How PSAC became a voice for industry change

SUMMER 2014
2014 Drilling Activity
Forecast Update
Recapping the
Spring Conference
The merger and acquisitions
market heats up
Power Player
PM#40020055
T HE OF F I CI A L VOI CE OF T HE PE T ROL EUM SERVI CES A S SOCI AT I ON OF CA NA DA
PSAC_Summer_2014-p01.indd 1 2014-05-16 9:15 AM
TIGHT FIELD MARGINS AND SOARING COSTS.
Where do you go from here?
Your operations personnel are working hard and
putting in long hours. You must be making a
good prot, right? Not necessarily. Until you
understand and control variable expenses on job
costs and eld margins, you may not realize that
although you took the operational risk, you didnt
earn an adequate prot in return. Thats why MNP
delivers the in-depth strategies and premium
solutions you need to tighten internal controls
for job pricing and eld marginsso you can
get more from your business and increase your
bottom line.
Contact David Yager, National Leader,
Oileld Services at 403.648.4188
or david.yager@mnp.ca
000PSN-MNP-FP.indd 1 2014-04-21 10:13 AM
E A R T H W A T E R W A S T E R E S O U R C E S
OU R S OL U T I ON S H E L P E D T U R N 6 0 YE A R S
OF L I A B I L I T Y I N T O H I ST ORY.
Theres something to be said about leaving things better than the way you found them.
Thats what we do. We are Tervita, an environmental solutions company and your sustainability
partner. We oer the most comprehensive range of integrated earth, water, waste and resource
solutions for all stages of your project designed to help reduce your costs, manage your liability
and protect your reputation. Minimizing impact, maximizing returns.
TM
Its about helping to sustain
your business. And everything around it. Visit tervita.com/earth to learn more.
Unique approach
to secure wellbore,
porous formations
and protect
towns water.
Abandonment
completed safely
in accordance
with compliance
regulations.
000PSN-Tervita-FP.indd 1 2014-04-22 11:05 AM PSAC_Summer_2014-p02-03.indd 2 2014-05-16 9:16 AM
TIGHT FIELD MARGINS AND SOARING COSTS.
Where do you go from here?
Your operations personnel are working hard and
putting in long hours. You must be making a
good prot, right? Not necessarily. Until you
understand and control variable expenses on job
costs and eld margins, you may not realize that
although you took the operational risk, you didnt
earn an adequate prot in return. Thats why MNP
delivers the in-depth strategies and premium
solutions you need to tighten internal controls
for job pricing and eld marginsso you can
get more from your business and increase your
bottom line.
Contact David Yager, National Leader,
Oileld Services at 403.648.4188
or david.yager@mnp.ca
000PSN-MNP-FP.indd 1 2014-04-21 10:13 AM
E A R T H W A T E R W A S T E R E S O U R C E S
OU R S OL U T I ON S H E L P E D T U R N 6 0 YE A R S
OF L I A B I L I T Y I N T O H I ST ORY.
Theres something to be said about leaving things better than the way you found them.
Thats what we do. We are Tervita, an environmental solutions company and your sustainability
partner. We oer the most comprehensive range of integrated earth, water, waste and resource
solutions for all stages of your project designed to help reduce your costs, manage your liability
and protect your reputation. Minimizing impact, maximizing returns.
TM
Its about helping to sustain
your business. And everything around it. Visit tervita.com/earth to learn more.
Unique approach
to secure wellbore,
porous formations
and protect
towns water.
Abandonment
completed safely
in accordance
with compliance
regulations.
000PSN-Tervita-FP.indd 1 2014-04-22 11:05 AM PSAC_Summer_2014-p02-03.indd 3 2014-05-16 9:16 AM
14
16
When the going gets tough, the tough stay put. Through the credit crunch,
depressed commodity prices and global economic turmoil, weve done just that.
We never left the side of the people whove made Alberta an economic powerhouse,
and we continue to custom build solutions to help them do what they do bestlead.
Because Alberta means the world to us.
atb.com/Leaders
TM
Trademarks of Alberta Treasury Branches.
Leaders dont flinch.
000PSN-ATB-FP.indd 1 2014-04-16 3:06 PM PSAC_Summer_2014-p04-05.indd 4 2014-05-16 9:16 AM
WWW.PSAC.CA 5
Features
Departments
7
10
13
23
26
28
30
C
O
V
E
R
S UMME R 2 0 1 4
SPRING FLING
Highlights from the 2014 PSAC Spring
Conference
THROUGH THE AGES
A look at PSACs 32-year evolution
14
16
MESSAGE FROM THE CHAIR
IN THE FIELD
Industry news, notes and events
2014 DRILLING ACTIVITY
FORECAST UPDATE
BUSINESS MATTERS
The mergers and acquisitions market heats up
PSAC IN ACTION
MEMBER PROFILE
Lessons on manufacturing and competitive
pricing from Tenaris
A LOOK AT LEADERSHIP
Getting to know PSAC board members
Andy Brooks and Deborah Close
10
16
WWW.PSAC.CA
26
14
CONTENTS
23
When the going gets tough, the tough stay put. Through the credit crunch,
depressed commodity prices and global economic turmoil, weve done just that.
We never left the side of the people whove made Alberta an economic powerhouse,
and we continue to custom build solutions to help them do what they do bestlead.
Because Alberta means the world to us.
atb.com/Leaders
TM
Trademarks of Alberta Treasury Branches.
Leaders dont flinch.
000PSN-ATB-FP.indd 1 2014-04-16 3:06 PM
30
PSAC_Summer_2014-p04-05.indd 5 2014-05-16 9:44 AM
PETROLEUM SERVICES NEWS
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MESSAGE FROM THE CHAIR
HIS IS A PIVOTAL TIME FOR PSAC. Over the
past 30 years, PSAC has been advocating on behalf of
our service sector members and vying for the attention
of elected ofcials and bureaucrats. Now, government
representatives come to us.
Our sector is capturing the attention of elected ofcials and senior
bureaucrats for a couple of reasons. First, with a winter that never seemed
to quit and a sector striving to meet demand, activity levels remain robust
and energy continues to drive the Canadian economy. You can read about
the latest Canadian Drilling Activity Forecast update on page 13 of this
publication. Second, increased use of multistage hydraulic fracturing and
directional drilling technologies has led to an expansion of our workforce
and jobs are always important to government representatives.
In its dealings with elected ofcials, PSAC shares the tremendous
impact these technologies have had on the service sector workforce, but until recently we needed
hard facts to support our advocacy efforts. So we commissioned a study entitled Horizontal
Drilling Workforce. The study, conducted by MNP LLP, is the rst of its type to consider direct
eld employment on the drilling and completion side of new generation resource plays that use
horizontal drilling and multistage hydraulic fracturing.
