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Industry recommended practices ensure drilling and

completions operations are performed in a safe and
responsible manner
SETTING
AS
BEST PRACTICES
STANDARDS
S P R I N G 2 0 1 3
B.C. SWITCHES BACK TO THE PST
PSAC’S MISSION FOR MISSING
CHILDREN
STARS & SPURS GALA RAISES
RECORD FUNDS
SERVICES
PM#40020055
PSAC_Spring_2013_p01.indd 1 2/19/13 4:49:12 PM
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18
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Features
Departments
4
7
9
21
22
25
26
C
O
V
E
R
CONTENTS
S P R I N G 2 0 1 3
THAT’S FRACKING RIGHT
Self-regulation helps the industry
keep standards up to date as new
technology comes along
A HELPING HAND
PSAC forms a partnership to help find
missing children
STARS & SPURS
The 19th annual fundraising gala has
a record year
11
18
MESSAGE FROM THE PRESIDENT
IN THE FIELD
News, notes and events from the industry
DRILLING ACTIVITY
FORECAST UPDATE
A slight uptick expected in the Western
Canadian Sedimentary Basin
PSAC IN ACTION
Advocacy initiatives from PSAC spread far
and wide
BUSINESS MATTERS
The impact B.C.’s reversal back to the PST will
have on the services sector
MEMBER PROFILE
Sanjel Corp. has a new trick up its sleeve
A LOOK AT LEADERSHIP
Up close and personal with PSAC board
members Donna Garbutt and Lloyd Stewart
11
WWW.PSAC.CA
19
19
22
25
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4 SPRING 2013 PETROLEUM SERVICES NEWS
MESSAGE FROM THE PRESIDENT
Mark Salkeld, President & CEO
NNOVATION AND TECHNOLOGY ARE THE cornerstones of
continuous improvement in the operations of Canada’s oil and gas
industry, and have positioned Canada’s petroleum services sector as a
global leader. PSAC member companies bring home-grown technologies
and unparalleled expertise wherever they operate in the world.
Perhaps it is good Canadian manners that we are not overly boastful
about the dedicated efforts made daily towards responsible and sustainable
development of Canada’s vast deposits of oil and natural gas. What’s clear is
that a bridge needs to be built between our industry and the public if we are to
strengthen our ability to operate, and to help build a greater level of pride here at
home about how we do what we do.
We need to further engage in meaningful conversations with the public to
demystify the operations of Canada’s oil and gas industry. More specifically,
we need to do a better job communicating the industry’s world-class regulatory environment which is the
most stringent in the world, and also do a better job communicating the incredible progress we have made in
improving our performance over our short history.
Enhancing public outreach is not new for PSAC. In 2010, PSAC launched the Community Partners program.
The program was developed to address concerns related to oil and gas activity – such as dust, garbage, noise,
driving safety and traffic – that were revealed in a PSAC survey of community members and PSAC member
company employees across Western Canada. PSAC developed Community Partners as the industry-wide “in the
field” courtesy initiative, which is supported by Canada’s seven major oil and gas industry trade associations.
PSAC’s peer associations have also developed programs dedicated to disseminating factual information about
Canada’s oil and gas industry. However, debate persists about our performance.
A lot of the debate today focuses on technologies like hydraulic fracturing, which has been in use for more
than 60 years. The technology development in our industry is fascinating, but can be difficult to understand
especially for the general public who do not necessarily see a direct link between our activities and themselves.
Our operations are highly complex and technical, so explaining what we do and how we do it poses an interesting
challenge – how do we communicate fully the very technical and complex nature of what we do to make it
understandable without simplifying it to a point that people think we are not being open enough?
Our industry needs to to find that balance to increase the transparency of our operations so that people
have a better view of how the interplay between regulation and technology mitigates the risk associated with
what we do.
To do this, PSAC will hold Canada’s Energy Technology Blueprint Summit on March 26, 2013 in Calgary. This
program is designed to showcase the technologies, processes and regulations involved across the upstream oil
and gas value chain. Expert speakers and an exhibition will explain how these technologies drive operational,
environmental and safety performance in more layman terms in an attempt to make the complexities of what we
do easier to understand. Learn more about this event on page 7.
PSAC has also launched the Working Energy Commitment which is a statement of principles that has been
adopted by nine of Canada’s leading pumping services companies, which are those companies that do hydraulic
fracturing. The statement of principles will set the framework for a series of productive and meaningful
conversations with local community leaders about a code of conduct for hydraulic fracturing.
PSAC’s member employees are many of the residents in the communities impacted by our operations. Our
collective voice needs to be a larger part of the dialogue around hydraulic fracturing. After all, our members are so
many of the on-the-ground familiar faces whose work is so paramount to the safety of our industry’s operations.
I look forward to this year of further advances in technology and innovation in our industry, and to improving
the understanding of Canada’s oil and gas sector, where it matters most, at home.
Mark Salkeld
President & CEO
Telling Our Story at Home
I
PSAC_Spring_2013_p04-05.indd 4 2/19/13 4:50:12 PM
WWW.PSAC.CA 5
You Gotta
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SPRING 2013 VOL 12 • No.4
PETROLEUM SERVICES ASSOCIATION OF CANADA
1150 800 6TH AVENUE SW
CALGARY, AB T2P 3G3
TEL: 403.264.4195
FAX: 403.263.7174
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
ASSOCIATE PUBLISHER: JOYCE BYRNE
MANAGING EDITOR: STEVE MACLEOD
CONTRIBUTING WRITERS: MICHELLE LINDSTROM,
JORDAN WILKINS
ART DIRECTOR: CHARLES BURKE
ASSOCIATE ART DIRECTOR: ANDREA DEBOER
ASSISTANT ART DIRECTOR: COLIN SPENCE
PRODUCTION MANAGER: BETTY-LOU SMITH
PRODUCTION TECHNICIAN: BRENT FELZIEN
DISTRIBUTION: JENNIFER KING
ACCOUNT EXECUTIVES: ELLEN FRASER, DAVID FRAZIER,
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 © 2013 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 more
than 65,000 people and contracting almost exclusively to oil and
gas exploration and production companies.
SERVICES
PSAC_Spring_2013_p04-05.indd 5 2/14/13 3:18:10 PM
© 2013 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
It’s a done deal
Mergers & Acquisitions
Winning the deal is easier when you hold all the cards.
At KPMG, our network of mergers and acquisitions
professionals possess the experience and forward
thinking necessary to help you meet the time
constraints of the deal.
kpmg.ca
Michael McKerracher
National Energy Leader
(403) 691-8056
mmckerracher@kpmg.ca
Rhys Renouf
Managing Director,
KPMG Corporate Finance
(403) 691-8426
rrenouf@kpmg.ca
Alex Henderson
Partner, Transaction Services
(403) 691-8140
alexanderhenderson@kpmg.ca
000PSN-KPMG-FP.indd 1 2/1/13 3:53:50 PM PSAC_Spring_2013_p06-07.indd 6 2/14/13 3:20:10 PM
WWW.PSAC.CA

W
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e
r
e

C
u
s
t
o
m
e
r
s



C
o
m
e

F
i
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s
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!
