well construction journal - september/october 2014

The official publication of the Canadian Association of Drilling Engineers

SEPTEMBER / OCTOBER 2014

PM#40020055

A massive discovery off the coast of Newfoundland heralds a new frontier for oil and gas

PLUSEyes in the Sky What drones can bring to the oil patch

Munching Microbes How tiny undersea microbes could help in offshore exploration

From Sea to Sea A new agreement could advance cross-country apprenticeship programs

Bay du Nord

000WCJ-Enform-FP.indd 1 2014-08-12 9:26 AM WCJ_Sept-Oct_14_p28-01.indd 1 2014-08-26 1:28 PM

100% CRACK FREE & REBUILDABLEExcellent Casing & Tool Joint Protection

THE WoRLDs MosT TRUsTED HARDBAnDIngDurabandNC

[email protected]

ImProvIng STandardS on-Site Training for new applicators Applicator Testing, Qualification & Licensing

SuPPorTIng End uSErS Educational Technical Forums Worldwide Technical Support

Complete Hardbanding Support

WCJ_Sept-Oct_14_p02-03.indd 2 2014-08-26 1:07 PM

www.cadecanada.com september/october 3

The official publication of the Canadian Association of Drilling Engineers

DEPARTMENTS

4 PRESIDENTS MESSAGE

6 THE DRAWING BOARD Editors note, members corner, news and notes, technical luncheons

10 STUDENT PROFILES11 HELP WANTED19 MEMBER PROFILE

24 BY THE NUMBERS26 DRILLING DEEPER

FEATURES

12 BAY DU NORD BREAKTHROUGH Last years huge offshore discovery heralds a new oil and gas frontier off Newfoundland and Labrador

16 EASTWARD HO! A host of energy initiatives could turn Atlantic Canada into the promised land

20 ITS A BIRD ITS A PLANE New technology takes to the air above the oil patch

22 TURNING FOE TO FRIEND A University of Calgary researcher says microbes can be an invaluable aid for the offshore oil industry

The mandate of the Canadian Association of Drilling Engineers is to provide high-quality technical meetings and to promote awareness on behalf of the drilling and well servicing industry. With more than 500 members from more than 300 companies, CADE represents a broad spectrum of experience in all areas of operations and technologies. Through CADE, members and the public can learn about the tech-nical challenges and the in-depth experience of our members that continue to drive the industry forward. For drilling and completions specialists, CADE currently offers one of the best networking and knowledge sharing opportunities in the Canadian petroleum industry.

CANADIAN ASSOCIATION OF DRILLING ENGINEERS1100, 540 - 5 Avenue SWCalgary, AB T2P 0M2Phone: 403-532-0220Fax: 403-263-2722

www.cadecanada.com

PRESIDENT: Jeff ArvidsonPAST PRESIDENT: Robert Jackson

WELL CONSTRUCTION JOURNAL EDITOR: Christian Gillis

WELL CONSTRUCTION JOURNAL IS PUBLISHED FOR CADE BY VENTURE PUBLISHING INC.

10259 105 StreetEdmonton, AB T5J 1E3Phone: 780-990-0839Fax: 780-425-4921

Toll Free: [email protected]

PUBLISHER: Ruth KellyDIRECTOR OF CONTRACT PUBLISHING: Mifi Purvis

MANAGING EDITOR: Lyndsie BourgonART DIRECTOR: Charles Burke

ASSOCIATE ART DIRECTOR: Andrea deBoerASSOCIATE ART DIRECTOR: Colin SpencePRODUCTION MANAGER: Betty Feniak Smith

PRODUCTION TECHNICIANS: Brent Felzien, Brandon HooverCIRCULATION COORDINATOR: Karen Reilly

ACCOUNT EXECUTIVE: Anita McGillis

CONTRIBUTING WRITERS: Robin Brunet, Samus Smyth, Ryan Van Horne

SEPTEMBER/OCTOBER 2014

20

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

EDMONTON AB, T5J 1E3 [email protected]

PUBLICATION MAIL AGREEMENT #40020055 CONTENTS 2014 CADE. NOT TO BE REPRINTED OR

REPRODUCED WITHOUT PERMISSION. 10

12


Well Construction Journal 4 september/october 2014

MESSAGEPresidents

Dan Schlosser CADE President

OR YEARS, STAFFING ISSUES AND WORKPLACE challenges have been plaguing the oil and gas industry. When it comes to at-tracting, and keeping, skilled labour, the

challenges have often seemed insurmountable.But there are some solutions that could make

it easier for us in the future. On page 26 of this issue, you can read about a new east-west agreement that could cut the red tape between apprenticeship training in Alberta and Nova Scotia. Its important to make the workforce mobile, so we can work in any province or ju-risdiction.

That should go beyond just apprentices, too. Within Canada, engineering and technical staff are also hindered by borders. Some engineer-ing companies dont classify their workers as engineers for this reason its easier to call us technical specialists so that we can work in different provinces. But it should be easier for

us to keep the engineer title that weve earned and use our skills across Canada as well.

Recently, Canadas numerous accounting bodies completed merger approvals, all combining under the Chartered Professional Accountants banner. I think having a similar designation for engineering would be ideal. Engineers would be able to travel east and west and still follow the same strict guidelines for work and professional conduct. It might be easier to get people to move if they didnt have to write another set of exams. The goal wouldnt be for the various organizations currently in place to lose clout, only to allow them to work together on a national level.

That type of change would have to be spurred by members like us, who would have to place pressure on current organizations to work together for the good of the entire industry.

F

Why Engineers Should Be More Like Accountants


Find out more at

slb.com/TrackmasterOH

Trackmaster OH is a mark of Schlumberger. 2013 Schlumberger. 13-DT-0047

Sidetracking with a cement plug means extra materials, long cure times, and often multiple setting attempts. The Trackmaster OH whipstock and sidetracking system eliminates these complications by setting a reliable, hydraulically expandable anchor so you can drill ahead in one trip.

Eliminate cement plug uncertainty.Increase openhole sidetracking reliability and save time.

OPENHOLE WHIPSTOCK AND SIDETRACKING SYSTEM

Trackmaster OH

Why Engineers Should Be More Like Accountants

Directional Drilling

Pacesetter is a technical leader in the directional drilling industry. Our inventory of advanced drilling tools includes the newest

generation of MWD tools that was custom designed by Pacesetter team members. Our equipment oers

greater funtionality and reliability than the older technology being used by our competitors.



BOARDThe Drawing

President Dan Schlosser [email protected]

Education Chair Linden Achen [email protected]

Technical Chair Ryan Richardson [email protected]

Membership Chair Andy Newsome [email protected]

Social Chair Kristy Hysert [email protected]

Treasurer Cecil Conaghan [email protected]

WCJ Editor Christian Gillis [email protected]

Sponsorship & Marketing Craig Joyce [email protected]

IT Chairman Matt Stuart [email protected]

Secretary Tammy Todd [email protected]

Coordinator Kali Charron [email protected]

CADE Executive Team 2014/2015

E X E C U T I V E T E AM

E D I T O R S N O T E

Heading Into a Busy FallELL, HERE WE GO AGAIN. BY THE TIME THIS issue lands on your desk or in your inbox, we will be entering the last part of Q3 and gearing up for whats looking like a strong fourth quarter.

The kids are now back in school and summer holidays are done. It seems like we were only just waiting for summer to arrive. The September/October issue of Well Construction Journal has us revisiting the East Coast, where things look like they will be just as busy as they are in the WCSB.

