PSAC Petroleum Service News Winter 2014

8/10/2019 PSAC Petroleum Service News Winter 2014

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WINTER 2014

2015 Drilling ActivityForecast Update

Four waysyour digital presencan bring in business

Highlights from the 2014

Industry Insights Forum

The industrys workers are its bestknowledge ambassadors

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T H E O F F I C I A L V O I C E O F T H E P E T R O L E U M S E R V I C E S A S S O C I A T I O N O F C A N A D A


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Contact David Yager, MNPs National Oilfield Services Leader,

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

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Features

Departments

7

1

1

2

2

2

3

COVER

W I N T E R 2 0 1 4

CONNECTING CANADIANSHow oil and gas companies and their

employees can work to win the hearts

and minds of their fellow Canadians

THE INDUSTRY INSIGHTSFORUMHighlights from this years conference

4

2

MESSAGE FROM THE CHAIR

IN THE FIELDNews, notes and events from the industry

2015 DRILLING ACTIVITYFORECAST UPDATE

BUSINESS MATTERSHow to attract business in the online world

PSAC IN ACTION

MEMBER PROFILEA partnership in video game technology

helped Snubco address workplace safety

A LOOK AT LEADERSHIPPSN takes a personal look at

leaders in the oil and gas industry

30

14

WWW.PSAC.CA

28

10

CONTENTS

23

22


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MESSAGEFROM THECHAIR

M PLEASED TO BE THE INCOMING CHAIRforPSACs 2014-2015 year. Over the years that I have been involved

with the PSAC Board of Directors, I have gained a great respect for

both the staff and board members of this organization, and feel

truly honoured to be stepping into this position. Additionally, I would

like to express my appreciation for the existing PSAC board members

efforts and contributions to this great organizat ion. On this note, we

welcome our incoming board members who wil l round out the talent,

experience and insight around the boardroom table.PSACs vision is to be the voice of the upstream petroleum serv ice,

supply and manufacturing sectors. We achieve this by both growing

membership and staying the course on advocating key issues to the

public, government, industry and media. In order to maintain and

excel in these areas, one of my key priorities for the upcoming year a re

to continue to grow our membership across Canada. This is very important in ensuring we

continue to have good representation from all geographical regions, as well as the various sectors

PSAC represents. The power of a collective voice is more important than ever, so growing

membership and engaging our existing members more wil l ensure we are meeting the needs of

our members and industry through our advocacy initiatives.

In todays society, public perception is very important and continuously changing as social

media continues to facilitate the exchange of ideas. In the year ahead, PSAC will stay the coursein producing materials that help inform conversations with Canadians about the responsible

development of our vast natural resources and our industrys commitment to excellence in our

operational and environmental performance.

We know that, in addition to being an integral part of the national dialogue, we have work

to do on the ground in communities where we operate. Programs such as our Working Energy

Commitment (dealing with hydraulic fracturing) and Community Partners, which help

industry and communities work and live together, are key PSAC initiatives. Our community

outreach also includes the celebrated 21-year partnership with STARS through the STARS &

SPURS Gala which has ra ised more than $10 mill ion and also supports PSAC and our members

commitment to safe and vibrant communities.

Finally I would also l ike to take this opportunity, as the STARS & SPURS Gala committee

chair, to mention that the gala is booked for Saturday, January 24, 2015, with entertainment

provided by Corb Lund. This is a great event, and I encourage everyone to take a break from

winter and come out and enjoy this evening event.

I look forward to the year ahead, spent working alongside my peers and PSAC staff in the

continuation of building a strong and recognizable voice for PSAC members.

Best regards,

Wally Dumont

PSAC Board Chair

I

PSAC Brings

Canadians Together

Wally Dumont,PSAC Board Chair

WWW.PSAC.CA


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Winter 2014 VOL 14 No.3

PETROLEUM SERVICES ASSOCIATION OF CANADA

1150 800 6TH AVENUE SW

CALGARY, AB T2P 3G3

TEL: 403.264.4195

FAX: 403.263.7174EMAIL: [email protected]

PRESIDENT AND CEO:MARK SALKELD

VICE PRESIDENT, COMMUNICATIONS:KELLY MORRISON

PETROLEUM SERVICES NEWSIS PUBLISHED FOR PSACBY

VENTURE PUBLISHING INC.

10259-105 STREET,

EDMONTON, AB T5J 1E3

TEL: 780.990.0839

FAX: 780.425.4921

TOLL-FREE: 1.866.227.4276

[email protected]

PUBLISHER:RUTH KELLY

DIRECTOR OF CUSTOM CONTENT: MIFI PURVIS

MANAGING EDITOR:LYNDSIE BOURGON

CONTRIBUTING WRITERS:ROBIN BRUNET, SEAMUS SMYTH,

RYAN VAN HORNE

ART DIRECTOR:CHARLES BURKE

ASSOCIATE ART DIRECTOR:ANDREA DEBOER

PRODUCTION MANAGER: BETTY FENIAK SMITH

PRODUCTION TECHNICIANS: BRENT FELZIEN, BRANDON HOOVER

DISTRIBUTION:KAREN REILLY

ACCOUNT EXECUTIVES:PEGGY BOGDAN, KATHY KELLEY,

DENNIS McCORMACK

PRINTED IN CANADA BY RHINO PRINT SOLUTIONS.

