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The official publication of the Canadian Association of Drilling Engineers

SEPTEMBER / OCTOBER 2014


PM#40020055
A massive discovery off the
coast of Newfoundland
heralds a new frontier
for oil and gas
PLUS
Eyes in the Sky
What drones can bring
to the oil patch
Munching Microbes
How tiny undersea microbes
could help in offshore
exploration
From Sea to Sea
A new agreement could advance
cross-country apprenticeship
programs
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www.cadecanada.com SEPTEMBER/OCTOBER 3
The official publication of the Canadian Association of Drilling Engineers
DEPARTMENTS
4
PRESIDENTS MESSAGE
6
THE DRAWING BOARD
Editors note, members
corner, news and notes,
technical luncheons
10 STUDENT PROFILES
11 HELP WANTED
19 MEMBER PROFILE
24
BY THE NUMBERS
26 DRILLING DEEPER
FEATURES
12 BAY DU NORD BREAKTHROUGH
Last years huge offshore
discovery heralds a new
oil and gas frontier off
Newfoundland and Labrador
16 EASTWARD HO!
A host of energy initiatives
could turn Atlantic Canada
into the promised land
20 ITS A BIRD ITS A PLANE
New technology takes to the
air above the oil patch
22 TURNING FOE TO FRIEND
A University of Calgary
researcher says microbes can
be an invaluable aid for the
offshore oil industry
The mandate of the Canadian Association of Drilling Engineers is to
provide high-quality technical meetings and to promote awareness on
behalf of the drilling and well servicing industry. With more than 500
members from more than 300 companies, CADE represents a broad
spectrum of experience in all areas of operations and technologies.
Through CADE, members and the public can learn about the tech-
nical challenges and the in-depth experience of our members that
continue to drive the industry forward. For drilling and completions
specialists, CADE currently offers one of the best networking and
knowledge sharing opportunities in the Canadian petroleum industry.
CANADIAN ASSOCIATION OF DRILLING ENGINEERS
1100, 540 - 5 Avenue SW
Calgary, AB T2P 0M2
Phone: 403-532-0220
Fax: 403-263-2722
www.cadecanada.com
PRESIDENT: Jeff Arvidson
PAST PRESIDENT: Robert Jackson
WELL CONSTRUCTION JOURNAL EDITOR: Christian Gillis
WELL CONSTRUCTION JOURNAL IS PUBLISHED FOR CADE
BY VENTURE PUBLISHING INC.
10259 105 Street
Edmonton, AB T5J 1E3
Phone: 780-990-0839
Fax: 780-425-4921
Toll Free: 1-866-227-4276
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PUBLISHER: Ruth Kelly
DIRECTOR OF CONTRACT PUBLISHING: Mifi Purvis
MANAGING EDITOR: Lyndsie Bourgon
ART DIRECTOR: Charles Burke
ASSOCIATE ART DIRECTOR: Andrea deBoer
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PRODUCTION MANAGER: Betty Feniak Smith
PRODUCTION TECHNICIANS: Brent Felzien, Brandon Hoover
CIRCULATION COORDINATOR: Karen Reilly
ACCOUNT EXECUTIVE: Anita McGillis
CONTRIBUTING WRITERS: Robin Brunet, Samus Smyth,
Ryan Van Horne
SEPTEMBER/OCTOBER 2014
20
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CONTENTS

2014 CADE. NOT TO BE REPRINTED OR


REPRODUCED WITHOUT PERMISSION.
10
12
WCJ_Sept-Oct_14_p02-03.indd 3 2014-08-26 1:08 PM
Well Construction Journal 4 SEPTEMBER/OCTOBER 2014
MESSAGE
Presidents
Dan Schlosser
CADE President
OR YEARS, STAFFING ISSUES AND WORKPLACE
challenges have been plaguing the oil
and gas industry. When it comes to at-
tracting, and keeping, skilled labour, the
challenges have often seemed insurmountable.
But there are some solutions that could make
it easier for us in the future. On page 26 of
this issue, you can read about a new east-west
agreement that could cut the red tape between
apprenticeship training in Alberta and Nova
Scotia. Its important to make the workforce
mobile, so we can work in any province or ju-
risdiction.
That should go beyond just apprentices, too.
Within Canada, engineering and technical staff
are also hindered by borders. Some engineer-
ing companies dont classify their workers as
engineers for this reason its easier to call
us technical specialists so that we can work in
different provinces. But it should be easier for
us to keep the engineer title that weve earned
and use our skills across Canada as well.
Recently, Canadas numerous accounting
bodies completed merger approvals, all
combining under the Chartered Professional
Accountants banner. I think having a similar
designation for engineering would be ideal.
Engineers would be able to travel east and
west and still follow the same strict guidelines
for work and professional conduct. It might
be easier to get people to move if they didnt
have to write another set of exams. The goal
wouldnt be for the various organizations
currently in place to lose clout, only to allow
them to work together on a national level.
That type of change would have to be
spurred by members like us, who would have
to place pressure on current organizations
to work together for the good of the entire
industry.
F
Why Engineers Should Be
More Like Accountants
WCJ_Sept-Oct_14_p04-09.indd 4 2014-08-26 1:12 PM
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Why Engineers Should Be
More Like Accountants
Directional Drilling
Pacesetter is a technical leader in the directional drilling industry.
Our inventory of advanced drilling tools includes the newest
generation of MWD tools that was custom designed by
Pacesetter team members. Our equipment oers
greater funtionality and reliability than the older
technology being used by our competitors.
WCJ_Sept-Oct_14_p04-09.indd 5 2014-08-26 1:12 PM
Well Construction Journal 6 SEPTEMBER/OCTOBER 2014
BOARD
The Drawing
President Dan Schlosser dschlosser@ncsfrac.com
Education Chair Linden Achen lachen@westpetro.com
Technical Chair Ryan Richardson rrichardson@secure-energy.ca
Membership Chair Andy Newsome andyn@xitechnologies.com
Social Chair Kristy Hysert kristy.hysert@shaw.ca
Treasurer Cecil Conaghan conaghan.concepts@gmail.com
WCJ Editor Christian Gillis christiang@hawkeyeengineering.ca
Sponsorship & Marketing Craig Joyce craigj@xitechnologies.com
IT Chairman Matt Stuart matt.stuart@surgeinc.com
Secretary Tammy Todd tammy.todd@taqa.ca
Coordinator Kali Charron kali.charron@cadecanada.com
CADE Executive
Team 2014/2015
E X E C U T I V E T E A M
E D I T O R S N O T E
Heading Into a Busy Fall
ELL, HERE WE GO AGAIN. BY THE TIME THIS
issue lands on your desk or in your inbox, we
will be entering the last part of Q3 and gearing
up for whats looking like a strong fourth quarter.
The kids are now back in school and summer holidays are
done. It seems like we were only just waiting for summer
to arrive. The September/October issue of Well Construction
Journal has us revisiting the East Coast, where things look
like they will be just as busy as they are in the WCSB.
As a reminder, the annual CADE golf tournament is
booked again for a third season at Calgarys Bearspaw
Country Club on September 15. Emails about hole
sponsorship and registration have been sent out and put
on the website. If you havent signed up yet, there may still
be a few spots left, and we are expecting our strongest turn
out ever.