As a reminder, the annual CADE golf tournament is booked again for a third season at Calgarys Bearspaw Country Club on September 15. Emails about hole sponsorship and registration have been sent out and put on the website. If you havent signed up yet, there may still be a few spots left, and we are expecting our strongest turn out ever.

Our 2014 Technical Luncheon presentations are kicking off again on September 3, with a presentation on torque and drag analysis by Leo Specht, P.Eng. The following luncheon will be on October 29. Tickets will be available on the website.

Please watch for email announcements and check the website for the start of our fall luncheons and upcoming

topics and dates. Please dont hesitate to contact us if you have any ideas for upcoming topics or issues youd like to see presented at the luncheons or in print. We are also looking for topics that tie into our WCJ focus for each month. We hope to see more of this over the course of the year, and welcome our members to participate and continue making these events interesting and successful. If you have any issues youd like to see covered, please email me and we will do our best to get the story.

And dont forget, we would also like to publish any of your information and announcements on new products, new technologies and senior personnel changes. Please forward any announcements to us, as we would be excited to run them in the journal. We appreciate your continued support and look forward to seeing you at the upcoming luncheons.

CHRISTIAN GILLIS, EditorCanadian Well Construction [email protected]

W


september/october 2014 7 www.cadecanada.com

President Dan Schlosser [email protected]

Education Chair Linden Achen [email protected]

Technical Chair Ryan Richardson [email protected]

Membership Chair Andy Newsome [email protected]

Social Chair Kristy Hysert [email protected]

Treasurer Cecil Conaghan [email protected]

WCJ Editor Christian Gillis [email protected]

Sponsorship & Marketing Craig Joyce [email protected]

IT Chairman Matt Stuart [email protected]

Secretary Tammy Todd [email protected]

Coordinator Kali Charron [email protected]

www.cadecanada.com

MEMB E R S C O R N E RWELCOME NEW MEMBERS

VASFI ALIYEVPATRICK DUTTONGEOFFREY LOFTUSMIGUEL MIRANDAMARTINA OKPORPUJA PANDYALARISSA PATTERSONPETER ROOTMALCOLM SMITHJAMES STEIL

WHY BECOME A CADE MEMBER?

As of 2014, the Canadian Association of Drilling Engineers (CADE) has been active for 39 years. With more than 500 members from more than 300 companies, CADE represents a large spectrum of experience in all areas of operations and technologies.

For drilling and completions spe-cialists, CADE currently offers one of the best networking and knowledge sharing opportunities in the Canadi-an petroleum industry. The skills and knowledge obtained by your partici-pation in CADE will benefit you and your employer, with direct applica-tion to your professional career.

CADE offers various means for members to connect and share their insights. Monthly technical luncheons are held with topical industry presentations. Other mem-bership benefits include our monthly publication Well Construction Journal and a membership directory, which is the whos who of the Canadian drilling industry.

Our website cadecanada.com is an excellent focal point for industry events, blogs and other news. We are also active on LinkedIn and Twitter.

WHO CAN BECOME A CADE MEMBER?

CADE members can be anyone em-ployed in the drilling and completions industry or anyone who is interested in the industry.

Typical members include drilling and completions engineers, geologists, technical personnel, sales personnel and students. Student memberships are available to any post-secondary

student interested in learning more about drilling and completions.

Please feel free to share informa-tion about CADE with all the people in your organization who are inter-ested in the drilling and completions industry.

CADE MEMBERSHIP RENEWALS

CADEs membership year is from September to September. During the summer, CADE members will receive an email and link for the renewal process on our website.

Please remember the benefits of be-ing a CADE member include APEGAs professional development hour, stay-ing abreast of technological and in-dustry advances, drilling conferences and a great opportunity to network. Thank you for your support.

CADE MEMBERSHIP CHANGES

Log on to cadecanada.com to be-come a member or to update your contact information.



BOARDThe Drawing

N EW S A N D N O T E S

N.S. government commits to mapping offshore potentialIn May 2014, the Nova Scotia government announced plans to spend $12 million as part of a four-year plan that would map data on potential offshore oil and natural gas opportunities. The money will go towards helping provide a geographical map of potential opportunities, and builds on the provinces Play Fairway Analysis program, which provides seismic data and other geological information to players that are interested in the region. That program has since gone on to show potential for 120 tcf of gas, and eight billion bar-

The Canada-Nova Scotia Petroleum Board, the provinces offshore regulator, has put four deep-water parcels on the auction block, where theyll remain until the end of October. The board an-nounced the opening last spring, and companies will have until October 30 to bid on the explora-tion rights for the sites.

The area up for grabs is along the eastern Scotian Slope, about 300 km southwest of Cape Breton Island.

rels of oil, nestled beneath the seabed off Nova Scotias shore.

The Play Fairway Analysis program has also played a huge role in encouraging big-name companies like Shell and BP to launch explora-tion projects in the region.

Weve only just begun to explore the full potential of our offshore, said Premier Stephen McNeil at a press conference. Our investment, combined with private-sector efforts, will help maximize the benefits for Nova Scotians.

Waters in the area are up to 4.1 kilometres deep. When the parcel was first put up for auction, in

May, the Maritimes Energy Association was expect-ing bids but couldnt speculate on how much they might be worth. There were no bidders on parcels put up in 2013, but in 2011 and 2012 Shell and BP both bid about $1 billion to obtain exploration rights on the deepwater lands on the western half of the slope.

Scotian Slope parcels on the auction block

EASTERN SCOTIAN SLOPE


T E C H N I C A L L U N C H E O N S

N.S. government commits to mapping offshore potential

THE RIG WITH MORETHE NEXT GENERATION IN FULL-SIZED WALKING RIGS

ADR 1500SAutomated Drill Rig

MOS

AIC

COM

MUN

ICAT

IONS

- 4

03-2

30-4

224

EXT

107

JOB:

EES

131

Well

Con

stru

ctio

n Jo

urna

l ad

APPR

OVED

BY:

DATE

: 20/

08/1

4CL

IENT

:

FILE

NAM

E: EE

S131

_ADR

1500

S_Ri

gDat

a_3.

625x

4.87

5Ad_

20Au

gust1

4_EO

_2PM

ACCT

MGR

:

FILE

SIZ

E: 3

.625

x 4

.875

PR

OD M

GR:

FILE

AT:

100%

ART

DR:

EnsignEnergy.com/adr

Luncheon TicketsMEMBERS: $47.50 (plus GST)NON-MEMBERS: $55 (plus GST)FULL TABLES OF 10: $475 (plus GST)STUDENT: $20 (plus GST)

Save the Date: September 3, 2014Topic: A Practical Approach to Torque and Drag AnalysisPresenter: Leo Specht, P.Eng

Leo Specht has been the engineering manager at Pacesetter Directional Drilling Ltd. since 2008, and previously held positions at Talisman Energy Inc., Anadarko Canada Corporation and Baker Hughes Inc. With a degree from the University of Alberta, and as a member of APEGA, SPE and CADE, Specht has more than 15 years of experience in the oil and gas exploration industry.

His session will discuss the creation of a drillstring model, addressing the relative impact, relevance and importance of a number of inputs. A well-constructed and calibrated model of the drillstring and wellbore can yield invaluable insights into downhole conditions, allowing improved drillstring designs for more efficient drilling. Using a model that closely mirrors a drillstring, participants will examine several scenarios where information can be used to improve drilling performance, including heavyweight placement, trip management and buckling evaluation.