RETURN UNDELIVERABLE MAIL TO 10259 105 ST.

EDMONTON AB T5J 1E3.

[email protected]

PUBLICATIONS AGREEMENT #40020055

CONTENTS 2014 PSAC. NOT TO BE REPRINTED OR

REPRODUCED WITHOUT PERMISSION.

The Petroleum Services Association of Canada is the

national trade association representing the service,

supply and manufacturing sectors within the upstream

petroleum industry. PSAC represents a diverse range

of nearly 250 member companies, employing close to

75,000 people and contracting almost exclusively to oil

and gas exploration and production companies.

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SMART FINANCING

IS ONLY THE BEGINNING.GE Capital is Albertas partner in growth.Breaking new ground or exploring new opportunities, weve beena part of Albertas economy for several years. Every one of the$350 million that GE Capital has invested to companies last yearwas backed with an intimate knowledge of the sector, and its showing.Find out why we believe in Alberta.

What we know can help you grow.

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2013 KPMG LLP, a Canadian limited liabilit y partnersh ip and a member firm of the KPMG network of independent me mberfirms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. 2249

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YOUR WORK ISmobile.SO IS OURS.

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DRILLINGACTIVITYFORECAST UPDATE

Looking At The Year Ahead

BRITISH COLUMBIA: 555

ALBERTA: 5,740

SASKATCHEWAN: 3,365

MANITOBA: 430

TOTAL IN CANADA: 10,100

2015 CANADIAN DRILLING ACTIVITY FORECAST(NUMBER OF WELLS)

Note: Total includes activity in Northern and Eastern Canada.

PSAC FORECASTS 10,100 WELLS TO BE DRILLED IN 2015

N ITS 2015 CANADIAN DRILLINGActivity Forecast,the Petroleum Services Association of Canada (PSAC) forecasts

a total of 10,100 wells drilled (rig releases) across Canada for

2015. This is a slight decrease from the expected final ta lly of 10,

830 wells drilled (rig releases) for 2014.

We are forecasting only a smal l slump in activ ity for the year,

despite the fairly rapid decline in the price per barrel, says Mark

Salkeld, president and CEO of PSAC. We are anticipating a cold

winter again this year, so expect that we will see a t ypical ramp up of

Q1 activity, and of course, slower activities in the spring with break up.

However, we expect the last two quarters of 2015 to see an uptick to

finish another year with strong performance.

There is a lot at play out there, but commodity pricing and market

access are two of the biggest drivers behind forecasted activity levels,

Salkeld adds. But we are optimistic that 2015 will bring some resolve

and positive movement on both those fronts.

PSAC is basing its 2015 Forecast on average natural gas price of

CDN$3.80/mcf (AECO) and crude oil price of US $85.00 barrel (WTI).

On a provincial basis, PSAC estimates a decline in activity levels across

the board in western Canada. In Alberta, PSAC is forecasting a total

Iof 5,740 wells to be dril led, or just over a six per cent decrease over 2014

activity levels. British Columbia is forecasted to have the largest decline

down 20 per cent from 690 to 555 wells (rig releases) for next year. PSAC

is forecasting 3,365 wells to be drilled in Saskatchewan and 430 wells in

Manitoba, or a five per cent and four per cent decline respectively.

We are forecasting that 2015 will see nearly 90 per cent of well

completions in favour of oil which is being driven by commodity prices

still, Salkeld says. We are also forecasting total meterage drilled at jus

over 24 million metres. So while we are dril ling close to 60 per cent few

wells than we had been a decade ago, we are drilling only 20 per cent

fewer metres total.

Meterage is becoming a key indicator of activity and the technologica

gains our industry continues to deliver. Our 2015 forecast has the average

meters/well doubling from 1,232 in 2005 to just over 2,400 metres.

The Petroleum Services Association of Canada (PSAC) is the nationa

trade association representing the service, supply and manufacturing

sectors within the upstream petroleum industry. PSAC represents a

diverse range of close to 250 member companies, employing more

than 70,000 people and contracting almost exclusively to oil and gas

exploration and production companies.


14/3214 WINTER 2014 PETROLEUM SERVICES NEW


15/32WWW.PSAC.CA 1

PHOTO:DARRYLPROPP

N MAY, CALGARY ECONOMICDevelopment (CED)

surveyed the residentsof five Canadian cities

in a bid to understand

how the rest of the country perceivesCalgary. Its aim was to understand

perceptions of the city in order toimprove a strategic plan for the citys

economic expansion.While the report did not focus on the oil and

natural gas industry in particular, in September

the CBC led its coverage of the report by saying

that, although the oil and gas industry is a

cornerstone of Calgarys economy a new

survey suggests its reputation outside the city

could be a liability. The line was based on

INDUSTRY IS HELD TO A MUCH HIGHER

EXPECTATION. BUT WE WELCOME THE SCRUTINY.

