very challenging. Close to 54% of
respondents also believe it will be somewhat challenging to se-
cure equity financing in the next three years, with 33% saying
it will be very challenging.
Operating Costs
Fully 57% of survey respondents said they anticipate their
overall operating costs to decrease over the next year, with de-
clining labour and material costs helping the bottom line. Some
oil producers now say that labour and material costs have low-
ered so much that projects may be economical at lower prices.
In addition, 76% of respondents said their land acquisition
costs would stay the same or decrease over the coming year.
Continues on page 11
 Latest Chinese Purchase Big News
for Oilsands
Public Survey Yields
S
ince China’s need for energy is growing faster than any other As joint venture partners, AOSC and PetroChina plan to use
Surprising Results country, it may not be too great a surprise that a government-
controlled Chinese company has purchased a large stake in
common in-situ methods to develop the oilsands projects. AOSC
has filed regulatory applications for approval of two pilot projects
Rob Gray, Manager, Communications the Alberta oilsands. within the project areas with the Alberta Energy Resources
In August, Athabasca Oil Sands Corp. (AOSC) entered into an Conservation Board.
& Member Relations agreement with PetroChina International Investment Co., allowing The Calgary-based company intends to file a regulatory appli-

D
espite what media and naysayers may have you
it to have a 60 per cent working interest in AOSC’s MacKay River cation for the first 35,000 bbl/d phase of the MacKay River com-
believe, communities where oil and gas activity
and Dover oilsands projects for $1.9 billion. The agreement also mercial project at the end of this year.
is most active actually view the petroleum
provides for certain financing arrangements for AOSC. The MacKay River project is about 60 kilometres west of Fort
industry in a surprisingly more favourable light com- “This deal shows that the biggest energy company in the world MacKay, while the Dover project is about 35 kilometres northwest
pared to the national average. However, community res- has chosen Athabasca as their partner,” said Sveinung Svarte, of Fort McMurray.
idents still point to some key issues where industry can Athabasca Oil Sands president and chief executive. “They clearly
improve its performance. told us that’s because they like our assets the best and obviously,
Findings of a recent Ipsos-Reid public opinion survey, they (oilsands) are the crude oil story.”
conducted on behalf of PSAC, suggest that communities The projects are located in the centre of the Athabasca area in
within the WCSB where oil and gas activity is taking northeastern Alberta and have been assessed by an independent
place – as in those communities that actually live with third party to contain roughly five billion barrels of bitumen. The
industry activity on a regular, if not daily basis –don’t deal basically allows for three billion of those barrels to be sold to
think the industry is all that bad. This is in stark com- PetroChina, said Bill Gallacher, chairman of the Athabasca Oil Sands.
parison to what industry and the public were led to Oilsands projects require a huge investment, and now “we have
believe during the royalty review process in 2007/2008, a fully funded business model to go forward,” he said. "Oilsands
and varies widely from similar surveys that have taken projects are very capital-intensive long-term investments and dif-
a more national perspective. ficult to fully finance in the traditional equity market.
The survey was undertaken as a strategy for indus- “AOSC therefore decided to look for joint venture partners, and
try to listen to the public, hear and understand their these strategic joint venture arrangements with PetroChina, one of
concerns, and ultimately be able to address those con- the world's largest energy companies, can ensure that the MacKay
cerns, in an effort to protect industry’s social license to River and Dover projects will be developed in timely manner, “We will remain as operators for the time being of the two assets,”
operate. which is excellent news for Alberta and the rest of Canada.” Svarte said.
Against a backdrop of typically negative media cov- The deal is expected to close Oct. 31, Gallacher announced in Commercial oil could flow by 2014, with subsequent phases
erage and seemingly negative public attitudes towards a conference call. It is pending government approval, but AOSC reaching 150,000 bbl/d of production.
industry, the results of the survey were pleasantly sur- executives say they don't foresee any obstacles. PetroChina is not the only Chinese firm to show interest in
prising with 60 per cent of respondents having a Some of them recently visited several oil facilities in north- northern Alberta's oil reserves. Sinopec Corp. has a 50 per cent
favourable opinion of the industry, while another 20 per eastern China where PetroChina operates a number of heavy oil stake in the Northern Lights project 100 kilometres northeast of
cent of people are indifferent. That means only two in projects using sophisticated technologies, including various SAGD Fort McMurray.
10 people hold a negative view of the industry, which, processes and firefloods. A Scotiabank commodity report says that Chinese oil con-
for any industry, is a pretty good number. “I was pleasantly surprised at the operations we’ve seen. It was sumption has increased 3.5 per cent this year and in July was at
Eight out of 10 respondents gave industry top ratings very, very impressive,” Gallacher said. 8.1 million barrels per day.
for providing jobs and supporting the local economy.
And, nearly three quarters of respondents noted indus-
try’s community participation - such as donations, vol-
unteering, and sponsorships – as clear positives.
Respondents also gave industry relatively positive marks
for treating residents and property with respect.
However, before becoming too self-congratulatory,
it is important to note that the survey also highlighted
some very specific areas for improvement. One of the
prevailing themes of the survey is that industry is falling
flat when it comes to communication. The benchmarks
for listening and responding to community concerns,
and just communicating in general about activity are all
below where they should be.
The survey shows that 50 per cent of people feel
industry needs to do a better job on this front. Almost
two-thirds of those surveyed are asking for more infor-
mation from industry, which according to Ipsos-Reid is
a startlingly high number compared to other industries.
Some of the specific concerns noted by residents
relate to driving habits, minimizing mess, reducing noise,
and protecting public health and safety.The number one
concern, which is shared by a majority of respondents,
relates to protecting the environment.
The detailed findings of the survey provide a lot of
ammunition, both in support of industry, but also in sup-
port of some improvements that need to be made. It is
critical for issues to address these issues now, in advance
of the next upturn, so that industry can remain in good
public favour.This is certainly something that PSAC will
continue working on, on behalf of Members, and is
something that other industry stakeholders may want
consider as well.

Oil & Gas Network, October 2009 7

 SAIT welcomes first students to new energy diploma program
T
he first students enrolled in SAIT Polytechnic’s new Energy
Asset Management (EAM) program were celebrated at a spe-
cial launch event for industry partners and students.
“We are very pleased to welcome the first group of students to
the Energy Asset Management program,” said Mary MacDonald, Dean
of SAIT’s MacPhail School of Energy. “Over the past two years we
have worked together with industry to develop a program that will
8 Oil & Gas Network, October 2009
give students the training required to succeed in this essential field.”
The first known program of its kind in North America, EAM was
created in response to the Alberta oil and gas industry’s growing
demand for job-ready employees in the field of energy asset man-
agement. The EAM program will focus on the management and ad-
ministration of regulatory, financial and contractual compliance
pertaining to energy assets.
SAIT Polytechnic’s
President and
CEO, Irene Lewis
“The demographics in this industry show there will
be a tremendous shortfall of qualified workers over the
next 10 years,” said Melinda Scherger, Chair of the
Centre for Energy Asset Management Studies Board of
Directors. “Future SAIT graduates of the Energy Asset
Management program will be extremely valuable to the
energy industry.”
Interest in the two-year diploma program was so
high that SAIT added a second class for the current fall
semester. Sixty-four students are enrolled.
The EAM program was developed in partnership
with the Centre for Energy Asset Management Studies.
Graduates will find career opportunities in areas such
as land contracts, operations accounting and well asset
management, and with energy service companies and
governments.
August 2009 Volume 10, Number 4 www.oilgas.net
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No Surprise – Oil Industry Profits Down from 2008 Record Levels
Current Environment
The Canadian oil industry has always been a boom or bust
industry, and there is no better illustration than the events of
the past 12 months. The West Texas Intermediate (WTI) price
of crude has been on a roller coaster that pushed prices above
US$145 in July 2008, only to see them collapse to US$35 just
six months later. The catalyst for these sharp movements was
the global recession that was brought on by the collapse of
the American housing market and the credit crisis that fol-
lowed. The Conference Board projects real GDP in the United
States will contract 2.5 per cent this year. The U.S. economy
accounts for a huge share of global consumption, and as the
U.S. consumes less, industrial and commercial activities around
the world are negatively affected.
Determining the near-term prospects for oil prices remains
difficult given the conflicting signals in the market. The rapid
decline in global demand that began last winter has only now
started to show up in terms of higher inventory levels, putting
downward pressure on oil prices. On the other hand, OPEC
has cut production several times in the past year, resulting in
less supply to the market. Geopolitical tensions remain a con-
cern—the rebuilding of Iraq has yet to yield much in the way
of increased capacity or production there, and political dissent
continues to hamper production in Nigeria.The purchase of oil
futures for non-commercial use has begun again, introducing a
disconnect between fundamentals and the prevailing price.
After considering these factors, we estimate that the WTI
price of crude will average US$69.88 for the remainder of the
year.A weak production profile will also weigh on the near-term
performance of the industry. Shortages of labour and materials
have delayed completion of several projects. Despite the bil-
lions of investment dollars sunk into the industry over the past
decade, production still declined in 2008 and will advance only
marginally this year.The conventional industry is being hit par-
ticularly hard this year, as drilling activity has declined in record
fashion. But capacity for expansion of non-conventional pro-
duction is enormous; and as prices rise over the forecast, the
economics of these megaprojects will improve, ensuring im-
pressive gains over the medium term. Indeed, non-conventional
production will be the dominant oil type produced going for-
ward, eventually reaching 2.4 mmbd by 2013.
Relative to last year’s record performance, revenue
growth will suffer in 2009. Even though prices have dou-
bled since the start of the year, they remain more than
50 per cent below their 2008 record highs. As a result,
revenues will grow by just 6.3 per cent. Fortunately,
growth in the industry’s costs has also slowed.
Despite this deceleration, costs remain high—a result
of the massive increases seen near the end of 2008. Profits
will suffer as a result, falling 24.5 per cent to $11.6 billion.
Economic growth is predicted to remain weak through
the end of the year, but stimulus packages around the
world will lead to improved performance starting in 2010.
Accordingly, oil prices will resume their long-term upward
trend, eventually reaching US$103 by 2013. Surging rev-
enue growth related to higher prices will result in profits
topping $32 billion by the end of the forecast.
The industry will also be a source of job creation for
Canada, adding 17,800 jobs over the forecast.
According to the Inter- 50.5 mmbd, leaving 32.8 mmbd for OPEC to supply if balance
national Energy Agency (IEA), is to be achieved in the global market. OPEC produced 33.4
global demand for crude will mmbd in May, sufficient to keep the market in equilibrium, and
total 83.3 mmbd this year, the IEA estimates that OPEC has more than 6 mmbd of spare
down 2.5 mmbd from 2008. capacity should demand accelerate more quickly than current
(See Chart 1.) Demand has forecasts. (See Chart 3.)
been hardest hit in OECD
countries, where economic Oil Price
growth has been hurt the Even though there appears to be sufficient supply to sat-
most. (See Chart 2.) These de- isfy the forecast weak demand, the price of oil has risen sig-
veloped countries will see nificantly. The benchmark price rose 65 per cent between
consumption fall 2.3 mmbd. February and July to hover around the US$70 level. Clearly a
On the other hand, non- disconnect exists between fundamentals and current price lev-
OECD countries have been els, and one explanation offered is that a future supply crunch
able to sustain consumption is inevitable as demand will continue its upward trend.We think
levels near where they were these concerns are premature. According to BP’s Statistical
a year ago, as many develop- Review of World Energy, the global reserves to-production ratio
ing economies have been stands at 42 years, which has been relatively constant over the
able to sidestep the reces- past several years as energy companies continue to replace
sion. As such, non-OECD de- every barrel of oil produced with oil from new reserves mov-
mand will contract just ing into the commercial category. That suggests medium-term
200,000 b/d, or about 0.5 per supply will not exert undue upward pressure on prices.
cent. Of the major developing In the summer of 2008, at the height of the oil price spike,
regions, only countries in the Saudi Arabia announced unilateral production increases—first
former Soviet Union will ac- in May, and then again in June. Markets were unconvinced of
tually see demand fall, while the Saudis’ ability to get the extra oil onto the market, howev-
China, the Middle East, and er, and prices increased following the announcements.
Latin America will all pull Because of the usual lag time between when oil leaves the
through with demand un- wellhead and when it reaches the storage facility, these pro-
scathed. The emerging mid- duction increases did not show up in higher inventories until
dle class in these countries late 2008—roughly the same time that global demand col-
ensures that energy-hungry lapsed. Prices crashed, prompting OPEC into action once again.
luxury goods continue to be This time the cartel cut production, hoping to provide a floor
in high demand. for prices.
The recession will also impact global supply. Low prices However, crumbling demand ensured that it was “too little,
have caused companies to slash investment intentions. Worse, too late” to slow the decline that persisted into the first quar-
even oil plays that are profitable at current prices are finding ter of 2009.As a result, global stock levels rose steadily over the
it difficult to acquire the necessary financing to move forward. first half of the year. By April, inventory levels in OECD coun-
The IEA estimates that $170 billion in global investment has tries were 208 million barrels higher than 12 months earlier and
been deferred or cancelled as a result of the recession. Non- 6 per cent above their five-year average.
OPEC production is therefore projected to fall 100,000 b/d to While market fundamentals are indeed the main driver