GST REGISTRATION #R123175036Visit www.cadecanada.com for all ticket purchases

Save the Date: October 29, 2014Topic: Wellbore Placement Accuracy: Do you know what you dont know? Presenter: Brian Varcoe, P. Eng

Brian Varcoe, Drilling Engineering Manager at Mostar Directional Technologies Inc., will focus on issues in wellbore placement, exploring topics including what questions to ask your horizontal well directional provider, as well as MWD roll test acceptance, potential azimuth error due to insufficient NM spacing, MWD qualifier acceptance and magnetic field effects on downhole tools.



AHA HASSANIN IS IN HER THIRD YEAR OF CIVIL ENGINEERING, with an energy and environment specialization, at the University of Calgary.

She recently completed eight months of work experience as an exploitation engineering summer student with Ellisboro En-ergy, and was an optimization and field operations summer student in the Provost fields with Apache Canada Ltd.

Hassanin says the energy industry has provided her with a con-stant source of fascination, and she continually strives to broaden her knowledge of its technology and developments. After gradua-tion, she aspires to contribute to the industrys continued growth through her role as an engineer.

Hassanin is currently the President of the Petroleum and Energy Society (SPE Student Chapter) at the University of Calgary. PES is an extremely active student organization with more than 300 mem-bers, whose goal is to better prepare students for industry work prior to graduation. PES accomplishes this through industry tours and numerous other professional development events. In addition to her involvement with PES, Hassanin is also the Chair for the 2015 EnergyBowl Competition, a two-day event aimed at promoting interdisciplinary collaboration and friendly competition through Jeopardy-style questions and case studies.

Hassanin also holds a Bachelor of Science degree in psychology. She enjoys volunteering and has been involved with numerous ini-tiatives including Women in Science and Engineering, Explore IT and the Cerebral Palsy Association. In her free time, you can often find her volunteering at the Alberta Childrens Hospital, or playing basketball and kickboxing.

ARREN SERVISS IS ORIGINALLY FROM SASKATCHEWAN, BUT HAS lived in Calgary for 10 years. Serviss has owned and operated several businesses in the past, and he made the move to the oil and gas industry after selling his construction business.

After enrolling at SAIT Poytechnic in the Petroleum Engineering Technology program, Darren secured a position at Shale Petroleum Ltd., working evenings and weekends as a reservoir technologist.

In his spare time Darren enjoys music and getting together with friends. He keeps his chops up playing the odd weekend in bands. Darren is also the president of the Student Petroleum Society at SAIT for 2014-2015.

Young TalentHighlighting tomorrows best and brightest

Student PROFILE

Maha Hassanin Civil Engineering

University of Calgary

Darren Serviss Petroleum Engineering Technology

SAIT Polytechnic

M

D



APPRENTICESHIP PROGRAMS AN INVALUABLE PART OF BUSINESS

HELP WANTED: Career Department

DRILLING SLANG

If you want to walk the walk on a drill site, it helps to talk the talk. Here are some terms and phrases often heard out in the field:6FF40: Refers to an induction log made with a particular array of transmitter and receiver coils. The 6FF40 array has six coils, with the main transmitter-receiver pair spaced 40 inches apart.COME OUT OF THE HOLE: To remove the drillstring from the wellbore.IMAGE WELL: A virtual well used to mathematically create the effect of a flow barrier.

in Alberta between 2010 and 2013, the number of apprentices registered in the province increased by 50 per cent, with over 13,000 of those apprentices working in oil and gas. The province trains about 20 per cent of Canadas overall apprentice workforce.

In the whitepaper, the Council noted: If the provinces are able to maintain this level of new registrations, and if all the apprentic-es complete their training, within 12 years, Alberta could double the labour force of oil and gas trade occupations.

According to the Canadian Apprenticeship Forum, employers see an average incremental revenue of $1.47 for every dollar they invest in apprentice training. The Forum also suggested that apprentices transitioning from another field into oil and gas bring with them valuable skills, and likely need less time in training.

For more on cross-Canada apprenticeship agree-ments, turn to pg. 26.

Sour

ce: S

chlu

mbe

rger

Oilfi

eld

Glo

ssar

y

Q WAVE: A type of surface wave in which particles oscillate horizontally and perpendicularly to the direction of wave prop-agation.RICKER WAVELET: A zero-phase wavelet, commonly convolved with a reflectivity trace, to generate a synthetic seismogram.UNWEIGHTED MUD: A mud that contains no commercial weight-ing material. More solids-control techniques are available for unweighted muds than for weighted muds. In fact, dilution of unweighted muds is highly economical.

WITH THE DEMAND FOR SKILLED LABOUR INTENSIFYING, A NEW report shows that companies are choosing to formalize appren-ticeship programs in a bid to stabilize their workforce and ensure talent retention within the workplace.

The Petroleum Human Resources Council recently released their whitepaper, Exploring Apprenticeship Completions of Skilled Trades in the Upstream Oil and Gas Industry, which looked at how apprenticeships are managed across the country. The up-stream oil and gas industry is estimated to currently employ more than 45,000 skilled tradespeople, a number which is expected to increase by over 7,000 people by 2022.

The paper reported that the regions with the highest-expected increase in skilled tradespeople are Alberta, British Columbia, Sas-katchewan and Newfoundland and Labrador. The Council noted that the growth in apprenticeship registration is especially strong



REPORTSpecial

LOCATION: Flemish Pass Basin, offshore Newfoundland. 500 kilometres east-northeast of St. Johns, in a water depth of 1,100 metres

RESOURCE: Light oil

SOURCE ROCK: Kimmeridgian-Tithonian age

INITIAL ESTIMATED RECOVERABLE: 300 million to 600 million barrels

PRODUCTION: Early stages

MAJOR PRODUCERS: Statoil, Husky Energy Inc., Shell Canada Limited

BAY DU NORD

St. Johns

FAST FACTS:Exploration drilling rigs used off the coast of Atlantic Canada are called Mobile Offshore Drilling Units (MODUs).

Bay du Nord has been hailed as the largest discovery off the coast of Newfoundland and Labrador in 30 years.



Last years huge offshore discovery heralds a new oil and gas frontier off Newfoundland and Labrador

I N 2013, BAY DU NORD, AND ITS ESTIMATED 300 TO 600 MILLION barrels, was the largest oil discovery in the world. So its no surprise that, little more than one year after announcing its third find in the Flemish Pass Basin, Statoil spent three months collecting 3D seismic readings this past summer and will start an 18 month program to drill more ex-ploration and appraisal wells this fall.

To do so, the company has hired the semi-submersible drill-ing rig West Hercules, fresh off another Statoil job in the Barents Sea, to help delineate the field. For Statoil (which has a 9.7 per cent stake in the Hebron project that will come on-stream in 2017) and the greater oil industry in Newfoundland and Lab-rador, its a breakthrough. Bay du Nord could become Canadas first deepwater oil development in offshore Canada.

But its too early to say when, says Gisle Stjern, vice-pres-ident of Statoils Newfoundland offshore development, at the Newfoundland Offshore Industry Association conference in June. The Bay du Nord discovery is already a core explora-tion area for Statoil, Stjern says if it proves up more oil in the Flemish Pass (which it started exploring in 2007), plans will accelerate.

The seismic program, conducted by the WesternGeco seismic vessel Columbus, set out to collect data spanning more than 2,500 square-kilometres. It focused on the Bay du Nord area, while also aiming to get a better picture of the greater Flemish

Bay du NordBreakthrough

Pass itself. The data collected this summer will be put to work immediately and in the future.

