The official publication of the Canadian Association of Drilling Engineers

JANUARY/FEBRUARY • 2012
PLUS
To Market, To Market:
Finding a home for heavy crude
SAGD: Innovation is just getting started
Waste Not: Leaving a smaller
environmental footprint
PM#40020055
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.
Support CADE by sponsoring our technical lunches,
our website and the well construction journal.
YOUR SPONSORSHIP INCLUDES:
’ /RaW\ESZZ1]\ab`cQbW]\8]c`\OZTcZZ]T`SZSdO\b
industry news and articles, presented in a high quality,
well-read magazine
’ G]c`Z]U]W\bVS¹BVO\Yg]cb]]c`a^]\a]`aºTSObc`S
on the CADE website and in every issue of Well
1]\ab`cQbW]\8]c`\OZ
’ G]c`Z]U]]\bVS¹BVO\Yg]cb]]c`a^]\a]`aºRWa^ZOg
ObSdS`g1/23BSQV\WQOZ:c\QVS]\
’ /cbV]`WhSRcaS]TbVS1/23Z]U]]\g]c`eSPaWbSO\R
in marketing materials
Connect with Canada’s Drilling Industry
Become a CADE Sponsor
2012 SPONSORSHIP PACKAGES ARE NOW AVAILABLE
SIGN UP NOW!
Contact Scott H. Payne at 403-400-4032 or by email scott@eastsidemedia.ca
www.cade.ca
CADE_FP_OBC.indd 1 1/27/12 8:22:25 AM WCJ Winter p32-01 .indd 1 1/27/12 2:41:25 PM
FOR MORE INFORMATION:
www.rogersoilandgas.ca
1 877 336 1333
CANADA’S RELIABLE NETWORK
TM
Rogers and the Mobius design are trademarks of Rogers Communications Inc. used under license or an affiliate. All other brand names are trademarks of their respective owners. ©2011 Rogers Communications.
Rogers has the industry’s latest productivity tools for the oil and gas industry
to keep you connected to your customers, suppliers and to one another.
Your people: Safe
Your job site: Secure
Your operations costs: Streamlined
Expanded network coverage across Alberta
– You’re covered in the field and office.
Minimize fuel, repair and insurance
costs – Fleet Management
Prevent injury to field workers and increase
worker safety – GPS Lone Worker tools
Protect critical data and ensure uninterrupted
network access – Critical Network Access
Increase data collection accuracy and
reduce human error – Well Metering
Prevent theft and secure your job
sites – Security & Asset Management
000PSN.Rogers_FP.indd 1 4/28/11 3:57:48 PM WCJ_JanFeb12_p02-03.indd 2 1/27/12 3:21:16 PM
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
560, 400 – 5 Avenue SW
Calgary, AB T2P 0L2
Phone: 403-532-0220
Fax: 403-263-2722
www.cade.ca
PRESIDENT: Eric Schmelzl
PAST PRESIDENT: John Garden
VICE 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
ASSOCIATE PUBLISHER: Joyce Byrne
MANAGING EDITOR: Steve Macleod
ART DIRECTOR: Charles Burke
ASSOCIATE ART DIRECTOR: Andrea deBoer
ASSISTANT ART DIRECTOR: Colin Spence
PRODUCTION MANAGER: Vanlee Robblee
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CIRCULATION COORDINATOR: Jennifer King
CONTRIBUTING WRITERS: Michelle Lindstrom,
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PRINTED IN CANADA BY ION PRINT SOLUTIONS.
RETURN UNDELIVERABLE MAIL TO 10259 105 ST.
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CONTENTS
©
2012 CADE. NOT TO BE REPRINTED OR
REPRODUCED WITHOUT PERMISSION.
The official publication of the Canadian Association of Drilling Engineers JANUARY/FEBRUARY • 2012
DEPARTMENTS
4 PRESIDENT’S MESSAGE
7 THE DRAWING BOARD
11 MEMBER PROFILE
From coalbed methane to
SAGD, Kim Cazes has been
at the forefront of new
technology
12 STUDENT PROFILES
14 BY THE NUMBERS
What’s in store for 2012?