Macroeconomic Drivers
Industrial and consumer demand for oil products
around the globe have fallen considerably as the reces-
sion remains firmly entrenched in much of the devel-
oped world.This has led to a rapid building of stockpiles,
pushing prices to very low levels by recent standards.
Global stimulus packages should help to lift economic
activity as we move through the second half of 2009,
boosting oil demand and prompting prices to resume
their long-term upward trend.The WTI price is expected
to average $103.38 in 2013.

Supply and Demand

Slower economic activity around the world has dras-
tically affected the supply demand balance for oil.

Oil & Gas Network, October 2009 9

behind price determination, the recent increase in crude prices is
difficult to explain based on fundamental factors alone, even while
OPEC production remains low by recent standards and gasoline
markets have tightened. Although supply and demand are the key
drivers, it is foolish in the current market to assume they are the
only drivers. According to the IEA’s June Oil Market Report:
Prospects for equity markets and the global economy, backed
up by exchange rate fluctuations, expectations about future oil mar-
ket tightness and, by inference, a shift of money into or out of the
futures market can all influence short-term prices.
There is little doubt that the financial markets have played a role
in the recent run-up in prices. Indeed, the shift in NYMEX non-com-
mercial positions— from a net short position at the beginning of
May to a net long position a month later—provides clear evidence
of the financial markets’ role in this most recent increase.1 At least
in the near term, oil prices will likely be determined by a mix of
10 Oil & Gas Network, October 2009
fundamental factors and the whims The deferral of billions of investment dollars
of the financial markets. will affect Canadian production in the medium
Still, the recent narrowing of term, particularly on the conventional side of the
the contango (the difference be- industry, as drilling will drop in record fashion.
tween the spot price and the high- Low prices, and tight credit markets will ensure
er future price) would suggest that that some non-conventional production is pushed
oil prices are not expected to take back. Nevertheless, the remaining potential of the
off in the next 12 months—and ad- oil sands provides security in the long term for the
equate supply to satisfy weak de- industry, and will outweigh the expected losses in
mand should help to keep the the conventional industry. Total crude output
appreciation of oil prices slow should reach 3.5 mmbd in 2013. Export capacity
over the medium term. is also expected to rise significantly over the fore-
As such, the Conference Board estimates that the WTI price of cast, allowing Canadian companies to ship incre-
crude will average just US$61.74 for 2009 as a whole (thanks to the mental production to the United States.
low prices at the start of the year), but will increase steadily through-
out 2010 to reach US$76.89 by year’s end. (See Chart 4.)
Non-Conventional Production
The events of the past 12 months have lowered
expectations for future oil production. Lower oil
prices are one reason for lower forecasts, but the
slowdown in the global economy has also curtailed
future prospects for oil demand and lowered cur-
rent investment intentions. Nevertheless, long-term
opportunities remain bright. According to Alberta’s
Energy Resources Conservation Board (ERCB),
remaining established reserves of bitumen resources
stand at 170 billion barrels, with only 6.4 billion bar-
rels having already been exploited. Indeed, the areas
that are currently under development alone repre-
sent 27 billion barrels. Non-conventional production
dropped in 2008, as the three main mining compa-
nies all experienced a variety of technical issues that
restrained production. Syncrude saw two unplanned
turnarounds on coker units lower production by 8
per cent; Suncor’s planned maintenance pushed its
production 7 per cent lower; and the Albian Sands
project underwent changes to its tailings plan that
led to unplanned maintenance and lower grade ore,
yielding a decrease of 10 per cent.
With these issues resolved, and the fact that min-
ing at CNRL’s Horizon project began in September
2008, non-conventional production will rebound in
2009. Barring any further unplanned maintenance-
related delays or stoppages, bitumen and synthetic
crude production will combine to increase 9.2 per
cent this year. Going forward, the profile for non-
conventional oil in Canada remains bright. (See
Chart 5.) The ERCB estimates that as much as 1.6
mmbd of additional capacity from bitumen mines
will be brought online sometime in the next decade.
However, this future production is rife with un-
certainty regarding timing and project scope, and
it depends heavily on current economic condi-
tions, expectations for oil prices, cost structures
in Western Provinces, construction delays, and
the availability of refining capacity. Considering
these factors, the
Conference Board
estimates that
non-conventional
production will
average annual
gains of 15.6 per
cent over 2010 to
2013, eventually
reaching 2.4 mmbd
by the end of 2013.
Conventional Production: Slowing Productivity
Hurts Production As bright as the outlook is for non-
conventional production, the outlook is dark for the
conventional industry. Conventional crude produc-
tion already faced a long and steady decline, due to
the maturation of the Western Canadian
Sedimentary Basin.Then, as oil prices crashed at the
beginning of the year, drilling came to a virtual halt.
According to the Canadian Association of Oilwell

Drilling Contractors, rig utilization rates in Western
Canada stood at just 19 per cent in July, compared with a
44 per cent utilization rate a year earlier when oil prices
peaked.
Drilling will not pick up this year. Peak season has
already passed, and the prospects for the remaining
months of the year are bleak. The Petroleum Services
Association of Canada estimates that wells drilled will
decline to 9,500 this year—a decrease of nearly 45 per
cent. This estimate includes natural gas as well as the oil
extraction industries, but it highlights the general slow-
down in activity in the Western provinces.
Helping to maintain what little activity there is,
drillings costs are lower— steel prices have come down
significantly and the cost of fuel is lower than it was at
this time last year.The Alberta government has also amend-
ed its royalty program for the fifth time in two years. The
initiative extends by one year the measures put in place
last March, with intent to spur conventional activity. The
new well incentive program offers a maximum five per
cent royalty rate for the first year of production on new
oil (and gas) wells. The program also offers a credit of
$200 per metre drilled, applied on a sliding scale based
on 2008 production levels. It is not clear what the net
effect of this program will be in the long term, as the con-
fusion created by ever-changing royalty levels may detract
from any short-term benefits generated by the potential
for increased drilling.
Finally, the average
productivity of conven-
tional oil wells in Canada
is falling. (See Chart 6.)
Having already exploited
the best pools, compa-
nies now turn to margin-
al discoveries. This raises
the cost per barrel of oil
produced—and even
with enhanced recovery
techniques, some oil will
be left in the ground because it won’t be profitable to
extract.The average productivity of an oil well at the end
of 2008 in Western Canada had declined 30 per cent since
the beginning of the decade. Over that period, produc-
tivity declined 34 per cent in Alberta and 14.4 per cent
in Saskatchewan—the provinces that are home to the
bulk of Canada’s oil wells.
Because drilling will fare so poorly this year, conven-
tional Western production is predicted to drop 5.4 per
cent. Going forward, production will continue to decline
but at a slower pace as drilling is expected to rebound
somewhat starting next year in response to higher prices
and lower drilling costs. Production will decline 2.2 per
cent on average between 2010 and 2013.
Offshore production is also expected to decline over
the medium term. However, a number of potential new
projects and satellites to current fields exist but remain in
various stages of regulatory development.The planned ex-
pansion of the Hibernia field faces some regulatory diffi-
culty, but is assumed to begin producing in 2012, providing
a boost to production at that field if approved. Husky and
the provincial government finally worked out an arrange-
ment on North Amethyst (a satellite of White Rose), and
first oil is projected for late 2009 or early 2010.6 White
Rose South and West White Rose also have proven deposits
but, given the current environment, are unlikely to come
online in the medium term. Offshore production will drop
15.7 per cent this year and then average declines of 4.3
per cent annually until the end of the forecast.
Continues from page 6
petroleum products (rather
than crude oil) so as to take In the first half of 2009, producers paid the Alberta government
advantage of the higher value an average of $137 per hectare for petroleum and natural gas
added. Still, refinery capacity rights versus $307 per hectare in the first six months of last year.
is insufficient, and much of
the additional supply will Climate Change
flow outside Canada to the Canada’s climate change plan aims to reduce the country's
United States. total greenhouse gas (GHG) emissions by 20% from 2006 levels
Canada is the single by 2020 -- and by 60-70% by 2050. Survey respondents indicat-
largest supplier of imported ed they are taking a number of steps to respond to the issue of
oil to the United States, ac- climate change, and, within the next 12 months, 40% will make
counting for nearly 20 per strategic investments to lower GHG emissions, 35% will adopt
cent of total imports last year more rigorous risk management processes, 34% plan to optimize
at approximately 2.4 mmbd, a their supply chain management and 32% anticipate deploying
share that has been steadily new technologies
rising over the past 20 years. “All Canadian oil and gas producers -- from small juniors to
(See Chart 8.) Given the U.S.’s trusts to large integrated companies -- are affected by a list of
desire to move away from growing concerns related to the economic downturn: volatile
Middle Eastern oil, we expect and weakened commodity prices, input costs misaligned with
Canadian oil sands to play an current prices, changing royalty situations and the disruption of
increasingly important role capital markets,” says Stephen Marsters, Editorial Director at
on the world stage. Virtually JuneWarren-Nickle’s Energy Group. “Respondents to the
all of Canada’s oil exports Canadian Energy Survey provided detail on the state of the in-
head to the U.S. via five major dustry, their own set of challenges as well as key drivers affect-
pipelines that provide a total ing growth and we felt it was important to provide this
of about 2.7 mmbd in export forward-looking view of the industry.”
capacity. With 1.9 mmbd
of capacity, the Enbridge Methodology and Demographics
pipeline is the world’s largest The 2009 Canadian Energy Survey contains results from an
crude oil and products pipeline, servicing Eastern Canada and online survey, conducted by PricewaterhouseCoopers and
the U.S. east coast. Canada’s other pipelines all end in the JuneWarren-Nickle’s Energy Group during the 22-day period
Rocky Mountains or the Midwest. Still, Canada will require from May 25 to June 15, 2009, to better understand issues cur-
additional export capacity to accommodate the large increases rently impacting the industry. Close to 85% of the 140 respon-
in production. To that end, plans call for nine major export dents fill senior roles within the energy sector (49% in a
pipelines to begin operating before 2014, with capacity leadership role; 35% in a managerial role), with the balance com-
totalling nearly 3 mmbd. prising employees and consultants.
TransCanada’s Keystone pipeline alone will have over The majority of respondents work for exploration and pro-
1 mmbd of capacity upon completion of the expansion set for duction (E&P) companies that produce a mix of natural gas and
2012 or 2013, with the oil destined for the U.S. Midwest and crude oil. Just over 50% of respondents reported their company’s
Gulf Coast. So while exports will decline this year (with most annual revenues at more than $500 million, with about 17% list-
of the drop coming in the first half the year), they will then ing revenues at $100 million to $500 million per year, and close
expand steadily—averaging 7.8 annual growth from 2010 to to 16% said annual revenues were $10 million to $100 million.
the end of the medium term—as demand in the U.S. stabilizes. About 15% of respondents said revenues were $5 million or less
(See Chart 9.) per year.