!

© 2013 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
It’s a done deal
Mergers & Acquisitions
Winning the deal is easier when you hold all the cards.
At KPMG, our network of mergers and acquisitions
professionals possess the experience and forward
thinking necessary to help you meet the time
constraints of the deal.
kpmg.ca
Michael McKerracher
National Energy Leader
(403) 691-8056
mmckerracher@kpmg.ca
Rhys Renouf
Managing Director,
KPMG Corporate Finance
(403) 691-8426
rrenouf@kpmg.ca
Alex Henderson
Partner, Transaction Services
(403) 691-8140
alexanderhenderson@kpmg.ca
000PSN-KPMG-FP.indd 1 2/1/13 3:53:50 PM
in the field
News, events and activities in the industry
the Petroleum ServiCeS Association of Canada is now
accepting online applications for its 2013 Education Fund scholarships.
The awards include fve $1,000 PSAC Regular Member scholarships
and one PSAC Roger Soucy Legacy Scholarship Funded by KPMG
in the amount of $2,500. The scholarships are open to PSAC regular
member employees and their children. The application deadline is
April 19. To apply, visit www.psac.ca/education.
PSAC 2013 Scholarships
now Open
in DeCember 2012, PSAC hosted a full house for the frst portion of
a two-part series looking at the future role of Canada’s energy sector on
the world stage with the launch of Canada’s Energy Technology Blueprint
series. Expert panelists included Martin Chamberlain, assistant deputy
minister for the Resource Development Policy Division of Alberta Energy;
Soheil Asgarpour, president of the Petroleum Technology Alliance
of Canada; and Dylan Jones, president and CEO of the Canada West
Foundation. The session was moderated by Bruce Edgelow, vice-president
of the Energy Group with ATB Corporate Financial Services.
Part two of the series will be held on March 26 in Calgary and will
examine the technologies, processes and regulations involved across
the upstream oil and gas value chain. Expert speakers will demystify
technologies used in the feld and explain how these technologies drive
operational, environmental and safety performance. An exhibition will
also give delegates an up close look at the many innovations developed
and deployed by the Canadian petroleum services sector. For more
information and to register, visit www.psac.ca/events.
PSAC launches an innovative
Program examining Canada’s
energy future
COMinG eVenTS
frACfOCuS: On PubliC diSClOSure Of CheMiCAlS uSed in hydrAuliC frACTurinG
March 25, 2013
TELUS Convention Centre
Calgary, Alberta
CAnAdA’S enerGy TeChnOlOGy bluePrinT SuMMiT
March 26, 2013
TELUS Convention Centre
Calgary, Alberta
PSAC SPrinG COnferenCe
April 16 & 17, 2013
Sheraton Red Deer Hotel
Red Deer, Alberta
PSAC’S drillinG ACTiViTy fOreCAST Mid-yeAr uPdATe
April 25, 2013
The Westin Hotel
Calgary, Alberta
PSAC eduCATiOn fund GOlf ClASSiC
July 18, 2013
Calgary Elks Lodge and Golf Club
Calgary, Alberta
For more information about PSAC events, visit www.psac.ca/events
new MeMberS
reGulAr MeMberS
Kayden Industries Inc.
Lufkin Industries Canada Ltd.
Millennium Stimulation Services Ltd.
Oculus Transport Ltd.
Resource Well Completion Technologies Inc.
Versa-Line Services Inc.
ASSOCiATe MeMberS
Dixie Mat & Hardwood
PSAC_Spring_2013_p06-07.indd 7 2/14/13 3:20:14 PM
Servic-
L8I1OA and the Va|ue of
O||ñe|d Serv|ces Compan|es
Knowing this importunt number helps owners
muke better business decisions.
lor compunies in the Oilñeld Services Sector ("OlS"), optimul ñnunciul
ßexibility is essentiul in order to ride out the cyclicul rollercouster
thut churucterizes this industry. Whether it's growth, sule, mergers,
ucquisitions, bunk debt or equity ñnuncing driving the trunsuction,
in ull oI these cuses, the L8l1uA (Lurnings 8eIore lnterest, 1uxes,
uepreciution und Amortizution) culculution is king.
"L8l1uA is one oI the primury vuluution tools Ior determining the
ñnunciul cupucity oI u business und is required when selling u business
or when seeking ñnuncing," expluins uuvid ¥uger, Nutionul Leuder oI
MNl's Oilñeld Services pructice. "lt's the sturting point Ior plucing u
vulue on your operution."
1he L8l1uA culculution tells people the umount oI cush generuted
by business operutions. All interest puyments, tux, depreciution und
umortizution entries in the income stutement ure udded buck to
bottom-line net income, enubling the compurison oI the ñnunciul
perIormunce oI diIIerent businesses.
"1he ultimute vulue oI u business is bused on Iree cush und L8l1uA is
where you sturt. Ultimutely, they wunt to know how much Iree cush
the business will spin oII Ior expunsion und cupitul servicing ulong with
how much debt it cun uIIord," expluins ¥uger.
8ut L8l1uA is considered u non-GAAl ñnunciul metric, so it doesn't
uppeur on most ñnunciul stutements. lt must be culculuted munuully,
which requires u level oI ñnunciul knowledge und unulysis thut muny
owners oI privute OlS businesses don't possess or don't huve the time
or inclinution to leurn.
1his is in sturk contrust to publicly-truded OlS compunies. 1heir ñnunce
depurtment routinely culculutes L8l1uA und stutes it in supporting
documents Ior their bourds, munugement, investors und debt und
equity cupitul providers.
"1hut's where MNl is diIIerent," suys ¥uger. "We've recognized L8l1uA
us u key OlS business vuluution metric und put it in the ñnunciul
stutements so it's right there when you or cupitul providers ure
considering un opportunity, investment or decision."
However, L8l1uA is not the only Iuctor in determining vulue. Aspects
such us whether the business is growing, the uge oI key ussets, history
oI eurnings or technologicul risk ure ulso considerutions. 8ut L8l1uA is
u key vuluutor in determining how much u potentiul ucquirer cun puy
Ior u compuny, the risk oI u lending decision, how much cupitul it cun
invest on expunsion und whether or not it hus the cupucity to ucquire
one or more oI its competitors.
lublic OlS compunies ure usuully vulued ut u premium becuuse oI
liquidity (the ubility to sell your investment tomorrow) und their ubility
to ruise cupitul Ior growth by issuing treusury shures. 1he ñrst step Ior
privute compunies to creute u similur competitive dynumic is to provide
ñnunciul inIormution thut cleurly und simply displuys their ñnunciul
perIormunce on the sume terms us their public competitors.
As ¥uger points out, L8l1uA is the sturting point. Huving it right there
on your income stutement gives u business owner improved ñnunciul
ßexibility moving Iorwurd.
1o ñnd out more about how MNP's O||ñe|d Serv|ces team can
beneñt you, contact Oav|d Yager, O||ñe|d Serv|ces Nat|ona| Leader,
at 403.648.4188 or dav|d.yager@mnp.ca.