More of the same from 2011
30 DRILLING DEEPER
More production from the oil
sands isn’t an issue. Finding
markets and getting it there
is another story
FEATURES
19 DRILLING IN THE OIL SANDS
Making oil sands production
economically viable has been
decades in the making and
the ability to drill in the
region will be the real pay off
25 TECHNICALLY SPEAKING
SAGD is a fairly new
technology, but some
companies are already
tinkering with the process
28 GREENER PASTURES
Environmental stewardship is
just part of doing business in
the oil sands
25
19
Well Construction Journal JANUARY/FEBRUARY 2012 3
FOR MORE INFORMATION:
www.rogersoilandgas.ca
1 877 336 1333
CANADA’S RELIABLE NETWORK
TM
Rogers and the Mobius design are trademarks of Rogers Communications Inc. used under license or an affiliate. All other brand names are trademarks of their respective owners. ©2011 Rogers Communications.
Rogers has the industry’s latest productivity tools for the oil and gas industry
to keep you connected to your customers, suppliers and to one another.
Your people: Safe
Your job site: Secure
Your operations costs: Streamlined
Expanded network coverage across Alberta
– You’re covered in the field and office.
Minimize fuel, repair and insurance
costs – Fleet Management
Prevent injury to field workers and increase
worker safety – GPS Lone Worker tools
Protect critical data and ensure uninterrupted
network access – Critical Network Access
Increase data collection accuracy and
reduce human error – Well Metering
Prevent theft and secure your job
sites – Security & Asset Management
000PSN.Rogers_FP.indd 1 4/28/11 3:57:48 PM WCJ_JanFeb12_p02-03.indd 3 2/2/12 8:39:28 AM
4 JANUARY/FEBRUARY 2012 Well Construction Journal
E LIVE IN INTERESTING TIMES. MORE
and more, each of us is being stretched
further than ever before in both our
personal and professional lives.
Financial pressures escalate along with taxes
from multiple layers of government, while infla-
tion erodes our remaining purchasing power and
user fees spring up like weeds for services that were
historically covered by that burgeoning tax bill.
Despite consuming the vast majority of all public
spending, health care and education appear to be
completely overwhelmed and unable to cope with
their current mandates, never mind the coming
reckoning embodied by the baby boomers as they
age and retire.
It’s apparent that during the past 30 to 40 years,
despite the windfall of revenues from Canada’s
many natural resources – and despite the dispro-
portionate surge in tax paid by the demographic
“bump” represented by the baby boomers – our gov-
ernments at all levels have not only been unable to
manage their spending within these unsustainable
periods, but they have spent far, far more than that,
racking up deficits our grandchildren will likely still
be burdened with when they retire. Governments
do it because we, the Canadian public, insist they
do so. We have somehow come to believe that by
paying more for policing we will get safe streets, by
paying more for health care we will be healthy and
by paying for more teachers we will produce bright,
W
MESSAGE
President’s
Question Period
Government and its role in society are heading for a crossroads.
That means some tough questions will need answers
Eric Schmelzl
CADE President
well-adjusted and prosperous children. Of course,
none of that is true.
Affordable health care will come when we live
healthy lifestyles and refuse to support those who
choose to live otherwise. Well educated and confi-
dent children will be the product of active parental
involvement during a child’s formative years. Safe
streets will come when we are willing to step up
and get involved when criminal acts take place. I
applaud the Canadian government’s latest steps to
address crime prevention. It is an excellent first step
in what will surely be a long, self-sacrificing road
back to a sustainable and responsible future.
Eventually there will be no shirking from it: we
will all need to look in the mirror and ask ourselves
if we are part of the problem or part of the solution.
Taking responsibility for all aspects of one’s own ac-
tions and lifestyle is the only possible cure. We can
take that medicine early, while there is still hope for
a recovery, or wait until there is no recourse. As al-
ways, the choice is ours to make. The next time we
get asked by our political leaders whether we want
“more” or whether we want “less,” we need to re-
examine the real question: sustainable or folly?
Eric Schmelzl
Private Company Services
www.pwc.com/ca/dbia
© 2011 PricewaterhouseCoopers LLP. All rights reserved. “PwC” refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership,
which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity. 2032-11
Building
lasting value
Private company owners know that business success
brings new personal and professional challenges.
We can help you create lasting value for your
business, for yourself and for future generations.
Contact: Ian Gunn
Business Advisor
1 866 750 4 PWC
ian.h.gunn@ca.pwc.com
© 2012 PricewaterhouseCoopers LLP. All rights reserved. “PwC” refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership,
which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity. 2032-13 0112
000WCJ.PWC_FP.indd 1 1/23/12 3:09:03 PM WCJ_JanFeb12_p04-05.indd 4 1/27/12 3:28:58 PM
Question Period
Government and its role in society are heading for a crossroads.