The study included the four main supplier groups location, drilling, completion, and
logistics required by typical wells completed in northeast British Columbia, central Alberta
and southern Saskatchewan in 2013. The data revealed that of the 5,790 wells examined, the
equivalent of 60,863 jobs were created, based on a typical 40-hour work week, 52 weeks of the
year. This is an impressive level of skilled employment, with a dramatic and positive impact
on the Canadian economy. Quite simply, its hard data to ignore, and PSAC is riding the
momentum of this report by bolstering our government relations efforts at all levels.
The technologies that are growing our business here in Canada are also being marketed and
used internationally. This point was brought home at PSACs second annual Canadas Energy
Blueprint Forum, held in Calgary in April. Participants at this event not only discovered the
latest innovations in our sector, but also learned about how these technologies are heading
overseas. This international recognition is another impressive aspect of our sectors activity, and
presents an interesting talking point when addressing PSAC member needs with government
ofcials. For more than three decades, PSACs number one role has been to advocate on behalf
of our members. That will never change. What has changed, and will continue to change, is
how PSAC fullls that role, because that depends on you, our members. To help us continually
strengthen our efforts, we ask you to continue to stay in touch and provide us with your input
and ideas will help ensure PSACs advocacy work remain relevant and timely.
Sincerely,
John Gorman
PSAC Board Chair
T
After Three Decades of Success,
PSAC Looks to the Future
John Gorman, PSAC Board Chair
7 WWW.PSAC.CA
000PSN-Abacus-FP.indd 1 5/17/13 3:33:34 PM PSAC_Summer_2014-p06-11.indd 7 2014-05-16 9:17 AM
SUMMER 2014 VOL 14 No.1
PETROLEUM SERVICES ASSOCIATION OF CANADA
1150 800 6TH AVENUE SW
CALGARY, AB T2P 3G3
TEL: 403.264.4195
FAX: 403.263.7174
EMAIL: info@psac.ca
PRESIDENT AND CEO: MARK SALKELD
VICE PRESIDENT, COMMUNICATIONS: KELLY MORRISON
COMMUNICATIONS COORDINATOR: LINDA ALDRIDGE
PETROLEUM SERVICES NEWS IS PUBLISHED FOR PSAC BY

VENTURE PUBLISHING INC.
10259-105 STREET,
EDMONTON, AB T5J 1E3
TEL: 780.990.0839
FAX: 780.425.4921
TOLL-FREE: 1.866.227.4276
CIRCULATION@VENTUREPUBLISHING.CA
PUBLISHER: RUTH KELLY
DIRECTOR OF CUSTOM CONTENT: MIFI PURVIS
MANAGING EDITOR: LYNDSIE BOURGON
CONTRIBUTING WRITERS: ROBIN BRUNET, CALEB CASWELL,
RYAN VAN HORNE
ART DIRECTOR: CHARLES BURKE
ASSOCIATE ART DIRECTOR: ANDREA DEBOER
ASSOCIATE ART DIRECTOR: COLIN SPENCE
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.
CIRCULATION@VENTUREPUBLISHING.CA
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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WWW.PSAC.CA 9
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Telephone: 403-720-3400
Fax: 403-720-3409
Toll Free: 800-874-5812
7690 Edgar Industrial Court
Red Deer, Alberta T4P 4E2
Telephone: 403-314-1919
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Working with our industry partners, we provide leading training
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of workers every year. We promote health and safety practices through
safety management planning and support, training programs, and
by providing the resources that you need to get the job done safely.
We were created by industry, for industry and together
we are making a difference.
Learn more about us at www.enform.ca
PSAC_Summer_2014-p06-11.indd 9 2014-05-16 9:17 AM
News, events and activities in the industry
IN THE FIELD
PSAC IS PROUD TO
SUPPORT the Petroleum
Competency Program (PCP),
a program designed to build a
national skilled workforce with
standardized, identiable skills
by using competency standards
to assess and certify workers, and
managed by the Petroleum Human
Resources Council of Canada, now
part of Enform. Congratulations to
those individuals who received their
PCP in 2013 and 2014, to date.
KEITH A. TETACHUK, Assessor Certication
MIKE CLEVELAND, Candidate Certication, Well Testing Supervisor Level 3
NICK DUFFY, Candidate Certication, Well Testing Supervisor Level 2
LYLE SAUNDERS, Candidate Certication,Well Testing Supervisor Level 3
JASON LAROCHE, Candidate Certication, Supervisor Level 2
STEPHEN SHEPPARD, Candidate Certication, Supervisor Level 2
For more, visit www.petrohrsc.ca
Petroleum Competency
Program Continues to Build
a Competent Workforce
2013/2014 PCP Certicate
Assessors & Holders
THE PSAC 2014 EDUCATION FUND online auction is now
open, with better prizes than ever before. The 2014 lineup includes
tickets to Calgary Flames and Calgary Stampeders games, and passes to
the Shaw Charity Golf Classic taking place in Calgary this August. Dont
miss the opportunity to win a set of Nokian passenger or light truck
tires, or a dream getaway to the Kokanee Springs Golf Resort. To bid
now, visit www.psac.ca
AFTER UNDERGOING A RIGOROUS and independent process
that evaluates the calibre of their management abilities and practices,
KUDU Industries Inc. has been recognized as one of Canadas best
managed companies by Deloitte. Congratulations to KUDU Industries
Inc. for this prestigious recognition.
Start Your Bidding!
COMING EVENTS
PSAC EDUCATION FUND GOLF CLASSIC
July 17, 2014
Calgary Elks Lodge and Golf Club
Calgary, Alberta
PSAC PRE-DRILLING SEASON MEETING
September 10, 2014
Pomeroy Hotel
Fort St. John, British Columbia
PSAC ANNUAL GENERAL MEETING
October 29, 2014
TELUS Convention Centre
Calgary, Alberta
2015 CANADIAN DRILLING ACTIVITY
FORECAST SESSION
October 29, 2014
TELUS Convention Centre
Calgary, Alberta
2014 INDUSTRY INSIGHTS DINNER
October 29, 2014
TELUS Convention Centre
Calgary, Alberta
Featuring keynote speaker Rex Murphy
For more information about PSAC events,
visit www.psac.ca/events
NEW MEMBERS
REGULAR MEMBERS
CanGas Solutions Inc.
Flint Transeld Services Ltd.
NCS Oileld Services Canada Inc.
Specialized Desanders Inc.
ASSOCIATE MEMBERS
FLS Transportation Services Inc.
Bringing Solutions to Surface
PSAC Member Named
One of Canadas Best
Managed Companies
10 SUMMER 2014 PETROLEUM SERVICES NEWS
UFA.com
service
Lubricants
AND FILTERS
SELECTION AND
2014 UFA Co-operative Ltd. All rights reserved.
04/14-36395 PSN
UFA offers Chevron and Shell lubricants, known for
high performance, efciency and innovation plus
industry-proven Fleetguard lters. We stand behind
every one of our products, because they meet or
exceed manufacturer-warranty requirements. Get
up-to-date information and advice today from
your local UFA Petroleum Agent or one of our
technical experts.
Fueling your life on the road, in the elds
and everywhere in between.