Oav|d Yager,
O||ñe|d Serv|ces Nat|ona| Leader
69K:GIDG>6A
000PSN-MNP-FP.indd 1 2/4/13 1:55:13 PM
T
PSAC_Spring_2013_p08-09.indd 8 2/14/13 3:21:25 PM
WWW.PSAC.CA 9
L8I1OA and the Va|ue of
O||ñe|d Serv|ces Compan|es
Knowing this importunt number helps owners
muke better business decisions.
lor compunies in the Oilñeld Services Sector ("OlS"), optimul ñnunciul
ßexibility is essentiul in order to ride out the cyclicul rollercouster
thut churucterizes this industry. Whether it's growth, sule, mergers,
ucquisitions, bunk debt or equity ñnuncing driving the trunsuction,
in ull oI these cuses, the L8l1uA (Lurnings 8eIore lnterest, 1uxes,
uepreciution und Amortizution) culculution is king.
"L8l1uA is one oI the primury vuluution tools Ior determining the
ñnunciul cupucity oI u business und is required when selling u business
or when seeking ñnuncing," expluins uuvid ¥uger, Nutionul Leuder oI
MNl's Oilñeld Services pructice. "lt's the sturting point Ior plucing u
vulue on your operution."
1he L8l1uA culculution tells people the umount oI cush generuted
by business operutions. All interest puyments, tux, depreciution und
umortizution entries in the income stutement ure udded buck to
bottom-line net income, enubling the compurison oI the ñnunciul
perIormunce oI diIIerent businesses.
"1he ultimute vulue oI u business is bused on Iree cush und L8l1uA is
where you sturt. Ultimutely, they wunt to know how much Iree cush
the business will spin oII Ior expunsion und cupitul servicing ulong with
how much debt it cun uIIord," expluins ¥uger.
8ut L8l1uA is considered u non-GAAl ñnunciul metric, so it doesn't
uppeur on most ñnunciul stutements. lt must be culculuted munuully,
which requires u level oI ñnunciul knowledge und unulysis thut muny
owners oI privute OlS businesses don't possess or don't huve the time
or inclinution to leurn.
1his is in sturk contrust to publicly-truded OlS compunies. 1heir ñnunce
depurtment routinely culculutes L8l1uA und stutes it in supporting
documents Ior their bourds, munugement, investors und debt und
equity cupitul providers.
"1hut's where MNl is diIIerent," suys ¥uger. "We've recognized L8l1uA
us u key OlS business vuluution metric und put it in the ñnunciul
stutements so it's right there when you or cupitul providers ure
considering un opportunity, investment or decision."
However, L8l1uA is not the only Iuctor in determining vulue. Aspects
such us whether the business is growing, the uge oI key ussets, history
oI eurnings or technologicul risk ure ulso considerutions. 8ut L8l1uA is
u key vuluutor in determining how much u potentiul ucquirer cun puy
Ior u compuny, the risk oI u lending decision, how much cupitul it cun
invest on expunsion und whether or not it hus the cupucity to ucquire
one or more oI its competitors.
lublic OlS compunies ure usuully vulued ut u premium becuuse oI
liquidity (the ubility to sell your investment tomorrow) und their ubility
to ruise cupitul Ior growth by issuing treusury shures. 1he ñrst step Ior
privute compunies to creute u similur competitive dynumic is to provide
ñnunciul inIormution thut cleurly und simply displuys their ñnunciul
perIormunce on the sume terms us their public competitors.
As ¥uger points out, L8l1uA is the sturting point. Huving it right there
on your income stutement gives u business owner improved ñnunciul
ßexibility moving Iorwurd.
1o ñnd out more about how MNP's O||ñe|d Serv|ces team can
beneñt you, contact Oav|d Yager, O||ñe|d Serv|ces Nat|ona| Leader,
at 403.648.4188 or dav|d.yager@mnp.ca.
Oav|d Yager,
O||ñe|d Serv|ces Nat|ona| Leader
69K:GIDG>6A
000PSN-MNP-FP.indd 1 2/4/13 1:55:13 PM
HE FIRST UPDATE TO the Petroleum Services Association
of Canada (PSAC)’s 2013 Canadian Drilling Activity Forecast
saw a slight increase in the number of wells drilled during
2013.
PSAC added 75 wells to its forecast for an estimated 11,475 wells drilled
(rig releases) across Canada for 2013. PSAC is basing its January 2013 update
on average natural gas prices of CDN$2.95/GJ (AECO) and crude oil prices
of US$90 per barrel (WTI).
“Due to continued natural gas development in northeastern British
Columbia we’ve adjusted our numbers to reflect that activity. While at the
same time we are seeing increased activity in northern Alberta with explor-
atory wells around the oil sands in situ plays,” says Mark Salkeld, president
and CEO of PSAC. “Alternatively, infrastructure bottlenecks in Manitoba,
including restricted pipeline capacity, are creating back up and oversupply in
the province.”
PSAC’s mid-year update will be released at a luncheon on April 25. The
Drilling Activity Forecast can be used with the PSAC Well Cost Study to ef-
fectively determine potential drilling and completion market sizes, as well as
pricing and activity direction. For more information, contact PSAC at info@
psac.ca or 403.264.4195.
Positive Outlook for
Oilpatch Activity
T
DRILLING ACTIVITY FORECAST UPDATE
ßk|I|SR |û|U¥ß|A. 435
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¦NU¥ß|k û| W|||S¦
Note: Total includes activity in Northern and Eastern Canada.
PSAC REVISES ITS DRILLING FORECAST
UPWARDS FOR 2013
PSAC_Spring_2013_p08-09.indd 9 2/14/13 3:21:45 PM
moving
you
EVERYTHING
NEED TO KEEP
UFA.com
©2013 UFA Co-operative Ltd. All rights reserved.
01/13-20423
Whether you’re in the driver’s seat of a pick-up, a semi,
a tractor, or an earth mover, you’ve got a lot of ground
to cover. You can depend on us for help with services
that include:
º Ca|d|oc| Ne¦wo||
Over 110 Locations in Alberta
Premium products 24 hours/day 365 days/year
Access to entire network with one card
º 8u|| fue| 0e||.e||es aud lo|¦ab|e fue| !au| Reu¦a|s
º 8u|| C|| Equ|preu¦, 0e||.e|, aud Vou|¦o||uç
º l|er|ur 8|aud '|e|| aud C|e.|ou Lub||cau¦s,
¦o|ru|a¦ed ¦o ree¦ o| e·ceed C||ç|ua| Equ|preu¦
Vauu¦ac¦u|e|s' (CEV) pe|¦o|rauce spec|¦ca¦|ous.
º F|ç| Cua||¦, f||¦|a¦|ou p|oduc¦s |||e f|ee¦çua|d f||¦e|s
º Cu||ue Ca|d Vauaçereu¦ aud f|ee¦ Repo|¦|uç ',s¦er
º Loca| 'e|.|ce aud 'uppo|¦
Fueling your life on the road, in the felds
and everywhere in between.
000We-UFA-FP.indd 1 2/1/13 4:23:26 PM PSAC_Spring_2013_p10-15.indd 10 2/14/13 3:27:45 PM
WWW.PSAC.CA 11
moving
you
EVERYTHING
NEED TO KEEP
UFA.com
©2013 UFA Co-operative Ltd. All rights reserved.