Exports
Trade is a vital part of the oil extraction industry.
Domestic demand in Canada will be particularly weak this
year and next thanks to a weaker economy (see Chart 7),
but demand will pick up near the end of the forecast as
domestic refining capacity increases. Crude oil is feedstock
for refineries, and companies prefer to export refined

Oil & Gas Network, October 2009 11

The Canadian Association of Petroleum Producers (CAPP) released its
2009 crude oil production forecast and markets and pipelines outlook

E
arlier this year CAPP conducted a survey of producers to grow, although the pace of development has slowed,” said Greg conservative outlook in the Operating & In
determine planned production of oil through 2025. CAPP used Stringham, CAPP’s Construction Case includes only projects
this data along with other inputs to prepare its annual forecast, Vice-President, Markets and Oil Sands.“Producers expect continued currently in operation or under construc-
which this year provides both a Growth Case and an Operating & In demand for the security of supply that crude oil from Canada provides tion. This case represents a minimum growth
Construction Case. to the North American energy market.” outlook. Both cases are presented in the
“CAPP’s Production Forecast indicates that even with delays due to The Growth Case represents expected production and assumes chart below:
current economic circumstances, oil sands production is expected to the current investment climate will improve over time. The more
Total Canadian Crude Oil Production (million barrels/
day) - including oil sands
2008 2015 2020 2025
--------------------------------------------------------------------------------
Growth Case 2.7 3.3 4.0 4.2
--------------------------------------------------------------------------------
Operating & In Construction 2.7 3.0 3.0 2.8
--------------------------------------------------------------------------------
Canadian Oil Sands Production (million barrels/day)
--------------------------------------------------------------------------------
Growth Case 1.2 2.2 2.9 3.3
--------------------------------------------------------------------------------
Operating & In Construction 1.2 1.9 2.0 2.0
--------------------------------------------------------------------------------

Low oil prices, receding short-term

demand as a result of the global economic
downturn, and constraints in securing
investment capital are some of the factors
contributing to the reduced pace of devel-
opment reflected in the Growth Case. In the
Operating & In Construction Case, produc-
tion is forecast to rise to 3.0 million barrels
per day (b/d) by 2015 and then decline grad-
ually through 2025, due to a reduction in
conventional production. This reduction is
moderated by increased light crude oil
production from the Bakken field in
Saskatchewan over the near-term, and the
Hebron heavy oil project in Atlantic Canada,
expected to come on stream by 2017.
For the oil sands component of Canada’s
oil supply, the share of supply coming from
in situ projects increases slightly over the
forecast period and the proportion of total
oil sands that is upgraded remains relatively
unchanged over the forecast period.
“In terms of pipeline capacity to meet
market expectations, this year’s outlook in-
dicates that the significant pipeline devel-
opment now underway will amply connect
forecasted production to long-term demand
in the North American energy market,”
Stringham said.
A full copy of the 2009 forecast is available
at www.capp.ca.

www.oilgas.net

OIL & GAS NETWORK

Suite 300, 840 6th Ave SW
Calgary AB T2P 3E5
Phone: 403 503 0460

12 Oil & Gas Network, October 2009

IHS CERA: World Oil Demand Set to Resume Growth; Return
to Pre-recession Levels by 2012
Signs point to recovery that will be quicker than in the early 1980s due to strength
of emerging markets and lack of options to substitute fuels

W
orld oil demand is set to oil was replaced by readily
grow next year for the first available substitutes like coal,
time since 2007 and return gas or nuclear,” Mr. Burkhard
to pre-recession levels by 2012, said. “Today, global demand
according to IHS Cambridge Energy growth is coming from the
Research Associates (IHS CERA) in its transportation sector in emerg-
quarterly World Oil Watch report.The ing markets where there are
rebound would mark a turnaround fewer large-scale options for
from the largest drop in global oil switching fuels.”
demand since the oil crisis of the Overall, emerging markets
early 1980s. will drive the recovery of oil
IHS CERA expects oil demand demand. IHS CERA expects oil
growth to resume by 900,000 barrels demand to increase from 83.8
per day (bd) in 2010 and return to its mbd in 2009 to 89.1 mbd in
2007 high of 86.5 million barrels per 2014. 83 percent (4.4 mbd)
day (mbd) by 2012—a five year turn- will come from non-OECD
around. countries. China alone is
“There are a lot of questions as to expected to account for 1.6
whether things will be ‘different this mbd of cumulative growth. Just
time’ in terms of the recovery of oil 900,000 bpd of growth is ex-
demand,” said IHS CERA chairman pected to come from OECD
and Pulitzer Prize-winning author of countries.
The Prize, Daniel Yergin. “While the “This near-stagnation of
answer is that it will be shorter, it is oil demand growth in the
still going to take a substantial industrial countries of the OECD
amount of time.” highlights several structural
Oil demand dropped by 2.8 mbd changes,” Burkhard said.
from its high point of 86.5 mbd in “Decreasing oil intensity associ-
2007 to 83.8 mbd in 2009. The last ated with economic growth,
time that the world experienced such higher fuel efficiency, the dis-
a severe decline in oil consumption placement of conventional oil
was in the early 1980s and it took with renewable energy sources
nine years for demand to return to the and a slower pace of growth in
1979 pre-recession high.A five year turnaround—while still a substantial amount of time—would transportation fuel consumption – all these point to a leveling off of demand in the industrial world.”
be swift in comparison. While the trajectory of oil demand seems certain, Burkhard pointed out that, as always,
The key differences between the current recovery and that of the 1980s are demand from future events large and small could alter the course of demand.
emerging markets and fewer options for substituting fuels on a global scale, said IHS CERA glob- “While our base case suggests that 2012 will be the year that global oil demand recovers to
al oil managing director, Jim Burkhard. 2007 levels, we continue to research the alternative scenarios that could alter the balance in the
“In the 1980’s the largest area of the demand decline came from power generation, where oil market,” said Burkhard.

14 Oil & Gas Network, October 2009

One-time field data capture: now a reality
Exploring the benefits of effective data capture for oil and
gas companies and the contractors that serve them
By Marty Hilsenteger, Singletouch Corp.

F
or those working in the field operations of the oil and gas sector, the concept of entering data just once has
been a much desired but generally unachievable objective. All too often, capturing the data from the field is
a haphazard, disorganized and frequently duplicated process, and many executives and field workers alike
despair at the inefficiencies and inaccuracies that stem from these problems.
Traditionally, data has been captured on a clipboard, log book or the inside of a pack of smokes. Sometimes,
information can be recorded and then re-recorded as often as five times before it is finally entered into the correct
systems and properly processed. Administrative staff often have to be specifically hired to direct this flood of data
from the field, and to re-enter it in the back office. Errors are inevitable as the same information is entered and
re-entered, and delays are unavoidable as paper-based records get lost or simply held up on their way between the
field operations and headquarters.
The key factors for any field-based company are to maximize production and minimize downtime. What is
required is a way to address those needs through effective data collection, analysis and integration with a compa-
ny’s existing analysis tools. And today, thanks to advances in software and mobile computing, there are now options
for oil and gas companies that want to improve the accuracy with which they capture data in the field, whether it
be at a gas well, plant, oil battery, pump jack or lease. But how best to roll out such new technologies?
What should come first when building an IT strategy for a field-based organization, the field or the office? Given
the evidence, for most companies the answer to date has been the office. But why should this be the case? If the
work is being conducted predominantly in the field, why is the IT infrastructure supporting that work built from
the back office out?

Back to front?
Consider a typical rollout of a new enterprise software system. Invariably, the IT plan starts with the creation
of a new system in the back office, which is then eventually rolled out to the field. Often, the company’s manage-
ment in the field has little or no idea about the existence of the new system until it has already been implement-
ed. Perhaps the reason for doing this is that it’s simply easier to train the office staff during implementation, or
maybe companies would rather ignore all the complex processes presented by the field in favour of forcing
acceptance of a new way of doing things from the office outwards.
Either way, the result is that these field processes are often left as manual steps to be completed in the same
way they have always been. Field staff end up frustrated because the new system fails to address the administra-
tive headaches they deal with on a daily basis. Company executives may be pleased with the final outputs gener-
ated from the new system, but they may well not realise that the whole process is far from optimised, and that
their final data is still the product of a series of time-consuming and error-strewn manual processes.