000PSN-UFA-FP.indd 1 2014-04-17 1:26 PM PSAC_Summer_2014-p06-11.indd 10 2014-05-16 11:20 AM
UFA.com
service
Lubricants
AND FILTERS
SELECTION AND
2014 UFA Co-operative Ltd. All rights reserved.
04/14-36395 PSN
UFA offers Chevron and Shell lubricants, known for
high performance, efciency and innovation plus
industry-proven Fleetguard lters. We stand behind
every one of our products, because they meet or
exceed manufacturer-warranty requirements. Get
up-to-date information and advice today from
your local UFA Petroleum Agent or one of our
technical experts.
Fueling your life on the road, in the elds
and everywhere in between.
000PSN-UFA-FP.indd 1 2014-04-17 1:26 PM PSAC_Summer_2014-p06-11.indd 11 2014-05-16 9:17 AM
Oil and gas companies face greater challenges today as they focus on maximizing
protability and shareholder value. As a result, they need practical advice and
strategies from professionals who understand the issues that they are facing.
Our dedicated BDO Natural Resources team works closely with businesses like yours
to provide quality services in audit, business and nancial advisory, domestic
and international tax, risk management, and business processes.
Assurance | Accounting | Tax | Advisory
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780 461 8000
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780 539 7075
Lethbridge
403 328 5292
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403 343 2500
BDO IS PROUD TO SERVE
THE BUSINESSES OF ALBERTA
000PSN-BDO_Canada-FP.indd 1 2014-04-21 10:12 AM
I
PSAC_Summer_2014-p12-13.indd 12 2014-05-16 9:18 AM
WWW.PSAC.CA 13
Oil and gas companies face greater challenges today as they focus on maximizing
protability and shareholder value. As a result, they need practical advice and
strategies from professionals who understand the issues that they are facing.
Our dedicated BDO Natural Resources team works closely with businesses like yours
to provide quality services in audit, business and nancial advisory, domestic
and international tax, risk management, and business processes.
Assurance | Accounting | Tax | Advisory
www.bdo.ca
Edmonton
780 461 8000
Grande Prairie
780 539 7075
Lethbridge
403 328 5292
Red Deer
403 343 2500
BDO IS PROUD TO SERVE
THE BUSINESSES OF ALBERTA
000PSN-BDO_Canada-FP.indd 1 2014-04-21 10:12 AM
Steady Activity Across the West
DRILLING ACTIVITY FORECAST UPDATE
BRITISH COLUMBIA: 623
ALBERTA: 6,530
SASKATCHEWAN: 3,562
MANITOBA: 435
TOTAL IN CANADA: 11,170
2014 CANADIAN DRILLING ACTIVITY FORECAST
(NUMBER OF WELLS)

Note: Total includes activity in Northern and Eastern Canada.
PSACS Q2 UPDATE PREDICTS INCREASE IN DRILLING ACTIVITY
N ITS SECOND UPDATE to the 2014 Canadian Drilling
Activity Forecast, the Petroleum Services Association of Canada
(PSAC) forecasts a slight increase in Canadian drilling activity
for the year. The updated forecast for 2014 is 11,170 wells (rig
releases), which represents an increase of 370 wells from PSACs
original 2014 forecast released in late October 2013. The revised
forecast represents an approximate one per cent increase over 2013
drilling levels.
The updated forecast is based on average natural gas prices of $4.00
CDN/mcf (AECO) and crude oil prices of US$95/barrel (WTI), and the
CAD-USD exchange rate averaging $0.90.
With a longer winter than normal across Canada this year, and
a breakup with continued activity in Q2, drilling activity is keeping
on par with our original forecast in October, said Mark Salkeld,
president and CEO of PSAC. Activity remains steady for our member
I
companies, and many companies have been facing challenges with
meeting demand as the shortage of skilled labour continues.
On a provincial basis for 2014, PSAC now estimates 6,530 wells to be
drilled in Alberta, representing a less than one per cent decrease from
the original forecast. British Columbia is expected to experience an
increase in drilling levels from 550 to 623 wells, a 13 per cent increase.
Saskatchewans projected 2014 well count has been increased by 11 per
cent from 3,196 to 3,562 wells. Manitoba is now forecasted to drill 45
fewer wells, at 435 for the year, representing a nine per cent decrease.
PSAC presents updates to its Canadian Drilling Activity Forecast
quarterly, with the next update scheduled to be released in July. The
forecast can be used in conjunction with the PSAC Well Cost Study to
effectively determine potential drilling and completion market sizes,
as well as pricing and activity direction. For more information, contact
PSAC at info@psac.ca.
PSAC_Summer_2014-p12-13.indd 13 2014-05-16 9:18 AM
14 SUMMER 2014 PETROLEUM SERVICES NEWS
LEADERS
DEVELOPING
N UNOFFICIAL THEME EMERGED throughout
PSACs 2014 Spring Conference held this April in Red
Deer, Alberta: the importance of putting people rst. The
conference featured two education streams: leadership
development and transportation management, two areas of focus for
the petroleum services sector that, at rst glance, cover vastly different
subject areas. But most sessions, if not all, placed an emphasis on the
importance of people, including attracting and retaining employees,
managing workers from different generations and putting people rst
when communicating during change or crisis.
With more than 26 per cent of truck drivers over the age of 55, its clear
why the trucking industry needs to focus on attracting and retaining
employees. Angela Splinter, CEO of Trucking HR Canada, shared
the results of a study that explored the attitudes youth hold toward
trucking careers. The study revealed that younger workers are looking
for exibility and work-life balance, in addition to personal connections
in the workplace. It also revealed a curious fact that fewer younger
people have their drivers licence today than in previous generations.
Splinter also highlighted the vastly different attitudes towards work
between the four generations currently in the workforce, noting how
these differences are posing recruitment and retention challenges for
the male, baby boomer-dominated industry, which has been labelled the
workaholic generation.
Speaking of working long hours, Lorraine Card, director of Carrier
Services at Alberta Transportation, introduced delegates to the North
American Fatigue Management Program (NAFMP). The voluntary
program, launched last year, was initiated through a partnership between
Alberta Transportation and the Alberta Motor Transport Association
to assist companies with developing their own fatigue management
programs, with the ultimate goal of increasing road safety for all road
users. The dangers of driver fatigue are becoming well known, and a 2010
Canadian Council of Motor Transport Association study found 20 per
cent of accidents linked to fatigue. The program offers organizations
a cost-effective way to address the impact of fatigue on their employees
and their bottom line.
A
Another factor dramatically impacting bottom lines in the services
sector is a high rate of staff turnover. Delegates attending the Improving
Staff Retention Through Supervision session reported turnover rates from
12 to 100 per cent in the last year at their respective companies. With so
many costs associated with hiring employees, like on board training, drug
testing, PPE and recruiting, strategies to increase employee engagement
should be a strategic priority. Nancy Boman, a staff engagement consultant
and the sessions leader, advised that If employees truly are a companys
best asset, then their care should be a number one priority.