01/13-20423
Whether you’re in the driver’s seat of a pick-up, a semi,
a tractor, or an earth mover, you’ve got a lot of ground
to cover. You can depend on us for help with services
that include:
º Ca|d|oc| Ne¦wo||
Over 110 Locations in Alberta
Premium products 24 hours/day 365 days/year
Access to entire network with one card
º 8u|| fue| 0e||.e||es aud lo|¦ab|e fue| !au| Reu¦a|s
º 8u|| C|| Equ|preu¦, 0e||.e|, aud Vou|¦o||uç
º l|er|ur 8|aud '|e|| aud C|e.|ou Lub||cau¦s,
¦o|ru|a¦ed ¦o ree¦ o| e·ceed C||ç|ua| Equ|preu¦
Vauu¦ac¦u|e|s' (CEV) pe|¦o|rauce spec|¦ca¦|ous.
º F|ç| Cua||¦, f||¦|a¦|ou p|oduc¦s |||e f|ee¦çua|d f||¦e|s
º Cu||ue Ca|d Vauaçereu¦ aud f|ee¦ Repo|¦|uç ',s¦er
º Loca| 'e|.|ce aud 'uppo|¦
Fueling your life on the road, in the felds
and everywhere in between.
000We-UFA-FP.indd 1 2/1/13 4:23:26 PM
BY JORDAN WILKINS
SELF-REGULATION HELPS THE INDUSTRY KEEP STANDARDS
UP TO DATE AS NEW TECHNOLOGY COMES ALONG
EFF SAPONJA HAS SEEN first-hand the
efficiency of self-regulating industry
recommended practices (IRPs). Not only
does the chief executive of TriAxon Oil
Corp. rely heavily on advanced technology
to develop light oil assets in Western Canada,
he also helped develop two IRPs.
Enform, the upstream oil and gas industry’s safety association, co-
ordinates IRP development. Saponja served as co-chair of two commit-
tees tasked with developing IRPs. In 2011, he helped develop IRP 22, deal-
J
ing with underbalanced and managed pressure
drilling operations using jointed pipe. The next
year he helped create IRP 24, which deals with
inter-wellbore communication during fracture
stimulation.
In an industry as complex as the oil and gas
sector, it’s vital that companies follow best prac-
tices to ensure the safety of their employees and
that environmental responsibilities are being
met, while using the most efficient operating
methods.
Although government legislation still regu-
lates the industry, by establishing these IRPs the
oil and gas sector is able to keep up with evolving
technologies that are integral to the industry’s
growth and development. Implementing and
updating government legislation can often be
That’s
Fracking
Right
PSAC_Spring_2013_p10-15.indd 11 2/14/13 3:45:50 PM
Seamlessly delivering
the right personnel for
every project.
|ojo| |rç|reer|rç |os |eer µrov|1|rç erç|reer|rç eiµert|se,
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WWW.PSAC.CA 13
a lengthy process, whereas establishing new IRPs can often be relatively
quick. They are also put together by industry experts.
The ability to keep up with evolving technology and ensuring procedures
are safe, environmentally friendly and done efficiently, has put Canada’s
petroleum companies in an
advantageous situation. Part of
the reason local producers and
services companies are held in
such high regard around the
world is because IRPs are cre-
ated by the people who know
the industry best.
“It makes sense to have the
experts, who are the people
who are on the ground and actually doing the work, be the ones to develop
the best practices,” Saponja says. “Government officials, generally, are not
experts in all of the fields of our industry, so for them to write the how-to
statement, doesn’t make as much sense as having the experts do it, in my
opinion.”
IRPs are designed to establish best practices in emerging aspects of
operations, as well as meet and exceed existing regulatory requirements.
This allows companies to comply with IRPs that are up-to-date and alle-
viate any discrepancies in regards to legislation.
Saponja says that what makes IRPs successful is that the committee for
every individual IRP hearing is comprised of experts from a cross-section
of different sectors within the oil and gas industry.
Currently, IRPs are developed when the industry’s Drilling and Com-
pletions Committee (DACC) is presented with an issue that either has
become a concern or has seen substantial technological changes in recent
years. The DACC will then look to the industry and decide whether or not
an IRP committee should be formed. If the committee comes up with an
IRP and votes to pass it, it then becomes sanctioned by the DACC.
But, the sanctioning of an IRP is just the beginning of the process. Every
IRP is part of a five-year review cycle, which ensures best practices are still
in tune with the ever-evolving technology of the petroleum industry.
IRP 24 had a little more attention on it than previous IRPs because it
was formulated after a well blowout in central Alberta in 2011, Saponja
says. It is defined as a risk-based IRP, which means it is structured around
a hazard-management process that logs industry-known hazards related
to inter-wellbore communication from hydraulic fracturing.
The IRP document and supporting hazard register, offers a process and
mechanism for operators to identify and document suitable controls for
scenarios at the planning stages to be carried through at execution.
“Our main goal for that IRP was to identify all the areas of risk and look
at the well-integrity aspect involved with fracking,” Saponja says. “It was
designed to avoid these issues of uncontrolled releases. I think everyone
involved did an outstanding job in generating, by far, the best IRP for self-
regulation that can be generated. I’m very pleased with the outcome and I
strongly believe that having this will reduce the risk in our industry.”
In general, Saponja believes IRPs are the best method for self-regulation,
but the recent shift toward risk awareness-based IRPs in the last couple of
years, is a new step that is moving even further in the right direction.
“Self-regulation puts the accountability where it needs to be and it’s
a very effective system,” he says. “But for the system to work the most
effectively there has to be a risk awareness aspect involved when creating
the IRPs. What IRPs do best
is make everyone aware of
the risks involved in a cer-
tain situation. Once they are
developed no one can ever
say ‘I didn’t know.’ That puts
the accountability where you
want it to be.”
The first IRP dates back to
1987. It was actually Alberta
Recommended Practice (ARP) 1 Critical Sour Well Drilling, created in
response to a blowout that occurred near Lodgepole, Alberta, in 1982.
The ARP was reviewed twice: once in 1993, with no changes being made,
and then again in 1999. The 1999 review committee decided the scope
of the industry had evolved to the point where ARP 1 was no longer
up-to-date with current methods, so amendments were made and ARP 1
became known as IRP 1. >> CONTINUED ON PAGE 16
“NOTHING WE DO IS PERFECT AND EVERYTHING WE DO INVOLVES
SOME FORM OF RISK. THIS SYSTEM IS ALL ABOUT CONTINUALLY
LOOKING TO REDUCE THAT RISK, AND REDUCE THE COST, WHILE
AT THE SAME TIME INCREASING EFFICIENCY.”
– JEFF SAPONJA, CEO OF TRIAXON OIL CORP.
PSAC_Spring_2013_p10-17.indd 13 2/20/13 11:01:40 AM
2013
PETROLEUM SERVICES ASSOCIATION OF CANADA
Spring Conference
DELEGATE NETWORKING
RECEPTION AND DINNER
Tuesday, April 16, 2013
Hear David recount the powerful story of how he survived a
violent explosion that occurred while he was performing a routine
maintenance procedure while working for an oileld service
company. He attributes the fact he was wearing personal protective
equipment (PPE) as the reason he is here today to share his story.