WE WANT TO BE AS GOOD AS WE CAN BE.

MARISE AUFFRAY

BY RYAN VAN HORNE

How oil and gas companies and their employees canwork to win the hearts and minds of their

fellow Canadians

I

just a few sentences in the 59-page report, which compiled the results

of 873 people surveyed nationwide. But Court Ellingson, manager o

research and community sustainability for CED, says there were nospecific questions about the oil and gas industry in the survey, and he

was surprised by the medias attention to that detail.

Eleven per cent of the respondents said that their impression of

Calgary had changed negatively, according to Ellingson. Of those 11

per cent, 18 per cent said it was because of the oil and gas industry.

Ellingson says CED and Calgary City Council are working with

industry on ways to alter perceptions surrounding the oil and gas sector

One of the main things they want to do is inspire a full conversation,

instead of controlling the message.

Unless people work for the sector, they dont actually know a

lot about it and maybe theyre misinformed, he says. Incredible

advancements are being made in the energy

sector and people dont know about them.

Marise Auffray, the manager of marketing

and communication for Calgary-based Trican

Well Service, says energy literacy is poor. It

even poor among some who work within oi

and gas, she says. If you ask people: Where

does most of your energy come from? a lot o

people dont know. Auffray says one thing companies can do is enlist

the help of their employees. But first, they have to educate them.

Theyre not equipped with the answers, so we created this booklet

called Talking Oil and Gas. It starts off high level, and then we got into

more detail, she says. The booklet provides general informat ion abou

CONNECTINGCANADIANS


17/32WWW.PSAC.CA 1

person still likes to have a hot shower, a warm house and to get fro

point A to point B.

Resource Works touts itself as a non-profit society that brings facbased information to the public discourse about the natural resourc

sector and its role in B.C.s future. Muir says its important to build

shared common ground, and the surest way to build that is through

civil discussion. Otherwise youre just going to get into Youre wron

Im right. Nothing is ever accomplished by that, he says. Heate

arguments never help.

Muir says there is potential to create ambassadors, and offers som

practical ways to make it happen, like using social media. Another tactic

to take the argument that we are a consumer society and flip it on its hea

Resource Works has a program that provides bumper stickers to employe

in the resource sector that say: Im a provider.

Youve got to ask, if everybody is doing the consuming, whos doin

the providing? he says. This allows people to let your friends know

Hey, Im a provider; Id be happy to talk to you about the indust

and your values. The Petroleum Services Association of Canad

the company and the industry at first. Then, as the employees provide

feedback about the sorts of questions and comments theyre getting, the

company passes along more specific information. She says its designedto help employees answer the questions that people ask in the media, at

dinner parties, barbecues or over coffee.

Employees make good ambassadors, and Auffray concedes that they

might have more credibility among the general public because theyre

not in public relations. When educating employees, its important to

create a balanced conversation, one that highlights how oil and gas

employees are also fellow citizens.

Still, this doesnt mean the industry can rely on employees alone to

overcome inaccurate or incomplete information. There is a requirement

for industry to speak truth, Auffray says. They better have proof

points and scientific data backing it up. She notes that the industrys

detractors are often not held to the same standards. Industry is held

to a much higher expectation, she says. But we welcome the scrutiny.

We want to be as good as we can be.

We all live on this planet, Auffray says. We all drink water and

we all breathe a ir.

STEWART MUIR, EXECUTIVE DIRECTOR OF THE VANCOUVER-BASED THINK-TANK

Resource Works, suggests that in addition to a fact-based approach,

the oil and gas industry needs to appeal to people on a different level

specifically those who seem unwilling to believe anything the oil and gas

industry will say.

What you do in response to that is have a conversation, and it has to

be about values and what it is thats important to us, Muir says. That

ITS A STORY THAT YOU AND THE MILLIONS OF

OTHER CANADIANS WHO WORK IN THE RESOURCES

SECTOR ALREADY UNDERSTAND. AND IT IS ONE

THAT WE ARE DETERMINED TO TELL. PERRIN BEATTY



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Beatty says. Were making the case to our network that the natur

resource sectors are a significant source of value added to the Canadia

economy.

Canadians have made business from our natural resources since th

land was first colonized by Europeans. Beatty has long maintained th

Canadas energy inheritance, one that other countries around the wor

look at with envy, is a cornerstone of our prosperity and competitivene

in the 21st century.

Its a story that you and the mill ions of other Canadians who work

the resources sec tor already understand, Beatty says. And it is one th

we are determined to tell.

(PSAC) also has a website which offers a number of product videos and

explanations that describe how we all use oil and gas in our lives.

