Professional Documents
Culture Documents
Well Construction Journal - September/October 2014
Well Construction Journal - September/October 2014
NC
www.hardbandingsolutions.com
hbs1200@hardbandingsolutions.com
IMPROVING STANDARDS
On-Site Training for New Applicators
Applicator Testing, Qualifcation & Licensing
SUPPORTING END USERS
Educational Technical Forums
Worldwide Technical Support
Complete Hardbanding Support
WCJ_Sept-Oct_14_p02-03.indd 2 2014-08-26 1:07 PM
www.cadecanada.com SEPTEMBER/OCTOBER 3
The official publication of the Canadian Association of Drilling Engineers
DEPARTMENTS
4
PRESIDENTS MESSAGE
6
THE DRAWING BOARD
Editors note, members
corner, news and notes,
technical luncheons
10 STUDENT 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
circulation@venturepublishing.ca
PUBLISHER: Ruth Kelly
DIRECTOR OF CONTRACT PUBLISHING: Mifi Purvis
MANAGING EDITOR: Lyndsie Bourgon
ART DIRECTOR: Charles Burke
ASSOCIATE ART DIRECTOR: Andrea deBoer
ASSOCIATE ART DIRECTOR: Colin Spence
PRODUCTION MANAGER: Betty Feniak Smith
PRODUCTION TECHNICIANS: Brent Felzien, Brandon Hoover
CIRCULATION COORDINATOR: Karen Reilly
ACCOUNT EXECUTIVE: Anita McGillis
CONTRIBUTING WRITERS: Robin Brunet, Samus Smyth,
Ryan Van Horne
SEPTEMBER/OCTOBER 2014
20
PRINTED IN CANADA BY ION PRINT SOLUTIONS.
RETURN UNDELIVERABLE MAIL TO 10259 105 ST.
EDMONTON AB, T5J 1E3
CIRCULATION@VENTUREPUBLISHING.CA
PUBLICATION MAIL AGREEMENT #40020055
CONTENTS
1500S
Automated Drill Rig
M
O
S
A
I
C
C
O
M
M
U
N
I
C
A
T
I
O
N
S
-
4
0
3
-
2
3
0
-
4
2
2
4
E
X
T
1
0
7
J
O
B
:
E
E
S
1
3
1
W
e
l
l
C
o
n
s
t
r
u
c
t
i
o
n
J
o
u
r
n
a
l
a
d
A
P
P
R
O
V
E
D
B
Y
:
D
A
T
E
:
2
0
/
0
8
/
1
4
C
L
I
E
N
T
:
F
I
L
E
N
A
M
E
:
E
E
S
1
3
1
_
A
D
R
1
5
0
0
S
_
R
i
g
D
a
t
a
_
3
.
6
2
5
x
4
.
8
7
5
A
d
_
2
0
A
u
g
u
s
t
1
4
_
E
O
_
2
P
M
A
C
C
T
M
G
R
:
F
I
L
E
S
I
Z
E
:
3
.
6
2
5
x
4
.
8
7
5
P
R
O
D
M
G
R
:
F
I
L
E
A
T
:
1
0
0
%
A
R
T
D
R
:
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.
S
o
u
r
c
e
:
S
c
h
l
u
m
b
e
r
g
e
r
O
i
l
e
l
d
G
l
o
s
s
a
r
y
Q WAVE: A type of surface wave in which particles oscillate
horizontally and perpendicularly to the direction of wave prop-
agation.
RICKER WAVELET: A zero-phase wavelet, commonly convolved
with a 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
P
H
O
T
O
:
H
A
R
A
L
D
P
E
T
T
E
R
S
E
N
,
S
T
A
T
O
I
L
By Ryan Van Horne
WCJ_Sept-Oct_14_p12-15.indd 13 2014-08-26 1:04 PM
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.
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
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.