The field comes first

For a new IT system to truly succeed, such companies must see that starting in the field, where most of their
significant inefficiencies lie, will result in a far more productive end-point, with both happier field staff and an IT
infrastructure that both supports and drives their business.
At Singletouch, when it comes to technology implementations in the oil and gas sector, we strongly believe in
putting the field first.
Singletouch Collector is a paperless data collection software application, designed for oil and gas producers and
their contractors to track production and maintenance data related to wells, compressors, tanks and other field
equipment. The software is developed for use on laptops and other intrinsically safe handheld devices.
Singletouch Collector can be deployed on a multitude of devices to speed up field data collection and to feed
field information directly into a company’s core databases. It allows field personnel to easily capture all field pro-
duction data from any field location. This data is then transmitted to a web-based viewing platform or to a pro-
duction management system, esnuring that time-critical production data is available at all times for office staff.
The product also offers a web-based viewing package for field information allowing trending and analysis of
data, and allows companies to create a secure login site for viewing data, ensuring that the field and office have
access to the same information. Continues on page 17
Oil & Gas Network, October 2009 15
Continues from page 15
But effective data capture can do more than help the field
operations of oil and gas companies… it can also help
improve the way the industry works with its contractors.
Data capture and contractors
For large oil and gas companies, the cost of using electri-
cal contractors and other skilled trades can add up to billions
of dollars a year, and yet projects often suffer from lack of cen-
tralized oversight and control. Project costs easily and fre-
quently spiral out of control. Recent drops in commodity
prices have been a rude awakening for many industry giants,
who have committed billions of dollars to projects that have
invariably exceeded budgets by huge margins.
In a recessionary economy, contractor companies are an
easy target for cost-cutting. This leaves contractors squeezed
to deliver their services more efficiently, and operational effi-
ciency has now become a major pain point in the contract
services sector.
Due to the same field data collection challenges faced by
oil companies in, it is almost impossible to track the costs and
status of a given project with any kind of real-time accuracy,
or to gain the kind of intelligence needed to inform a proj-
ect owner how specific variables are affecting the budget.
Most important of all, the whole process takes a significant
period of time, meaning invoices to customers are delayed,
payments delayed while invoice details are contested, and
management of cash-flow becomes an increasing challenge.
As these headaches become more pronounced in the in-
dustry, new technologies are being developed to help con-
tractorsimprove their business efficiency and keep up with
the increasing demands of their customers.
Singletouch has developed a comprehensive data-capture
platform for electrical contractors working in industrial con-
struction that enables real-time input of information
in the field – one time, easily and
accurately – thus eliminating the paperwork headaches that
have plagued the industry. Details collected in the field are
instantly accessible at head office and seamlessly integrated
into backend systems, expediting payroll, accounting and proj-
ect reporting.
Singletouch is a comprehensive solution that easily
integrates and shares data with traditional accounting, payroll
and other reporting software, in addition to generating its
own customizable reports. Once data have been entered,
project managers and office administrators can use the data for
invoicing and reporting, even before the team has returned
from the site.
Enter data once
In an industry where cash flow is critical, and timely and
accurate billing essential, this back-office integration eliminates
paperwork bottlenecks.Accurate details are entered in the sys-
tem only once, at the time and point where the transaction
occurs, and delivered instantaneously to all stakeholders, elim-
inating the logjams and errors traditionally associated with the
filing of paperwork and subsequent re-entering of details to
create invoices and reports.
At any time, built-in reports provide an up-to-the-second view
of project completion status, with all work and materials accu-
rately accounted for, and actual performance against budgets
and schedules easily reported to the customer.
Ultimately, Singletouch has designed a solution for con-
tractors that will not only help them to conduct their busi-
ness more effectively, but also provides their oil and gas
company customers with unparalleled insight into their busi-
ness, with accurate, timely reporting on the budget and
status of major projects. If you aren’t getting this kind of
information from your contractors, then maybe you need to
ask them why not.
16 Oil & Gas Network, October 2009
EnCana proceeds with plan to split into two
distinct and independent energy companies
T
he Board of Directors of EnCana Corporation has unani-
mously approved plans to proceed with a corporate
reorganization to split EnCana into two highly focused
energy companies: one a natural gas company – EnCana
(GasCo), which has an outstanding portfolio of prolific shale
and other gas resource plays across North America, and the other
an integrated oil company – Cenovus Energy Inc., which has in-
dustry-leading enhanced oil production and top-performing
refineries, as well as an underlying foundation of reliable oil
and gas resource plays. This transaction – expected to close
November 30, 2009 – is designed to enhance long-term value
for EnCana shareholders by creating two sustainable,
independent, publicly traded companies, each with an ability to
pursue and achieve greater success by employing operational
strategies best suited to its unique assets and business plans.
EnCana first announced the proposed corporate reorganiza-
tion on May 11, 2008 and was advancing plans for the split last
fall when the global debt and equity markets experienced un-
precedented turmoil and volatility. Given that uncertainty,
EnCana announced on October 15, 2008 a revision to the orig-
inal reorganization schedule and delayed seeking shareholder
and court approval for the transaction until clear signs of stability
returned to the financial markets.
“We believe the conditions are now favourable to proceed
with the split. Equity and debt markets have improved signifi-
cantly with debt financing available at reasonable cost. Global
and national economic indicators suggest that the world’s
economies are showing promising signs of recovery.As well, the
strategic rationale for creating two leading energy companies
remains as sound as ever – the conversion of one leading un-
conventional resource company into two independent, premium
entities unlocks greater long-term shareholder value from in-
dustry-leading North American energy assets,” said
Randy Eresman, EnCana’s President &
Chief Executive Officer.
“While natural gas
prices are currently
low, we have re-
duced our
near-term
commodity
price risk by hedging
a significant portion of
our expected production for
the 2009-2010 gas year. We are a
leader in low-cost natural gas pro-
duction and our continued pursuit of
that objective helps us enhance our
competitive position during periods of low
commodity prices. Over the longer term, we
believe the current low natural gas prices are
not sustainable and we expect a
recovery in prices in 2010,” Eresman said.
Strengthened foundation for creating two leading
energy companies
“In addition, the financial and operational strength of
each company’s asset base has improved during the past year.
Additional drilling in our natural gas shale plays has advanced
our understanding of their enormous potential and increased
our confidence in our ability to grow these prolific new nat-
ural gas supplies from the Montney, Horn River and Haynesville
plays.With the start up of two new phases at Foster Creek and
continued production increases from Christina Lake, gross pro-
duction from these enhanced oil recovery projects now exceeds
100,000 barrels per day, a significant milestone in the long-
term oil growth plan for the assets that will be transferred to
Cenovus. Construction of our coker and refinery expansion
(CORE) project at the Wood River refinery is past the mid-
point. It is on time and on budget, and is expected to start up
expanded capacity in early 2011. And overall, looking at the
financial position of EnCana, our debt at August 31, 2009 was
about $8.2 billion, down about 19 percent from when we first
announced our plan to split in May 2008,” Eresman said.
Well advanced reorganization plans lower transac-
tion risks
“Our extensive work in the past year has helped re-
duce the risks associated with the transaction.We have
received tax rulings from the Canadian and U.S. feder-
al tax authorities that confirm, subject to the terms of
the rulings, that the transactions will not be taxable
from a corporate and shareholder perspective.We have
secured committed financing for Cenovus that will sup-
port its independent business plan. We have acquired
and built much of the infrastructure for Cenovus’s in-
formation technology systems. The leadership teams
have been identified and employees have been assigned
to new or continuing roles in each of the proposed
companies. Having completed this foundational work,
and with the return of financial market stability, we are
proceeding with this value-creating transaction in a
prompt and prudent manner,” Eresman said.
Continuing tradition of focused execution to
deliver enhanced value and capture competitive
opportunities
Since its formation in 2002, EnCana has established
a strong track record of value creation through the con-
tinued pursuit of low-cost natural gas and oil produc-
tion, growth in proved reserves and an innovative
strategy of developing unconventional natural gas and
oil resources in North America. That success is found-
ed in the central belief that companies with a disci-
plined focus on establishing leadership in their core
business will earn increased value recognition of their
assets, capture competitive opportunities and be best
positioned to effectively respond to changing markets.
With this planned split into two companies, each man-
agement team will focus more directly on the critical
success factors in its respective businesses. They will
be better equipped to direct their strategies and op-
erations towards building value by tailoring practices
and execution to fit the unique nature of their assets.
The two companies will be focused on achieving at-
tractive total shareholder returns through a combina-
tion of growing production and reserves, achieving
strong refining margins, paying a meaningful dividend
and by investing free cash flow in share buy backs.
With greater transparency and focus, the investment
community will be able to more easily follow and more
accurately assess and value these companies.
EnCana shareholders to own one share in
each of the two companies
The proposed transaction would be
implemented through a Plan of
Arrangement under the Canada
Business Corporations Act and
is subject to shareholder
approval, approval of the
Court of Queen’s
Bench
of Alberta,
receipt of ap-
propriate regulatory
approvals and satisfaction of
other customary closing conditions. Under the pro-
posed transaction, EnCana common shareholders will
retain their EnCana shares and receive one Cenovus
common share for each EnCana share held. EnCana in-
tends that the initial combined dividends of the two
companies will be approximately equal to EnCana’s
current dividend of US$1.60 per share annually. Future
dividends will be at the discretion of the respective boards of
directors of each company and no dividend policy has yet been
adopted.
Creation of two independent energy companies
Upon completion, this transaction would create Cenovus
Energy Inc. – a publicly traded integrated oil company that will
be focused on the development of EnCana’s Canadian enhanced
oil assets and United States refinery interests, underpinned by
a well-established natural gas and oil production base in Alberta
and Saskatchewan with significant capacity to deliver long-term
free cash flow.The Cenovus assets, which encompass EnCana’s
Integrated Oil and Canadian Plains divisions, represent about
one-third of EnCana’s current production and proved reserves
at year-end 2008. EnCana’s other major operating divisions,
Canadian Foothills and USA, would form a pure-play natural gas
growth company, aimed at growing existing high-potential re-
source plays in Canada and the U.S. This natural gas company
would retain the name EnCana Corporation and represents
about two-thirds of EnCana’s current production and proved re-
serves at year-end 2008.
Cenovus – a premier enhanced oil growth company inte-
grated with expanding refinery capacity
“At inception, Cenovus is designed to be North America’s
premier enhanced oil company. Our enhanced oil recovery
projects at Foster Creek and Christina Lake are positioned to
deliver, over the next five years, an expected compound annu-
al growth rate of 12 to 14 percent. Cenovus’s total oil and nat-
ural gas production is expected to be steady as the company
generates strong free cash flow from its mature gas and oil
properties to fund enhanced oil production growth. Cenovus
is also positioned to pursue the benefits of the full value chain
integration of its successful enhanced oil recovery projects in
Alberta with two top-performing refineries at Wood River in
Illinois and Borger in Texas. Our integrated oil business is into
its third year of our 50-50 joint venture with ConocoPhillips –
a successful partnership that strategically and financially links
premier oil assets with 226,000 net barrels per day of ideally-
located refinery assets, creating one of the industry’s lowest
cost integrated oil developments,” said Brian Ferguson, EnCana’s
Chief Financial Officer, and designated President & Chief
Executive Officer of Cenovus.
“While Cenovus’s medium and long-term growth is
expected to be driven by our enhanced oil recovery projects
at Foster Creek and Christina Lake, we will also hold
extensive lands covering top-tier oil reservoirs
located in the heart of Alberta’s Athabasca
oil region, properties that provide
opportunity to grow oil pro-
duction for decades ahead.
Cenovus’s 1.4 million
acres of existing
high-quality
leases
recovery technologies and will examine divestitures of mature
natural gas and oil assets,” Ferguson said.
“In addition, our well-established gas and oil resource plays
consisting of enhanced oil recovery projects such as Weyburn
in Saskatchewan, Pelican Lake in northern Alberta, plus vast
Shallow Gas lands in southern Alberta, are capable of deliver-
ing strong free cash flow and they have an extensive invento-
ry of future well locations capable of delivering predictable
and reliable production. These are excellent characteristics for
building a financially strong, sustainable, integrated oil compa-
ny that builds net asset value per share,” Ferguson said.
In 2009, the Cenovus assets are forecast to produce net oil
production of more than 110,000 barrels per day and natural
gas production of about 820 million cubic feet per day, for a
total of about 248,000 barrels of oil equivalent per day. The
assets contain about 8.1 million net acres of land and, as of the
end of 2008, an estimated 1.2 billion barrels of oil equivalent
of net proved reserves, which are about 75 percent oil.
EnCana (GasCo) – a pure-play natural gas company grow-
ing high-potential North American resource plays
“Our natural gas business is very strong and the properties
designated for EnCana (GasCo) are extremely well positioned
to grow at anticipated double-digit rates. We have a diversified
portfolio of unconventional natural gas assets across North
America and hold a highly competitive land and resource
position in a number of the continent’s most promising shale
and tight gas resource plays, including Haynesville in the U.S.
and Horn River and the Montney in Canada. Our natural gas
exploration and development teams have been industry lead-
ers in applying long-reach horizontal drilling and multi-stage
fracing – revolutionary innovations that are the foundation for
our continued pursuit of the lowest production costs and max-
imized margins. These transformative technologies have
unlocked an enormous new inventory of natural gas supply in
North America – clean burning natural gas that is abundant,
affordable and readily available to supply consumers’ growing
transportation and power needs while reducing the continent’s
environmental footprint,” Eresman said.
Strong gas growth potential ahead
“Over the next five years we will be targeting a compound
annual production growth rate of about 10 percent. Our prop-
erties have a proven track record of strong and sustainable
growth. From 2006 to 2008, natural gas production from our
Canadian Foothills and USA divisions grew by 12 percent.
Despite the more moderate approach we have chosen to take
for this year when gas prices are very low, these assets are
capable of deliver ing strong growth for years ahead,”
Eresman said.
“EnCana’s (GasCo) portfolio of prolific gas resource plays
will include our Coalbed Methane in central and southern
Alberta, the Bighorn Deep Basin play in Western Alberta,
Cutbank Ridge and Greater Sierra plays in British Columbia,
Jonah play in Wyoming, significant Piceance basin plays in
Colorado, the Barnett shale play in Fort Worth and Deep Bossier
play in East Texas. In addition to these established resource
plays, our teams have recently achieved some promising ex-
ploration results in a number of North American shale plays,
such as Horn River in British Columbia and Haynesville in
Louisiana. These and other emerging plays have the potential
to add significant depth to the company’s strong portfolio of
natural gas assets,” said Eresman, who will continue as EnCana’s
(GasCo) President & Chief Executive Officer.
“With about 16 million net acres, 12.4 trillion cubic feet
equivalent of proved gas reserves and 3 billion cubic feet per
day (Bcf/d) of natural gas production, EnCana (GasCo) is ex-
pected to retain its standing as a leading North American natu-
ral gas producer with strong growth potential,” Eresman said.
About half of expected 2010 natural gas production hedged
at more than $6 per thousand cubic feet
EnCana has hedged two-thirds of expected 2009 natural gas
production, about 2.6 Bcf/d, through October of this year at an
average NYMEX equivalent price of $9.13 per thousand cubic
feet (Mcf). EnCana has also extended its risk management pro-
gram through 2010. As of September 8, 2009, EnCana had
established fixed price hedges on about half of expected 2010
natural gas production – or about 2 Bcf/d – at an average
NYMEX equivalent price of $6.08 per Mcf for the gas year,
which runs from November 1, 2009 to October 31, 2010.
EnCana also has 27,000 bbls/d of expected 2010 oil production
hedged at an average fixed price of WTI $76.89 per barrel.
EnCana plans to split the 2010 hedges between the two com-
panies based on their current proportion of production vol-
umes for oil and natural gas. The company’s price hedging
strategy increases certainty in cash flow to help ensure that
EnCana can meet its capital and dividend requirements
without substantially adding to debt. EnCana con-
tinually assesses its hedging needs and the
opportunities available prior to estab-
lishing its capital program for
the upcoming year.