Our 2014 Technical Luncheon presentations are kicking
off again on September 3, with a presentation on torque
and drag analysis by Leo Specht, P.Eng. The following
luncheon will be on October 29. Tickets will be available
on the website.
Please watch for email announcements and check the
website for the start of our fall luncheons and upcoming
topics and dates. Please dont hesitate to contact us if
you have any ideas for upcoming topics or issues youd
like to see presented at the luncheons or in print. We
are also looking for topics that tie into our WCJ focus
for each month. We hope to see more of this over
the course of the year, and welcome our members
to participate and continue making these events
interesting and successful. If you have any issues youd
like to see covered, please email me and we will do our
best to get the story.
And dont forget, we would also like to publish any
of your information and announcements on new
products, new technologies and senior personnel
changes. Please forward any announcements to us, as
we would be excited to run them in the journal. We
appreciate your continued support and look forward to
seeing you at the upcoming luncheons.
CHRISTIAN GILLIS, Editor
Canadian Well Construction Journal
christiang@hawkeyeengineering.ca
403-265-4973
W
WCJ_Sept-Oct_14_p04-09.indd 6 2014-08-26 1:12 PM
SEPTEMBER/OCTOBER 2014 7 www.cadecanada.com
President Dan Schlosser dschlosser@ncsfrac.com
Education Chair Linden Achen lachen@westpetro.com
Technical Chair Ryan Richardson rrichardson@secure-energy.ca
Membership Chair Andy Newsome andyn@xitechnologies.com
Social Chair Kristy Hysert kristy.hysert@shaw.ca
Treasurer Cecil Conaghan conaghan.concepts@gmail.com
WCJ Editor Christian Gillis christiang@hawkeyeengineering.ca
Sponsorship & Marketing Craig Joyce craigj@xitechnologies.com
IT Chairman Matt Stuart matt.stuart@surgeinc.com
Secretary Tammy Todd tammy.todd@taqa.ca
Coordinator Kali Charron kali.charron@cadecanada.com
www.cadecanada.com
ME MB E R S C O R N E R
WELCOME NEW MEMBERS
VASFI ALIYEV
PATRICK DUTTON
GEOFFREY LOFTUS
MIGUEL MIRANDA
MARTINA OKPOR
PUJA PANDYA
LARISSA PATTERSON
PETER ROOT
MALCOLM SMITH
JAMES STEIL
WHY BECOME A CADE MEMBER?
As of 2014, the Canadian Association
of Drilling Engineers (CADE) has been
active for 39 years. With more than
500 members from more than 300
companies, CADE represents a large
spectrum of experience in all areas of
operations and technologies.
For drilling and completions spe-
cialists, CADE currently offers one of
the best networking and knowledge
sharing opportunities in the Canadi-
an petroleum industry. The skills and
knowledge obtained by your partici-
pation in CADE will benet you and
your employer, with direct applica-
tion to your professional career.
CADE offers various means for
members to connect and share
their insights. Monthly technical
luncheons are held with topical
industry presentations. Other mem-
bership benets include our monthly
publication Well Construction Journal
and a membership directory, which
is the whos who of the Canadian
drilling industry.
Our website cadecanada.com is
an excellent focal point for industry
events, blogs and other news. We are
also active on LinkedIn and Twitter.
WHO CAN BECOME A CADE MEMBER?
CADE members can be anyone em-
ployed in the drilling and completions
industry or anyone who is interested
in the industry.
Typical members include drilling
and completions engineers, geologists,
technical personnel, sales personnel
and students. Student memberships
are available to any post-secondary
student interested in learning more
about drilling and completions.
Please feel free to share informa-
tion about CADE with all the people
in your organization who are inter-
ested in the drilling and completions
industry.
CADE MEMBERSHIP RENEWALS
CADEs membership year is from
September to September. During the
summer, CADE members will receive
an email and link for the renewal
process on our website.
Please remember the benets of be-
ing a CADE member include APEGAs
professional development hour, stay-
ing abreast of technological and in-
dustry advances, drilling conferences
and a great opportunity to network.
Thank you for your support.
CADE MEMBERSHIP CHANGES
Log on to cadecanada.com to be-
come a member or to update your
contact information.
WCJ_Sept-Oct_14_p04-09.indd 7 2014-08-26 2:52 PM
Well Construction Journal 8 SEPTEMBER/OCTOBER 2014
BOARD
The Drawing
N E WS A N D N O T E S
N.S. government commits to
mapping offshore potential
In May 2014, the Nova Scotia government announced
plans to spend $12 million as part of a four-year
plan that would map data on potential offshore
oil and natural gas opportunities. The money
will go towards helping provide a geographical
map of potential opportunities, and builds on
the provinces Play Fairway Analysis program,
which provides seismic data and other geological
information to players that are interested in the
region. That program has since gone on to show
potential for 120 tcf of gas, and eight billion bar-
The Canada-Nova Scotia Petroleum Board, the
provinces offshore regulator, has put four deep-
water parcels on the auction block, where theyll
remain until the end of October. The board an-
nounced the opening last spring, and companies
will have until October 30 to bid on the explora-
tion rights for the sites.
The area up for grabs is along the eastern Scotian
Slope, about 300 km southwest of Cape Breton Island.
rels of oil, nestled beneath the seabed off Nova
Scotias shore.
The Play Fairway Analysis program has also
played a huge role in encouraging big-name
companies like Shell and BP to launch explora-
tion projects in the region.
Weve only just begun to explore the full
potential of our offshore, said Premier Stephen
McNeil at a press conference. Our investment,
combined with private-sector efforts, will help
maximize the benets for Nova Scotians.
Waters in the area are up to 4.1 kilometres deep.
When the parcel was rst put up for auction, in
May, the Maritimes Energy Association was expect-
ing bids but couldnt speculate on how much they
might be worth. There were no bidders on parcels
put up in 2013, but in 2011 and 2012 Shell and
BP both bid about $1 billion to obtain exploration
rights on the deepwater lands on the western half
of the slope.
Scotian Slope parcels on the
auction block
EASTERN SCOTIAN SLOPE
WCJ_Sept-Oct_14_p04-09.indd 8 2014-08-26 1:29 PM
T E C H N I C A L L U N C H E O N S
N.S. government commits to
mapping offshore potential
THE RIG
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EnsignEnergy.com/adr
Luncheon Tickets
MEMBERS: $47.50 (plus GST)
NON-MEMBERS: $55 (plus GST)
FULL TABLES OF 10: $475 (plus GST)
STUDENT: $20 (plus GST)
Save the Date: September 3, 2014
Topic: A Practical Approach to Torque and Drag Analysis
Presenter: Leo Specht, P.Eng
Leo Specht has been the engineering manager at Pacesetter
Directional Drilling Ltd. since 2008, and previously held
positions at Talisman Energy Inc., Anadarko Canada
Corporation and Baker Hughes Inc. With a degree from the
University of Alberta, and as a member of APEGA, SPE and
CADE, Specht has more than 15 years of experience in the oil
and gas exploration industry.