Reports say Statoil has identified eight to 10 potential high-impact prospects along the Newfoundland and Labra-dor offshore, with plans to drill more wells. Statoil has two pros-pects adjacent to Bay du Nord (Bay dEspoir and Bay du Verde) and two other promising ones within its exploration licence Mesquite and Gooseberry southwest of Mizzen, though Geir Richardsen, vice-president of exploration at Statoil Canada, says they are still mulling the targets for West Hercules.

There are exciting opportunities to appraise the Bay du Nord discovery, as well as drill selected high-impact wells in the larger Flemish Pass area, he says. At this time, however, we are continuing to finalize plans and specific wells to be drilled, as part of the upcoming drilling program.

This could accelerate development plans being drawn up by a task force the company has established. That group will also be fed processed seismic data as it becomes available, providing a more accurate picture of the reservoirs volume, and indicat-ing the best places to drill.

One industry expert who is optimistic about Statoils dis-covery in the Flemish Pass, and thinks it bodes well for more discoveries, is Michael Enachescu, an adjunct professor at Memorial University in St. Johns. He has expertise in seismic interpretation and Canadas offshore geology, and has been a

PHOT

O:HA

RALD

PET

TERS

EN, S

TATO

IL

By Ryan Van Horne



REPORTSpecial

geophysicist for Husky Energy and Suncor in Newfoundland and Labrador since 1981.

Weve just scratched the opportunities there, he says, of Newfoundlands offshore possibility. I see exploration for oil and gas going on for many generations.

Before the Mizzen discovery in 2009, there were only five wells in the Flemish Pass, and since theyve started drilling, Statoil has found oil in three of the five. Enachescu says the potential lies in the areas great source rock.

This late-Jurassic shale is a world-class source rock; one of the best source rocks of the entire Atlantic rift system, he says. And there is high-quality, high-po-rosity, high-permeability reservoirs in the basin. The Flemish Pass is part of what Enachescu calls the late-Jurassic super-high-way, a term he coined five years ago to describe a wide swath of high-quality source rock that stretches between Nova Scotia to Newfoundland and across the Atlantic to Ireland, the North Sea and Norway.

The three Statoil wells are in about 1,100 metres of water, which would make them the deepest development by far in Canada, though thats childs play on a global scale. Some offshore discovery and commercial development wells in Brazil, the Gulf of Mexico and Angola are in wa-ter as much as three kilometres deep.

Ever the prospector, Enachescus theory about oil exploration is simple: Just find the damn thing and the engineers will find ways to produce it, he says. Im sure that Statoil will look for sat-ellite and additional reserves.

Steve Butt, a professor of drilling engineering and geomechanics in Memorial Universitys Fac-ulty of Engineering, says the game plan for Bay du Nord will be determined by delineation work that started this summer. The seismic testing will indicate the best place to drill evaluation wells.

There are a lot of improvements in what you can do with seismic, he says. With higher-res-olution seismic, you have a better capability to assess reservoir fluids with a little more confi-dence.

The Jeanne dArc Basin fields are in water depths of 80 to 120 metres, which present a chal-lenge that doesnt exist in Bay du Nord. I believe its in a similar iceberg occurring region as exist-ing fields, Butt said. But one thing that is dif-

ferent is that the likelihood of iceberg scouring is negligible.

A lot of time and money was spent on the Jeanne dArc Basin projects to protect the facil-ities from icebergs scouring the ocean floor. At Hibernia and Hebron, which have gravity-based structures, there are ice belts. At Husky Ener-gys White Rose project, the installations on the ocean floor are protected by being placed in ex-cavated trenches or holes. These are last-ditch defenses, though. There is constant monitoring of icebergs and an early-warning system that dis-patches tugs to tow them away from the oilfield.

Initial estimates of the number of icebergs based on scour marks on the ocean floor proved too high, but they are easily monitored and towed safely away from offshore installa-tions. The Flemish Pass is a challenge, mostly because

of weather and consistently high sea states, Butt says.

We can deal with icebergs easier than we can deal with hurricanes, Enachescu adds.

Derrick Dalley, Newfoundland and Labradors minister of natural resources, says the Bay du Nord discovery is great news for the province, which is looking to grow its oil industry and is trying to emulate Statoils success by modelling Nalcor its own Crown corporation after the Norwegian firm.

A program such as this, in a high-activity frontier area, will help to build on the momen-tum happening in the province in terms of ex-ploration and appraisal activity, Dalley says.

At White Rose, Husky has successfully tied in North Amethyst as the East Coasts first near-field tieback, starting production in 2010. It is also developing the White Rose Extension proj-ect and has ordered a concrete gravity structure that is being built in Argentina to serve as a fixed drilling rig. In November 2012, Shell successful-ly bid $97 million to explore five blocks in the Laurentian sub-basin (south of Newfoundland). It has yet to announce any seismic or explora-tion work.

There will be other finds in the future, no doubt about it, Enachescu speculates. The oil industry in this former have-not province is an amazing thing, he adds. Think where they were 20 years ago. Now, they have a resource that has replaced the fishery that was lost.

Stream Services develops innovative technologies which monitor all critical drilling parameters and delivers real-time information to the rig floor and the office. Our solutions facilitate meaningful data analysis which improves your drilling efficiency and increases productivity.

Auto Driller SystemOur Auto Driller System maximizes drilling performance by maintaining a smooth weight on bit and rate of penetration which results in less stress to the drill string and bottom hole assembly.

Electronic Drilling Recorder (EDR) & SiteWatch 2.0 Portal (SW2)Stream Services EDR and SW2 Portal provide intuitive and flexible interfaces for monitoring drilling parameters from the wellsite or office.

SiteWatch Mobile App (Fall 2014)Our mobile application will transform the way you monitor your wells. Make cost saving decisions no matter where you are with real-time updates and SW2 functionality on your phone.

TRANSFORMING DRILLING DATA THROUGH INNOVATION

Wireless CementingWith our wireless cementing module you can seamlessly monitor your cementing operations through the EDR and SW2 platforms.

000WCJ-PhoenixTech-FP.indd 1 2014-08-20 8:38 AM

Weve just scratched the opportunities there. I see exploration for oil and gas going on for many

generations. Michael Enachescu

FAST FACTS:Iceberg scouring: When icebergs drift into shallow waters, gouging the seabed it drags against.

Some oil and gas companies rely on submarine pipelines, buried below iceberg gouge depths, to protect against scouring.


Stream Services develops innovative technologies which monitor all critical drilling parameters and delivers real-time information to the rig floor and the office. Our solutions facilitate meaningful data analysis which improves your drilling efficiency and increases productivity.

Auto Driller SystemOur Auto Driller System maximizes drilling performance by maintaining a smooth weight on bit and rate of penetration which results in less stress to the drill string and bottom hole assembly.

Electronic Drilling Recorder (EDR) & SiteWatch 2.0 Portal (SW2)Stream Services EDR and SW2 Portal provide intuitive and flexible interfaces for monitoring drilling parameters from the wellsite or office.

SiteWatch Mobile App (Fall 2014)Our mobile application will transform the way you monitor your wells. Make cost saving decisions no matter where you are with real-time updates and SW2 functionality on your phone.

TRANSFORMING DRILLING DATA THROUGH INNOVATION

Wireless CementingWith our wireless cementing module you can seamlessly monitor your cementing operations through the EDR and SW2 platforms.

000WCJ-PhoenixTech-FP.indd 1 2014-08-20 8:38 AMWCJ_Sept-Oct_14_p12-15.indd 15 2014-08-26 1:03 PM


T

Eastward Ho! A host of energy initiatives could turn Atlantic Canada into the promised land

REPORTEconomics

By Robin Brunet

HOUGH THERES A COUNTRY SPRAWLED between them, Atlantic Canada and the Pa-cific Northwest have more in common than you might think. Both are on the threshold of

an economic boom, thanks to resource development aimed at fulfilling Prime Minister Stephen Harpers vision of Canada as an energy superpower. And on both sides of the country, opponents are lined up.