P
H
O
T
O
:
T
H
E
C
A
N
A
D
I
A
N
P
R
E
S
S
,
J
E
F
F
M
C
I
N
T
O
S
H
WCJ_Sept-Oct_14_p16-17.indd 16 2014-08-27 3:14 PM
Manage Your Operations,
Not Your Reporting Software!
Introducing PetroSight
A premier cloud-based well site reporting platform
for Oil & Gas companies that need to manage information
from daily well site operations
FOR A FREE TRIAL CONTACT US AT
1 (877) 502-2264, email: info@petrosight.ca
or visit our website at www.petrosight.ca
CONSTRUCTION DRILLING COMPLETIONS
www.cadecanada.com
APEC predicts that labour requirements will increase substantially
after this year, with everyone from heavy equipment operators to
electricians expected to be in high demand. The council also reports
that wages and hours worked have grown rapidly in Newfoundland
and Labrador in recent years, with average weekly earnings now
second only to Alberta. Presumably, this could slow the rate that At-
lantic Canadas residents move to the Prairies
for high-paying jobs.
One major focus of attention is Trans
Canada Corp.s Energy East Pipeline, widely
considered a compatriot to Enbridge Inc.s
Northern Gateway Project in getting product
to tidewater.
The 4,400-kilometre pipeline will cross six provinces and termi-
nate at a 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
P
H
O
T
O
:
T
H
E
C
A
N
A
D
I
A
N
P
R
E
S
S
,
J
E
F
F
M
C
I
N
T
O
S
H
WCJ_Sept-Oct_14_p16-17.indd 17 2014-08-27 3:14 PM
A proud stocking distributor of Canadian
Manufactured Oil Country Tubular Goods (OCTG)
Global Steel Ltd. is a private corporation founded
in 1990. From modest beginnings Global Steel
has grown to become one of North Americas
most trusted distributors of premium Canadian
manufactured Oil Country Tubular Goods (OCTG). Today, this
Calgary-based company enjoys an un-
matched reputation for product quality, innovation
and customer service.
Global Steel maintains key relationships with
several major domestic steel mills. Strategic alli-
ances with each mill guarantee reliable and secure
access to a full range of high-quality ERW OCTG, Seamless
OCTG and Line Pipe products. We are
committed to providing oil and gas producers with
and personalized logistical support.
One call to Global Steel provides customers with com-
the job site. Global Steel currently maintains 18 inventory
stock points strategically located across Canada. Each
stock point is supported by veteran trucking companies
service.
An unwavering focus on operating and service excellence
is what separates Global Steel from everyone else. It is a
commitment that shows in our products and services. At
Global Steel we are focused on your business.
#401, 888 - 4 Avenue SW Calgary, Alberta T2P 0V2
P: 408.28/.8108 |: 403.237.8392
E: |nfo@g|oba|staa|.ca www.globalsteel.ca
One call to Global Steel provides customers with com-
the job site. Global Steel currently maintains 18 inventory
stock points strategically located across Canada. Each
stock point is supported by veteran trucking companies
service.
An unwavering focus on operating and service excellence
is what separates Global Steel from everyone else. It is a
commitment that shows in our products and services. At
Global Steel we are focused on your business.
Providing seamless collaboration from the rig to the ofce.
Pason Real-time Drilling
Data Solutions
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
DIRECTIONAL DRILLING + FLOWBACK
CathedralEneryServices.com
Cathedral Energy Services is the principal
North American provider of directional
drilling and flowback services.
Our best-in-class services are the result of
our honest and hardworking team members
bringing an integral flare of excellence to
every project they work on.
Cathedral Energy Services is proud to support the
Canadian Association of Drilling Engineers.
Performance Driven | Service Oriented | Innovation Focused
866.276.8201
info@cathedralenergyservices.com
John Hindman
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.
P
h
o
t
o
:
J
o
e
l
K
o
s
t
k
a
WCJ_Sept-Oct_14_p22-23.indd 22 2014-08-26 1:00 PM
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
The BEACON