That means some tough questions will need answers
Private Company Services
www.pwc.com/ca/dbia
© 2011 PricewaterhouseCoopers LLP. All rights reserved. “PwC” refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership,
which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity. 2032-11
Building
lasting value
Private company owners know that business success
brings new personal and professional challenges.
We can help you create lasting value for your
business, for yourself and for future generations.
Contact: Ian Gunn
Business Advisor
1 866 750 4 PWC
ian.h.gunn@ca.pwc.com
© 2012 PricewaterhouseCoopers LLP. All rights reserved. “PwC” refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership,
which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity. 2032-13 0112
000WCJ.PWC_FP.indd 1 1/23/12 3:09:03 PM WCJ_JanFeb12_p04-05.indd 5 1/27/12 3:29:13 PM
t/PXPSLFSTJOIPU[POF
a-PXQSFTTVSFMJOFT
t*ODSFBTFEQSPEVDUJPO
EFDSFBTFE)4&SJTL
ERS has put safety and environment at the top of their
list. This system is truly innovative and, quite frankly, is
the Best Available Practice I have encountered.
S. Hanelt, CFEI, CVFI
SCO Fire Investigator/Inspector
Safety BOSS Inc.
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EnvironmEntal rEfuElling SyStEmS inc. presents...
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JANUARY/FEBRUARY 2012 7 Well Construction Journal
BOARD
The Drawing
Changing Times
ERE WE ARE AND IT’S 2012 ALREADY.
Winter is upon us, everyone is ramping
up and it’s going to be a mad dash to
break up. It amazes me how each year the
quarters seem to be going by much faster. It seems
we were just wrapping up the summer season and
talking about the arrival of fall – now break up is
just around the corner.
This is our first issue with the new Journal format
and the association is very excited. It has been half
a year of planning and we are hoping that every-
one is going to enjoy it. The theme for this first
relaunched issue is Alberta’s oil sands. The oil sands
are a big part of the Canadian oil and gas sector and
this is our opportunity to take a look at what we are
doing as an industry, and highlight what advance-
ments have been made to make it a safer, cleaner
and more environmentally friendly industry. As
Canadians we pride ourselves in looking after our
own backyards and developing technologies that
allow us to do it better. It also gives us a chance to
take a look at the places we still need to improve.
We are continuing to look for ideas for the
2012 Technical Luncheon presentations. Please
don’t hesitate to contact us if you have any ideas
for upcoming topics or issues you’d like to see
presented at the luncheons or in Well Construction
Journal. We are also looking for topics that tie into
our Journal’s focus for each month. We hope to
see more of this over the course of the year. We
hope you, the membership, will participate and
continue to make these events interesting and
successful. If you have any issues you’d like to see
covered, please email me and we will do our best
to get the story covered.
Don’t forget, we would like to include any of your
information and announcements on new products,
new technologies and senior personnel changes in
the publication each month. Please forward any
announcements to us, as we would be excited to
run them in our new feature section.
We appreciate your continued support and look
forward to seeing you at the upcoming luncheons.
CHRISTIAN GILLIS, Editor
Well Construction Journal
christiang@hawkeye.ca
403-265-4973
H
CADE Executive
Team 2011/2012
President Eric Schmelzl 403-862-0870
Past President John Garden 403-265-4973
Vice President Robert Jackson 403-274-2718
Secretary Tammy Todd 403 613-8844
Treasurer Cecil Conaghan 403-667-9812
Membership Chairman John Burnell 403-265-4973
Education Chairman Mike Buker 403-930-9015
Social Chairman Dan Schlosser 403-531-5284
WCJ Editor Christian Gillis 403-265-4973
Technical Chairman Jeff Arvidson 403-232-7100
IT Chairman Graham Evans 403-991-2066
Drilling Conf. Liaison Jeff Orita 403-693-7563
Executive Member John Pahl 403-292-7966
Sponsorship & Marketing Scott Payne 403-400-4032
E D I T O R ’ S N O T E
E X E C U T I V E T E A M
t/PXPSLFSTJOIPU[POF
a-PXQSFTTVSFMJOFT
t*ODSFBTFEQSPEVDUJPO
EFDSFBTFE)4&SJTL
ERS has put safety and environment at the top of their
list. This system is truly innovative and, quite frankly, is
the Best Available Practice I have encountered.