His incredible story demonstrates the importance of wearing the
appropriate PPE. David’s wife Jamie joins in his presentation to
illustrate that the incident didn’t just happen to David.
Here’s what delegates said about the 2012 PSAC Spring
Conference:
“One of the best conferences I have attended, good topics and speakers.”
“First time I attended, thought it was a great conference!”
“Excellent speakers and a good mix of high level information and basic
information.”
“I had a great time and the information was very valuable…returning
home with renewed attitude, refreshed ideas and change.”
ENGAGE. EDUCATE. EXCEL.
The PSAC Spring Conference is the only professional development
conference oering practical solutions on transportation,
human capital management and leadership development for
frontline managers, operations and eld sta working in Canada’s
oilpatch. With over 20 seminars to choose from this conference
oers information and practical advice for everyone from
managers to eld sta.
Featuring Keynote presentation “Explosion Man -
The Man Who Lived” by David Dyck
April 16 - April 17, 2013
THANKS TO OUR SPONSORS
Major Sponsors
Red Deer, Alberta
EARLY BIRD RATES ARE AVAILABLE!
REGISTER TODAY!
Register by March 15, 2013 and save $100 on fees.
To register or for more information, contact PSAC:
E: info@psac.ca
T: 403.264.4195
www.psac.ca/events
To register visit www.psac.ca/events
PSAC_Spring_2013_p10-17.indd 14 2/19/13 4:46:24 PM
PETROLEUM SERVICES ASSOCIATION OF CANADA
2013
Spring Conference
Boundaries of Social Media •
Advancing Aboriginal Inclusion in the Workplace •
Protect Your Fleet: Reducing Driver and Driving Hazards •
Tailgates to the Boardroom: Manage Meetings Eectively •
Successful Interviews: Get it Right the First Time •
Taking the Leap? Supervisory Boot Camp •
Accelerate Your Workforce: Career Path Development •
Coach or Mentor: What’s the Dierence? •
Merger Ahead: Blending Corporate Cultures •
For a complete listing and full descriptions of workshops and
seminars visit www.psac.ca/events
A SELECTION OF 2013 SPRING CONFERENCE SEMINARS
Conference Sponsors
To register visit www.psac.ca/events
WHO SHOULD ATTEND?
Petroleum Services Companies
Benets Administrator
Derrickhands
Dispatchers
Drillers
Driver Trainers
Field Technicians and Engineers
Fleet Managers
Floorhands
General Managers
Head Mechanics
HSE Supervisors
Human Resource Generalists
Labourers
Lead Hands
Operations Managers
Order Desk Clerk
Parts Person
Payroll Administrators
Plant Managers
Procurement Managers
Production Superintendents
Project Managers
Senior Management
Human Resource Practitioners
Senior Management
Human Resource Practitioners
Procurement Pesonnel
QHSE Managers and Specialists
Quality Control Managers
Recruiters
Scheduler/Production Planners
Shippers/Receivers
Shop Foremen
Store Managers
Supply Chain Managers
Swamper
Training Coordinator
Truck Drivers
Training Managers
Warehouse Managers
Well Testers
Winch Tractor Operators
Certified by the Board of Registered Safety Professionals (BCRSP)
PSAC_Spring_2013_p10-17.indd 15 2/19/13 4:46:50 PM
16 SPRING 2013 PETROLEUM SERVICES NEWS
Mike Read, vice-president of operations for
Ramshorn Canada Investments, was chair of
the committee that created the first IRP. He says
that as successful as ARP 1 was for the industry,
changes needed to be made in order to keep up
with industry standards.
“I think the fact that there has never been a
blowout on any well that followed ARP 1 speaks
volumes,” Read says. “That being said, when
we reviewed it we went through every chapter
line-by-line, and decided what needed to be
updated. As the technology changes, so does
the expectations of the public and the regula-
tors, so we revised it as we saw fit and sent it
out to the industry before it was sanctioned by
DACC.”
Even though Read hasn’t directly participated
in an IRP since 2003, he has followed recent
decisions and says that they’ve evolved even
further in the right direction in the last 10 years.
He agrees with Saponja that a risk-based prac-
tice is better for the industry than the previous
specification-based IRPs.
Duane Mather spent nearly 40 years in the
petroleum industry. He retired after serving
most recently as the president and CEO of
Nabors Drilling and remains involved in the
industry as the current chairman of Enform.
Over the years, Mather has witnessed how
quickly the industry changes and recognizes the
importance of having an efficient self-regula-
tory system, as opposed to just the government
legislation.
“Government regulation, while written with
good intent, can often miss where the industry is
in regards to technology,” Mather says. “There is
no industry that is full of more innovation than
ours. And it comes from every facet, whether
it’s the professional engineers or out in the field.
The faster this evolution gets into our guidance
documents, the better it is for everyone. It helps
with efficacy, cost and safety. Having industry
control regulation allows any change to be dealt
with effectively.”
Drawing on his experience from helping to
create two IRPs, Saponja agrees that dealing
with changes in the industry is one of the most
important facets of self-regulation and he says
that continuing to develop a risk awareness-
related system will help ensure operations are
performed as safely as possible.
“Nothing we do is perfect and everything we
do involves some form of risk,” Saponja says.
“This system is all about continually looking to
reduce that risk, and reduce the cost, while at the
same time increasing efficiency.”
PSAC_Spring_2013_p10-17.indd 16 2/19/13 4:48:27 PM
WWW.PSAC.CA 17
PSAC_Spring_2013_p10-17.indd 17 2/19/13 4:48:38 PM
18 SPRING 2013 PETROLEUM SERVICES NEWS
HE PETROLEUM SERVICES ASSOCIATION of Canada
has joined forces with the Missing Children Society of
Canada (MCSC) to launch CodeSearch, a program designed
to reunite families with their children faster than ever before.
CodeSearch is a corporate volunteer program, which
combines technology and a unique partnership between non-profit,
corporations, industry and law enforcement to unite a variety of resources
together in one cause – finding missing children.
“PSAC and its members are committed to serving the communities
where we operate. We want to engage our members and their employees
in a cause that is important to all Canadians, and to be able to access their
resources and help find children when they go missing,” says Mark Salkeld,
president and CEO of PSAC. “Our member companies and their employees
are very much the front line of our industry workforce, and can provide the
T
extra eyes and ears that are so critical when a child goes missing.”
The composition of PSAC’s membership with a widespread presence
across Western Canada in urban and rural communities is a perfect fit
for CodeSearch. With nearly 250 members representing nearly 65,000
employees, PSAC member companies will be a valuable resource in
helping to find missing children because so many employees are residents
of outlying communities that may not have the breadth of resources to
mobilize when a child goes missing.
“CodeSearch is changing the face of Corporate Volunteering and PSAC
is leading the charge,” explains Amanda Pick, executive director of MCSC.
“When we use the skills and vast resources Canada’s petroleum services
sector already possesses to bring missing children home, we will make
a difference in our communities. We are truly appreciative of PSAC’s
commitment to making Canada safer.”