Two large energy firms to

emerge
Both of these companies will be
contain large, Calgary-headquartered enterprises
an estimated with strong, visible growth profiles, competitive
40 billion barrels of cost structures and solid financial positions. It is
original bitumen in place. expected that both companies would be among Canada’s 30
We believe these assets are largest corporations and among the top seven energy companies
among the best in the busi- in Canada.
ness. Our teams have more than “Each company plans to continue the tradition that created
a decade of innovative technical and sustains EnCana’s success, applying the principles of strong
and development experience in b u s i n e s s l e a der ship that are focused on the objectives of
achieving industry-leading produc- enhancing the value of every share, disciplined capital investment
tion and capital efficiencies. They have and leadership in low-cost production. Each will operate in a princi-
set the pace in reducing environmental pled and ethical manner, pursue energy efficiency, strive to be employ-
impact and have consistently increased the ers of choice and actively participate in helping to build the communities
energy efficiencies of daily production. We will where they operate. These companies will strive to maintain the same corporate
continually look for opportunities to optimize our responsibility principles that EnCana has established and its employees practice,”
portfolio by advancing the development of new oil Eresman said.

Oil & Gas Network, October 2009 17

 Small Business Week 2009:
Experts reveal why this recession
is a great time to go green
I
t’s understandable to think this recession has put a
damper on “green” or environmentally friendly busi-
ness practices. Going green or staying green may be a
luxury many struggling businesses simply can’t afford
these days.
But while that may have been the case for past down-
turns, times have certainly changed. For starters, many
green initiatives save companies money.
Catherine Swift, president and CEO of the Canadian
Federation of Independent Business (CFIB), which repre-
sents 105,000 small businesses nationwide, says she’s seen
no indication from her members that saving the Earth is
taking a back seat to saving the business.
“One reason is that for smaller companies, the recession
hasn’t been as dire as for large firms that are driven by the
stock markets. Our members are privately owned compa-
nies, and among them, we’re continuing to see a focus on
environmental practices,” she says.
A 2007 CFIB survey found that energy conservation
ranked as the second most important environmental issue
after recycling of materials, with 83% of its members hav-
ing already implemented energy conservation changes.
While about half of respondents said cost savings was a
factor in making changes, 81% said they were motivated
by their own personal views. Swift says that trend appears
to be holding.
“These companies are motivated primarily by the
owner’s personal views about the importance of protect-
ing the environment for future generations. Embracing
environmental practices isn’t something you usually have
to convince them to do,” says Swift.
Of course, it’s always nice if a company can help the
environment and its bottom line at the same time. A quick
Google search will turn up thousands of web pages on
how companies of all sizes can be both green and prof-
itable.
First, there’s the low-hanging fruit, things like printing
on both sides of paper, recycling, switching to energy-
efficient light bulbs, turning down the thermostat and
shutting off idle office equipment. Natural Step Canada
(www.naturalstep.org) has a free sustainability toolkit that
can be downloaded from their website. Another helpful
resource is a book authored by Bob Willard entitled “The
Business Case for Sustainability”.
According to Willard, integrating sustainability strate-
gies can increase profits up to 38% for large companies and
66% for small- or medium-sized companies over a five-year
period. A lot of these savings can be achieved by reducing
energy costs.
“If your energy costs are high, you certainly have an
incentive to reduce them,” says Michel Bergeron, Vice
President, Corporate Relations at the Business Development
Bank of Canada. “But even if they aren’t high, cutting
your energy costs can give your company a competitive
18 Oil & Gas Network, October 2009
October 18-24
advantage by improving efficiencies and your corporate
image with both customers and suppliers.”
Tax credits and incentives for energy efficiency and
other green incentives are being pushed from Ottawa all
the way down to local municipalities. Most utilities now
offer businesses incentives to reduce energy use. Hydro
Quebec, for example, offers financial assistance for elec-
tricity-saving industrial equipment, systems or processes.
Keeping ahead of the law and public opinion
Lower operational costs aren’t the only reason to reduce
energy use. All levels of government, including local, are
introducing laws and regulations that will require compa-
nies to reduce waste and embrace more sustainable busi-
ness practices.
For example, once cap and trade rules become more
widespread, Bergeron said companies will need to be care-
ful about how much carbon they produce.
“Reducing your energy use – and thus, your carbon
footprint – should be part of any business plan. You can
start with something as simple as reducing your corpo-
rate travel by using inexpensive videoconferencing tech-
nologies like Skype,” he says. “But the most important
building block should be an energy efficiency audit of
your workplace. ”
Business owners that act early will find themselves at
a competitive advantage when new rules are imple-
mented.
“At some point, the consideration of environmental and
social issues will be mandated, so for business this becomes
a central risk factor. It also becomes an opportunity.
Companies shouldn’t wait until the economy picks up,”
says Melissa Shin, managing editor of Corporate Knights, a
magazine focusing on corporate responsibility.
Attracting a green workforce
Companies that don’t embrace environmental prac-
tices could also find themselves as a competitive disad-
vantage in attracting young, skilled employees. Today’s
young workers are more environmentally aware than pre-
vious generations, and they’re bringing those values into
their workplaces.
“BDC, for example, is heavily paper-based and this be-
comes an irritant for our younger employees who view
paper as a waste of resources,” says Bergeron.“They’re put-
ting pressure on us to move more quickly to change our
ways, and we are.
Companies that incorporate environmental responsi-
bility into their mandate will also tend to have more loyal
employees who are more willing to make sacrifices, if
needed, during a recession.
“Embracing environmental and socially sustainable
practices is a great way to retain your staff in an econom-
ic downturn,” says Shin.
Small Business Week
E
ntrepreneurs and their innovative businesses are key to Canada's
economic growth. By responding to the changing demands of the
marketplace and creating jobs, entrepreneurs continue to be a pri-
mary force in driving the national economy.
Since its inception in 1979, as a small event in British Columbia, Small
Business Week® has grown substantially in both size and scope. Now a
nationwide celebration of entrepreneurship, Small Business Week (SBW)
continues to pay tribute to the important contribution that small busi-
nesses make to the national economy. SBW activities provide established
and prospective entrepreneurs with training and development oppor-
tunities, and create a forum for networking and sharing ideas. Events in-
clude conferences, trade fairs, seminars, workshops and business
luncheons. BDC branches, with the assistance of numerous local public
and private sector organizations, play an active role in planning and pub-
licizing these events.
SBW theme: Your dream, your business, your passion
Entrepreneurs are idea people – filled with ideas, aspirations and
objectives. They see an opportunity at every turn and are continuously
looking for improvement. An entrepreneur’s life is frenetic, powered by
a seemingly unlimited vitality. The entrepreneur’s tenacity is surpassed
only by a strong passion for business.
The theme of Small Business Week 2009,“Your dream, your business,
your passion”, reflects the energy and efforts of Canadian entrepreneurs
of all ages and pays tribute to their important contribution to the
strength of the economy. It will also be the background for all the
activities that will take place throughout the Week.
Young Entrepreneur Awards
T
he Young Entrepreneur Awards (YEA) were established by BDC in
1988, and are presented each October during Small Business
Week®. One winner in each province and territory is selected to
receive the award in recognition of their spirit of innovation and busi-
ness acumen. Nominees must be young entrepreneurs between the ages
of 19 and 35.
Nominations may be submitted by individuals, associations, organi-
zations, and various levels of government.Young entrepreneurs may also
nominate themselves.
All nominees are judged using the same criteria: the company’s suc-
cess and growth potential, innovation and community involvement.
The panel also considers the company's export performance, the entre-
preneur’s age when the business was established, and any special chal-
lenges that were overcome.
Winners are selected by a panel of judges comprised of business pro-
fessionals, entrepreneurs, members of local Boards of Trade and
Chambers of Commerce, and BDC employees.
Each year, the awards ceremony is held in a different city. Award
recipients are presented with a commemorative trophy, and applauded
by the business community for their hard work and ingenuity.They ben-
efit from nationwide media visibility, unparalleled opportunities for net-
working with other entrepreneurs, valuable media training and many
skills development opportunities. The 2009 YEA gala will take place in
Ottawa on October 20.
Colfax Unveils Alternative
Fluid-Handling Strategy for Crude
Oil Transport
Solutions leveraging rotary positive displacement
screw pumps increase efficiency and minimize
emissions
C
olfax Corporation a
global leader in fluid-
handling solutions for
critical applications in the
most demanding environ-
ments, has unveiled a new
approach to handling high-
and low-viscosity fluids that
require high pressure boosts
in the transport of crude oil.
The Colfax line of rotar y
positive displacement (PD)
screw pumps not only
delivers the unsurpassed relia-
bility required in crude oil
transport applications but
responds to growing Oil & Gas
industry demands for higher
energy efficiency and greater
environmental responsibility.
“Rotary pumps have been
the standard in delivering high-efficiency, low-maintenance solutions for critical fluid handling
in the past,” said John A. Young, president and CEO of Colfax. “But the perception that screw
pumps mean higher expense is simply outdated, preventing oil transport companies from taking
full advantage of their significant benefits for energy savings and reduced environmental impact
in these applications.
“In fact, rotary PD screw pumps actually offer tremendous cost advantages,” he continued.
“A typical Colfax solution on a single 250,000 BPD crude oil pumping station in Western Canada
– using three rotary PD screw pumps operating in parallel with one standby pump – delivers a
29 percent reduction in combined capital, energy and maintenance costs over a five-year period,
when compared to the traditional centrifugal pump solution of two pumps operating in parallel
with one standby pump. That translates into more than $7 million in savings to own and oper-
ate a rotary PD screw pump solution over five years, a concept that we call Total Savings of
Ownership at Colfax.”*
“We’ve also taken the lead at Colfax in developing various shaft-sealing solutions, for the
industry to address market demand for reduced process fluid emissions,” Young noted. “Like the
rotary PD screw pump designs themselves, they are efficient and reliable, providing operators
with the highest level of safety.”
According to Mike Moore, a product specialist in crude oil transport for Colfax Americas –
the division responsible for Colfax customers in North and South America – Western Canada rec-
ognized early on the advantages of the screw pump’s simple, but robust design. “Oil companies
have used screw pumps to move crude oil to market for the past 30 years; and in Alberta and
Saskatchewan, screw pump lines manufactured by Colfax handle 4.8 million barrels of crude oil
each day,” he said.
The hydraulic principle behind screw pump operation delivers both high volumetric and
high overall operating efficiencies, he stated, in addition to offering long mean time between
repairs (MTBR) and ease-of-maintenance features for field servicing, which combine to maximize
operational uptime. Other value-added advantages of these pumps include: Constant flow, even
in the presence of varying system backpressures Non-pulsating flow, without the need for pul-
sation dampeners Low noise and vibration levels, minimizing foundation requirements
Keith Schafer, vice president of sales and marketing for Colfax Americas, underscored the com-
pany’s commitment to expanding the use of rotary PD screw pump systems throughout the
industry.“Colfax’s strong portfolio of screw pump designs from global brands Allweiler, Houttuin,
Imo, Tushaco and Warren means that we can provide more product solutions than any other PD
pump manufacturer on the globe. But product is just the beginning of our Total Solutions
approach.We also bring deep expertise in critical Oil & Gas applications, including crude oil trans-
port, and provide ongoing service and support to our customers, from assessing their specific
needs to designing and implementing solutions that meet those needs to providing ongoing mon-
itoring and maintenance.
“As true partners, we help our crude oil transport customers – and ideally the Oil & Gas
industry at large – balance reliable and efficient performance, fiscal responsibility and environ-
mental stewardship with fluid-handling solutions that improve business and grow the bottom line,”
Schafer concluded.
www.colfaxcorp.com
Calgary technology companies
ensure lone worker safety from the
convenience store to the oil field
R
ogers Wireless is partnering with local technology
companies to help employers keep their lone
workers safe and comply with new
provincial legislation mandating that employers
must be in constant contact with employees
working alone.
“The lone worker legislation may be new, but
we’ve been doing some real pioneering here in
Calgary on this topic for some time,” said Steve Roberts,
vice-president for Rogers Wireless in Alberta. “We’re proud to
partner with innovative companies like Blackline GPS, Premier GPS
and NelTrak to create and provide simple wireless technologies that
help keep people safe, no matter where and when they’re working.”
Until recently, there have been few options available for employers to meet
lone worker requirements. While some use costly call centers to check in on workers, others
opt for a low-tech solution like having workers call into the office.
Rogers Wireless has worked with its local partners to improve lone worker safety by pro-
ducing well-tested, reliable and portable wireless safety communication products.
For a tiny, fits-on-the-hip option, there’s the Loner by Blackline GPS, a manufacturer of com-
munication technology security, tracking and monitoring devices. The size of a mobile phone,
the Loner is worn by the lone worker and constantly provides its GPS location. It also includes
a panic button for emergencies and motion detector that tracks lack of motion which can in-
dicate a worker in distress.
The SafetyBerry is a BlackBerry application by Calgary’s Premier GPS. Available on the
BlackBerry Curve and Bold, it offers advanced real-time GPS tracking functions and ways for lone
workers to indicate distress or check in with their employer with the click of a few keys.
For oil and gas workers traveling alone in their vehicles, NelTrak, a Calgary wireless solutions
provider, offers several options including a GPS unit with built-in panic button that is installed
in vehicles, a FOB that workers can carry with them, and a portable unit that can be strapped
onto an ATV or sled. Each option can be monitored 24/7 by highly trained oil and gas special-
ists in a technical centre—a one-of-its-kind approach in the oilpatch.
“These are all home grown solutions,” said Roberts.“They are great examples of Alberta busi-
nesses pioneering in technology to promote worker safety in an easy and affordable way.”
To further ensure lone worker safety, especially in Alberta’s oil and gas industry, Rogers
Wireless announced in June a $42 million expansion of its world-standard GSM wireless voice
and data network. The expansion adds 49 new wireless sites expanding coverage throughout
the energy heartland.
Nexen helps build the next
generation classroom
Nexen Theatre is one of the most technologically
equipped conference facilities in Canada
N
AIT is celebrating the official opening of the Nexen Theatre with the announcement
of a $1 million donation from Nexen. “Industry partners such as Nexen are critical in
providing our students access to the latest technology,” says Dr. Sam Shaw, NAIT’s
President and CEO. “Nexen has made a significant contribution to build a high-tech distance
education facility. Nexen’s leadership as a company is shown in their support for NAIT to have
the technology to train workers anywhere, anytime, to be globally competitive.”
“As a company with operations across Canada and around the world, Nexen knows first-
hand the importance of effective communication,” said Marvin Romanow, Nexen President and
CEO. “This next generation classroom will
allow students the ability to communicate and learn in a virtual environment.The advances
in technology that this facility offers will greatly enhance student learning and development.”
Some of the features the theatre boosts include a 19 foot by 7.7 foot screen, a 103-inch plas-
ma screen, a high definition camera with remote capabilities, Dolby sound and five computer
stations connected to the screen which allows for group work.
“The Nexen Theatre is about possibilities,” says Dr. Shaw. “The equipment is the most tech-
nologically advanced available for this type of facility, so I am very excited about how it is going
to be used to enhance our students’ learning experience.”
NAIT is one of the preeminent institutes of technology in Canada, providing real-world
education in business, advanced technologies and skilled trades to more than 84,000 learners
worldwide. Known for student success,
NAIT also engages with business and industry in applied research and innovation and pro-
vides corporate training around the world.
Oil & Gas Network, October 2009 21
 All Terrain Vehicles