Muir says theres a feeling in Canada that there is just too much resistance

to resource development, even though our regulatory structures give us a

lot to be proud of.

Perrin Beatty, the president of the Canadian Chamber of Commerce

and a proponent of the National Energy Strategy that was ratified by the

countrys premiers at their annual meeting in Prince Edward Island this

past August, said at a speech to an LNG conference in September that

resource industries are vital to our economy: Canadas huge advantages

our abundant natural resources, our skilled labour force, our strong

commitment to environmental protection will count for very little

without the infrastructure to extract and move our energy, mineral, forest

and agricultura l products to the markets that need them the most.

His organization is trying to build a network of local chambers,

forming a partnership that will promote resource trade. So far, 100 localchambers across Canada representing more than 60,000 small, medium

and large businesses are helping to spread the word.

Weve been asking these chambers to get the word out to their

communities through op-eds, letters to their members and events,

KNOW YOUR OIL AND GAS

The Petroleum Services Association of Canada (PSAC) hasset up a website that offers a number of product videos and

explanations that describe how we all use oil and gas in our lives.

See more at www.oilandgas.ca


19/32WWW.PSAC.CA 1



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Canadian expert ise. In addition to a

new website, Yee and his colleagues

deployed SEO and online advertising s

that Pajak appeared in both the natura

and paid search results when relevant

keywords were searched. The use of

analytics and monthly reports made

visitor volume and activity predictable

and actionable. As a result, PajakEng.com was ahead of competitors

in Google search and traf fic rankings only four months after the

sites deployment.

CHOOSE YOUR MARKETING FIRM WISELY

Not all online ma rketing consultants are created equal, so how do yo

select the right one?

The best way to find a reliable company with trusted advisors is to

look for certifications. For example, FP iMarketing is a PSAC membe

Its also accredited by the Better Business Bureau, has been Google

AdWords certified since 2005 and is a member and sponsor of the

Canadian Ma rketing Associations Calga ry chapter.

AVING AN ONLINE presence in the energysector is becoming more important as the digital age

evolves. People no longer use phone directories to

find companies; they al l look online. There are many

ways for companies to market themselves online and it may become

confusing as to where to sta rt. How can PSAC members use digita l

marketing to expand their customer base towards a global market?

Having a company to guide your online presence and provideexpert opinions is a good way to start. FP iMarketing Technology,

a Calgar y-based online marketing company, has plenty of advice to

share to enhance your online presence:

YOUR WEBSITE IS MORE THAN A CORPORATE BROCHURE

Your brand image can be spoiled with a poor or outdated website.

Your messaging absolutely has to match your perceived expertise,

says Fred Yee, CEO at FP iMarketing. Yee finds it counterintuitive

that many energy sector companies act globally but think local ly

online. Sponsoring local golf tournaments a nd giving away hockey

game tickets is good for staff morale, but showcasing these things on

your site doesnt work in terms of global marketing.

CLEARLY STATE YOUR CASE

People reading about [your

company] online wont waste time

trying to figure out what you do or

provide, says Yee. You have to tell

them clearly, on your homepage.

This especial ly applies to large

organizations, because the bigger

they are, the more things they are l ikely involved in.

MAKE IT EASY FOR PEOPLE TO FIND YOU

This should be the single most important objective for any business.

FP iMa rketing provides FP Max, a pay-as-you-go solution that

helps clients get found online. T he company uses search engine

optimization (SEO) techniques, which influence search engine

results to boost a companys ranking. FP iMarketing also uses online

tools to aid in a companys success, like ActiveConversion, which

identifies and tracks website visitors and where they came from.

In 2011, the marketing firm created an online presence for

Calgary-based Pajak Engineering, which showcased the companys

The Digital SnareHOW TO ATTRACT BUSINESS IN THE ONLINE WORLD

BY ROBIN BRUNET

BUSINESSMATTERS

H

YOUR BRAND IMAGE CAN BE SPOILED

WITH A POOR OR OUTDATED WEBSITE. YOUR

MESSAGING ABSOLUTELY HAS TO MATCH YOUR

PERCEIVED EXPERTISE. FRED YEE



INDUSTRYINSIGHTS 2014

HIS YEARS INDUSTRYInsights Forum was a sellout, with

the crowd being one of the biggest

PSAC has hosted in years. The day

kicked off with PSACs 2014 Annual General

Meeting (AGM), which gave the association

the opportunity to recognize the incoming

2014-15 Board of Directors and the recipients

of this years Distinguished Service Awards,

given to PSAC members who volunteer their

time through committee work. It was alsoan opportunity to highlight many of the

accomplishments of the past year, including

PSACs continued efforts to connect with

Canadians through the Working Energy

Commitment program. Following the AGM,

the 2015 Canadian Drilling Activity Forecast

portion of the program took place, with almost

400 people in attendance. No doubt the crowd

was eager to hear the forecast for next year,

given the uncertainty percolating across the

industry due to recent downward trends in

commodity pricing and other market forcesthat point to a future dip in activity. Mark

Salkeld, PSACs president and CEO, presented

the forecast with Dave Collyer, CEO of the

Canadian Association of Petroleum Producers

(CAPP), Jeff Fetterly, principal oilfield services

analyst at Peters & Co., and Eugenio Alemn,

director and senior economist at Wells Fargo

& Company.