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WWW.PSAC.CA 19
S
S
&
HE 19TH ANNUAL STARS & SPURS GALA presented
by the Petroleum Services Association of Canada (PSAC)
brought the association’s total amount raised for the Shock
Trauma Air Rescue Society (STARS) to more $9 million with
a stunning one-night total of over $1.1 million.
PSAC credits all sectors of the oil and gas industry for working together to
make the gala such a long-term success. “This year’s turnout and the ongoing
support speak volumes about the value our entire industry places on STARS
and the critical work they do,” says Mark Salkeld, president and CEO of PSAC.
“Our event helps ensure that STARS’ emergency medical response services
remain available to oil patch workers, their families and communities across
Western Canada.”
More than 1,100 guests attended the gala held on January 19, 2013 at the
BMO Centre at Stampede Park in Calgary. The event included a moving
speech from STARS Very Important Patient for 2013, Michelle Salt.
STARS airlifted Salt in June 2011 to the Foothills Medical Centre in
Calgary immediately following a motorcycle accident. Doctors later told
her that had she arrived just one minute later her outcome would have been
different. “I am grateful every day to STARS for saving my life,” says Salt.
The evening included a toast to the gala’s 2013 Honourary Patron, Ken
King. In June 2012, King made STARS history by becoming STARS’ first
paramedic to fly 1,000 missions. King currently serves as vice-president
of patient access, safety and quality management with STARS, but also
continues to take shifts as a flight paramedic. “I enjoy the opportunity to
make a difference. It’s thrill-of-a-lifetime work,” King says.
Gala guests enjoyed dinner, a performance by Canadian Country Music
Award winning musician Gord Bamford, raffles, auctions, dancing and the
chance to network, all with the help of guest emcee Dave Rutherford of QR77.
“The support we receive from PSAC is tremendous,” says Andrea Robertson,
president and CEO of STARS. “This event always exceeds expectations.
The results from this year are astonishing and STARS is forever grateful for
everything PSAC has done to help critically ill and injured patients.”
GALA REACHES NEW HEIGHTS
T
The 2013 gala raised a record-breaking $1.1 million for STARS. From left to right, Doug Ramsay,
director with STARS; Andrea Robertson, president and CEO of STARS; and Mark Salkeld, president
and CEO of PSAC.
Canadian Country Music Award winner Gord Bamford performs at the gala.
From left to right, 2013 STARS & Spurs Honourary Patron Ken King, Very Important Patient Michelle
Salt and STARS pilot Fraser Gamble.
Donors were honoured at the Gala’s VIP reception, from left to right, Ray Mills, Kudu Industries Inc.;
Neil Harrop, Baker Hughes Canada Company; Andrea Robertson, president and CEO of STARS; Mark
Salkeld, president and CEO of PSAC; Scott Hauck, National Oilwell Varco – Distribution Services; John
Gorman, 2013 Gala Chairman; Deborah Close, Tervita Corporation; David Browne, Trican Well Service
Ltd.; and Jomo Green, Weatherford Canada Partnership.
2
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WWW.PSAC.CA 21
PSAC IN ACTION
THE PETROLEUM SERVICES ASSOCIATION OF CANADA
(PSAC) CONTINUES TO KEEP THE SERVICES SECTOR FRONT
AND CENTRE THROUGH ADVOCACY AND OUTREACH
BRITISH COLUMBIA
As a part of the B.C. Resources Natural Gas Workforce Strategy Group,
PSAC recently met to review research looking into natural gas labour
demand requirements and supply opportunities. This data will be
used to develop a multi-pronged strategy for attracting, retaining
and training workers for the demands associated with natural gas
development in the province over the next 10 years.
CANADA
PSAC has been working with Human Resources and Skills Development
Canada to address foreign worker issues related to National Occupation
Classification (NOC) codes, which limit entry into Canada for workers
who are skilled but do not possess education or trade credentials.
PSAC ATTENDS 2012 CANADIAN ENERGY SUMMIT
In mid-November 2012, PSAC represented members and joined energy
association colleagues, Canadian and U.S. government representatives
in a roundtable discussion at the Energy Council of Canada’s 2012
Canadian Energy Summit in Vancouver. The central question of the
summit was: National Energy Strategy For Canada - What Should It
Include? Various perspectives on the challenges and opportunities
facing Canada’s oil and gas industry were presented and discussed.
PSAC PROVIDES TESTIMONY TO THE HOUSE OF COMMONS
Late in 2012, PSAC and representatives from PSAC regular member
companies Cathedral Energy Services Ltd. and Calfrac Well Services
Ltd., provided testimony to Natural Resources Canada on the
importance of technology and innovation to the petroleum services
sector.
PSAC WORKS WITH ALBERTA GOVERNMENT
ON KEY ISSUES FACING THE SERVICES SECTOR
PSAC continues its dialogue with representatives from Alberta
Energy, including Deputy Minister Jim Ellis, to discuss issues that are
top of mind for PSAC members. Some of the issues covered include
hydraulic fracturing, labour issues, energy literacy and the New West
Partnership. Conversations also included issues related to lease sizes.
PSAC REPRESENTS MEMBERS IN SASKATCHEWAN
PSAC BUILDS RELATIONSHIPS IN SASKATCHEWAN
PSAC held several meetings in the last quarter of 2012 with the
Saskatchewan Ministry of the Economy to introduce PSAC and the
work the petroleum services sector does in developing the supply
chain for oil and gas, and explore opportunities for collaboration.
PSAC CONNECTS MEMBER COMPANIES AND ABORIGINAL LEADERS
As Canada’s First Nations represent an important future source of
labour, PSAC recently organized meetings between regular member
companies and two Saskatchewan Tribal Councils. The purpose of the
meeting was to explain the array of service lines the companies offer,
the various employment opportunities available within the petroleum
services sector and the training that would be required for these
positions.
SASKATCHEWAN SEEKING PSAC MEMBER INPUT ON PST-13 BULLETIN REVISION
PSAC has been reaching out to members with operations in
Saskatchewan to assist the Government of Saskatchewan to write an
informed revision of the province’s PST-13 Bulletin.
PSAC CONTINUES TO WORK ON LABOUR ISSUES
WITH PROVINCIAL AND FEDERAL GOVERNMENTS
ALBERTA
PSAC has continued its efforts to address worker issues with other
energy associations and representatives from Alberta Enterprise
and Advanced Education. Meetings have included Assistant Deputy
Minister Maryann Everett; Percy Cummings, executive director of
Immigration Policy and Programs; and Danielle Comeau, executive
director of Strategic Marketing and Labour Attraction Branch.
PSAC recently met with representatives from Alberta Education
to discuss the redesign of the curriculum for Albertan students from
kindergarten to Grade 12 to ensure education provides the necessary
elements for student success in the world after school.
PSAC REPRESENTS MEMBERS IN SASKATCHEWAN
PSAC ATTENDS 2012 CANADIAN ENERGY SUMMIT
PSAC CONTINUES TO WORK ON LABOUR ISSUES
WITH PROVINCIAL AND FEDERAL GOVERNMENTS
PSAC WORKS WITH ALBERTA GOVERNMENT
ON KEY ISSUES FACING THE SERVICES SECTOR
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22 SPRING 2013 PETROLEUM SERVICES NEWS
written under the assumption that the HST was going to stick around
for a while. Service companies should enter discussions with oil and gas
companies to renegotiate contracts.