PFM Manufacturing, Inc. Build one of The Most Versatile, Most Extreme,
Heavy Duty Remote Access Vehicles for Oil and Gas Exploration
Question / Answer

A
s Natural resources are often located in remote swampy areas, accessing these areas by
helicopter can prove be expensive. The Land Tamer has been identified as an economic
means to keep costs down when servicing remote gas line well heads. The Land Tamer’s®
unique drive system allows the installation of tracks over the tires for year around use in any
terrain type. This is a unique capability and strength of the Land Tamer’s® go-anywhere, any-
time, easy mission configurability.
Q: How does the Land Tamer’s hydraulic gear drive system work?
A: The Land Tamer’s hydraulic gear drive system utilizes the proven benefits of a closed loop
hydraulic drive system that is found in mobile and construction equipment applications, such as
skid steer loaders, etc.
Q: What is a closed loop hydraulic drive system?
A: Closed loop system means that hydraulic oil flows from a pump to drive a motor and back
to the pump completing the loop. Most closed loop drive systems utilize a variable flow displace-
ment pump that flows to the drive motor. Nearly all the hydraulic oil flow from the pump drives
the hydraulic motor in a closed loop system, but a small percentage of the hydraulic oil redirected
through a cooler and back to the tank.The Land Tamer utilizes commercial grade, Made-in-America
Eaton Hydraulics tandem pumps and motors, in which one pump drives the left motor and the
other pump drives the right motor. The left drive motor delivers torque to the left side wheels
and the right motor drives the right wheels. The benefits are proven reliability and availability.
Q: How is the torque delivered from the hydraulic drive motors to the wheels?
A: A pair of powerful Eaton 6000 Series hydraulic motors is connected to parallel reduction gear-
boxes that are coupled to a set of right-angle gearboxes at each axle on each side of the vehicle.
This parallel gearbox is coupled to a common drive shaft that supplies equal torque to all axles on
each side of the vehicle.
Benefits – this system allows maximum torque to all wheels no matter which tires have the
most traction with the ground. Maximum torque from the engine and pumps can be delivered no
matter how many wheels are off the ground as when crossing ditches or large obstacles. Virtually
no maintenance or adjustments are required either.
Continues on page 24

Storied History
PFM Manufacturing, which was founded by Patrick F. Miller Sr. in 1998, was successful in
developing, patenting and introducing the new Land Tamer 6x6 ATV to fill a niche in the mar-
ketplace for a heavy-duty, low-impact, commercial grade amphibious all-terrain vehicle.
As the company’s commercial market grew for the Land Tamer ATV, it became apparent that
a larger Land Tamer ATV was needed. In 2000 the Land Tamer 8x8 model was introduced to
fill the need for a heavier hauling amphibious vehicle. In conjunction with introducing the Land
Tamer 8x8 ATV, commercial customers demanded a diesel model. Consequently, in 2001 PFM
introduced the first diesel engine powered Land Tamer 8x8 ATV.
In 2005 the name “Remote Access Vehicle” (RAV) was chosen to differentiate the Land
Tamer from other ATVs. Coinciding with the new name reference were new design im-
provements and upgrades to the vehicle that made it even more capable and more versatile
than ever before.
“The new 2005 Land Tamer II RAV featured taller, more durable truck or Ag tires, higher
ground clearance, larger cargo capacities, and a sealed hydraulic gear drive system,” he says.
“Other upgrades included a simple to use T-handle or electric joystick control, and a more pow-
erful, external mounted water propulsion system.”

Oil & Gas Network, October 2009 23

 All Terrain Vehicles

Continues from page 23

Q: How does the operator drive the Land Tamer?