His session will discuss the creation of a drillstring model,
addressing the relative impact, relevance and importance of a
number of inputs. A well-constructed and calibrated model of
the drillstring and wellbore can yield invaluable insights into
downhole conditions, allowing improved drillstring designs
for more efcient drilling. Using a model that closely mirrors
a drillstring, participants will examine several scenarios where
information can be used to improve drilling performance,
including heavyweight placement, trip management and
buckling evaluation.
GST REGISTRATION #R123175036
Visit www.cadecanada.com for all ticket purchases
Save the Date: October 29, 2014
Topic: Wellbore Placement Accuracy:
Do you know what you dont know?
Presenter: Brian Varcoe, P. Eng
Brian Varcoe, Drilling Engineering Manager at Mostar Directional
Technologies Inc., will focus on issues in wellbore placement,
exploring topics including what questions to ask your horizontal
well directional provider, as well as MWD roll test acceptance,
potential azimuth error due to insufcient NM spacing, MWD
qualier acceptance and magnetic eld effects on downhole tools.
WCJ_Sept-Oct_14_p04-09.indd 9 2014-08-26 1:29 PM
Well Construction Journal 10 SEPTEMBER/OCTOBER 2014
AHA HASSANIN IS IN HER THIRD YEAR OF CIVIL ENGINEERING,
with an energy and environment specialization, at the
University of Calgary.
She recently completed eight months of work experience
as an exploitation engineering summer student with Ellisboro En-
ergy, and was an optimization and eld operations summer student
in the Provost elds with Apache Canada Ltd.
Hassanin says the energy industry has provided her with a con-
stant source of fascination, and she continually strives to broaden
her knowledge of its technology and developments. After gradua-
tion, she aspires to contribute to the industrys continued growth
through her role as an engineer.
Hassanin is currently the President of the Petroleum and Energy
Society (SPE Student Chapter) at the University of Calgary. PES is an
extremely active student organization with more than 300 mem-
bers, whose goal is to better prepare students for industry work prior
to graduation. PES accomplishes this through industry tours and
numerous other professional development events. In addition to
her involvement with PES, Hassanin is also the Chair for the 2015
EnergyBowl Competition, a two-day event aimed at promoting
interdisciplinary collaboration and friendly competition through
Jeopardy-style questions and case studies.
Hassanin also holds a Bachelor of Science degree in psychology.
She enjoys volunteering and has been involved with numerous ini-
tiatives including Women in Science and Engineering, Explore IT
and the Cerebral Palsy Association. In her free time, you can often
nd her volunteering at the Alberta Childrens Hospital, or playing
basketball and kickboxing.
ARREN SERVISS IS ORIGINALLY FROM SASKATCHEWAN, BUT HAS
lived in Calgary for 10 years. Serviss has owned and operated
several businesses in the past, and he made the move to the
oil and gas industry after selling his construction business.
After enrolling at SAIT Poytechnic in the Petroleum Engineering
Technology program, Darren secured a position at Shale Petroleum
Ltd., working evenings and weekends as a reservoir technologist.
In his spare time Darren enjoys music and getting together with
friends. He keeps his chops up playing the odd weekend in bands.
Darren is also the president of the Student Petroleum Society at
SAIT for 2014-2015.
Young Talent
Highlighting tomorrows best and brightest
Student
PROFILE
Maha Hassanin
Civil Engineering
University of Calgary
Darren Serviss
Petroleum Engineering Technology
SAIT Polytechnic
M
D
WCJ_Sept-Oct_14_p10-11.indd 10 2014-08-26 1:05 PM
SEPTEMBER/OCTOBER 2014 11 www.cadecanada.com
APPRENTICESHIP PROGRAMS AN INVALUABLE PART OF BUSINESS
HELP WANTED: Career Department
DRILLING SLANG
If you want to walk the walk on a drill site, it helps to talk the
talk. Here are some terms and phrases often heard out in the eld:
6FF40: Refers to an induction log made with a particular array of
transmitter and receiver coils. The 6FF40 array has six coils, with
the main transmitter-receiver pair spaced 40 inches apart.
COME OUT OF THE HOLE: To remove the drillstring from the
wellbore.
IMAGE WELL: A virtual well used to mathematically create the
effect of a ow barrier.
in Alberta between 2010 and 2013, the number of apprentices
registered in the province increased by 50 per cent, with over
13,000 of those apprentices working in oil and gas. The province
trains about 20 per cent of Canadas overall apprentice workforce.
In the whitepaper, the Council noted: If the provinces are able
to maintain this level of new registrations, and if all the apprentic-
es complete their training, within 12 years, Alberta could double
the labour force of oil and gas trade occupations.
According to the Canadian Apprenticeship Forum, employers
see an average incremental revenue of $1.47 for every dollar
they invest in apprentice training. The Forum also suggested that
apprentices transitioning from another eld into oil and gas bring
with them valuable skills, and likely need less time in training.
For more on cross-Canada apprenticeship agree-
ments, turn to pg. 26.
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Q WAVE: A type of surface wave in which particles oscillate
horizontally and perpendicularly to the direction of wave prop-
agation.
RICKER WAVELET: A zero-phase wavelet, commonly convolved
with a reectivity trace, to generate a synthetic seismogram.
UNWEIGHTED MUD: A mud that contains no commercial weight-
ing material. More solids-control techniques are available for
unweighted muds than for weighted muds. In fact, dilution of
unweighted muds is highly economical.
WITH THE DEMAND FOR SKILLED LABOUR INTENSIFYING, A NEW
report shows that companies are choosing to formalize appren-
ticeship programs in a bid to stabilize their workforce and ensure
talent retention within the workplace.
The Petroleum Human Resources Council recently released their
whitepaper, Exploring Apprenticeship Completions of Skilled
Trades in the Upstream Oil and Gas Industry, which looked at
how apprenticeships are managed across the country. The up-
stream oil and gas industry is estimated to currently employ more
than 45,000 skilled tradespeople, a number which is expected to
increase by over 7,000 people by 2022.
The paper reported that the regions with the highest-expected
increase in skilled tradespeople are Alberta, British Columbia, Sas-
katchewan and Newfoundland and Labrador. The Council noted
that the growth in apprenticeship registration is especially strong
WCJ_Sept-Oct_14_p10-11.indd 11 2014-08-26 1:05 PM
Well Construction Journal 12 SEPTEMBER/OCTOBER 2014
REPORT
Special
LOCATION: Flemish Pass Basin, offshore Newfoundland. 500 kilometres
east-northeast of St. Johns, in a water depth of 1,100 metres
RESOURCE: Light oil
SOURCE ROCK: Kimmeridgian-Tithonian age
INITIAL ESTIMATED RECOVERABLE: 300 million to 600 million barrels
PRODUCTION: Early stages
MAJOR PRODUCERS: Statoil, Husky Energy Inc., Shell Canada Limited
BAY DU NORD
St. Johns
FAST FACTS:
Exploration drilling rigs used off the
coast of Atlantic Canada are called
Mobile Offshore Drilling Units
(MODUs).
Bay du Nord has been hailed as the
largest discovery off the coast of
Newfoundland and Labrador in
30 years.
WCJ_Sept-Oct_14_p12-15.indd 12 2014-08-26 2:53 PM
SEPTEMBER/OCTOBER 2014 13 www.cadecanada.com
Last years huge offshore discovery heralds a new
oil and gas frontier off Newfoundland and Labrador
I
N 2013, BAY DU NORD, AND ITS ESTIMATED 300 TO 600 MILLION
barrels, was the largest oil discovery in the world.