S. Hanelt, CFEI, CVFI
SCO Fire Investigator/Inspector
Safety BOSS Inc.
1-855-296-3722 (lRAC) º www.Iracshack.com
EnvironmEntal rEfuElling SyStEmS inc. presents...
000PSN.ERS_FP.indd 1 10/25/11 12:55:53 PM WCJ_JanFeb12_p06-09.indd 7 1/27/12 3:41:43 PM
8 JANUARY/FEBRUARY 2012 Well Construction Journal
BOARD
The Drawing
CADE Unveils New Magazine
YOUR ARE HOLDING IN YOUR HANDS THE NEWLY
redesigned Well Construction Journal, with its new for-
mat and editorial structure. The new publication will
be published six times annually and will essentially
double in size in order to bring a more in-depth look
at both drilling and completions issues, technolo-
gies and trends from across Canada. The new age of
multi-stage horizontal completions has ushered in
an era where completions and drilling are cohesive
and integrated parts of well construction. As a result
of these changes, our focus as an association is being
broadened to include all aspects of both well drilling
and well completions.
The CADE executive is pleased to announce
the new CADE Well Construction Journal is being
published in partnership with Venture Publishing
Inc., a highly respected and successful publisher of
several energy-related publications pertinent to our
industry. For the first time, we will also be allowing
external advertising into the magazine; if you’d
like more information on that, send an email to
sales@venturepublishing.ca. We hope our members
will enjoy the new format and content of the Journal,
and we look forward to hearing feedback from both
our members and our sponsors to help us further
refine and improve our bi-monthly issues throughout
the coming year.
The next year stretches ahead of our industry
with a tangible sense of excitement, promise and
opportunity that is unmatched in recent memory.
Many CADE members are firmly in place at the wheel
guiding their companies as the industry travels down
these new roads. Together we will cover a tremendous
amount of ground in 2012, moving into ever more
diverse plays with new challenges and rewards. For
those who are not yet CADE members, it’s a great time
to climb on board and come along for the ride.
Members and Future
Members Come Together
FOLLOWING THE SUCCESS OF LAST YEAR’S STUDENT
Industry night, the Canadian Association of Drill-
ing Engineers (CADE) is finalizing details for its
second annual event.
This year’s event will be held on February 9, 2012
at the Westin in downtown Calgary. CADE is plan-
ning to bring together 50 students each from the
University of Calgary and SAIT, as well as 50 industry
representatives for the evening mixer.
Last year’s event was held on January 27 and eight
presentations were made by industry professionals.
Terry Elliott, Darryl Firmaniuk and Leslie May from
Baker Hughes; Luisine Jatem from Suncor; Glenn
Leroux from BOS Solutions; Carol Crowfoot from
the Energy Resources Conservation Board; Hassan
Malik from ConocoPhillips Canada; and Ron Bietz
from Encana; made presentations that served as an
introduction to students and new graduates about
drilling, completions, regulatory issues, marketing
and facilities.
The Student Industry night was organized by
the students and brought together industry leaders
and academia, and this year’s event is looking to
do the same.
“What I discovered is this: there is a young crop of
engineers and technologists coming out of our institu-
tions that are well worth our time,” wrote John Garden,
past president of CADE, in a subsequent column about
the event. “They are smart, quick to learn, business
savvy individuals who thrive in a team atmosphere.
Long and short, our industry is in great hands and I
can’t wait to see where they take us.”
CADE prepares for second annual Student Industry night
N E WS A N D N O T E S
The offcial publication of the Canadian Association of Drilling Engineers
2012 WINTER ISSUE
PLUS
To Market, To Market:
fnding a home for heavy crude
SAGD: innovation is just getting started
Waste Not: leaving a smaller
environmental footprint
WCJ_JanFeb12_p06-09.indd 8 1/27/12 3:42:15 PM
JANUARY/FEBRUARY 2012 9 Well Construction Journal
WHY BECOME A CADE MEMBER?
As of 2011, the Canadian Association of Drilling
Engineers (CADE) has been active for 37 years. With
more than 500 members from more than 300 com-
panies, CADE represents a large spectrum of experi-
ence in all areas of operations and technologies. For
drilling and completions specialists, CADE currently
offers one of the best networking and knowledge
sharing opportunities in the Canadian petroleum
industry. The skills and knowledge obtained by your
participation in CADE will benefit you and your em-
ployer, with direct application to your professional
career.