Its disconcerting that so many people listen to what Hollywood stars have to say about our resource industries rather than the experts, says Glenn Cleland, development director at University of New Brunswicks Centre for Financial Studies.

Still, numerous initiatives are both in fruition and proceeding as planned out east: Shell expects to begin offshore drilling next year, and Husky Energys White Rose oilfield in the Jeanne dArc Basin off of

Newfoundland has been certified to sell to India, which is second only to China as the worlds biggest growth market. Rumours even abound that LNG could be shipped across the Atlantic to Europe in the foreseeable future.

According to a report released on May 26 by the Atlantic Provinces Economic Council (APEC), a re-cord $122-billion worth of major investment projects are in various stages of development across Atlantic Canada, up seven per cent from 2013s inventory.

Newfoundland and Labrador continues to be a key driver of investment activity, due to its promis-ing energy sector. Investment is steadily improving in the region, with current-year spending up about eight per cent to a record $15 billion. Better still, major project investment is expected to remain at near-record levels in 2015.

TransCanada CEO Russ Girling announces the company is moving forward with the 1.1 million-barrel-per-day Energy East Pipeline project at a news conference in Calgary.

PH

OTO

: TH

E C

AN

AD

IAN

PR

ESS

, JEF

F M

CIN

TOS

H


Manage Your Operations, Not Your Reporting Software!

Introducing PetroSightA premier cloud-based well site reporting platform for Oil & Gas companies that need to manage information from daily well site operations

FOR A FREE TRIAL CONTACT US AT 1 (877) 502-2264, email: [email protected] or visit our website at www.petrosight.ca

CONSTRUCTION DRILLING COMPLETIONSwww.cadecanada.com

APEC predicts that labour requirements will increase substantially after this year, with everyone from heavy equipment operators to electricians expected to be in high demand. The council also reports that wages and hours worked have grown rapidly in Newfoundland and Labrador in recent years, with average weekly earnings now second only to Alberta. Presumably, this could slow the rate that At-lantic Canadas residents move to the Prairies for high-paying jobs.

One major focus of attention is Trans Canada Corp.s Energy East Pipeline, widely considered a compatriot to Enbridge Inc.s Northern Gateway Project in getting product to tidewater.

The 4,400-kilometre pipeline will cross six provinces and termi-nate at a refinery and new marine terminal in Saint John, N.B. An estimated 1.1 million barrels per day will be transported, and Cal-gary-based Cenovus Energy Inc. has already pledged to ship 200,000 of those barrels daily.

On paper, Energy East will create $35.3 billion in economic benefits over the next five years. Moreover, it will help replace higher-priced oil imports from the Atlantic basin (currently, Quebec and Atlantic Canada refineries import 86 per cent of their crude, or about 700,000 barrels daily).

It almost goes without saying that Energy East has caused envi-ronmental concerns and protest. The question is how intense is the pushback?

Far less than that in B.C. to Northern Gateway at least as far as Peter Howard, president and CEO of Canadian Energy Research In-stitute (CERI), is concerned: The regulatory issues between Alberta and North Bay, Ont., are minimal because the pipe is already in the ground, and I havent heard of any great pushback further on.

Compared to constructing pipelines westward, Howard says, the east is a relatively-straightforward proposal: there are no major mountain ranges and a comparatively moderate climate. We build pipes in far more severe cold than you ever find in the Atlantic provinces, he notes.

Quebec will still undertake a regulatory review. But, Howard says, Considering their experience with rail transport of late, that provinces regulators may appreciate the comparative safety of transporting oil by pipe.

The project could impact 155 First Nation and Mtis communities across Canada, though. TransCanada engaged all of them at an early stage and continues to do so. Weve signed letters of agreement with almost half of them, says TransCanada spokesman Philippe Cannon.

Not surprisingly, hydraulic fracturing is the main focus of push-back amongst the eastern populace, and last October anti-fracing protestors made national headlines by setting fire to six RCMP squad cars. Hopefully the general public will soon realize the problems of buying crude from foreign sources, says Howard, who spends considerable time on the speaker circuit illustrating how dollars stay in Canada when pipelines and other resource infrastructure are built on home turf (the CERI CEO also uses razor-sharp logic to deflate resistance to tanker traffic off the eastern seaboard: Are tankers

departing Canada any more of a risky proposal than the foreign boats currently coming in? he asks.)

For his part, Cleland is trying to spread what he calls energy knowl-edge in Atlantic Canada, in order to build a talent pool and slow the flow of workers heading west. Nows the time, he says, in reference to developing a CERI-modelled infrastructure in New Brunswick. My

centre at the University of New Brunswick wants to create an energy knowledge base [by] hosting conferences with third party research or primary research from the New Brunswick Energy Insti-tute. The next phase is to partner with the Sproule Academy and host a multi-disciplinary energy

certificate. The last phase will be to produce primary research like CERI. Cleland hopes his ambitions will be fulfilled by the time Energy East

is up and running in 2018.Although Energy East and other projects seem certain to improve eco-

nomic fortunes, Howard warns that they wont necessarily reduce fuel costs. The cost of buying crude from the west and refining it in the east is comparable to the cost of shipping oil from Saudi Arabia, so I hope people arent endorsing the energy projects for this reason, he says.

Howard concludes: I would urge them to focus instead on the pros-pect of keeping dollars in Canada, creating jobs, and weaning ourselves off oil from politically-volatile foreign sources.

Are tankers departing Canada any more of a risky proposal than the foreign boats currently coming in?

Peter Howard

PH

OTO

: TH

E C

AN

AD

IAN

PR

ESS

, JEF

F M

CIN

TOS

H


A proud stocking distributor of Canadian Manufactured Oil Country Tubular Goods (OCTG)

Global Steel Ltd. is a private corporation founded in 1990. From modest beginnings Global Steel

has grown to become one of North Americasmost trusted distributors of premium Canadian

manufactured Oil Country Tubular Goods (OCTG). Today, this Calgary-based company enjoys an un-

matched reputation for product quality, innovation and customer service.

Global Steel maintains key relationships with several major domestic steel mills. Strategic alli-

ances with each mill guarantee reliable and secure access to a full range of high-quality ERW OCTG, Seamless

OCTG and Line Pipe products. We are committed to providing oil and gas producers with

and personalized logistical support.

One call to Global Steel provides customers with com-

the job site. Global Steel currently maintains 18 inventorystock points strategically located across Canada. Eachstock point is supported by veteran trucking companies

service.

An unwavering focus on operating and service excellenceis what separates Global Steel from everyone else. It is acommitment that shows in our products and services. AtGlobal Steel we are focused on your business.

#401, 888 - 4 Avenue SW Calgary, Alberta T2P 0V2P:s&: 403.237.8392

E:INFO GLOBALSTEELCAsWWW.globalsteel.ca

One call to Global Steel provides customers with com-

the job site. Global Steel currently maintains 18 inventorystock points strategically located across Canada. Eachstock point is supported by veteran trucking companies

service.

An unwavering focus on operating and service excellenceis what separates Global Steel from everyone else. It is acommitment that shows in our products and services. AtGlobal Steel we are focused on your business.

Providing seamless collaboration from the rig to the office.