Dave Collyer detailed CAPPs forecasted well

count, which was only 100 fewer than PSACs

forecast at 10,000, and capital spending for the

producer community. But in addition to growth

opportunities, he touched on a very important

factor facing the industry around public

confidence. Collyer explained that while polls

of public opinion certainly indicate a rising tide

in support for the industry, there is still work to

be done to reach out to the public. One key way

to achieve greater public confidence, he noted,

is through encouraging a greater level of pride

among industry employees in what they do and

the industry they work for.

The theme of greater pride hit centre stage at

the Industry Insights Dinner later that evening.

A Celebration of PrideTHIS YEARS INDUSTRY INSIGHTS FORUM WAS A DAY OF INSPIRATION FOR PSAC MEMBERS

TPSAC celebrated longstanding members

those companies who celebrated a milestone

(five, 10, 15, 20, 25 or 30 years) anniversary in

the past year.

The dinner also gave PSAC the opportunity

to award a Chairmans Award to Wally Kozak

at Calfrac Well Serv ices, for his longstanding

commitment and dedicated support of the

associations work.

The day finished with a bang, as PSAC had

the great pleasure of welcoming Rex Murphyfor this years keynote address. In his ty pical

fashion, Mr. Murphy delivered a thought-

provoking and pride-inspiring address

call ing on industry to stop apologizing for

itself and to wear all the benefits the industry

delivers as a badge of pride. The dinner

finished with a standing ovation for Mr.

Murphys cal l to act ion.

2013-2014 DISTINGUISHED SERVICE AWARD RECIPIEN

For his continued participation and contribution tothe PSAC Education Fund and the Special Events

Committee: Travis Strube.

The following individuals for their contribution to the

Special Events Committee, which organizes the only

fundraiser for the annual Education Fund Golf Classic

Karoline Beninger, Clyde Bonnell, Lee Emond, Bria

Farmer, Garry Lane, Blake Lawrence, Graham

Maglio, Brett Noble, Mart y Price, Glenn Walker an

Michael Van Olm.

Education Fund Committee: Darcy Brown, Terri

Larson, Ted Nelson, Tamara Nelson, Linda Van Son

Dieter Wentzel.

For chairing the Health & Safety Committee:

Kevin Crumly.

For contributions to the Health & Safety and

Transportation Issues Committees: Stacy Saunders

Contributions to the Transportation Issues Committe

Chris Mackenzie.

For participation on the Oilwell Perforators Working

Group: Robin Cote, Brent Rudy, Duane Fairhurst,

Russell Hayden and Vince Kozak.

For participation during the Spring Conference:

Doug Smith.

Mark Salkeld, PSACs President and CEO,

delivers the 2015 Canadian Drilling Activity

Forecast to a sold-out crowd

PSACs outgoing Chair, John Gorman, Area

Vice President at Halliburton Group Canada,

provides outgoing remarks at the Industry

Insights dinner


23/32WWW.PSAC.CA 2

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Celebrating 30 years

Firemaster Oilfield Services Inc.

NWP Industries Inc.

Prairie Mud Service

URS Flint


Sandys Oilfield Hauling Ltd.

Tuboscope Vetco Canada ULC

United Safety Ltd.


Air Liquide Canada Inc.

Baker Hughes Canada Company

Enerchem International

Celebrating 15 yearsAMGAS Services Inc.

Hallmark Tubulars Ltd.

High Arctic Energy Services Inc.

Owen Oil Tools, A Division of Core

Laboratories Canada Ltd.

Precision Well Servicing, A Division of

Precision Limited Partnership

Tenaris Global Services (Canada) Inc.

Total Production Services o/a Total

Enerflex Welltec Canada


Bonnetts Energy Services L.P.

Boss Wireline Services

Flexpipe Systems Inc.

GE Oil & Gas Pressure Control

Canada Inc.

Kodiak Wireline Services Partnership

Nalco Champion, An Ecolab Company

Road Train Oilfield Transport Limited

Wespro Production Testing Limited

Celebrating 5 years

BOS Solutions Ltd.

CEDA

Ferus Inc.

Goliath Snubbing Ltd.

PSAC 2013-2014 LONGSTANDING MEMBERS

Renowned Canadian commentator Rex Murphy

delivers the keynote address

Wally Kozak, Director of Government and

Industry Relations at Calfrac Well Services,

accepting the 2014 PSAC Chairmans Award



WELCOME THE PETROLEUM SERVICES ASSOCIATION OF CANADAS 2014-2015 BOARD OF DIRECTORS

PSAC is pleased to announce its 2014-2015 Board of Directors. PSACs Board of Directors represents the diversity of Canadasupstream petroleum services, supply and manufacturing sectors, and brings unparalleled expertise to the strategic directionof the association. To learn more about PSACs directors, visit psac.ca.