With vivid examples including the September 11, 2001, attacks in the
United States and the recent Malaysia Airlines Flight MH370 disappearance,
Tom Donoghue demonstrated in his Crisis Communications: Doing it
Right session that communication planning is critical to a companys
reputation, and even its ability to survive a crisis.
Donoghue described the differences in how companies handled
the Exxon Valdez oil spill, which occurred in Prince William Sound,
Alaska, in March 1989, as opposed to the January 1988 Ashland oil spill
near the town of Floreffe, Pennsylvania. Donoghue says the difference is
the result of planning, training and practice. He said the Exxon Valdez
stands out today because company representatives lied about, denied
and minimized what happened and how the company was responding.
Donoghue noted that to handle the communications aspect of a crisis
LAUGH A LITTLE: Zandra Bell brought comic relief with her well-researched
performance as Dr. Shirley Best during the spring conference dinner.
The 2014 PSAC spring conference promised to develop leaders
and drive results in transportation management
PSAC_Summer_2014-p14-15.indd 14 2014-05-21 3:16 PM
WWW.PSAC.CA 15
THANK YOU TO OUR SPONSORS
MAJOR SPONSORS
Baker Hughes Canada Company
Capilano Truck Driver Training Institute
Cenovus Energy Inc
Enterprise Commercial Trucks
Geotrac International Inc.
June Warren-Nickles Energy Group
KalTire
Volvo Trucks Canada
CONFERENCE SPONSORS
Abadata
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Partners in Compliance
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Support Services
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CONFERENCE SUPPORTERS
Government of Alberta
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Workers Compensation Board - Alberta
effectively, companies need to show concern about people rst, then
the environment and nally the associated costs. He also pointed out
that companies should carefully choose and train their spokespeople,
and have alternates, because critical events dont typically happen
when everyone is at work.
Glyn Jones also highlighted the importance of training and putting
people rst in his Competency The Keys to a World Class Safety
Management System session. He noted that while there is no easy
Staples button to create competent employees, a combination of
training, education, mentoring and ongoing worker assessment pays off
in the long run. Jones pointed out that frontline supervisors are the most
important employees in an organization, because they are connected to
employees and can demonstrate they care about employee development.
With much applause and laughter, Zandra Bell appeared as Dr. Shirley
Best to entertain delegates at the dinner, bringing home the importance
of putting people rst and having a good laugh. The bodys response
to repetitive laughter is similar to the effect of repetitive exercise, she
said. We should work to put a humorous perspective on the frustrating
inanities and insanities that go on around us, so we dont end up with
one of those dreaded wellness breakdownsyou know what Im saying?
The wheels still turning but the hamster is dead!
PSAC_Summer_2014-p14-15.indd 15 2014-05-16 11:21 AM
16 SUMMER 2014 PETROLEUM SERVICES NEWS
PSAC_Summer_2014-p16-19.indd 16 2014-05-16 9:19 AM
WWW.PSAC.CA 17
BY RYAN VAN HORNE
In its 32 years, PSAC has charted growth
within the petroleum services industry
N THE EARLY-1980S,
while many westerners
were sporting bumper
stickers imploring each
other to Let the eastern
bastards freeze in the dark, the petro-
leum services industry took a more
level-headed approach: They organized
and started to lobby politicians.
It started with a trip to Ottawa. The
connections this ragtag group of services
executives made while there eventually
inspired the creation of the Petroleum Services
Association of Canada (PSAC) in November
1981. At the time, there were 143 companies
who signed on membership has since climbed
to 260.
In the early stages, we did a lot of government
liaison work, says Al Schreiner, who served as
chairman of the board of directors in PSACs
second year of operation. We had just come
I
CHANGE
VOICE
FOR
A
through the National Energy Program, and we were pretty beat up. We
didnt really have any voice with governments provincial or federal.
From its inception until 1984, when the Mulroney government came
to power, PSAC faced a brick wall in trying to inuence the National
Energy Program. At rst, the main goal in the early stages was to try
to raise the prole of the petroleum service sector within government.
The focus was on the oil and gas producers, and less on the service
and supply industry, so we thought it was necessary to get some
frontline representation, says Schreiner, who at the time worked for
Dominion Oilelds Supply Company Ltd. and later moved to Stream-
Flo Industries Ltd.
The National Energy Program sought to soften the blow of rising oil
prices for Canadians, but its critics say it did so largely at the expense
of Alberta. Although it helped foster a lucrative offshore oil industry in
Newfoundland, it forced domestic oil producers to sell their product
below world market prices, and that had an adverse effect on the economy
because it hurt the service companies more than it did the big producers.
Oil and gas companies had some people in the communities, but
thats where most of our people were, Schreiner says. The impact was
felt directly in the small communities.
PSACs rst accomplishment was leading the petroleum industrys
battle to change or dismantle the National Energy Program, which
the Trudeau government developed.
PSAC_Summer_2014-p16-19.indd 17 2014-05-16 9:19 AM
18 SUMMER 2014 PETROLEUM SERVICES NEWS
companies. Were the association that represents the people that are
working on the ground, he says. Ive had good feedback from my peers
in industry that were doing a good job.
When Salkeld took over the reigns at PSAC, he decided that advocacy
efforts would benet from strengthening and driving awareness of PSAC
at the upper ranks of government. It wasnt dynamic enough in my
mind, he says. There might have even been a sense of us vs them. Now,
its not them-against-us. They know who we are and theyre calling us
when theyre talking policy.
Ten years ago, we felt we were on the downside of peak oil, but
some of our member companies in North America have been leaders
in applying these new technologies, Salkeld adds. Theyre extremely
good at what they do. Its not a bunch of good ol boys blowing up
rock; theyre drilling with accuracy. Now, PSAC members are driving
innovation and technological advancement not just within government,
but across various sectors, helping transform how the industry operates.
Its part of PSACs job to promote and encourage those advancements.
In that way, Salkeld says PSACs number one reason for being is
advocacy. But advocacy is a much broader concept today than it was
decades ago. The association now has many stakeholders that require
constant outreach. There was a shift with my coming on board, he says.
Ray Mills joined the PSAC board of directors ve years ago, at
the beginning of the global recession, and immediately noticed
inconsistencies in public perception and association. [Someone] at the
association was saying the recession was good for the industry and it
would come out stronger, but everyone that I spoke to was suffering; and
if companies are suffering, their employees are suffering.
Mills thought it was important to take the association back to
its roots, focusing on why it got started during the dark days of the
National Energy Program advocacy. The association has done a
great job in engaging government, the public and other key groups with
limited resources, Mills says. The focus on advocacy and showcasing
these efforts across PSAC membership remains a top priority.
We cant stray too far from what weve been doing, but we need
to increase the advocacy side, Mills says. Its not revolution,
its evolution.