Pason Real-time Drilling Data Solutions


www.cadecanada.com

PROFILEMember

By Martin Dover

I

Opportunity at Home

T WAS THE REST OF THE WORLD THAT ORIGINALLY DREW JOHN Hindman to Albertas oil patch. I wanted to work in different places and environments. That was the carrot for me, he says. I figured I could learn it here in Al-

berta and take it around the world.Hindman, who lives in Airdrie and is now a senior

technical sales associate at Secure Energy Services, didnt end up straying far from home. After graduating from high school he spent a year working on a drilling rig. That sort of introduced me to the industry, and I real-ized that Im here to stay and I liked it. Hindman went to NAIT, where he studied petroleum engineering tech-nology and became a Certified Engineering Technolo-gist. It was always so busy here, and I always found it easy to find work, and I never had to venture outside the country to do that, he says.

Hindmans first job in the industry was working at Anderson Exploration as a drilling engineer. He stuck around when Devon Canada bought the company, and eventually went into drilling consulting, which he did for a decade. Afterwards, he entered the service side.

Ive always been intrigued by the business aspect of the oil and gas sector, and there still is great opportunity there, he says. My skill set fit in really well. I enjoyed the interaction with people. My 10 years on the other side gave me the knowledge of what operators want and expect from a service provider, and I could easily see how to fill the void and meet their needs.

Now at Secure Energy Services, Hindman works to sell drilling fluid services to drilling engineers. He has found the job a perfect fit, including the challenges that he fac-es. The industry requires a higher level of service now for the work thats out there, he says. With the progression of horizontal drilling, it takes a combined experience of both drilling and fluids to give an add-value type service to our clients. Not only that, Its a competitive market and there are lots of choices for operators. You have to be very proactive and be forward-looking in nature, which is good because thats where I came from. Thats how you execute your day to day as a drilling engineer.

Looking for a world of opportunity, John Hindman found a promising career at home

DIRECTIONAL DRILLING + FLOWBACK

CathedralEneryServices.com

Cathedral Energy Services is the principal North American provider of directional

drilling and flowback services.

Our best-in-class services are the result of our honest and hardworking team members

bringing an integral flare of excellence to every project they work on.

Cathedral Energy Services is proud to support the

Canadian Association of Drilling Engineers.

Performance Driven | Service Oriented | Innovation Focused

[email protected]

John Hindman



T

Its a bird, its a plane New technology takes to the air above the oil patch

REPORTTech

By Samus Smyth

HE BLUE SKIES ABOVE THE OIL PATCH, FILLED with birds and countless airplanes, could soon be home to UAVs (unmanned aerial vehicles) soaring high above the northern

Alberta landscape. UAVs (or drones, in the United States) are minia-

ture flying devices that operate without a human on board. In the past, theyve been used predominantly in the military and for childs play, but have recently had their use substantially broadened in a way that could have an enormous impact on the way oil rigs do business.

Tremendous ingenuity in the technology industry has seen UAVs soaring above the oil and gas sector, where they have the potential to do everything from surveying land (in a fraction of the time it pre-viously took) to inspecting pipelines and increasing environmental and personal safety.

Reduce the costs, reduce the risks, reduce the footprint, says ING Robotic Aviations chief officer, Jeremy Byatt. Use a robot.

Byatt, who is feverishly passionate about the po-tential of UAVs, says his company began by working

on military projects, particularly during the war in Afghanistan. They designed their own systems and created their first exported successes, selling machines in Chile and Kenya.

Their move into the commercial sector points toward a changing world, one where equipment that is cost effective and roughneck-worthy is in high demand as a way to cut costs. Byatt believes that public understanding is a key ingredient to the takeoff of UAVs, and that the potential for the incredible amount of fuel saved, and the decreased danger, may be a key part of the convincing process.

Byatt points to the evolution of road vehicles as a sign of whats to come for UAVs, noting that BMW, Mercedes and Nissan are committed to having driv-erless cars on the road within the next few years.

This is stuff that is happening right now. If we can move cars in traffic [without a human behind the wheel], my God, we can do this, he says.

He points to the danger inherent on icy roads that need to be examined for safety, a common co-nundrum in the oilfields. UAVs, in his mind, would serve as a safer judge than a human careening down

Remove PHOTO CAPTION. Catpion: A NuvAero unmanned aerial vehicle, equipped with a camera, can take on tasks from land surveys to pipeline inspections.

A NuvAero unmanned aerial vehicle, equipped with a camera, can take on tasks from land surveys to pipeline inspections.


www.cadecanada.com september/october 2014 21

the road to determine if a road was trustworthy. Along with eliminating dangerous demands,

it also takes over tedious tasks. Instead of an oil and gas pilot spending arduous hours surveying and inspecting over redundant flight patterns, a UAV can do it. With more prominent and accurate inspections, these machines will be able to detect potential disasters more rapidly by sending data im-mediately back to head offices for further analysis.

Robert Eaton, president of NuvAero Flight Sys-tems, a company based in Calgary, agreed that the major cost-saving techniques the robots provide should put companies on immediate notice.

What we can do is significantly lower the cost of visual inspection, he says. Having a premium video camera attached to the UAV means that it can inspect all types of infrastructure, from pipelines, flare stakes, bridges and future train lines.

One of the highlights of the Canadian companys small arsenal is aerial survey.

We are delivering GIS data at three centimetres resolution that compares to 10 centimetres by an aircraft. We are talking about accuracy and resolu-tion in all of the mines and tailing ponds, which are important places that need to be measured.

Not only is the aerial description drastically improved by these flying robots, but they are able to travel to dangerous and obscure areas where workers are prone to danger, like tailings ponds, which can act as quicksand traps for workers and vehicles. With a UAV, they can suddenly be visited with little risk.

And when it comes to saving a few pennies, the contrast between using a helicopter versus a UAV is baffling.

A real helicopter has about 1,000 horsepower, and may be using at least 500 to fly. Our UAV is using one-horsepower to fly, says Eaton. That is what you get when you take the pilot out of the equation.

This is so much more efficient, in terms of financ-es as well. We can pay machines off quicker, we use less power there should be no choice compared to the alternatives.

Eaton didnt need much time to consider which industry he should promote his team of UAVs to. Basing his miniature flight team in Calgary, the nucleus of oil and gas business, Eaton focuses his science directly on how to improve the oil patch. Business in Calgary is steady and has made

encouraging strides over the past three years, part-ly thanks to attention that drones or UAVs have received in American pop culture.

For instance, a YouTube video showing Internet retailer Amazon using a drone to deliver a package to a consumer has attracted more than 600,000 views and has served as catalyst for tantalizing debate over whether its a near future possibility, or merely a dreamers idea with no legs. In Vancouver, real estate agents have used UAVs to show off lavish properties to potential cliental.

In Canada, conversation around UAVs has pre-dominately focused on ease of use, with test after test returning consistent and remarkable results.

It originally sounded like science fiction to them, admits Eaton, when addressing the publics initial perception of the futuristic devices. But after proving the process repeatedly, he says the business and the concept of UAVs playing a regular role in businesses like the oil patch

could be a mere few years away. We have a great system. We are at a point where

we are coming out as a real growth company. It is about entrepreneurial challenges and brining people on the team who have started with tech companies, he says.

The Canadian government even appears ready to help with research and development. Transport Canada continues to play a vital role in UAV pro-gression by developing and expanding air laws. While on a smaller, but equally important scale, post-secondary institutions like the University of Calgary and SAIT Polytechnic currently have pro-grams linked to the creation and operation of UAVs.