CADE offers various means for members to con-
nect and share their insights. Monthly technical
luncheons are held with topical industry presen-
tations. Other membership benefits include our
monthly publication Well Construction Journal and
a membership directory, which is the who’s who of
the Canadian drilling industry. Our website – www.
cade.ca – 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 with an interest
or merely employed in the drilling and comple-
tions 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
ME MB E R ’ S C O R N E R
and completions. Please feel free to share infor-
mation about CADE with all the people in your
organization who are interested in the drilling and
completions industry.
CADE MEMBERSHIP CHANGES
Log on to www.cade.ca to become a member or to
update your contact information.
CADE MEMBERSHIP RENEWALS
CADE’s membership year is from September to
September. During the summer, CADE members
receive an email with the link for the renewal pro-
cess on our website. Please remember the benefits
of being a CADE member include APEGGA’s profes-
sional development hour, the opportunity to stay
abreast of technological and industry advances,
access to drilling conferences and a great opportu-
nity to network. Thank you for your support.
WELCOME NEW MEMBERS
ASH CHUGH
Epic Marketing
info@epicmarketing.ca
CRAIG JOYCE
XI Technologies Inc.
craigj@xitechnologies.com
NICOLE MCDONALD
Newpark Drilling Fluids
nmcdonald@newpark.ca
WHY BECOME A CADE MEMBER?
WHO CAN BECOME A CADE MEMBER?
CADE MEMBERSHIP CHANGES
CADE MEMBERSHIP RENEWALS
WELCOME NEW MEMBERS
SCOTT HARRIS, COMEDIAN
January 11, 2012
The Westin - Calgary
320 4th Avenue SW
11:30 a.m. Reception
12:00 p.m. Lunch
12:30 p.m. Presentation
Scott Harris has worked in all
forms of entertainment. He
has written and performed in
television commercials, acted
in films and spent 15 years as
a radio broadcaster. For 10 of
T E C H N I C A L L U N C H E O N S
those years – between 1977 and
1987 – he held down the 6:00
p.m. to 9:00 p.m. time slot on
Hamilton, Ontario’s Top 40 rock
station CKOC. While there, Har-
ris released three comedy albums:
Rapper’s Delight, Beach Bum and
Low Budget Breakdance. Harris
is recognized for his remarkable
ability to connect with audiences
and he’s spent 18 years on stage
honing his quick wit, glib manor,
and improvisational skills.
SAVE THE DATE
CADE TECHNICAL LUNCHEON
February 8, 2012
The Westin - Calgary
CADE TECHNICAL LUNCHEON
March 7, 2012
The Westin - Calgary
SCOTT HARRIS, COMEDIAN SAVE THE DATE
TECHNICAL LUNCHEON TICKETS
MEMBERS: $45.00 (plus GST)
NON-MEMBERS: $55.00 (plus GST)
FULL TABLES OF 10: $450.00 (plus GST)
STUDENT: $15.00 (plus GST)
WALK-UP: $55.00 (plus GST)
GST REGISTRATION #R123175036
Visit cade.ca for all ticket purchases
TECHNICAL LUNCHEON TICKETS
WCJ_JanFeb12_p06-09.indd 9 2/2/12 8:57:04 AM
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JANUARY/FEBRUARY 2012 11 Well Construction Journal
IM CAZES WAS BORN WITH THE OIL AND
gas industry in his blood. His father worked
as a tool push for 35 years and Cazes, 58,
has been hanging around oil rigs since the
age of six. Born in Melfort, Saskatchewan, Cazes
grew up in the western Canadian oil patch. “Any
place that was the latest hot spot in the industry
was where we were,” he says. “That’s the way it was
in those days.”
Given his familiarity with the oil patch, it was a
natural choice for Cazes to study engineering. He
worked his way through university on rig crews in
Alberta, B.C., N.W.T. and the Arctic Islands, and
graduated from the University of Alberta in 1976.
Cazes obtained his bachelor of science degree in
engineering, majoring in mining and metallurgy,
and minoring in petroleum. Cazes soon realized,
though, he could earn more money working on
the rigs, than as an engineer-in-training. His plan
was to become a derrickhand, work abroad and see
the world. It didn’t really work out that way. “Every
time I got to the point where I was ready to go over-
seas, they promoted me,” he recalls.
In 1980, when he had been pushing tools for
about six months, Cazes decided to move into con-
sulting and joined a small firm – Cal-can Systems
and Engineering – as a drilling and production en-
gineer. “That work really appealed to me,” he says.