Some 30 years ago, PSAC had to charter a plane to get to the steps
of Parliament to ght for the sector, but today theyre invited by the
prime minister on trips overseas. Our prole is growing, our credibility
is growing and our contributions to this industry and the national
economy are being recognized at the highest ranks of government and
within the sector, Salkeld says. There is work to be done as new issues
arise every day, but there is no doubt that we continue to look at ways
to strengthen our efforts and ensure we are at the table on key policy
decisions, and to continue to deliver value to our membership.
Over the next three decades, they scored numerous other victories,
becoming a power player in the industry and undertaking various
initiatives that followed the evolving expectations of their membership.
Schreiner, who is retired, says PSAC has consistently broadened its
inuence and not just as a lobby group. Its industry reporting and
forecasting are well-respected, as are PSACs cost estimates.
Theyve done a great job promoting safety and communicating
the impact that the service sector has on rural areas, he says. Once a
year, PSAC hosts a sell-out dinner with a featured speaker that attracts
decision-makers from the nancial world as well as the natural gas
industry. Its a gathering that showcases PSACs credibility across sectors,
which Schreiner says theyve been able to cultivate by becoming a voice of
reason, rather than using a biased, beat-the-drum approach.
Mark Salkeld, the current president and CEO of PSAC, says the
associations most notable milestones are raising awareness of the
association in the industry, and raising the participation level of those
WE CANT STRAY TOO FAR FROM WHAT
WEVE BEEN DOING, BUT WE NEED TO
INCREASE THE ADVOCACY SIDE, PSACS
RAY MILLS SAYS.
In March 2014, PSAC President and CEO Mark Salkeld represented Canadian
petroleum services capabilities during the Government of Canadas historic trip
to the Ukraine.
The Ottawa delegation that spurred the creation of PSAC.
PSAC_Summer_2014-p16-19.indd 18 2014-05-16 9:19 AM
WWW.PSAC.CA 19
A HISTORY IN LOGOS
From wells to working energy, PSACs logos through the ages echo a changing organization:
1981-1990 1990-2005 2006-2009
2009-2011 2011-2012 2012-PRESENT
PSAC_Summer_2014-p16-19.indd 19 2014-05-16 11:22 AM
20 SUMMER 2014 PETROLEUM SERVICES NEWS
FUTURE
BLUEPRINT
FOR THE
A
ELL PHONE AND tablet
technologies evolve quickly for
sure, but if you want to see some
real innovation, you need to check
out the petroleum services industry. Partici-
pants at PSACs 2014 Canadas Energy Blueprint
Forum, held in Calgary on April 30, 2014, did
just that, seeing some of the most recent
and amazing technologies coming out of the
Canadian oilpatch. Now in its second year, the
Forum gives attendees an overview of key technol-
ogies, in a bid to demystify industry operations.
The event drew new hires, students getting ready
to enter the workforce and many others who work
in or in support of the industry.
Targeting reserves in such diverse locations
as the Arctic, off the shores of Newfoundland
and in the Duvernay formation in west central
Alberta, Canadian companies face a wide range
of challenges not found anywhere else. Rather
than throwing up their hands in despair,
C
Canadas Energy Blueprint Forum showcases petroleum services
technologies to shine a light on industry operations
these companies devote time and
resources to developing innovative
ways to produce Canadas resources
efciently and safely.
Petroleum services sector
companies are developing hun-
dreds of technologies every year,
according to Art Robinson, partner
at 32 Degrees Capital. Robinson, a
member of the Energy Blueprints
morning panel, pointed out
that between 2002 and 2012, the
annual patents granted to Schlum-
berger, Halliburton and Baker
Hughes increased from 433 to a
whopping 1,257.
So what were some of the innovations showcased at the event? Sessions
touched on technologies related to enhanced oil recovery, compressed
natural gas, coiled tubing and microseismicity, to name a few. Even better,
the sessions were presented by the people who use the innovations and
who know them best.
Robert Johnston, CEO and
director of Global Energy &
Natural Resources, Eurasia
Group delivered a compelling talk
discussing the international oil
and natural gas industry from a
geopolitical perspective.
PSAC_Summer_2014-p20-21.indd 20 2014-05-16 9:21 AM
WWW.PSAC.CA 21
PSAC President and CEO, Mark Salkeld delivered the mid-year update, which
anticipates a continued level of steady activity for Canadas oilpatch.
PSAC brought together an esteemed panel, including Gerry Protti, chair,
Alberta Energy Regulator (podium) and from left to right Greg DAvignon,
president and CEO, Business Council of British Columbia, Art Robinson,
partner, 32 Degrees Capital, and Bruce Edgelow, vice president, Energy
Group, ATB Corporate Financial Services.
SERVED FOR LUNCH: GREAT INFORMATION
Energy Blueprint participants got a bonus this year a lunchtime presentation of the
2014 Canadian Drilling Activity Forecast mid-year update. Mark Salkeld, PSAC president
and CEO delivered the presentation, which you can also see in this issue. Andrew
Bradford, head of energy research at Raymond James provided an industry outlook.
Lunchtime session moderator David Yager, national leader of the oileld
services group at MNP LLP, shared the results of the new Horizontal Drilling
Workforce Study. The study, commissioned by PSAC, calculated the direct and
indirect employment needs of drilling and completion operations for resource plays
that use horizontal and multistage fracturing. Read highlights of the study in this
publications Message from the Chair, or go to psac.ca for the full report.
One of the days many highlights included a demonstration by Element Tech-
nical Services Inc. Participants got to watch non-potable water and chemicals
found in common household products, such as shampoo, ketchup and laundry
detergent mix together to create fracturing uid. Attendees were surprised to
nd out that 95 per cent of hydraulic fracturing uid is made up of water.
The event capped off with Robert Johnston, CEO and director of Global
Energy & Natural Resources, Eurasia Group, who discussed factors inu-
encing oil and natural gas activity around the world, including energy
production in the U.S. and the need for Asian markets to tap into North
American energy supplies.
PSAC_Summer_2014-p20-21.indd 21 2014-05-16 9:22 AM
22 SUMMER 2014 PETROLEUM SERVICES NEWS
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SERVICES
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 more than
75,000 people and contracting almost
exclusively to oil and gas exploration and
production companies.
THE OFFICIAL VOICE OF THE PETROLEUM SERVICES ASSOCIATION OF CANADA
PSAC_Summer_2014-p22-25.indd 22 2014-05-16 9:23 AM
WWW.PSAC.CA 23
British Columbia in 2014, as the participants in those projects build
reserves and consolidate landholdings.
For oil and gas services companies affected by this activity whether
youre looking to merge or be acquired analysts generally agree that
you should:
Understand all the assets affected in the transaction.
Pinpoint senior management involved and note any professional and
cultural differences that can inuence career development in the new
organization.
Examine relocation considerations if you get an offer from an
acquiring company in another location, as it could be a deal-breaker
for many key players.
Consider encouraging employees with more than 15 years experience
to take an exit offer and reentering the workforce as a well-paid,
knowledge-based consultant. Streamlining the workforce is an
inevitable part of any merger or acquisition. >> CONTINUES ON PAGE 24
HE MOOD OF THE invest-
ment community can be as import-
ant as actual investment numbers,
and so far in 2014, the mood sur-
rounding mergers and acquisitions is positive.