So its no surprise that, little more than one year after
announcing its third nd in the Flemish Pass Basin, Statoil
spent three months collecting 3D seismic readings this past
summer and will start an 18 month program to drill more ex-
ploration and appraisal wells this fall.
To do so, the company has hired the semi-submersible drill-
ing rig West Hercules, fresh off another Statoil job in the Barents
Sea, to help delineate the eld. For Statoil (which has a 9.7 per
cent stake in the Hebron project that will come on-stream in
2017) and the greater oil industry in Newfoundland and Lab-
rador, its a breakthrough. Bay du Nord could become Canadas
rst deepwater oil development in offshore Canada.
But its too early to say when, says Gisle Stjern, vice-pres-
ident of Statoils Newfoundland offshore development, at the
Newfoundland Offshore Industry Association conference in
June. The Bay du Nord discovery is already a core explora-
tion area for Statoil, Stjern says if it proves up more oil in
the Flemish Pass (which it started exploring in 2007), plans
will accelerate.
The seismic program, conducted by the WesternGeco seismic
vessel Columbus, set out to collect data spanning more than
2,500 square-kilometres. It focused on the Bay du Nord area,
while also aiming to get a better picture of the greater Flemish
Bay du Nord
Breakthrough
Pass itself. The data collected this summer will be put to work
immediately and in the future.
Reports say Statoil has identied eight to 10 potential
high-impact prospects along the Newfoundland and Labra-
dor offshore, with plans to drill more wells. Statoil has two pros-
pects adjacent to Bay du Nord (Bay dEspoir and Bay du Verde)
and two other promising ones within its exploration licence
Mesquite and Gooseberry southwest of Mizzen, though Geir
Richardsen, vice-president of exploration at Statoil Canada, says
they are still mulling the targets for West Hercules.
There are exciting opportunities to appraise the Bay du
Nord discovery, as well as drill selected high-impact wells in the
larger Flemish Pass area, he says. At this time, however, we are
continuing to nalize plans and specic wells to be drilled, as
part of the upcoming drilling program.
This could accelerate development plans being drawn up by
a task force the company has established. That group will also
be fed processed seismic data as it becomes available, providing
a more accurate picture of the reservoirs volume, and indicat-
ing the best places to drill.
One industry expert who is optimistic about Statoils dis-
covery in the Flemish Pass, and thinks it bodes well for more
discoveries, is Michael Enachescu, an adjunct professor at
Memorial University in St. Johns. He has expertise in seismic
interpretation and Canadas offshore geology, and has been a
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Well Construction Journal 14 SEPTEMBER/OCTOBER 2014
REPORT
Special
geophysicist for Husky Energy and Suncor in
Newfoundland and Labrador since 1981.
Weve just scratched the opportunities there,
he says, of Newfoundlands offshore possibility.
I see exploration for oil and gas going on for
many generations.
Before the Mizzen discovery in 2009, there
were only ve wells in the Flemish Pass, and since
theyve started drilling, Statoil has found oil in
three of the ve. Enachescu says the potential lies
in the areas great source rock.
This late-Jurassic shale is a world-class
source rock; one of the best source rocks of the
entire Atlantic rift system, he says. And there
is high-quality, high-po-
rosity, high-permeability
reservoirs in the basin.
The Flemish Pass is part
of what Enachescu calls
the late-Jurassic super-high-
way, a term he coined ve
years ago to describe a wide swath of high-quality
source rock that stretches between Nova Scotia to
Newfoundland and across the Atlantic to Ireland,
the North Sea and Norway.
The three Statoil wells are in about 1,100
metres of water, which would make them the
deepest development by far in Canada, though
thats childs play on a global scale. Some offshore
discovery and commercial development wells in
Brazil, the Gulf of Mexico and Angola are in wa-
ter as much as three kilometres deep.
Ever the prospector, Enachescus theory about
oil exploration is simple: Just nd the damn
thing and the engineers will nd ways to produce
it, he says. Im sure that Statoil will look for sat-
ellite and additional reserves.
Steve Butt, a professor of drilling engineering
and geomechanics in Memorial Universitys Fac-
ulty of Engineering, says the game plan for Bay
du Nord will be determined by delineation work
that started this summer. The seismic testing will
indicate the best place to drill evaluation wells.
There are a lot of improvements in what you
can do with seismic, he says. With higher-res-
olution seismic, you have a better capability to
assess reservoir uids with a little more con-
dence.
The Jeanne dArc Basin elds are in water
depths of 80 to 120 metres, which present a chal-
lenge that doesnt exist in Bay du Nord. I believe
its in a similar iceberg occurring region as exist-
ing elds, Butt said. But one thing that is dif-
ferent is that the likelihood of iceberg scouring
is negligible.
A lot of time and money was spent on the
Jeanne dArc Basin projects to protect the facil-
ities from icebergs scouring the ocean oor. At
Hibernia and Hebron, which have gravity-based
structures, there are ice belts. At Husky Ener-
gys White Rose project, the installations on the
ocean oor are protected by being placed in ex-
cavated trenches or holes. These are last-ditch
defenses, though. There is constant monitoring
of icebergs and an early-warning system that dis-
patches tugs to tow them away from the oileld.
Initial estimates of the number of icebergs
based on scour marks on
the ocean oor proved
too high, but they are easily
monitored and towed safely
away from offshore installa-
tions. The Flemish Pass is a
challenge, mostly because
of weather and consistently high sea states,
Butt says.
We can deal with icebergs easier than we can
deal with hurricanes, Enachescu adds.
Derrick Dalley, Newfoundland and Labradors
minister of natural resources, says the Bay du
Nord discovery is great news for the province,
which is looking to grow its oil industry and is
trying to emulate Statoils success by modelling
Nalcor its own Crown corporation after the
Norwegian rm.
A program such as this, in a high-activity
frontier area, will help to build on the momen-
tum happening in the province in terms of ex-
ploration and appraisal activity, Dalley says.
At White Rose, Husky has successfully tied in
North Amethyst as the East Coasts rst near-
eld tieback, starting production in 2010. It is
also developing the White Rose Extension proj-
ect and has ordered a concrete gravity structure
that is being built in Argentina to serve as a xed
drilling rig. In November 2012, Shell successful-
ly bid $97 million to explore ve blocks in the
Laurentian sub-basin (south of Newfoundland).
It has yet to announce any seismic or explora-
tion work.
There will be other nds in the future, no
doubt about it, Enachescu speculates. The oil
industry in this former have-not province is an
amazing thing, he adds. Think where they
were 20 years ago. Now, they have a resource
that has replaced the shery that was lost.
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000WCJ-PhoenixTech-FP.indd 1 2014-08-20 8:38 AM
Weve just scratched the
opportunities there. I see exploration
for oil and gas going on for many
generations.
Michael Enachescu
FAST FACTS:
Iceberg scouring: When icebergs drift
into shallow waters, gouging the seabed
it drags against.
Some oil and gas companies rely on
submarine pipelines, buried below
iceberg gouge depths, to protect
against scouring.