“If there’s going to be tax applied on the contractor and their materials
now, well their pricing is all wrong and they’re going to want to find a
way to get out of it or adjust it,” Crawford says. “Rewriting contracts and
having those discussions with the customer are paramount.”
Companies will likely have to work collaboratively with clients to
analyze the details of a contract and figure out what items will have the
new tax applied to them, which items are exempt and which party is
responsible for paying the tax. “You can probably just take the existing
contract, adjust the pricing and make sure the PST clause gets inserted,”
Crawford says.
REFORMAT INVOICES
While services companies should receive PST exemptions on large
equipment – such as drilling rigs and truck-mounted service rigs –
passenger vehicles and materials will likely have PST applied to them. By
default, if a company purchases consumables and materials to perform
work, it is that company’s responsibility to pay the PST.
“If you’re going to engage in that sort of a contract, you need to specify
in your contract with the oil and gas producer if you’re going to charge
FTER A THREE YEAR ex-
periment, British Columbia is
re-implementing its provincial
sales tax on April 1 and the new tax regime will
have a significant impact on oilfield services
companies operating in the province.
In July 2010, B.C. combined its PST with the
federal goods and services tax to create a 12 per
cent harmonized sales tax (HST). Under the
single tax system, businesses would be able to
recoup their portion of the HST through rebates.
A Globe and Mail report in 2009 estimated
the HST would reduce tax paid by businesses
in the province by $1.9 billion each year and
reduce administrative costs by $150 million. A
public backlash soon developed over the PST
consumer tax exemptions eliminated under the
HST. In August 2011, 55 per cent of voters in a
referendum were in favour of scrapping the HST.
B.C. Finance Minister Kevin Falcon
estimates that reinstating the dual tax regime
will cost the province more than $3 billion.
The provincial government is expected to put
all of the exemptions from the old PST regime
back in place when it finalizes the details of the
new PST system in mid-February.
“Under the old PST and under this new one,
there’s going to be tax applied on businesses for
a lot of their inputs. There are some exemptions
in the oil and gas industry and manufacturing
industries, but it doesn’t remove the tax
completely,” says David Crawford, Calgary
tax leader with Grant Thornton LLP. “If they
properly charge for it, it’s going to be a new cost
for the oil and gas producer. If they don’t get
it right, as a service company it’s a risk for not
having charged correctly.”
RENEGOTIATE CONTRACTS
Contracts between service companies and
producers during the past few years were likely
The Three Rs (and One S) for
Dealing with B.C.’s New Tax
A
BRITISH COLUMBIA IS RETURNING TO THE PST AND SERVICE
COMPANIES WILL NEED TO PREPARE IN ADVANCE FOR THE CHANGE
BY STEVE MACLEOD
BUSINESS MATTERS
RENEGOTIATE CONTRACTS
PSAC_Spring_2013_p22-28.indd 22 2/15/13 9:04:39 AM
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COURSES FOR THE PETROLEUM INDUSTRY
Spring, 2013
Bill Ayrton will present three diferent courses which have the
reputation of being the best available on the topics. You will
get a better understanding of your role and relationship with
the other disciplines in the oil and gas industry. The knowledge
learned from these courses is immediately transferrable to the
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For more detailed course information and to register, please
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separately for these line items of consumables and materials,” Crawford
says. “It has to state that it will be charged separately on the invoice or
broken out on the invoice.”
RETRAIN EMPLOYEES
Even accounts payable and receivable employees who were around in the
pre-HST days will likely need a refresher on PST rules. “They’re going
to need processes in place to train people so they know when to and
when not to apply the tax,” Crawford says. “The same with the accounts
receivable billing staff, they need to know when to charge and when not
to charge.” Crawford says.
He says most companies’ accounting systems should be able to process
invoices under the new system, but labour and administration costs
under the PST system could be four to six times higher because it is more
time intensive to navigate.
SPEND MONEY
Crawford knows that April 1 is a short timeframe in which companies
can accelerate capital purchases, but if there is an opportunity to buy
out a lease or spend capital on big ticket items, now is the time to do it.
“If you have the money to purchase capital equipment, do it now,” he
says. “If you do it later, it’s going to cost you seven per cent more for that
capital equipment.”
SPEND MONEY
RETRAIN EMPLOYEES
PSAC_Spring_2013_p22-28.indd 23 2/20/13 9:04:07 AM
Services
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WWW.PSAC.CA 25
URING THE PAST DECADE, completing wells in
multiple stages has helped horizontal wells become
economic when targeting difficult to access oil and gas
formations. But Sanjel Corp., a pressure pumping and
completions company, noticed a problem.
After sending a series of balls of incrementally larger sizes downhole
to isolate sections of the wellbore and focus the completion job, the
balls weren’t always easy to bring back out of the well. Operators using
these ball and sleeve systems were faced with two choices: drill and
mill out the ball seats in the wellbore or leave the balls downhole,
which would restrict flow and have potential long-term workover
limitations.
Sanjel’s solution was to acquire Suretech Completions Ltd. (formerly
Sure Tech Tool Services Inc.) in December 2011, along with the small
company’s SUREstack technology.
“We are always on the lookout for, or working on, additional
products that are good additions to our current suite of services,”
says Ron Gusek, Sanjel’s vice-president of corporate engineering and
technology. “When we looked at Suretech, Sanjel was a provider of
pressure pumping services – frack coil tubing and cementing – and
SUREstack gave us an opportunity to offer one more piece to a puzzle
that we were already pretty heavily involved in.”
SUREstack, according to Sanjel, is the first retrievable ball and
seat system. The multi-stage completion system is deployed with
coiled tubing or jointed pipe and leaves a full-diameter wellbore with
repeatable access without any milling or drilling required, and no
leftover debris.
Sanjel ran the system on a few trial wells in early 2012 and began
small-scale public sales soon after. That summer at the 2012 Global
Petroleum Show, Sanjel launched the technology as a significant
company offering. Gusek says more than 1,000 stages have been
installed so far and the feedback since the show has been very positive.
Sanjel also has a robust in-house “technology roadmap,” Gusek
says. A list of potential and ongoing projects is continually evaluated
to determine where the company’s priorities should lie. Within the
engineering and technology department, Gusek leads an R&D team in
Calgary with roughly 25 employees. The Calgary-based company has
approximately 3,500 employees in total, who are spread throughout 30
global field districts.
R&D teams like Gusek’s produce most of Sanjel’s own equipment
in-house. Within six months, one team created a flexible cement
blend with industry acceptable compressive strength. Another team
Retrieving Innovation
D
MEMBER PROFILE
is already working on the next generation
of SUREstack, which Gusek expects will be
released later this year.
Being a private company, Gusek says,
encourages innovation at Sanjel more than
being publicly-owned would because there isn’t
the need to report to shareholders each quarter.
“We’ve really grown over the last five to
seven years to not only become a presence in
North America, but also overseas,” Gusek says.