Theres been a noticeable change over
the past six months, marked by a distinct
improvement in both investor and producer
sentiment, says Richard Matthews, managing
director, acquisitions and divestitures, for
FirstEnergy Capital Corp. Were seeing more
condence in oil and natural gas prices and in
producers abilities to generate strong returns.
Investors have started to take notice and have
been returning to the sector.
Matthews optimism is shared by many
colleagues, including Dan Barclay, head of the
BMO Capital Markets Canadian Mergers &
Acquisitions group. On April 3, he told Reuters
that I think its going to be very busy in energy
over the next few quarters for sure. Some of
it is just changing commodity prices, some of
it is pent-up demand, part of it is availability
of capital. Adam Waterous, head of global
investment banking at Scotiabank, agrees that
activity will be brisk, with the oil and gas recovery
about three months ahead of the mining recovery.
Upward trends that may affect M&As include
available capital and a favourable corporate
nance market, larger cap independent energy
companies looking to grow positions and
shareholder activism. And because larger
companies can provide the structure and
balance sheets to more easily sustain and fund
growth, consolidation is likely to continue.
Calgarys Stikeman Elliott LLP predicts
more consolidation and M&A activity
involving dividend-paying exploration and
development companies. The business law rm
also theorizes that the push to develop LNG
export projects on the West Coast may drive
investment in natural gas assets in northeastern
Smooth
Transitions
T
2014 PROMISES A SWIFT M&A
MARKET FOR THE SERVICE SECTOR
BY ROBIN BRUNET
BUSINESS MATTERS
WITH IMPROVING COMMODITY PRICES AND STRONGER EQUITY
MARKETS, MORE COMPANIES HAVE THE CAPACITY TO BE ACQUIRERS.
PSAC_Summer_2014-p22-25.indd 23 2014-05-16 9:23 AM
24 SUMMER 2014 PETROLEUM SERVICES NEWS
BUSINESS MATTERS
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Those same analysts have noted that increased condence in the

market drives the increase of M&A activity, as opposed to companies
struggling and needing to sell. With producers improving their
expectations surrounding commodity prices, this could have a direct
impact on PSAC members if oil eld activity increases.
Matthews points out that many oil and gas transactions over the
past six months have been well-received by investors. Companies are
again being rewarded for doing smart deals. The signicance of these
transactions, he says, is that in all cases, the acquirers share price
climbed precisely because they were good, strategic deals. When
companies know they can do the right deal, and be rewarded for it in
the public markets, more transactions will get done going forward. And
with improving commodity prices and stronger equity markets, more
companies have the capacity to be acquirers.
Over the past six months, FirstEnergy has acted as nancial advisor
in 12 transactions totaling $2.2 billion, ranging from upstream oil and
gas deals to service company transactions like the recent CWC Well
Service Corp. acquisition of Ironhand Drilling Inc. The market is much
more supportive of transactions, and theres momentum building. No
one is declaring this a raging bull market, but it feels very constructive,
says Matthews. For the rest of 2014 we expect continued elevated M&A
levels in the upstream sector. Commodity prices should remain strong,
companies are making money. People are optimistic and excited about
their prospects.
PSAC_Summer_2014-p22-25.indd 24 2014-05-16 9:23 AM
WWW.PSAC.CA 25
PSAC_Summer_2014-p22-25.indd 25 2014-05-16 9:23 AM
26 SUMMER 2014 PETROLEUM SERVICES NEWS
THE PETROLEUM SERVICES ASSOCIATION OF CANADA (PSAC) CONTINUES TO KEEP THE SERVICES SECTOR
FRONT AND CENTRE THROUGH ADVOCACY AND OUTREACH
PSAC IN ACTION
PSAC AT HOME AND ABROAD
EDMONTON:
Earlier this year, PSAC participated in the federal pre-budget
roundtable with the Honourable Rona Ambrose, Minister of Health,
to put forward recommendations related to access to markets, taxable
benet policy review to facilitate cross-country labour mobility,
incentives to encourage innovation and automation in manufacturing,
and ensuring a level playing eld for Canadian companies competing
against foreign companies.
CALGARY:
Recently, PSAC attended a manufacturing roundtable, hosted by the
Canadian Manufacturers & Exporters, with Assistant Deputy Minister
Justin Reimer. Participants discussed the importance of educating Al-
bertans on the oil and gas industrys role in diversifying the provinces
economy, as well as welding certications, apprenticeships models, pro-
curement issues and global competition.
PSAC represented members at the 2014 Unconventional Gas
Conference in Calgary, and had the opportunity to meet the
Honourable Greg Rickford, the new Minister of Natural Resources,
introducing him to the challenges facing association members.
This spring Albertas Premier David Hancock and Alberta Energy
Minister Diana McQueen invited PSAC and other associations to
meet with them to discuss key policy and issues their respective
members face. In addition to industry-wide challenges like increasing
market access, PSAC spoke to labour issues, skills development,
regulatory harmonization, PSACs Working Energy Commitment
program and the Hydraulic Fracturing Code of Conduct.
OTTAWA:
PSAC met with Ian Shugart, Deputy Minister of Employment and
Social Development, to introduce the Association and discuss the
sectors labour situation. While in the capital, PSAC met with Alan Ross,
the Government of Albertas representative in Ottawa, to report on the
progress and results of the Working Energy Commitment initiative.
UKRAINE:
PSAC joined Prime Minister Harper on a trip to Ukraine. In March,
PSAC joined the Government of Canada on its trip to the Ukraine to meet
the countrys interim prime minister. The trip offered the opportunity to
discuss the future potential for Canadian petroleum services companies
to do business in the Ukraine, as that country looks to develop their
energy resources to loosen their dependence on foreign supplies.
CHINA:
PSAC hosted a Business Opportunities in China Breakfast seminar.
In February, PSAC held a breakfast session to inform members of its
participation on a recent trade mission to China with the Government
of Alberta. Attendees heard about intellectual property protection
Justin Davidson, Partner, Norton Rose Fulbright, shared his legal expertise
regarding intellectual property issues at PSACs Business Opportunities in
China Breakfast in Calgary this February.
in China, opportunities for petroleum service companies in the area of
natural gas development and investment opportunities with the Chinese
government and companies.
PSAC LEADS HEALTH AND SAFETY INITIATIVES
REVIEW OF PART 33 OIL AND GAS ALBERTA OH&S CODE: PSAC cooperated
with the upstream petroleum industry trade associations to make a joint
submission to the Alberta government review of Part 33 of the Alberta
OH&S Code. Part 33 deals exclusively with oil and gas operations, and the
PSAC Health and Safety Committee worked diligently to ensure that the
interests of the service sector were well represented in the joint submission.