Calgary oil and gas company Cenovus is already a step ahead of the pack. After determining that the data generated from a drone was not only valuable but expedient as well, they began using one.

Wade Ewen, Cenovus UAV team lead says the results were bang on, when evaluating aerial photos and burrow pits just south of Fort McMur-ray. The ability to suddenly go from a weeks worth of turnaround time on data to processing data in 24 hours has resulted in a better-looking bottom line for the Calgary-based company.

In 10 years, almost everyone is going to be flying them, he says. The applications are end-less. They are getting cheaper, smaller and as long as we can maintain the safety in the airspace, the future is endless.

The applications are endless. They are getting cheaper, smaller and as long as we can maintain the safety in the airspace, the

future is endless. Wade Ewen


22 september/october 2014 Well Construction Journal

From Foe to Friend A University of Calgary researcher says microbes can become a valuable aid for the offshore oil industry

REPORTEnviro

By Lyndsie Bourgon

D

EEP UNDERNEATH THE ATLANTIC OCEANS surface, off the eastern coast of the Mari-times, the offshore oil industry and microbi-al sciences operate as one.

Casey Hubert, a professor in environmental geomi-crobiology at the University of Calgary, has spent the past several years studying how the petroleum industry and microbiology fit together. And when it comes to the vast deposit of oil and gas waiting at the bottom of the sea, Hubert says this research can play a key role in helping companies understand how science can work alongside their industries.

Hubert is interested in the tiny, living bugs in and around oil reservoirs. These microbes can play an integral role when working to understand offshore

drilling, workplace safety and exploration. When drilling for oil offshore, the standard prac-

tice has been to inject seawater into wells in a bid to aid in the extraction process. The sulphate ions in seawater create the perfect environment for sul-phate-breathing organisms. Its kind of like theyve been given an oxygen mask on a plane, explains Hubert. These bacteria become active at the injection of seawater and start eating the hydrocarbon in the reservoir, exhaling hydrogen sulfide, the corrosive and deadly gas that causes souring.

Its a microbial hazard of offshore oil produc-tion, says Hubert. Though there are lots of safety measures in place to prevent fatalities.

And aside from major health and safety concerns,

Casey Hubert, taking marine sediment cores in the Arctic around the Svalbard archipelago for a marine microbiology project.

Pho

to: J

oel K

ostk

a



this process is also a cost concern for companies, be-cause it corrodes the metal infrastructure involved in production. This can cause major problems in 2006, BP had to shut down a major part of its net-work in Alaska thanks to microbial corrosion.

But knowing this means working towards solu-tions. We can try to mitigate souring by stimulating different bacteria, says Hubert. Some operators try to remove the sulphate, but thats challenging and expensive because theres so much sulphate in seawater that its not an automatic, cheap and easy solution to filter.

Another strategy is to include nitrate with the seawater injection, he says. Nitrate isnt toxic. This can essentially solve the souring problem nitrate-breathing microbes will compete for the same food as the sulphate-reducing bacteria. Nitrate-reducing bacteria are the better competitors, so in theory they will win this competition.

Right now, a number of companies have been injecting nitrate. Hubert and other researchers want to better understand when a reservoir will be amenable to nitrate injection, and would like to be better prepared to estimate the dosage of nitrate needed to be injected. We see our role as trying to de-cipher why it works when it works, to put nitrate technology on a more solid predictive footing enabling modelling of different scenarios, he says. We have thought of ways that you might be able to get more souring control with a lower nitrate dose. Were really trying to get into the nitty-gritty of these processes, to see if we can refine and improve this technology.

Outside of production, certain marine microbes have also been dubbed oil-munching bacteria, and have, in the past, helped clean up oil spills like the 2010 Deepwater Horizon BP accident in the Gulf of Mexico. After the spill, only a quarter of the spilled oil was able to be skimmed off and captured. The rest has been left for trillions of microbes to digest slowly over time. The bacteria worked quick-ly, alongside ocean currents a paper released in the journal Science found that the microbes were actually eating through the spills plume of oil faster than expected in the cold water.

Scientists have been studying ways to accelerate the natural degradation process, when it comes to oil spills including research into hydrocarbon- degrading bacteria. When bacteria clean up oil spills, theyre essentially using the oil as a food

source, says Hubert. But that doesnt mean that bacteria can be relied upon across the board as a clean-up aid and theyre not necessarily the same

oil-hungry bacteria that cause souring. The situations are different, on the sur-face of or bottom of the ocean, he says.

The majority of Huberts research funding comes from govern-ment sources, though he regularly discusses these issues with oil companies, with some providing fi-nancial support and samples for the lab. He thinks that bacteria should not be entirely written off as harmful by oil and gas companies, noting theres opportunity in using microbes during the explo-ration process and that microbial tests can also be useful tools when searching for good drilling sites.

Oil also leaks naturally into the ocean, he says. Reservoirs arent fully-sealed, and marine bacteria can degrade this oil. You might find an abnormally large abundance at seabed hydrocar-bon seepage points.

Oil companies, he says, have an opportunity to screen for bacteria in the ocean, and if they find a large number in a place with no oil spill, there could be hydrocarbons there to use.

By doing some studies in the ocean and seabed, oil companies can take advantage of the same principles that are important for spill clean-up and convert that into exploration strategy, he says.

By doing some studies in the ocean and seabed, oil companies can take advantage of the same principles that are important for

spill clean-up and convert that into exploration strategy. Casey Hubert

FAST FACTS:In July 2012, 4.4 million barrels of petro-leum spilled into the Gulf of Mexico. By September, the vast majority had been cleaned by bacteria and ocean currents.

Underwater plumes: occur from the site of a leak, and are not visible from the surface.

Microbial corrosion can occur anywhere in the production environment in downhole tubulars, top-side equipment and pipelines.

Cells and endospores of sulfate-reducing Desulfotomaculum bacteria that often cause oil reservoir souring.

Pho

to: J

oel K

ostk

a

Photo: Flemming Mnsted Christensen



Canadian Rig Counts August 5, 2014

Drilling Down Total Utilization

Alberta 251 308 559 45%

B.C. 50 26 76 66%

Manitoba 16 10 26 62%

New Brunswick 0 0 0

Newfoundland 0 0 0

Northwest Territories 0 1 1 0%

Quebec 0 1 1 0%

Saskatchewan 69 77 146 46%

Totals 386 423 809 48%Source: Alberta Department of Energy

NUMBERSBy the

Stats at a Glance

Top 5 Most Active OperatorsAugust 6, 2014

Active Rigs

Canadian Natural Resources 21

Progress Energy Canada Ltd. 19

Tourmaline Oil Corp. 18

Crescent Point Energy Corp. 17

Husky Energy Inc. 17Source: CAODC

Top 5 Most Active Drillers in Western CanadaAugust 7, 2014

Active Total

Precision Drilling Corp. 86 189

Ensign Energy Services Inc. 48 101

Trinidad Drilling Ltd. 37 62

Nabors Industries Ltd. 35 64

Western Energy Services Corp. 33 49Source: FirstEnergy Capital

Alberta Land SalesJune 2014

June 2014 June 2013 YTD 2014 YTD 2013

Oil and Natural Gas

Land Sales $21.8 million $20.5 million $227.3 million $405.1 million

Price Per Hectare $398.78 $161.49 $444.97 $348.66

Oil Sands

Land Sales $983,247 $700,591 $4.23 million $6.31 million

Price Per Hectare $320.07 $48.87 $215.45 $81.16Source: Alberta Department of Energy


2014 Baker Hughes Incorporated. All Rights Reserved. 40675 06/2014

The BEACON real-time remote collaboration

platform from Baker Hughes integrates expertise and

technology to provide essential information that helps

you make better, faster decisions that reduce risk and

maximize your deepwater well economics.