WCJ_Sept-Oct_14_p12-15.indd 14 2014-08-27 3:13 PM
Stream Services develops innovative technologies which monitor all critical
drilling parameters and delivers real-time information to the rig foor and the
offce. Our solutions facilitate meaningful data analysis which improves your
drilling effciency and increases productivity.
Auto Driller System
Our Auto Driller System maximizes drilling performance by
maintaining a smooth weight on bit and rate of penetration which
results in less stress to the drill string and bottom hole assembly.
Electronic Drilling Recorder (EDR) & SiteWatch 2.0 Portal (SW2)
Stream Services EDR and SW2 Portal provide intuitive and fexible interfaces for
monitoring drilling parameters from the wellsite or offce.
SiteWatch Mobile App (Fall 2014)
Our mobile application will transform the way you monitor your wells. Make
cost saving decisions no matter where you are with real-time updates and SW2
functionality on your phone.
TRANSFORMING DRILLING DATA THROUGH INNOVATION
Wireless Cementing
With our wireless cementing module you can seamlessly monitor your
cementing operations through the EDR and SW2 platforms.
000WCJ-PhoenixTech-FP.indd 1 2014-08-20 8:38 AM WCJ_Sept-Oct_14_p12-15.indd 15 2014-08-26 1:03 PM
Well Construction Journal 16 SEPTEMBER/OCTOBER 20144
T
Eastward Ho!

A host of energy initiatives could turn Atlantic Canada into the promised land
REPORT
Economics
By Robin Brunet
HOUGH THERES A COUNTRY SPRAWLED
between them, Atlantic Canada and the Pa-
cic Northwest have more in common than
you might think. Both are on the threshold of
an economic boom, thanks to resource development
aimed at fullling Prime Minister Stephen Harpers
vision of Canada as an energy superpower. And on
both sides of the country, opponents are lined up.
Its disconcerting that so many people listen to
what Hollywood stars have to say about our resource
industries rather than the experts, says Glenn
Cleland, development director at University of New
Brunswicks Centre for Financial Studies.
Still, numerous initiatives are both in fruition
and proceeding as planned out east: Shell expects to
begin offshore drilling next year, and Husky Energys
White Rose oileld in the Jeanne dArc Basin off of
Newfoundland has been certied to sell to India,
which is second only to China as the worlds biggest
growth market. Rumours even abound that LNG
could be shipped across the Atlantic to Europe in the
foreseeable future.
According to a report released on May 26 by the
Atlantic Provinces Economic Council (APEC), a re-
cord $122-billion worth of major investment projects
are in various stages of development across Atlantic
Canada, up seven per cent from 2013s inventory.
Newfoundland and Labrador continues to be a
key driver of investment activity, due to its promis-
ing energy sector. Investment is steadily improving
in the region, with current-year spending up about
eight per cent to a record $15 billion. Better still,
major project investment is expected to remain at
near-record levels in 2015.
TransCanada CEO Russ Girling
announces the company is moving
forward with the 1.1 million-barrel-
per-day Energy East Pipeline project
at a news conference in Calgary.
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WCJ_Sept-Oct_14_p16-17.indd 16 2014-08-27 3:14 PM
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APEC predicts that labour requirements will increase substantially
after this year, with everyone from heavy equipment operators to
electricians expected to be in high demand. The council also reports
that wages and hours worked have grown rapidly in Newfoundland
and Labrador in recent years, with average weekly earnings now
second only to Alberta. Presumably, this could slow the rate that At-
lantic Canadas residents move to the Prairies
for high-paying jobs.
One major focus of attention is Trans
Canada Corp.s Energy East Pipeline, widely
considered a compatriot to Enbridge Inc.s
Northern Gateway Project in getting product
to tidewater.
The 4,400-kilometre pipeline will cross six provinces and termi-
nate at a renery and new marine terminal in Saint John, N.B. An
estimated 1.1 million barrels per day will be transported, and Cal-
gary-based Cenovus Energy Inc. has already pledged to ship 200,000
of those barrels daily.
On paper, Energy East will create $35.3 billion in economic
benets over the next ve years. Moreover, it will help replace
higher-priced oil imports from the Atlantic basin (currently, Quebec
and Atlantic Canada reneries import 86 per cent of their crude, or
about 700,000 barrels daily).
It almost goes without saying that Energy East has caused envi-
ronmental concerns and protest. The question is how intense is
the pushback?
Far less than that in B.C. to Northern Gateway at least as far as
Peter Howard, president and CEO of Canadian Energy Research In-
stitute (CERI), is concerned: The regulatory issues between Alberta
and North Bay, Ont., are minimal because the pipe is already in the
ground, and I havent heard of any great pushback further on.
Compared to constructing pipelines westward, Howard says,
the east is a relatively-straightforward proposal: there are no major
mountain ranges and a comparatively moderate climate. We build
pipes in far more severe cold than you ever nd in the Atlantic
provinces, he notes.
Quebec will still undertake a regulatory review. But, Howard
says, Considering their experience with rail transport of late, that
provinces regulators may appreciate the comparative safety of
transporting oil by pipe.
The project could impact 155 First Nation and Mtis communities
across Canada, though. TransCanada engaged all of them at an early
stage and continues to do so. Weve signed letters of agreement with
almost half of them, says TransCanada spokesman Philippe Cannon.
Not surprisingly, hydraulic fracturing is the main focus of push-
back amongst the eastern populace, and last October anti-fracing
protestors made national headlines by setting re to six RCMP squad
cars. Hopefully the general public will soon realize the problems
of buying crude from foreign sources, says Howard, who spends
considerable time on the speaker circuit illustrating how dollars stay
in Canada when pipelines and other resource infrastructure are built
on home turf (the CERI CEO also uses razor-sharp logic to deate
resistance to tanker trafc off the eastern seaboard: Are tankers
departing Canada any more of a risky proposal than the foreign boats
currently coming in? he asks.)
For his part, Cleland is trying to spread what he calls energy knowl-
edge in Atlantic Canada, in order to build a talent pool and slow the
ow of workers heading west. Nows the time, he says, in reference
to developing a CERI-modelled infrastructure in New Brunswick. My
centre at the University of New Brunswick wants
to create an energy knowledge base [by] hosting
conferences with third party research or primary
research from the New Brunswick Energy Insti-
tute. The next phase is to partner with the Sproule
Academy and host a multi-disciplinary energy
certicate. The last phase will be to produce primary research like CERI.
Cleland hopes his ambitions will be fullled by the time Energy East
is up and running in 2018.
Although Energy East and other projects seem certain to improve eco-
nomic fortunes, Howard warns that they wont necessarily reduce fuel
costs. The cost of buying crude from the west and rening it in the east
is comparable to the cost of shipping oil from Saudi Arabia, so I hope
people arent endorsing the energy projects for this reason, he says.
Howard concludes: I would urge them to focus instead on the pros-
pect of keeping dollars in Canada, creating jobs, and weaning ourselves
off oil from politically-volatile foreign sources.
Are tankers departing Canada any
more of a risky proposal than the
foreign boats currently coming in?
Peter Howard
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WCJ_Sept-Oct_14_p16-17.indd 17 2014-08-27 3:14 PM
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WCJ_Sept-Oct_14_p18-19.indd 18 2014-08-26 1:01 PM
www.cadecanada.com
PROFILE
Member
By Martin Dover
I
Opportunity at Home
T WAS THE REST OF THE WORLD THAT ORIGINALLY DREW JOHN
Hindman to Albertas oil patch. I wanted to work in
different places and environments. That was the carrot
for me, he says. I figured I could learn it here in Al-
berta and take it around the world.