INDUSTRY RECOMMENDED PRACTICE (IRP) #8 PUMPING OF FLAMMABLE FLUIDS:
Since industry rst sanctioned this IRP in 2003, the size and scope of
fracturing operations has increased signicantly. PSAC members that
provide fracturing services and re and rescue services have been working
together on a proposal that the IRP for industry review to ensure that it is
reective of current practices.
PSAC_Summer_2014-p26-27.indd 26 2014-05-21 3:17 PM
WWW.PSAC.CA 27
Mike Dawson, President, Dawson Energy Advisors Ltd., at PSACs Business
Opportunities in China Breakfast in Calgary this February.
HARMONIZATION OF OH&S REGULATIONS IN WESTERN CANADA: PSAC is working
with industry trade associations on an initiative designed to harmonize
the occupational health and safety regulations governing oil and gas
operations in Western Canada. PSAC has held several meetings with
OH&S regulators across the region to discuss the proposals and to identify
opportunities for harmonization.
CRYSTALLINE SILICA: PSAC members and staff have been monitoring and
providing input into discussions with regulators dealing with worker
exposure to crystalline silica in the workplace. More details on these
discussions, and scientic studies into worker exposure to crystalline
silica, can be found on the PSAC website under Health and Safety.
FOR MORE INFORMATION: Find out more on PSAC health and safety
initiatives, please contact Patrick Delaney, Vice President, Health and
Safety at pdelaney@psac.ca 403.781.7384. For all other inquiries, contact
info@psac.ca or 403.264.4195.
INSURANCE
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for the oil & gas sector
Providing insurance solutions
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alillies@rogersinsurance.ca
1.403.296.2411
Lee Rogers
lrogers@rogersinsurance.ca
1.403.296.2471
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600 - 1000 Centre Street N. Calgary, Alberta T2E 7W6
PSAC_Summer_2014-p26-27.indd 27 2014-05-16 9:23 AM
28 SUMMER 2014 PETROLEUM SERVICES NEWS
Leave nothing behind.
ncsfrac.com
+1 403.969.6474
info@ncsfrac.com
2014, NCS Energy Services, LLC. All rights reserved. Multistage Unlimited, GripShift, and Leave nothing behind. are trademarks of NCS Energy Services, LLC. Patents pending.
GripShif Sleeves vs Ball-Drop Sleeves
with cement with packers
GripShif casing sleeves
Cemented annulus for stage isolaton
Recorded pressure data verifes stage isolaton
Each sleeve positvely located for frac
Sleeve shifing verifed three ways
Single-point injecton, precise frac locaton
Verifed frac spacing
Verifed propped volume in each frac
Identcal sleeves can be installed in any order
All sleeves have full-drif ID at all tmes
Closable version is available
Real-tme frac-zone pressure data
Screenouts easily and quickly removed
Sleeves easily located and isolated for restmulaton
Ball-drop sleeves
Open-hole packers for stage isolaton
Unverifable stage isolaton, known failures
No way to positvely identfy actve sleeve
No verifcaton of sleeve shif
Unknown where fracs initate
No control over frac spacing
Unpredictable propped volume in each frac
Sleeves must be installed in exact order
Ball seats restrict ID untl drilled out or retrieved
No closable opton unless retrieved
No real-tme frac-zone pressure data
Screenouts are costly
Well segments difcult to isolate for restmulaton
To clear up any confusion about frac sleeves:
For a long tme, the big frac debate was about whether plug-and-perf or ball-drop sleeves-and-packers
are beter for multstage completonsshots versus sleeves. Now there is a third choice that has quickly
changed the debate: the Multstage Unlimited
TM
coiled tubing frac system. This system also uses sleeves,
which has led to some confusion, even though Multstage Unlimited GripShif
TM
casing sleeves dont even
use balls. To help clear things up, heres a quick comparison:
The Multstage Unlimited GripShif casing sleeve is not a ball-drop sleeve.
000PSN-NCS-FP.indd 1 2014-04-21 10:14 AM
HE SHALE GAS BOOM
throughout North American calls
for oil country tubular goods, also
known as OCTG, which can with-
stand high tension and compression, all while
stretching the length of the Empire State Build-
ing in New York. Pipelines are to the oil and
natural gas industry what roads are to a city.
And just like roads need to be expertly main-
tained, upgraded and properly planned and
built, so does the transportation infrastructure
of Canadas oil and natural gas industry. Cana-
das vast pipeline network carries the majority
of oil and natural gas being produced today,
and excess capacity will be required to meet
future needs to transport product to market.
Tenaris creates high-quality pipespeci-
cally, casing and tubing for use in oil and gas
wells and line pipe for use in energy pipelines,
process facilities and reneriesand manu-
factures its product for a global market. With
manufacturing locations in Canada, the United
States, Mexico and in most of the worlds oil
and gas regions, 27,000 employees and a net-
work of service and distribution in 30 coun-
tries, it distributes over 100,000 pipe products
on a global scale.
While some might guess that its ability to
compete boils down to pricing, David McHattie,
the institutional relations director for Tenaris in
Canada, explains that differentiation is achieved
through the companys service orientation.
The most important thing that we do is focus
on solutions, he says. It enables us to deeply
understand what is most important to our client
and respond with tailor-made innovation.
So how does Tenaris differentiate itself
within the industry? We prefer to work with
our partners long term, to provide stability
The Pillars of Differentiation
T
and focus on improving products and processes, looking to minimize
operational risk and optimize cost efciencies for our customers, says
McHattie Tenaris routinely measures processes and efciency with their
clients to make sure there is continual improvement.
By building relationships with bothworking with clients to identify
their needs and nd improvements, and sourcing materials from local
industriesTenaris has a better perspective on what the company can
improve on from both the ofce and the eld. This also allows the
company to discover ways to identify and solve needs it wouldnt have
otherwise considered.
We are a manufacturer who can uniquely provide the combined
strength of industrial excellence and service to the customer, says
McHattie. In Canada, for example, we manufacture the most complete
product range in the market.
Our local manufacturing network is an important part of the econom-
ic value Canadians expect as a return for developing our oil and gas, he
adds. Also, instead of importing steel, Tenaris partners with steel compa-
nies in Quebec and Ontario. This helps Tenaris be efcient and exible
with supply demands, while also contributing to the national economy.
Tenaris has become a global leader by becoming an essential part of
the energy industrys workow. They are an important element in their
clients success through application of metallurgical knowledge and
premium connection design, with a focus on innovation. Key to differ-
entiation in a country like Canada is a manufacturers ability to know
the market inside and out.
THROUGH LONG-TERM VISION AND MANUFACTURING COMMITMENT, TENARIS
GAINS A SPECIALIZED UNDERSTANDING OF THE CANADIAN ENERGY INDUSTRY
BY CALEB CASWELL
MEMBER PROFILE
PSAC_Summer_2014-p28-29.indd 28 2014-05-21 3:18 PM
Leave nothing behind.
ncsfrac.com
+1 403.969.6474
info@ncsfrac.com
2014, NCS Energy Services, LLC. All rights reserved. Multistage Unlimited, GripShift, and Leave nothing behind. are trademarks of NCS Energy Services, LLC. Patents pending.