NEWFACES

BACK ROW:

(from left to right):

Trevor Haynes,

Bill Darling,

Ian McConnell,

Tom Whalen,

John Gorman,

Mark Salkeld,

John Taskinen,

Doug McNeil,

Duncan Au,FRONT ROW:

(from left to right):

Scott Van Vliet,

Deborah Close,

Wally Dumont,

January McKee,

David McHattie,

MISSING:

Chris Gall,

Scott Hauck,

Dave Reed,

Grant Stevens

OFFICERS

CHAIR:Wally DumontSenior Vice-President Industrial ServiceTechnology, Clean Harbors Energy

& Industry Services

FIRST VICE-CHAIR:Trevor Haynes

President and CEO, Black DiamondGroup Limited

SECOND VICE-CHAIR:Deborah ClosePresident, Production Services,Tervita Corporation

THIRD VICE-CHAIR: Doug McNeillCSO, Stream-Flo

PAST CHAIR:John GormanVice-President Canada,

Halliburton Group Canada

PRESIDENT:Mark Salkeld

President and CEO, Petroleum ServicesAssociation of Canada

DIRECTORS

Duncan AuPresident and CEO, CWC EnergyServices Corp.

Bill DarlingDirector, Mustang Well Services Ltd.

Chris GallVice-President, Global Supply Chain,

Calfrac Well Services

Scott Hauck

President Distribution Services Canada,National Oilwell Varco-DistributionServices Group

Ian McConnellVice-President, Corporate, ProTechnics, a

Division of Core Laboratories Canada Ltd.

David McHattie

Institutional Relations Director, Canada,Tenaris Global Services (Canada) Inc.

January McKeePresident, AMGAS Services Inc.

Dave ReedVice President, Canadian Region,Weatherford Canada Partnership

Grant StevensPresident & CEO, Grant Production

Testing Services Ltd.

John Taskinen

President, Snubco PressureControl Ltd.

Scott Van VlietCo-President, EnvironmentalRefuelling Systems Inc.

Tom WhalenPresident, Baker Hughes Canada

Company


25/32WWW.PSAC.CA 2

Land SurveyingOil and Gas Services

Pipeline Right-Of-Way

Environment

Engineering

Safety

Consultation100 Year History On Budget

On Time

Utilities

Construction

Opus InfrastructureQualityMapping

Find out more at www.opussw.com

Opus Stewart Weir

Head Ofce, Sherwood Park, ABt. +1 780 410 2580



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

PSACINACTION

Advanced Education, Greg Bass, Deputy Minister of Jobs, Skills

Training and Labour and Gitane De Silva, Deputy Minister o

International and Intergovernmental Relations.

BRITISH COLUMBIA:

On September 17, PSACs Board of Directors meeting was held in

Fort St John, B.C., and was attended by Rich Coleman, the Ministe

of Natural Gas Development and Deputy Premier, Pat Pimm, Peac

River North MLA and Paul Jeakins, CEO of the B.C. Oil and Ga

Commission.

QUEBEC

PSAC recently had the chance to meet with Christyne Tremblay

Deputy Minister of Quebec Energy and Natural Resources in

Quebec City, QC. This provided the opportunity to introduce PSAC

our members and some of the key issues relevant in the province o

Quebec for our members and future resource development.

ATLANTIC PROVINCES:

Via conference call, PSAC met with Wes Foote, Newfoundland

and Labradors Assistant Deputy Minister of Petroleum

Development, to discuss the governments current outlook on

possible onshore development in the province. PSAC travelled east to Nova Scotia and New Brunswick in

November. In Nova Scotia, PSAC had the opportunity to mee

with the Deputy Minister of Energy and other policy officials to

discuss current legislation that would ban deep well fracturing

While in New Brunsw ick, PSAC had the opportunity to meet with

Minister Donald Arsenault the new minister of energy, his new

deputy ministers and other senior policy officials. As well, PSAC

presented on the Working Energy Commitment and Hydrauli

Fracturing Code of Conduct at the New Brunswick Mines and

Energy Conference.

FEDERAL:

Closing out the summer, PSAC attended the Canadian Energy

and Mines Ministers Conference in Sudbury, Ontario. This

conference acts as a great forum for informal conversations with

energy ministers and their staff from across the country. This year,

PSAC had the opportunity to connect with federal and provincial

officials including Minister Greg Rickford, Natural Resources

Canada, Minister Diana McQueen, at the time with Alberta

Energy, and Minister Pierre Arcand, Quebec Energy and Natural

Resources.