Hindman, who lives in Airdrie and is now a senior
technical sales associate at Secure Energy Services, didnt
end up straying far from home. After graduating from
high school he spent a year working on a drilling rig.
That sort of introduced me to the industry, and I real-
ized that Im here to stay and I liked it. Hindman went
to NAIT, where he studied petroleum engineering tech-
nology and became a Certified Engineering Technolo-
gist. It was always so busy here, and I always found it
easy to find work, and I never had to venture outside the
country to do that, he says.
Hindmans first job in the industry was working at
Anderson Exploration as a drilling engineer. He stuck
around when Devon Canada bought the company, and
eventually went into drilling consulting, which he did
for a decade. Afterwards, he entered the service side.
Ive always been intrigued by the business aspect of
the oil and gas sector, and there still is great opportunity
there, he says. My skill set fit in really well. I enjoyed
the interaction with people. My 10 years on the other
side gave me the knowledge of what operators want and
expect from a service provider, and I could easily see how
to fill the void and meet their needs.
Now at Secure Energy Services, Hindman works to sell
drilling fluid services to drilling engineers. He has found
the job a perfect fit, including the challenges that he fac-
es. The industry requires a higher level of service now for
the work thats out there, he says. With the progression
of horizontal drilling, it takes a combined experience of
both drilling and fluids to give an add-value type service
to our clients. Not only that, Its a competitive market
and there are lots of choices for operators. You have to be
very proactive and be forward-looking in nature, which
is good because thats where I came from. Thats how you
execute your day to day as a drilling engineer.
Looking for a world of opportunity,
John Hindman found a promising
career at home
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WCJ_Sept-Oct_14_p18-19.indd 19 2014-08-26 1:01 PM
Well Construction Journal 20 SEPTEMBER/OCTOBER 2014
T
Its a bird, its a plane
New technology takes to the air above the oil patch
REPORT
Tech
By Samus Smyth
HE BLUE SKIES ABOVE THE OIL PATCH, FILLED
with birds and countless airplanes, could
soon be home to UAVs (unmanned aerial
vehicles) soaring high above the northern
Alberta landscape.
UAVs (or drones, in the United States) are minia-
ture ying devices that operate without a human on
board. In the past, theyve been used predominantly
in the military and for childs play, but have recently
had their use substantially broadened in a way that
could have an enormous impact on the way oil rigs
do business.
Tremendous ingenuity in the technology industry
has seen UAVs soaring above the oil and gas sector,
where they have the potential to do everything
from surveying land (in a fraction of the time it pre-
viously took) to inspecting pipelines and increasing
environmental and personal safety.
Reduce the costs, reduce the risks, reduce the
footprint, says ING Robotic Aviations chief ofcer,
Jeremy Byatt. Use a robot.
Byatt, who is feverishly passionate about the po-
tential of UAVs, says his company began by working
on military projects, particularly during the war
in Afghanistan. They designed their own systems
and created their rst exported successes, selling
machines in Chile and Kenya.
Their move into the commercial sector points
toward a changing world, one where equipment
that is cost effective and roughneck-worthy is in
high demand as a way to cut costs. Byatt believes
that public understanding is a key ingredient to
the takeoff of UAVs, and that the potential for the
incredible amount of fuel saved, and the decreased
danger, may be a key part of the convincing process.
Byatt points to the evolution of road vehicles as a
sign of whats to come for UAVs, noting that BMW,
Mercedes and Nissan are committed to having driv-
erless cars on the road within the next few years.
This is stuff that is happening right now. If we
can move cars in trafc [without a human behind
the wheel], my God, we can do this, he says.
He points to the danger inherent on icy roads
that need to be examined for safety, a common co-
nundrum in the oilelds. UAVs, in his mind, would
serve as a safer judge than a human careening down
Remove PHOTO CAPTION. Catpion: A
NuvAero unmanned aerial vehicle, equipped
with a camera, can take on tasks from land
surveys to pipeline inspections.
A NuvAero unmanned aerial vehicle, equipped
with a camera, can take on tasks from land
surveys to pipeline inspections.
WCJ_Sept-Oct_14_p20-21.indd 20 2014-08-27 3:15 PM
www.cadecanada.com SEPTEMBER/OCTOBER 2014 21
the road to determine if a road was trustworthy.
Along with eliminating dangerous demands,
it also takes over tedious tasks. Instead of an oil
and gas pilot spending arduous hours surveying
and inspecting over redundant ight patterns, a
UAV can do it. With more prominent and accurate
inspections, these machines will be able to detect
potential disasters more rapidly by sending data im-
mediately back to head ofces for further analysis.
Robert Eaton, president of NuvAero Flight Sys-
tems, a company based in Calgary, agreed that the
major cost-saving techniques the robots provide
should put companies on immediate notice.
What we can do is signicantly lower the cost
of visual inspection, he says. Having a premium
video camera attached to the
UAV means that it can inspect
all types of infrastructure, from
pipelines, are stakes, bridges
and future train lines.
One of the highlights of
the Canadian companys small
arsenal is aerial survey.
We are delivering GIS data at three centimetres
resolution that compares to 10 centimetres by an
aircraft. We are talking about accuracy and resolu-
tion in all of the mines and tailing ponds, which are
important places that need to be measured.
Not only is the aerial description drastically
improved by these ying robots, but they are able
to travel to dangerous and obscure areas where
workers are prone to danger, like tailings ponds,
which can act as quicksand traps for workers and
vehicles. With a UAV, they can suddenly be visited
with little risk.
And when it comes to saving a few pennies, the
contrast between using a helicopter versus a UAV
is bafing.
A real helicopter has about 1,000 horsepower,
and may be using at least 500 to y. Our UAV is
using one-horsepower to y, says Eaton. That is
what you get when you take the pilot out of the
equation.
This is so much more efcient, in terms of nanc-
es as well. We can pay machines off quicker, we use
less power there should be no choice compared to
the alternatives.
Eaton didnt need much time to consider which
industry he should promote his team of UAVs to.
Basing his miniature ight team in Calgary, the
nucleus of oil and gas business, Eaton focuses
his science directly on how to improve the oil
patch. Business in Calgary is steady and has made
encouraging strides over the past three years, part-
ly thanks to attention that drones or UAVs have
received in American pop culture.
For instance, a YouTube video showing Internet
retailer Amazon using a drone to deliver a package
to a consumer has attracted more than 600,000
views and has served as catalyst for tantalizing
debate over whether its a near future possibility, or
merely a dreamers idea with no legs. In Vancouver,
real estate agents have used UAVs to show off lavish
properties to potential cliental.
In Canada, conversation around UAVs has pre-
dominately focused on ease of use, with test after
test returning consistent and remarkable results.
It originally sounded like science ction to
them, admits Eaton, when
addressing the publics initial
perception of the futuristic
devices. But after proving the
process repeatedly, he says
the business and the concept
of UAVs playing a regular role
in businesses like the oil patch
could be a mere few years away.