GripShif Sleeves vs Ball-Drop Sleeves
with cement with packers
GripShif casing sleeves
Cemented annulus for stage isolaton
Recorded pressure data verifes stage isolaton
Each sleeve positvely located for frac
Sleeve shifing verifed three ways
Single-point injecton, precise frac locaton
Verifed frac spacing
Verifed propped volume in each frac
Identcal sleeves can be installed in any order
All sleeves have full-drif ID at all tmes
Closable version is available
Real-tme frac-zone pressure data
Screenouts easily and quickly removed
Sleeves easily located and isolated for restmulaton
Ball-drop sleeves
Open-hole packers for stage isolaton
Unverifable stage isolaton, known failures
No way to positvely identfy actve sleeve
No verifcaton of sleeve shif
Unknown where fracs initate
No control over frac spacing
Unpredictable propped volume in each frac
Sleeves must be installed in exact order
Ball seats restrict ID untl drilled out or retrieved
No closable opton unless retrieved
No real-tme frac-zone pressure data
Screenouts are costly
Well segments difcult to isolate for restmulaton
To clear up any confusion about frac sleeves:
For a long tme, the big frac debate was about whether plug-and-perf or ball-drop sleeves-and-packers
are beter for multstage completonsshots versus sleeves. Now there is a third choice that has quickly
changed the debate: the Multstage Unlimited
TM
coiled tubing frac system. This system also uses sleeves,
which has led to some confusion, even though Multstage Unlimited GripShif
TM
casing sleeves dont even
use balls. To help clear things up, heres a quick comparison:
The Multstage Unlimited GripShif casing sleeve is not a ball-drop sleeve.
000PSN-NCS-FP.indd 1 2014-04-21 10:14 AM PSAC_Summer_2014-p28-29.indd 29 2014-05-16 9:25 AM
30 SUMMER 2014 PETROLEUM SERVICES NEWS
Managing succession
Youre proud and rightly so - of what youve achieved.
Youve led the way. Now its time for others.
Whether its the handover to the next generation, or a
sale to new owners, you want a smooth transition and
you want to maximize value.
KPMGs Corporate Finance network is the global
leader in mid-market M&A transactions.* Together
with KPMGs powerful network of tax, transaction
and accounting advisors, we will help you close
the deal and secure the future.
kpmg.ca
Passing the baton
*Source: Thomson Reuters SDC; mid-market transactions (under $1 billion - USD)
2013 KPMG LLP, a Canadian limited liability partnership and a member rm of the KPMG network of independent member rms
afliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Rhys Renouf
Managing Director,
KPMG Corporate Finance
403-691-8426
rrenouf@kpmg.ca
Deb MacPherson
Partner, KPMG Enterprise, Tax
403-691-8567
dmacpherson@kpmg.ca
Alex Henderson
Partner, Transaction Services
403-691-8140
alexanderhenderson@kpmg.ca
000PSN-KPMG-FP.indd 1 10/15/13 2:01:06 PM
IF YOU COULD DO ANY OTHER JOB, WHAT WOULD THAT BE?
AB: Owner of a major sports team. That, or a gardener.
DC: Psychologist. I particularly enjoy the study of personality types,
how people process information and communicate with each other.
WHAT IS YOUR FAVOURITE BOOK OF ALL TIME?
AB: Papillon
DC: The Bible
WHAT ABOUT MOVIE?
AB: The Shawshank Redemption, and In Bruges.
DC: The Sound of Music. Corny, I know, but I love the story and
the music.
IF YOU COULD INVITE THREE FAMOUS PEOPLE (DEAD OR ALIVE) TO DINNER,
WHO WOULD THEY BE AND WHAT WOULD YOU SERVE?
AB: I would invite Jesus, Winston Churchill and Alexander the Great,
and serve whatever Jesus wants.
DC: Jesus Christ, Winston Churchill and Helen Keller. Id probably
order in pizza. I doubt I could prepare anything that would impress
them, and I wouldnt want to waste a minute in the kitchen when I
could be talking with them.
WHAT DO YOU THINK IS THE BIGGEST CHALLENGE FACING CANADAS ENERGY
INDUSTRY AT THIS TIME?
AB: Access to world markets.
DC: A sense of urgency with respect to market diversification. We
must find a way to collaborate politically to get our products to
market, otherwise, those markets will find alternate ways to supply
their needs.

WHAT WOULD YOU SAY IS YOUR BIGGEST ACCOMPLISHMENT TO DATE?
AB: Getting married and raising children.
DC: Staying happily married for 37 years.
WHAT MOTTO OR PHRASE DO YOU LIVE BY?
AB: Stand for something or you stand for nothing.
DC: If it was easy, everyone would do it.
WHAT TALENT WOULD YOU MOST LIKE TO HAVE?
AB: To be able to learn other languages quickly and easily.
DC: To be able to play the piano by ear.
IF YOU COULD CHANGE ONE THING ABOUT YOURSELF, WHAT WOULD IT BE?
AB: Dont worry as much.
DC: Id be more patient.
WHAT IS YOUR MOST TREASURED POSSESSION?
AB: My family.
DC: A music box that belonged to my mother.
IF YOU COULD TRAVEL TO ANYWHERE IN THE WORLD, WHERE WOULD YOU GO?
AB: To the Seychelles, an island off the east coast of Africa.
DC: To Egypt. Id like to go to Luxor and also see the pyramids.
WHO ARE YOUR HEROES IN REAL LIFE?
AB: Jesus, Terry Fox.
DC: My father hes 87, still walking several miles a day and has a
delightful sense of humour.
IN 10 WORDS OR LESS, WHAT WOULD YOU SAY ABOUT HOW 2014 IS GOING TO
TURN OUT?
AB: Very optimistic that 2014 will be a transition year.
DC: A good year with slightly higher activity than 2013.
ANDY BROOKS
President and CEO
Flint Transfield Services Ltd.
DEBORAH CLOSE
President
Production Services, Tervita Corporation
PETROLEUM SERVICES NEWS TALKS WITH PSACS
BOARD OF DIRECTORS AND TAKES A PERSONAL
LOOK AT LEADERS IN THE SERVICES SECTOR
ANDY BROOKS DEBORAH CLOSE
A LOOK AT LEADERSHIP
PSAC_Summer_2014-p30-32.indd 30 2014-05-16 9:26 AM
Managing succession
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Passing the baton
*Source: Thomson Reuters SDC; mid-market transactions (under $1 billion - USD)
2013 KPMG LLP, a Canadian limited liability partnership and a member rm of the KPMG network of independent member rms
afliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Rhys Renouf
Managing Director,
KPMG Corporate Finance
403-691-8426
rrenouf@kpmg.ca
Deb MacPherson
Partner, KPMG Enterprise, Tax
403-691-8567
dmacpherson@kpmg.ca
Alex Henderson
Partner, Transaction Services
403-691-8140
alexanderhenderson@kpmg.ca
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