“We have a whole resource of information
and intellectual capital working together to
take Sanjel to the next level, to be a significant
presence on the global oilfields services
market.”
SOME FORETHOUGHT AND AN ACQUISITION ENABLE SANJEL TO OFFER
CUSTOMERS THE INDUSTRY’S FIRST RETRIEVABLE BALL AND SEAT SYSTEM
BY MICHELLE LINDSTROM
“SANJEL WAS A PROVIDER OF PRESSURE PUMPING SERVICES – FRACK COIL
TUBING AND CEMENTING – AND SURESTACK GAVE US AN OPPORTUNITY TO
OFFER ONE MORE PIECE TO A PUZZLE”
– RON GUSEK, SANJEL’S VICE-PRESIDENT OF CORPORATE ENGINEERING AND TECHNOLOGY
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26 SPRING 2013
Services
PETROLEUM SERVICES NEWS
When the going gets tough, the tough stay put. Through the credit crunch,
depressed commodity prices and global economic turmoil, we’ve done just that.
We never left the side of the people who’ve made Alberta an economic powerhouse,
and we continue to custom build solutions to help them do what they do best…lead.
Because Alberta means the world to us.
atb.com/corporate
TM
Trademarks of Alberta Treasury Branches.
10
years
Living Leadership
Leaders don’t flinch.
000PSN-ATB-FP.indd 1 2/13/13 2:53:27 PM
A LOOK AT LEADERSHIP
DONNA GARBUTT
President
Schlumberger Canada Limited
Years in Services Sector: 29
LLOYD STEWART
Vice President
Doran Stewart Oilfield Services
Years in Services Sector: 30
PETROLEUM SERVICES NEWS TALKS WITH PSAC’S
BOARD OF DIRECTORS AND TAKES A PERSONAL
LOOK AT LEADERS IN THE SERVICES SECTOR
IF YOU COULD DO ANY OTHER JOB/OCCUPATION, WHAT WOULD THAT BE?
DG: I started out in university in fine arts with a vision of becoming a concert
pianist. It became apparent after a couple years I just didn’t have what it takes.
I would still love to play at the National Arts Centre in Ottawa.
LS: If skill were not a factor, I would like to be a professional golfer.
WHAT IS YOUR FAVOURITE BOOK OF ALL TIME?
DG: Three Cups of Tea by Greg Mortenson [and David Oliver Relin]. Although
tangled in controversy lately, it remains an inspirational tale of how an
individual can make a difference in the world.
LS: No time for books.
WHAT ABOUT MOVIE?
DG: I’m a romantic/comedy fan – the classic “chick flick” version. I usually
forget them the minute I walk out the door, but they are great escapism and
fun.
LS: The Godfather, Part 1 and 2, and The Bourne Identity series.
IF YOU COULD INVITE THREE FAMOUS PEOPLE (DEAD OR ALIVE) TO DINNER, WHO WOULD THEY
BE AND WHAT WOULD YOU SERVE?
DG: Gardiner Greene Hubbard, the first president of the National Geographic
Society; Anita Roddick, the founder of the Body Shop; and Angela Hewitt,
Canada’s most recognized pianist. I would contract the dinner out and spend
my time talking with my guests.
LS: Fred Couples, James Taylor and Warren Buffet. Good old Alberta Beef
(tri-tip).
WHAT DO YOU THINK IS THE BIGGEST CHALLENGE FACING CANADA’S ENERGY INDUSTRY AT
THIS TIME?
DG: Access to markets. We need to find alternative customers and provide
means to deliver our products to those customers.
LS: As activity picks up labour shortages will result. Skilled workers will be in
higher demand.
WHAT MOTTO OR PHRASE DO YOU LIVE BY?
DG: Never say “can’t.” I remember first saying this to my sister when I was
around 12-years-old, and I have lived by it my whole life.
LS: Treat people as you wish to be treated.
WHAT WOULD YOU SAY IS YOUR BIGGEST ACCOMPLISHMENT TO DATE?
DG: Top of the list is definitely my two children and my marriage of over 32
years. Second to that would be my return to Calgary in August 2010 as the
president of Schlumberger Canada.
LS: Outside of raising of three wonderful sons, being VP of operations for an
international oilfield services company.
IF YOU COULD TRAVEL TO ANYWHERE IN THE WORLD, WHERE WOULD YOU GO?
DG: I have had the wonderful opportunity to visit, live and/or work
in 44 different countries, but I have two destinations at the top of my
“bucket list.” I’ve never been to Australia, and I want to hike to Everest
Base Camp.
LS: I have traveled a fair amount but have yet to see southern Europe.
WHICH TALENT WOULD YOU MOST LIKE TO HAVE?
DG: I would love to be a better golfer.
LS: If you asked my friends, it would be golf.
IF YOU COULD CHANGE ONE THING ABOUT YOURSELF, WHAT WOULD IT BE?
DG: I wish I was more athletic. I am very competitive and enjoy sports.
LS: Outside of improving my golfing talent, I would like to do a better job of
recognizing people for their attributes and teamwork.
WHAT IS YOUR MOST TREASURED POSSESSION?
DG: The photographs of our new grandson, our children and their families.
LS: Family.
WHO ARE YOUR HEROES IN REAL LIFE?
DG: The people who have succeeded in life despite monumental challenges and
adversity.
LS: My wife of 30 years.
PSAC’s Board of Directors represents the diversity of Canada’s upstream
petroleum services, supply and manufacturing sectors. With more than
150 years of collective experience, PSAC’s board brings unparalleled
breadth and depth of expertise to the strategic direction of PSAC and
the issue of the day. Visit www.psac.ca to find out more about PSAC’s
Board of Directors.
DONNA GARBUTT LLOYD STEWART
WHAT IS YOUR FAVOURITE BOOK OF ALL TIME?
WHAT ABOUT MOVIE?
WHAT DO YOU THINK IS THE BIGGEST CHALLENGE FACING CANADA’S ENERGY INDUSTRY AT
THIS TIME?
WHAT MOTTO OR PHRASE DO YOU LIVE BY?
IF YOU COULD TRAVEL TO ANYWHERE IN THE WORLD, WHERE WOULD YOU GO?
WHAT IS YOUR MOST TREASURED POSSESSION?
IF YOU COULD CHANGE ONE THING ABOUT YOURSELF, WHAT WOULD IT BE?
WHO ARE YOUR HEROES IN REAL LIFE?
PSAC_Spring_2013_p22-28.indd 26 2/15/13 9:05:33 AM
When the going gets tough, the tough stay put. Through the credit crunch,
depressed commodity prices and global economic turmoil, we’ve done just that.
We never left the side of the people who’ve made Alberta an economic powerhouse,
and we continue to custom build solutions to help them do what they do best…lead.
Because Alberta means the world to us.
atb.com/corporate
TM
Trademarks of Alberta Treasury Branches.
10
years
Living Leadership
Leaders don’t flinch.
000PSN-ATB-FP.indd 1 2/13/13 2:53:27 PM PSAC_Spring_2013_p22-28.indd 27 2/15/13 9:05:42 AM
PSAC_Spring_2013_p22-28.indd 28 2/15/13 9:13:25 AM

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