We have a great system. We are at a point where
we are coming out as a real growth company. It
is about entrepreneurial challenges and brining
people on the team who have started with tech
companies, he says.
The Canadian government even appears ready
to help with research and development. Transport
Canada continues to play a vital role in UAV pro-
gression by developing and expanding air laws.
While on a smaller, but equally important scale,
post-secondary institutions like the University of
Calgary and SAIT Polytechnic currently have pro-
grams linked to the creation and operation of UAVs.
Calgary oil and gas company Cenovus is already
a step ahead of the pack. After determining that the
data generated from a drone was not only valuable
but expedient as well, they began using one.
Wade Ewen, Cenovus UAV team lead says the
results were bang on, when evaluating aerial
photos and burrow pits just south of Fort McMur-
ray. The ability to suddenly go from a weeks worth
of turnaround time on data to processing data in 24
hours has resulted in a better-looking bottom line
for the Calgary-based company.
In 10 years, almost everyone is going to be
ying them, he says. The applications are end-
less. They are getting cheaper, smaller and as long
as we can maintain the safety in the airspace, the
future is endless.
The applications are endless.
They are getting cheaper, smaller
and as long as we can maintain
the safety in the airspace, the
future is endless.
Wade Ewen
WCJ_Sept-Oct_14_p20-21.indd 21 2014-08-26 1:00 PM
22 SEPTEMBER/OCTOBER 2014 Well Construction Journal
From Foe to Friend

A University of Calgary researcher says microbes can become
a valuable aid for the offshore oil industry
REPORT
Enviro
By Lyndsie Bourgon
D

EEP UNDERNEATH THE ATLANTIC OCEANS
surface, off the eastern coast of the Mari-
times, the offshore oil industry and microbi-
al sciences operate as one.
Casey Hubert, a professor in environmental geomi-
crobiology at the University of Calgary, has spent
the past several years studying how the petroleum
industry and microbiology t together. And when it
comes to the vast deposit of oil and gas waiting at the
bottom of the sea, Hubert says this research can play
a key role in helping companies understand how
science can work alongside their industries.
Hubert is interested in the tiny, living bugs in and
around oil reservoirs. These microbes can play an
integral role when working to understand offshore
drilling, workplace safety and exploration.
When drilling for oil offshore, the standard prac-
tice has been to inject seawater into wells in a bid
to aid in the extraction process. The sulphate ions
in seawater create the perfect environment for sul-
phate-breathing organisms. Its kind of like theyve
been given an oxygen mask on a plane, explains
Hubert. These bacteria become active at the injection
of seawater and start eating the hydrocarbon in the
reservoir, exhaling hydrogen sulde, the corrosive
and deadly gas that causes souring.
Its a microbial hazard of offshore oil produc-
tion, says Hubert. Though there are lots of safety
measures in place to prevent fatalities.
And aside from major health and safety concerns,
Casey Hubert, taking marine sediment cores in
the Arctic around the Svalbard archipelago for
a marine microbiology project.
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SEPTEMBER/OCTOBER 2014 23 www.cadecanada.com

this process is also a cost concern for companies, be-
cause it corrodes the metal infrastructure involved
in production. This can cause major problems in
2006, BP had to shut down a major part of its net-
work in Alaska thanks to microbial corrosion.
But knowing this means working towards solu-
tions. We can try to mitigate souring by stimulating
different bacteria, says Hubert. Some operators
try to remove the sulphate, but thats challenging
and expensive because theres so much sulphate in
seawater that its not an automatic, cheap and easy
solution to lter.
Another strategy is to include nitrate with the
seawater injection, he says. Nitrate isnt toxic.
This can essentially solve the souring problem
nitrate-breathing microbes will compete for the
same food as the sulphate-reducing bacteria.
Nitrate-reducing bacteria are the better competitors,
so in theory they will win this competition.
Right now, a number of companies have been
injecting nitrate. Hubert and other researchers
want to better understand when a reservoir will be
amenable to nitrate injection, and would like to be
better prepared to estimate the dosage of nitrate
needed to be injected. We
see our role as trying to de-
cipher why it works when
it works, to put nitrate
technology on a more solid
predictive footing enabling
modelling of different
scenarios, he says. We have thought of ways that
you might be able to get more souring control with
a lower nitrate dose. Were really trying to get into
the nitty-gritty of these processes, to see if we can
rene and improve this technology.
Outside of production, certain marine microbes
have also been dubbed oil-munching bacteria,
and have, in the past, helped clean up oil spills like
the 2010 Deepwater Horizon BP accident in the
Gulf of Mexico. After the spill, only a quarter of the
spilled oil was able to be skimmed off and captured.
The rest has been left for trillions of microbes to
digest slowly over time. The bacteria worked quick-
ly, alongside ocean currents a paper released in
the journal Science found that the microbes were
actually eating through the spills plume of oil faster
than expected in the cold water.
Scientists have been studying ways to accelerate
the natural degradation process, when it comes to
oil spills including research into hydrocarbon-
degrading bacteria. When bacteria clean up oil
spills, theyre essentially using the oil as a food
source, says Hubert. But that doesnt mean that
bacteria can be relied upon across the board as a
clean-up aid and theyre not necessarily the same
oil-hungry bacteria
that cause souring.
The situations are
different, on the sur-
face of or bottom of
the ocean, he says.
The majority of
Huberts research funding comes from govern-
ment sources, though he regularly discusses these
issues with oil companies, with some providing -
nancial support and samples for the lab. He thinks
that bacteria should not be entirely written off as
harmful by oil and gas companies, noting theres
opportunity in using microbes during the explo-
ration process and that microbial tests can also be
useful tools when searching for good drilling sites.
Oil also leaks naturally into the ocean, he
says. Reservoirs arent fully-sealed, and marine
bacteria can degrade this oil. You might nd an
abnormally large abundance at seabed hydrocar-
bon seepage points.
Oil companies, he says, have an opportunity to
screen for bacteria in the ocean, and if they nd
a large number in a place with no oil spill, there
could be hydrocarbons there to use.
By doing some studies in the ocean and seabed,
oil companies can take advantage of the same
principles that are important for spill clean-up and
convert that into exploration strategy, he says.
By doing some studies in the ocean and
seabed, oil companies can take advantage
of the same principles that are important for
spill clean-up and convert that into exploration
strategy. Casey Hubert
FAST FACTS:
In July 2012, 4.4 million barrels of petro-
leum spilled into the Gulf of Mexico. By
September, the vast majority had been
cleaned by bacteria and ocean currents.
Underwater plumes: occur from the site
of a leak, and are not visible from the
surface.
Microbial corrosion can occur anywhere
in the production environment in
downhole tubulars, top-side equipment
and pipelines.
Cells and endospores
of sulfate-reducing
Desulfotomaculum
bacteria that often cause oil
reservoir souring.