Learn more about the full range of Baker Hughes

deepwater technologies and services at

bakerhughes.com/Canada

Reduce your risk with local collaboration and global innovation

Directional Drilling Redefined

W W W . M O S T A R D I R E C T I O N A L . C O M



DEEPERDrilling

By Robbie Jeffrey

Red and White Tape Apprenticeship mobility is tangled in obstructions, but a new east-west agreement could straighten things out

N TODAYS CANADA, THE NEED FOR SKILLED labour is dire. The Canadian Manufacturers & Exporters association says that 1.3 million skilled labour jobs will be vacant by 2016.

Albertas booming oil and gas sector needs an influx of labour to help it run, yet the prospects are ostensibly grim: Enform released a report in 2013 describing a severe skill shortage with no relief in sight.

No matter what the federal government will tell you, we have a crisis in Alberta, says Thomas Lukaszuk, who was Albertas minister of labour until he resigned in May to pursue leadership of the provinces PC party.

Trade apprenticeships lead to high-paying jobs that serve indispensable roles in our economy, and unlike most of their counterparts in colleges or universities, apprentices are paid while they learn, finishing with secure job prospects. So why is the labour shortage so acute? Pundits chalk it up to snobbery tradespeople are looked down upon, they claim, and youth prefer cushy, bachelor degree- requiring desk jobs. Gary Mason, writing in the Globe and Mail, christened the phenomenon an ivory tower preoccupation. But who would forgo such benefits for a mere preoccupation? For apprentices across Canada, its red tape thats often too burdensome.

There are built-in barriers or obstacles to la-bour mobility that discourage the movement of workers, says Lukaszuk. One of the steepest is credential recognition. Often, the credentials re-quired in apprenticeships academic credits and work hours arent transferable across provincial borders, and guidelines arent properly communi-cated. Atlantic Canada recently harmonized their apprenticeship programs for this very reason. It was unwieldy and difficult for apprentices to

move through their training with any kind of cer-tainty that they were getting things in the right order, says Kelly Regan, Nova Scotias minister of labour and advanced education. We dont want to leave our young people in limbo.

Lukaszuk and Regan agree that there needs to be an alignment of interests between apprentices, government and industry. On July 1, Nova Scotia created an industry-led operating agency for ap-prenticeship. Marjorie Davison, policy director of the Labour and Advanced Education Department in Nova Scotia, says that industry felt as if it had

very little influence on decisions for apprentice-ship systems. Over time, [apprenticeship programs] got buried in the bureau-cracy of government, she

says. The agency will be industry-driven, so their influence will permeate the learning system.

Unfortunately for Alberta, the government still has a monopoly on apprenticeships. A major agreement is in the works, though. Regan has been given the legal authority to enter into an agreement with Alberta that would allow Nova Scotian apprentices to work in Alberta without a disruption in their journey, removing fees and paperwork and guaranteeing recognition of aca-demic credits and work hours.

Still, one cant help but feel this agreement favours the West. Apprentices might leave Atlantic Canada for Alberta and find gainful employment, only to stay. Regan has said that her ultimate goal is for the apprentices to get their Red Seal certification and return home. We have a num-ber of projects that will be coming on-stream in the coming years, Regan says. Not everyone will come home, but our expectation is that some will. For the time being, the agreement is a welcoming open road.

I

No matter what the federal government will tell you, we have a crisis in Alberta.

Thomas Lukaszuk

For drilling and completions specialists, CADE currently offers one of the best networking and knowledge sharing opportunities in the Canadian petroleum industry. As you look to build your business and launch new technologies, new products and services in the drilling industry, a CADE Sponsorship offers you a cost effective way to deliver your message directly to the entire membership of the leading industry association for Well Construction Professionals in Canada.

YOUR SPONSORSHIP INCLUDES: Ads in Well Construction Journal, full of relevant industry news and articles, presented in a high quality, well-read magazine

Your logo in the Thank you to our sponsors feature on the CADE website and in every issue of Well Construction Journal

Your logo on the Thank you to our sponsors display at every CADE Technical Luncheon

Authorized use of the CADE logo on your website and in marketing materials

Connect with Canadas Drilling IndustryBecome a CADE Sponsor

2014 SPONSORSHIP PACKAGES ARE NOW AVAILABLEContact CADE at 403.532.0220 or by email at [email protected]

www.cadecanada.com

Support CADE by sponsoring our technical lunches, our website and the Well Construction Journal.

Thank You to Our SponsorsThe support of CADE sponsors plays an integral part in our associations success.

Platinum SponsorsPhoenix Technologies Services

Gold SponsorsGlobal Steel Ltd.

NCS Energy Services

Pacesetter Directional

Schlumberger

XI Technologies Inc.

Silver SponsorsAkita Drilling Ltd.

Baker Hughes

Cathedral Energy Services Ltd.

Ensign

Lory Oilfield Rentals Inc.

Marquis Alliance Energy Group Inc.

Mostar Directional Technologies

Pason Systems

Peak Completions

Petrosight Inc.

Precision Drilling

Well Control Group

000WCJ-CADE_Sponsor-FP.indd 1 2014-08-12 7:41 AMWCJ_Sept-Oct_14_p26-27.indd 26 2014-08-26 12:55 PM

For drilling and completions specialists, CADE currently offers one of the best networking and knowledge sharing opportunities in the Canadian petroleum industry. As you look to build your business and launch new technologies, new products and services in the drilling industry, a CADE Sponsorship offers you a cost effective way to deliver your message directly to the entire membership of the leading industry association for Well Construction Professionals in Canada.

YOUR SPONSORSHIP INCLUDES: Ads in Well Construction Journal, full of relevant industry news and articles, presented in a high quality, well-read magazine

Your logo in the Thank you to our sponsors feature on the CADE website and in every issue of Well Construction Journal

Your logo on the Thank you to our sponsors display at every CADE Technical Luncheon

Authorized use of the CADE logo on your website and in marketing materials

Connect with Canadas Drilling IndustryBecome a CADE Sponsor

2014 SPONSORSHIP PACKAGES ARE NOW AVAILABLEContact CADE at 403.532.0220 or by email at [email protected]

www.cadecanada.com

Support CADE by sponsoring our technical lunches, our website and the Well Construction Journal.

Thank You to Our SponsorsThe support of CADE sponsors plays an integral part in our associations success.

Platinum SponsorsPhoenix Technologies Services

Gold SponsorsGlobal Steel Ltd.

NCS Energy Services

Pacesetter Directional

Schlumberger

XI Technologies Inc.

Silver SponsorsAkita Drilling Ltd.

Baker Hughes

Cathedral Energy Services Ltd.

Ensign

Lory Oilfield Rentals Inc.

Marquis Alliance Energy Group Inc.

Mostar Directional Technologies

Pason Systems

Peak Completions

Petrosight Inc.

Precision Drilling

Well Control Group

000WCJ-CADE_Sponsor-FP.indd 1 2014-08-12 7:41 AMWCJ_Sept-Oct_14_p26-27.indd 27 2014-08-26 12:55 PM

000WCJ-Enform-FP.indd 1 2014-08-12 9:26 AMWCJ_Sept-Oct_14_p28-01.indd 28 2014-08-26 12:53 PM

well construction journal - september/october 2014

Documents

new oil

new frontier

new agreement

oil patchmunching microbes

oil patch22

canadian petroleum industry

members corner

plane new technology