A: All driving functions, forward, reverse, right or left turns, are achieved
with our unique proprietary single T-handle Controller. Pushing the T-han-
dle forward moves the vehicle forward. The farther you move the T-handle
forward the faster the vehicle goes. To travel in reverse, you pull the T-han-
dle back and to turn left or right one simply twists the T-handle right or left
to whatever degree of turn you desire.
This system allows for zero turns in which one set of wheels rotates for-
ward at the same time the other set of wheels rotate backward allowing
for 360 degree on the spot turns.
Benefits – the Land Tamer is very simple to drive. One hand is all that is
needed to operate the vehicle and it frees up the other hand for work ap-
plications, like holding a weed spraying nozzle, or a fire spray nozzle, etc.
Q: Why is the Land Tamer’s Hydraulic/Gear Drive System better than
any other amphibious vehicles which use drive chains or hydraulic gear
motors on each axle?
A: The main disadvantage of chain drive vehicles is that they require
much adjustment and maintenance.They may be okay for a weekend recre-
ational vehicle, but they simply do not hold up for the working outdoors
man who needs a seriously reliable vehicle with low maintenance.
The Land Tamer’s proven hydraulic/gear drive system is the only way to
go. It is very efficient, easy to drive, built for heavy-duty commercial work, very low mainte- In most cases the 60-HP Kubota will provide enough power for most slower moving appli-
nance and built to last. The Land Tamer is hands down the best in amphibious vehicle design cations. However, if the primary application is traveling faster or swampy or snow covered
and in a league of its own. But don’t take our word for it, ask our customers! ground with tracks installed, then we would recommend the 80-HP Deutz or the 91-HP Zenith
Q: What are my options for an engine and the advantage of each one? engine.These bigger displacement engines will provide the raw power needed to power through
A: You have your choice of the 60- HP Kubota Turbo Diesel, 80-HP Deutz, and 91-HP Zenith the toughest conditions.
fuel injected Gas/LP engine for our full size models. The RS (reduced size) model comes with Q: What is the 3-Point Hitch system and what can I use it for?
a Kohler 40-HP V-twin gas engine standard or optional diesel engine. A: Our optional 3-Point Hitch turns the Land Tamer into a full fledged tractor and adds a
whole new dimension of work applications never available before for an amphibious vehicle.
To our knowledge, the Land Tamer is the only amphibious tractor manufactured in the world.
The 3 Point Hitch allows the owner to attach to the front or rear of the Land Tamer any
Category 1, 3-point hitch farm attachment.These include a snow blade or snow blower for win-
ter use, or a rotary mower, post hole auger, lifting device, generator or just about any after-mar-
ket farm equipment available by any farm equipment manufacture rated as Category 1.This adds
to the Land Tamer’s four-vehicles-in-one-concept – serving as boat, ATV, snowmobile and trac-
tor. No other vehicle has this much versatility.
www.landtamer.com

The New RTV1100 -

Factory Cab Utility Vehicle
W
elcome the industry’s first Factory Cab Utility Vehicle; another innovation from
Kubota.The advantage of a one piece tubular design integrates the cab structure with
the chassis for optimal durability and a pressurized cab.The tight seal is ideal for the
RTV1100 comforts like standard air conditioning and heater. The RTV1100 is powered by
Kubota’s new 25 HP diesel engine and a Variable Hydrostatic Transmission. Other standard fea-
tures include a 70 amp alternator, power steer-
ing, cloth seats, head rests, rear view
mirror and its radio ready. Look for
the RTV1100 in Kubota Orange
or Realtree® Camouflage this
spring. For more information
please visit the Kubota booth
or www.kubota.ca to locate
your local dealer.

24 Oil & Gas Network, October 2009

 All Terrain Vehicles

New Prinoth Go-Tract™

4500 Carrier
P
RINOTH Ltd. proudly introduces the GO-TRACT™ 4500 fully-
tracked equipment carrier that offers a line-leading 46,000-
pound payload with maximum mobility and minimum impact.
Designed to carry heavy equipment such as cranes up to 40 ton
capacity, man-lift booms, aerial devices, large drill rigs, and other
heavy payloads, the new GO-TRACT 4500 has a ground pressure of
just 4.4-pounds per square inch at the maximum gross vehicle
weight rating (GVWR). The new carrier offers 35-square feet more
deck space than the GO-TRACT 3000 stretch.Yet it will fit on a dou-
ble drop deck trailer.
A Caterpillar C9 EPA-Certified Tier 3 engine provides 375 horse-
power to propel the GO-TRACT 4500 at ground speeds up to 6
miles per hour (10Km/hr).The 120-gallon (US) fuel capacity allows
a full day’s work on a single tank.
An ergonomically engineered cabin includes an easy to read full-
color operator information display, micro-controller-assisted steer-
ing, and R.O.P.S. certification at maximum GVWR.A back-up camera
is optional.
Like all GO-TRACT series vehicles, the new GO-TRACT 4500 is
backed by PRINOTH’s comprehensive post-sale service support
featuring 24/7 telephone inquiry assistance and PRINOTH-certified
technicians on-site if required.

The new RTV1140 is the newest

released vehicle form Kubota
T
he operator can eas-
ily switch from two
rows of seating to
one row of seating and ex-
pand the cargo box area.
This is a requested addition
to our line for increased
cargo capabilities and
added worker transport
In 2004 Kubota intro-
duced the work utility
vehicles to the marketplace
with the RTV900 Series.
Renown for the bullet
proof diesel engines, in-
dustry leading success in
compact tractors and ex-
cavators, the
RTV900s experienced
immediate success. Shortly
thereafter came the first
factory pressurized cab
with standard HVAC sys-
tem, the RTV1100. Last fall
the family expanded to the
pick-up truck friendly RTV500, Kubota’s own gasoline powered small utility vehicle. A compre-
hensive family of utility vehicles, but one model was still on the creative engineer’s minds. A
machine that could carry more cargo, yet also carry extra passengers without being too big or
too long. Kubota is now pleased to introduce the all new RTV1140CPX Utility Vehicle.
Stretch your productivity with the new 24.8Hp Kubota RTV1140CPX Four-Seater. If you need
more cargo room slide and lock the back seat to the forward position without tools to achieve
industry leading cargo space. Transporting more passengers is an easy slide and lock process. In
either position the operator can easily dump the cargo box hydraulically with the lift of a lever.
Manoeuvre around your worksite in confidence and ease with the smooth acting, heavy-duty 3
Range Variable Hydrostatic Plus transmission and hydrostatic power steering. As always Kubota
keeps safety at the top of the list, with fully Certified Roll Over Protection structure, a standard
design in all Kubota work utility vehicles.
For more information on the RTV1140CPX or any of the Kubota work Utility Vehicles visit
www.kubota.ca or see them in action at your local Kubota dealership.

Oil & Gas Network, October 2009 25

Oil Rigs Delivered in Record Time
O
nly 13 months after initiating training for new
3D CAD/CAM software, Lamprell Energy Lamprell LT-116E Jackup Rig
launched the LT-116E Jackup Rig. The entire
project was completed in only 18 months.
Other shipyards have achieved large gains in
productivity as well.This is noteworthy in the current
economic climate with the constant pressure to
reduce costs.

In a paper delivered at the International Conference on
Computer Applications in Shipbuilding (ICCAS) held in Shanghai, Dr.
Oskar Lee explains how these shipyards have managed to achieve
such impressive results.
According his analysis, the most successful shipyards link the
geometry and associated material data from 3D models to data-
bases such as ERP systems so that information can accurately be
shared and utilized by various departments to plan efficient pro-
duction. In this manner, critical path issues are identified and re-
sources effectively deployed.
His research also indicates that effective change management is
important due to frequent modifications requested by owners and
classification societies. To accommodate these changes, Dr. Lee
observed that the most successful yards in his study utilize complete
models consisting of geometric and attribute information. Each model
was not merely a drawing or a series of drawings. Rather, the model
was contained within a database from which drawings, machine cut-
ting code and other information could automatically be derived and
shared amongst various departments.This dramatically simplified the
ability to accurately make changes, thus increasing productivity.
All of the shipyards in Dr. Lee’s study used ShipConstructor soft-
ware during the detail design process. Because ShipConstructor
uses a data-rich 3D model capable of linking to other databases, the
use of ShipConstructor was a key reason for the shipyards’ pro-
ductivity in oil rig fabrication.
www.shipconstructor.com

Fleet Safety and GPS Tracking Firm

Partners with Rogers
afefreight Technology, a fleet safety www.safefreight.com SmartFleet empowers

S /fleet-safety/ and GPS fleet tracking provider, is pleased to an-

nounce its strategic partnership with Rogers Communications
to market SmartFleet, Safefreight’s GPS driver safety and fleet man-
fleet managers with action-
able data to:
· Decrease number of acci-
agement system. dents by up to 70%
“Safefreight’s technology is unique in Canada and offers our · Cut vehicle downtime by
customers the most comprehensive solution on the market to mit- up to 50%
igate driver risk and optimize vehicle performance. We look for- · Reduce fuel consumption
ward to working with the Safefreight team to provide our current by up to 35%
and future customers with these innovative tools to enhance the · Lengthen the lifetime of
safety and management of their fleet operations,” said Steve tires, brakes, clutches and
Roberts, Rogers’ Vice President. gears
“We are extremely excited to be working with Canada’s premier · Enhance workforce and
provider of wireless products and services,” said Curtis Serna, equipment productivity
Safefreight’s Chief Executive Officer. “Rogers’ recent expansion of · Improve customer service
network coverage in Alberta in combination with our fleet safety through timely reporting of
technology offers companies in safety focused industries – like the asset location
energy sector - a cost-effective solution to enhance safety in the field.” · Reduce carbon emissions
SmartFleet is a telematics solution that incorporates a “smart” · Reduce risk of theft and expedite stolen vehicle recovery
vehicle mounted device, asset-to-internet capability, wireless com- · Secure cargo assets (monitoring tampering and temperature)
munications and web-based fleet management software. It helps · Manage data in the field (including real time data capture)
fleet managers measure and manage the company’s driving cul-
ture. In addition to providing real-time risk alerts, SmartFleet pro- Safefreight and Rogers are offering incented pricing of devices
vides a forensic trail and makes it easier for fleet owners to and software subscriptions, exclusively through the Rogers sales
substantiate warranty claims and more effectively manage fleet channel. Rogers’ customers get a free, one year software sub-
service plans. ROI on the solution is usually measured in months, scription to Location Based Services. Advanced and Premium soft-
depending on the number of devices deployed and the metrics ware subscriptions are also available at discounted pricing through
being monitored. the Rogers promotion.

26 Oil & Gas Network, October 2009

Historical drilling records now Wood Group Offers High-
digitized and online Pressure, High- Temperature
F
or decades, the ERCB has pro-
vided an invaluable service to
the industry by sourcing the
Well Cement Bond
tour sheets of every well drilled in
Alberta. These tour sheets tell the
Logging Service
entire story of a well, from spud to rig

W
ood Group Logging Services, part of international energy services company
release. What bits are used, what mud John Wood Group PLC (“Wood Group”), has introduced a new cement bond
weights are applied, important notes evaluation service designed for deeper wells with wellbore conditions up to
and comments from the rig manager,
500° F (260° C) and 30,000 psi of hydrostatic borehole pressure.
etc. all recorded on a daily (sometimes
The service is accomplished in a single well logging run by using a new 360° radial
hourly) basis. Thanks to this readily
available information, our collective measurement that identifies potential channelling, void areas around the casing and in-
knowledge on drilling techniques and adequate bonding. The resulting evaluation confirms intervals of good cement bond that
strategies throughout our province is adequately isolate zones, and minimizes nonessential remedial cementing.
unmatched. “This new cement bond evaluation service is expedient and cost-effective, and builds
This information is critical to well planning, benchmarking drill performance, and analysis upon our reputation for providing outstanding service in hostile downhole conditions”
on past wells drilled…an imperative practice to any efficient drilling department or service stated John Paul Jones, president of Wood Group Logging Services. “The service expands
company.
the operating range for cement bond evaluation and will enable our clients to make bet-
It’s not enough to know your own wells: you need to know what’s going on around you.
Tour sheets hold very valuable information, but in a very inaccessible format. It is very time ter informed decisions on deep high value wells.”
consuming, depending on photocopies and trips to the ERCB Core Research Center to access
this data, yet that is the only way that companies can review tour information on-demand. In
cooperation with CAODC, companies have built advanced systems to capture this information
in a digitized format…and yet the information is still stored publically in paper/hardcopy
format only.