P
h
o
t
o
:

J
o
e
l

K
o
s
t
k
a
Photo: Flemming Mnsted Christensen
WCJ_Sept-Oct_14_p22-23.indd 23 2014-08-26 2:51 PM
Well Construction Journal 24 SEPTEMBER/OCTOBER 2014
Canadian Rig Counts
August 5, 2014
Drilling Down Total Utilization
Alberta 251 308 559 45%
B.C. 50 26 76 66%
Manitoba 16 10 26 62%
New Brunswick 0 0 0
Newfoundland 0 0 0
Northwest Territories 0 1 1 0%
Quebec 0 1 1 0%
Saskatchewan 69 77 146 46%
Totals 386 423 809 48%
Source: Alberta Department of Energy
NUMBERS
By the
Stats at a Glance
Top 5 Most Active Operators
August 6, 2014
Active
Rigs
Canadian Natural Resources 21
Progress Energy Canada Ltd. 19
Tourmaline Oil Corp. 18
Crescent Point Energy Corp. 17
Husky Energy Inc. 17
Source: CAODC
Top 5 Most Active
Drillers in Western Canada
August 7, 2014
Active Total
Precision Drilling Corp. 86 189
Ensign Energy Services Inc. 48 101
Trinidad Drilling Ltd. 37 62
Nabors Industries Ltd. 35 64
Western Energy Services Corp. 33 49
Source: FirstEnergy Capital
Alberta Land Sales
June 2014
June 2014 June 2013 YTD 2014 YTD 2013
Oil and Natural Gas
Land Sales $21.8 million $20.5 million $227.3 million $405.1 million
Price Per Hectare $398.78 $161.49 $444.97 $348.66
Oil Sands
Land Sales $983,247 $700,591 $4.23 million $6.31 million
Price Per Hectare $320.07 $48.87 $215.45 $81.16
Source: Alberta Department of Energy
WCJ_Sept-Oct_14_p24-25.indd 24 2014-08-26 12:58 PM
2014 Baker Hughes Incorporated. All Rights Reserved. 40675 06/2014
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WCJ_Sept-Oct_14_p24-25.indd 25 2014-08-26 12:58 PM
Well Construction Journal 26 SEPTEMBER/OCTOBER 2014
DEEPER
Drilling
By Robbie Jeffrey
Red and White Tape
Apprenticeship mobility is tangled in obstructions, but a new
east-west agreement could straighten things out
N TODAYS CANADA, THE NEED FOR SKILLED
labour is dire. The Canadian Manufacturers
& Exporters association says that 1.3 million
skilled labour jobs will be vacant by 2016.
Albertas booming oil and gas sector needs an
inux of labour to help it run, yet the prospects
are ostensibly grim: Enform released a report in
2013 describing a severe skill shortage with no
relief in sight.
No matter what the federal government will
tell you, we have a crisis in Alberta, says Thomas
Lukaszuk, who was Albertas minister of labour
until he resigned in May
to pursue leadership of the
provinces PC party.
Trade apprenticeships lead
to high-paying jobs that serve
indispensable roles in our
economy, and unlike most of their counterparts in
colleges or universities, apprentices are paid while
they learn, nishing with secure job prospects. So
why is the labour shortage so acute? Pundits chalk it
up to snobbery tradespeople are looked down upon,
they claim, and youth prefer cushy, bachelor degree-
requiring desk jobs. Gary Mason, writing in the
Globe and Mail, christened the phenomenon an
ivory tower preoccupation. But who would
forgo such benets for a mere preoccupation?
For apprentices across Canada, its red tape thats
often too burdensome.
There are built-in barriers or obstacles to la-
bour mobility that discourage the movement of
workers, says Lukaszuk. One of the steepest is
credential recognition. Often, the credentials re-
quired in apprenticeships academic credits and
work hours arent transferable across provincial
borders, and guidelines arent properly communi-
cated. Atlantic Canada recently harmonized their
apprenticeship programs for this very reason.
It was unwieldy and difcult for apprentices to
move through their training with any kind of cer-
tainty that they were getting things in the right
order, says Kelly Regan, Nova Scotias minister of
labour and advanced education. We dont want
to leave our young people in limbo.
Lukaszuk and Regan agree that there needs to
be an alignment of interests between apprentices,
government and industry. On July 1, Nova Scotia
created an industry-led operating agency for ap-
prenticeship. Marjorie Davison, policy director of
the Labour and Advanced Education Department
in Nova Scotia, says that industry felt as if it had
very little inuence on
decisions for apprentice-
ship systems. Over time,
[apprenticeship programs]
got buried in the bureau-
cracy of government, she
says. The agency will be industry-driven, so their
inuence will permeate the learning system.
Unfortunately for Alberta, the government
still has a monopoly on apprenticeships. A major
agreement is in the works, though. Regan has
been given the legal authority to enter into an
agreement with Alberta that would allow Nova
Scotian apprentices to work in Alberta without
a disruption in their journey, removing fees and
paperwork and guaranteeing recognition of aca-
demic credits and work hours.
Still, one cant help but feel this agreement
favours the West. Apprentices might leave Atlantic
Canada for Alberta and nd gainful employment,
only to stay. Regan has said that her ultimate
goal is for the apprentices to get their Red Seal
certication and return home. We have a num-
ber of projects that will be coming on-stream in
the coming years, Regan says. Not everyone
will come home, but our expectation is that
some will. For the time being, the agreement is a
welcoming open road.
I
No matter what the federal
government will tell you, we
have a crisis in Alberta.
Thomas Lukaszuk
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Your logo in the Thank you to our sponsors feature on the CADE
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Thank You to Our Sponsors
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Gold Sponsors
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For drilling and completions specialists, CADE currently offers one of the best networking and knowledge sharing
opportunities in the Canadian petroleum industry. As you look to build your business and launch new technologies,
new products and services in the drilling industry, a CADE Sponsorship offers you a cost effective way to deliver your
message directly to the entire membership of the leading industry association for Well Construction Professionals in
Canada.
YOUR SPONSORSHIP INCLUDES:
Ads in Well Construction Journal, full of relevant industry news and
articles, presented in a high quality, well-read magazine
Your logo in the Thank you to our sponsors feature on the CADE
website and in every issue of Well Construction Journal
Your logo on the Thank you to our sponsors display at every CADE
Technical Luncheon
Authorized use of the CADE logo on your website and in marketing
materials
Connect with Canadas Drilling Industry
Become a CADE Sponsor
2014 SPONSORSHIP PACKAGES ARE NOW AVAILABLE
Contact CADE at 403.532.0220 or by email at info@cadecanada.com
www.cadecanada.com
Support CADE by sponsoring our technical lunches, our website and the Well Construction Journal.
Thank You to Our Sponsors
The support of CADE sponsors plays an integral part in our associations success.
Platinum Sponsors
Phoenix Technologies Services
Gold Sponsors
Global Steel Ltd.
NCS Energy Services
Pacesetter Directional
Schlumberger
XI Technologies Inc.
Silver Sponsors
Akita Drilling Ltd.
Baker Hughes
Cathedral Energy Services Ltd.
Ensign
Lory Oilfield Rentals Inc.
Marquis Alliance Energy Group Inc.
Mostar Directional Technologies
Pason Systems
Peak Completions
Petrosight Inc.
Precision Drilling
Well Control Group
000WCJ-CADE_Sponsor-FP.indd 1 2014-08-12 7:41 AM WCJ_Sept-Oct_14_p26-27.indd 27 2014-08-26 12:55 PM
000WCJ-Enform-FP.indd 1 2014-08-12 9:26 AM WCJ_Sept-Oct_14_p28-01.indd 28 2014-08-26 12:53 PM

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