PSAC presented on the theme of energy and technology tothe federal Alberta caucus in Canmore, Alberta. Minister of

Employment and Social Development Jason Kenney, Wetaskiwin

MP Blaine Calkins, Calgary-Centre MP Joan Crockatt, Yellowhead

MP Robert Merrifield, newly elected Fort McMurray MP David

Yurdiga, Medicine Hat MP LaVar Payne and Andrea Smotra,

Regional Affairs Advisor from the Prime Ministers Office were

present at the presentation.

PSAC met with federal Deputy Minister of Natural Resources Bob

Hamilton in Calgary to introduce PSAC.

PSAC met with federal Assistant Deputy Minister of Natural

Resources (Energy Sector) Jay Khosla in Ottawa.

PSAC met with representatives from Veterans AffairsCanada (VAC) regarding veterans transitioning from

military to civilian industry employment on October 8. The

meeting was attended by Major Jo-Anne Flawn-LaForge,

Canadian Armed Forces (CAF), Chantal Picard, VAC

Director, CAF Integration and Transition Management and

Sandra Lambe, VAC Director, Program Policy & Outreach.

ALBERTA:

PSAC met with various deputy ministers in Edmonton,

including: Marcia Nelson, Deputy Minister of Innovation and

As a member of the CME-led Canadian Manufacturing Coalition,

PSAC recently part icipated in Manufacturing Day on the Hill and

had the opportunity to meet with the following:

Blaine Calkins, MP (CON) Wetaskiwin, Alberta.

Phil McColeman, MP (CON) Brant, Ontario. Chair of the

Parliamentary Committee on Human Resources, Skills and

Social Development and the Status of Persons with Disabilities.

Carol Hughes, MP (NDP) - Algoma Manitoulin-Kapuskasing,

PSAC CONNECTS WITH CANADIAN LEADERS

MANUFACTURING DAY ON THE HILL

Ontario & Deputy Critic for Aboriginal Health

Brian Masse, MP (NDP) - Windsor West, Ontario & Critic for

Federal Economic Development Agenday for Southern Ontario

Canada - UF Border & Great Lakes.

Carolyn Bennett, MP (LIB) St. Pauls, Ontario Critic for

Aboriginal Affairs

Justin Trudeau, MP (LIB) Leader of the Liberal Party

of Canada


27/32WWW.PSAC.CA 2

A clip from PSACs Oil and Gas in Your Life video, showcasing

everyday items that are made from petroleum products.

PSAC has launched a series of short videos

showcasing the day-to-day products

that are made from petroleum. From

flip-flops to electronics, the number of

products is endless. Check the videos out at

www.oilandgasinfo.ca .

CHECK OUT PSACS OIL AND GAS IN YOUR LIFE VIDEO SERIES

For more information contact us at

E: [email protected]

P: 403.214.7570

WWW.KRDRILLGEAR.COM

PERFORMANCE.FOCUSED.Design and fabrication of high quality, innovative Drilling Rigs

and components, Service Rigs, Stimulation Equipment,

Oilfield Surface Equipment, and custom fabrication.

Canadian Inspiration. Global Innovation.Local Service.

FIELD TESTEDAND PROVEN RIGPACKAGES



HE LAST VIDEOgameTroy LeBlanc played was Super

Mario Bros. In its heyday,the game was flat, simple

and marketed towards children and while

LeBlanc grew up to become the vice-president

of Alberta-based Snubco, video games evolved

into a billion-dollar industry.

LeBlanc never expected video game tech-

nology to revolutionize the way his company

conducts work-safety training. Forging a unity

with Calgarys Serious Labs, the two companies

have developed an industry-changing technol-

ogy that has made them leaders in safety and

game-tech innovation.In the mid-2000s, the oil and gas industry

was booming in Alberta and snubbing was in

fierce demand. But with intense and growing

work requests, more work-related injuries

resulted. It came to a point where injuries

affected Snubcos ability to bid on jobs. The

company was also forging ties with industry

in China, and safety needed to become an

immediate and prudent priority.

So in 2008, the desire for a refreshed and

upgraded view on workplace safety education

led to a discussion with Serious Labs.

When Snubco began providing equipment to

clients in China, a potentially dangerous language

barrier became apparent. Safety measures and

standards were sometimes lost in translation with

international clients, until Serious Labs created

a world-class snubbing simulator that allowed

workers to act out scenarios they would confront

in the workplace. The simulator opened up a

whole new world, says LeBlanc.

Using gaming technology and platforms, Se-

rious Labs created a simulation for competency

training. The simulator has control integration

Levelling Up

T

and all of the snubbing equipment one would see on a work site, and isessentially a snubbing stage mimicking reality. The simulator comprises

a control panel measuring approximately two feet wide and 10 inches

off the table, with a depth of 18 to 20 inches. It has a number of handles

protruding from the top, completely replicating a standard snubbing

controller. The machine has a 1:1 ratio with a real-world machine. With

muscle memory being a key skill to operate effectively, the flush ratio is a

massive advantage.

For Chinese clients, the simulator was equipped with a Mandarin-

inscribed control panel, making the hands-on machine an effective

communication vessel between Snubco and the client.