The challenge is now to make it available to those who need it. XI Technologies has
responded to demands from the drilling industry for better access to this vital tool for diligent
drilling practices.
XI discovered a clever way to make this data available to the industry…share it. There’s no
secret that operators/service companies have their finger on the pulse of their offsetting com-
petitors…there are also no secrets contained in tour information, considering the sheets are
publically available.
Through XI’s TourXchange agreement, operators have mutually agreed that the value of this
information (in digital form) is immeasurable in terms of drilling efficiency, cost savings, and over-
all drilling performance. Therefore, in order to access digitized tour records of offsetting oper-
ators, they have endorsed the philosophy by offering their own digital data into the collective
TourXchange database. The program is simple – share the digital version of the already-public
tour sheets and in turn, they can access the digital tour reports of existing participants.
Acceptance of this program has been quite positive so far, building a database of over 40,000
wells worth of digital tour data. As the concept gains further recognition, the TourXchange data-
base will eventually contain a major portion of the digital drill records throughout Western
Canada in the next year.
Researching pacesetters, understanding the problems of historical wells that offset your
locations, and having a general knowledge of best-drilling-practice is key to prudent drill planning.
Data is the key to building these types of analytical tools, and now the industry can finally make
use of the information that was previously locked away in paper documents.

Oil & Gas Network, October 2009 27

 Laid-off professionals get help
transitioning their careers
W
hen geologist Larry Spence was suddenly laid off, it came so suddenly and unexpect-
edly his wife thought it was a joke.

“They went and got my things for me out of my office, and ‘allowed' me one phone call,” he
recalls, “it just happened to be April 1st.”
Spence was shocked.While his company had been letting people go since January, his cowork-
ers were as surprised as he was. He'd been an exploration manager with Talisman Energy for 22
years and, just one month before, was given a glowing performance appraisal. There was no
advance notice.
Two minutes after being informed he was let go, a representative from Toombs Inc. – a career
transition service – introduced herself to Spence. Almost four months later, Spence is in a very dif-
ferent position indeed. On July 27, Spence started his new job, as exploration manager with
TransGlobe Energy. He chose the position with TransGlobe over another excellent offer from a
different company. His compensation package is “equal or better” than his equivalent position at
Talisman. As Spence freely admits, however, he got there with significant help.
“We help people (who have just lost their jobs) in a variety of ways,” says Kathleen Wollenberg,
vice president and general manager of Toombs.
“For people (like Spence) who haven't had to look for work in years and years, it can be very
scary –looking for work is a process that requires a lot of different skills.”
At the professional career level, simply skimming the classified ads just isn't good enough. It's
not unlike fishing – the big fish aren't caught with luck, but with patience and skill. For many pro-
fessionals suddenly thrust back into the marketplace, they need to re-learn even the most basic
but necessary skills – including the seemingly basic skill of resume writing.

“I'd always kept my resume up to date, but again, it had been 22 years since it saw the light
of day,” says Spence. “Things change in 22 years – especially style and format.”
Spence attended a resume workshop, with about 12 other Toombs clients, which included in-
struction, time to re-write, and one-on-one counselling and proofing. The result? A much better-
looking, and in Spence's case, concise resume.
“It was six or seven pages before, which I had thought was more impressive,” he chuckles.“It's
about half that now, with nothing missing and much more concise reading.”
Another vital career management skill many professionals lack, says Wollenberg, is just learn-
ing who’s really hiring: she estimates “a full 80% of jobs at this level aren’t advertised. Even if they
are, she adds, they're usually still hired through referrals and networking.
“Our program really emphasizes the importance of networking,” says Wollenberg.“So many peo-
ple have told me they’d always blown it off, but the light goes on and they say ‘I get it now.’”
“Networking is so important – you need to have a lot of people in your camp” agrees Spence,
adding that one of his two offers came via a colleague in a similar position.
Skills aside, Spence says one of the most important things Toombs did for him was also one of
the simplest: it gave him a place to work.
“I felt lost without an office,” says Spence. He’d had an office downtown for 22 years. He was
used to working in a professional setting, and wasn’t comfortable working from home.To address
this feeling of disorientation, Toombs gives its clients access to a “bullpen office,” with computers
and private booths to make calls.
“Toombs was like a transition home,” Spence laughs.
In a buyer’s market for work, mastering as many career management skills as possible is vital.
While Alberta’s unemployment rate is the lowest in the country, it’s still on the rise. In June, it
reached the highest percentage since November 1996 – 6.8%, up from 6.6% in May.
Companies forced to let some of their people go can still help them by engaging a career tran-
sition service, says Briar McGinnis of Alberta Employment and Immigration. “I think there’s more
overall sensibility now than before – at lot of companies hire private contractors to assist after
layoffs,” he says.
The Alberta government also offers career transition services, he adds, up to and including
financial assistance.

28 Oil & Gas Network, October 2009

 BGAN Demonstration
Joni Evans

S
imple, portable, and easy to use are deceiving
words for such complex technology, but this is
exactly how Inmarsat’s Broadband Global Area
Network (BGAN) service works. The BGAN system
utilizes three powerful Inmarsat 4 (I-4) satellites to
provide broadband coverage anywhere in the
world. On Thursday, Sept 10, Inmarsat, their
distribution partner Stratos Global, and service
provider Infosat Communications LP came to-
gether in Calgary to demonstrate the technology
behind the BGAN terminals and their applications
within the oil and gas industry.
After a brief introduction and explanation of sev-
eral BGAN features, Guy Mariz of Inmarsat gave the
step-by-step demonstration showing how quickly
and easily a BGAN terminal is set up.
Within five minutes, including a detailed expla-
nation of each step, the Explorer 700 terminal was
up and running.The BGAN terminal had located the
satellite, registered the user, and accessed the inter-
net, all through Mariz’s laptop. A quick Google
search illustrated the connection speed.
The Explorer 700’s standard variable bit rate is
492 kbps, but if a guaranteed service rate is need-
ed streaming at 384 kbps is possible, explained
Mariz.
“Automatic setup is also possible,” Mariz says.The
BGAN terminal uses a single SIM card which is pro-
grammable for specific users, streamlining the setup
process.
“BGAN excels as a mobile device,” he says, “You
only pay for what you use, per megabyte or per
minute.”
BGAN terminals are able to simultaneously uti-
lize voice and broadband data transmissions. Mariz
demonstrated this by simply plugging in a regular
telephone and placing a call. By building upon Inmarsat’s global satellite coverage through the I-4 network, and Stratos
“BGAN gives anyone the connectivity they would enjoy in an office anywhere in the world,” Global position as the only first tier BGAN service providers in Canada, Infosat offers 24/7 cus-
he says. “Essentially you can replicate your office.” tomer support and the right BGAN solution to resolve unique communication challenges in
The terminal uses Launch pad, a simple interface, and is compatible with all Microsoft prod- the industry.
ucts, Citrix and many FTP programs. There are several terminal types based around the needs
of industry. Many terminals offer Ethernet, Bluetooth and USB connections for a variety of lap-
tops. One BGAN terminal has the ability to support 11 simultaneous users.
There are several different access terminals available, each with their own unique features.
Each access terminal is designed for portability and will fit easily in a laptop bag or briefcase,
making it ideal for use in remote locations, man alone situations, and at the exploration phase.
BGAN easily allows workers to remaining in touch, instantly sending photos, reports, and
updates back to the office.
Next, BGAN’s video conferencing capabilities were highlighted as he connected with a col-
league in Inmarsat’s London, England office.
“We’ve had many requests for video conferencing from our oil and gas clients,” says Dale
Gamber, Infosat communications vice-president of sales and marketing. The video conferenc-
ing capabilities are becoming more commonly used all the time, says Gamber.
“It’s surprising what a powerful tool it is. Companies are able to get their message out to
everyone at the same time,” he says.
Two additional products were demonstrated using the BGAN network, a Frontline
Communicator by AudiSoft Technologies and AFIANT Satellite Network Video Management
System by Modern Security Solutions LTD.
The Frontline Communicator is a small portable device with a small camera attached to a
headset, for hands-free use, and its own interface. The communicator was designed with
telemedicine or off-site expert advice in mind. Users are able to connect to the BGAN net-
work, and communicate through voice and live video, with an expert who may be located
half a world away.
The AFIANT Satellite Network Video Management System is a unique security offering
jointly offered through Stratos Global and Modern Security Solutions LTD. AFIANT provides
a cost effective solution for video surveillance and monitoring of remote assets.
By utilizing the BGAN background IP channel, user’s can implement motion triggered record-
ing, and view or manage the information from anywhere in the world.
“The balance BGAN strikes between portability and data capacity makes it the prefect
solution for our customers,” says Sarah Crew, Infosat’s sales and marketing coordinator. “The
portability and easy use of the terminals are where BGAN really shines.”
Infosat Communications LP is a complete communications solutions provider located in
Calgary,Alberta.As one of North America’s leading providers of satellite communications, BGAN
was a natural addition to Infosat’s services.

Oil & Gas Network, October 2009 29

Moyno® Progressing Cavity Pumps Global Heat Transfer Ltd.
Offer Dependable Performance & Low announces a breakthrough
Maintenance in Upper- and Lower-Deck FPSO Applications in lightweight cooling systems
M
oyno® Progressing Cavity

T
he Jumbotron design utilizes GHT’s latest Aluminum Technology
Pumps from Moyno, Inc. provide to cut more than 50% of the weight out of previous
numerous performance enhanc- 3000HP designs, 30% out of 2500HP designs and
ing benefits in upper- and lower-deck even cuts 27% out of the 2250HP designs.
FPSO applications in the oil and gas in- Combined with our industry partners we are able
dustry. to help the industry design some of the first Canadian
Moyno Progressing Cavity Pumps pro- road legal 3000HP Frac Pumpers in the market today.
vide the ultimate in positive displacement The math was easy.
pump versatility as they are capable of With an average well requiring up to 50,000 HP to
cost-effectively handling clean and oily Frac the current fleet of 2250HP pumps requires a mini-
liquids as well as corrosive fluids and mum of 23 units at site. A fleet of 2500HP pumps requires 20
thick, abrasive slurries and sludges, even units at site. The cost savings of getting to 3000HP boils down to the
with viscosities over 1,000,000 cps. The math. With a 50,000HP well, it only requires 17 units on site vs 20 or 23
product line includes models capable of units previously. That’s an immediate 15% improvement (compared to 20 units) or a 26%
generating flow rates up to 2,500 gpm improvement when compared to 23 units on site. When the capital cost of the fleet and the
and pressures to 2,100 psi. Moyno pumps labor to operate the fleet is factored in, it’s adds up as a major cost savings for the industry.
are well-known for low maintenance, dependability and long service life which result in low overall If the math was that easy, why was it never done before? The issue was always the weight
total cost of ownership in both top-side and hull-side applications.Their high performance, progressing of the radiator. To get an extra 500HP cooled you needed
cavity design results in a gentle, low shear, pulsation-less discharge. larger radiators than 2500 or 2250HP units. Larger radiator
A variety of proprietary Ultra-Flex® stator elastomers and Ultra-Shield® rotor coatings sustains peak meant more weight. More weight on the cooling system
pumping efficiencies, minimizes maintenance and extends useful service life even in the most cor- added up with more engine wet and a heavier transmission
rosive and/or abrasive service environments. meant the units could not pass legal road bans.
Typical Moyno Progressing Cavity Pump applications include the following: GHT combined with a few select industry partners and
• Desalter • Oily Bilge Water reduced weight on our cooling system by 50% in the
• LP and HP Flare • Diesel Fuel Generator Feed 3000HP application and are able to certify the 3000HP
• Closed Drain • Drilling Mud Transfer pumps as road legal.
• Sludge Drain Contact GHT today for more information.

30 Oil & Gas Network, October 2009