Wade Carson, director of sales for Serious Labs, says the use of video

game technology has elevated the expectations for concise learning

methods. Chalk and talk methods do not work with the digital age

generation. Games are engaging and increase retention and reduce time

for comprehension, says Carson.

The simulator has been so triumphant that it was recently contracted

out by the Workers Compensation Board Alberta to dictate whether or

not injured workers are capable of operating equipment again. To LeBlan

this is only the beginning of the relationship between gaming and the oil

and natural gas industry.

I think that the idea of training with games is going to be the new

method [on which] all oil and gas workers will be trained. It is measureab

it is something that can be tracked, and we are seeing that games are more

effective than instructor-led training, he says. This is the future.

AN INNOVATIVE PARTNERSHIP IN VIDEO GAME TECHNOLOGY

HELPED SNUBCO ADDRESS WORKPLACE SAFETY CONCERNS

BY SAMUS SMYTH

MEMBERPROFILE


29/32

Seamlessly deliveringthe right personnel for

every project.Pajak Engineering has been providing engineering expertise,

project management services, well-site supervision and peace

of mind for our clients since 1966.

We are committed to the training and qualification of the skilled

consultants we represent, and are proud to work with many of

Canadas most respected operators.

Visit www.pajakeng.com to learn more.



IF YOU COULD DO ANY OTHER JOB, WH AT WOULD THAT BE?

MD: A university professor.

GL :Make unwell people better.

WHAT IS YOUR FAVOURITE BOOK OF ALL TIME?

MD :Dune.

GL :I read a lot of books, mostly biographies and hi story. Biographies

of Churchill, Washington, Lincoln and Sir John A. Macdonald are

among my top picks.

WHAT ABOUT MOVIE?MD :The Usual Suspects.

GL :My favourite is a tri logy, with the same continued plot and actors:

the Jason Bourne series.

IF YOU COULD INVITE THREE FAMOUS PEOPLE (DEAD OR ALI VE) TO DINNER,

WHO WOULD THEY BE AND W HAT WOULD YOU SERVE?

MD :Albert Einstein, Winston Churchill and Bill Gates. Id serve

Alberta beef.

GL :I would pick Churchill, Washington and Sir John A. Id grill up

some Alberta rib-eye steaks and serve it with a Caesar salad doused

in my own homemade dressing and loaded baked potato. I think they

would enjoy Alberta stea k.

WHAT DO YOU THINK IS THE BIGGEST CHALLENGE FACING CANADAS ENERGY

INDUSTRY AT THIS TIME?

MD :We are losing the PR battle for the hearts and minds of the

general public.

GL :Overcoming a well-organized opposition to building new energy

pipelines. Part of the challenge is countering todays climate of

NIMBYism, and par t comes from ideologically hostile opponents

feeding misin formation to the public about the risks of pipelines.

There is misunderstanding and naivet about the feasibility of

alternative energy sources supplanting oil and gas any time soon.

WHAT WOULD YOU SAY IS YOUR BIGGEST ACCOMPLISHMENT TO DATE?

MD :Raising my two sons.

GL :Thats easy: raising my two daughters to be wonderful young

adults. Theyve both recently graduated with business degrees f rom

two different Canadia n universities. Actua lly, I have to give my wife

Patricia, most of the credit here.

WHAT TALENT WOULD YOU MOST LIKE TO H AVE?

MD :Musical talent, through song, dance or instrument.

GL :I would like to have learned to play a musical instrument, maybe

something cool like the saxophone.

IF YOU COULD CHANGE ONE THING ABOUT YOURSELF, WHAT WOULD IT BE?

MD :Worry less.

GL :More patience.

WHAT IS YOUR MOST TREASURED POSSESSION?

MD:Family.

GL :Ive picked up a lot of interesting stuff t ravelling around the

world, especially antique maps of North America. But frank ly the

most treasured is my 30-year marriage to Patricia.

IF YOU COULD TRAVEL TO ANY WHERE IN THE WORLD, WHERE WOULD YOU G

MD:Hot weather and ocean beaches.

GL :Ive been able to travel to some exotic destinations in Europe, th

Middle East, Asia a nd Africa, sometimes for work and sometimes on

vacation. I like some of the Pacific Isl ands Ive visited li ke Tahiti, Fij

and Hawaii.

WHO ARE YOUR HEROES IN REAL LIFE?

MD :My wife.

GL :I admire people who take ti me to volunteer with organizations

that are helping children, seniors and others who are struggling wit h

special challenges in life.

MIKE DOYLE

President

Canadian Association of Geophysical Contractors

(CAGC)

GARY LEACH

President

The Explorers and Producers Associat ion of Canada

(EPAC)

PETROLEUM SERVICES NEWSTAKES A PERSONAL

LOOK AT LEADERS IN THE OIL AND GAS INDUSTRY.

IN THIS EDITION WE MEET:

MIKE DOYLE GARY LEACH

ALOOKAT LEADERSHIP


31/32


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