“I was able to design the well, then go out into the
field and actually drill it the way I had planned it.
There was a lot of ownership in those programs.”
In 1987, Cazes struck out on his own as an in-
dependent consultant. In 1996, he went to work
for Morrison Petroleum, which – after a number of
mergers and acquisitions – turned into a drilling en-
gineer specialist position with Devon Energy Corp.
Cazes specializes in new technology and is also re-
sponsible for reviewing and introducing new tech-
K
PROFILE
Member
On the Edge
of Innovation
Kim Cazes has spent his career dabbling in new technology.
Now at Devon Energy, he’s on the verge of something big
Kim Cazes
Devon Energy
nology to the other drilling engineers at Devon.
Over the years, Cazes has been involved in many
innovations in the oil and gas industry. “I was in
early on coalbed methane, I was an early user of
coil drilling rigs, and did some of the earliest SAGD
drilling projects,” he says.
Currently, he is a senior technical adviser look-
ing after unusual wells and represents Devon in a
variety of roles, including as a member of the In-
dustry Recommended Practices (IRP) 3 drilling and
completions committee for in situ heavy oil. He
has been involved with a number of joint industry
projects including best practices for SAGD and the
Canadian Heavy Oil Association.
Cazes has also been hard at work making techni-
cal improvements to the way industry does things.
“The latest thing we’re working on is improving ce-
ment effectiveness for SAGD. The entire industry
has been co-operating on this,” he says. “However,
at Devon Energy, Bryan Hnatiuk and myself have
uncovered a process that addresses the core issues.
We believe it is worth patent protection. The tech-
nology addresses cement bond, wellbore isolation,
gas migration, casing vent flow issues and may have
application to other problem wells.”
Once the patent is initiated, Cazes and Hnatiuk
plan to release the technology to the industry
for general use. “There are social license benefits;
if Devon can improve on these issues, it will re-
flect well for the entire industry,” explains Cazes,
who will be working on further refinements to
the project.
For Cazes, who has been a CADE member since
the mid-1980s, the technical luncheons are the
main draw of membership, together with the net-
working opportunities that CADE offers. “It’s one
of the best ways of keeping in touch with what’s
going on in our industry these days,” he says.
Jackfish Project
Devon Energy’s SAGD operation
located near Conklin, Alberta
By Jacqueline Louie
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Well Construction Journal
MAR MOUSSA RECENTLY COMPLETED HI S THI RD YEAR
as a mechanical engineering student at the University Of Calgary
Schulich School Of Engineering. Before entering his fourth
year, Moussa decided to take an internship position with
Devon Canada.
He is currently working on the Jackfish project at Devon’s steam-as-
sisted gravity drainage (SAGD) plant in Alberta’s oil sands. At the end
of August, Moussa will return to southern Alberta and work in Devon’s
production department from the company’s head office in Calgary.
Moussa also had previous work experience with Devon Canada, work-
ing in operations and focusing on both gas and tight oil.
Following graduation, Moussa has energy and project management
on the top of his job list pursuits.
O
PROFILES
Student
Omar Moussa
Mechanical Engineering
University of Calgary
Keith Sawyer
Petroleum Engineering Technology
Southern Alberta Institite of Technology
EITH SAWYER’S GOALS ARE SIMPLE: ACHIEVE SUCCESS
through hard work and provide a better life for his family. The
28-year-old is enrolled in SAIT’s Petroleum Engineering Tech-
nology program in an effort to do just that.
As a former golf professional, Sawyer often interacted with oil and
gas professionals on the links and became interested in the industry
through this initial introduction. He received first-hand experience
working on a Triple D/E about 50 kilometres north of Hinton, Alberta
for three months and enrolled in SAIT shortly thereafter.
At this point, Sawyer is not sure what specific sector he will pur-
sue, but he says he would like to spend his first few years out in the
field gaining valuable experience. “I have a passion for working with
people and the outdoors,” he says. Eventually, Sawyer would like to
work his way into a more technical position.
K
Young Talent
Highlighting tomorrow’s best and brightest
12 JANUARY/FEBRUARY 2012
HELP WANTED: Career Department
ON THE MOVE
There are many communities across Canada located near oil-
field activity. Relocating to a new community for work is a major
decision that requires careful planning, research and discussion
with family.
After receiving a job offer in another community, it’s important to
do some research to find out about the location, housing, schools,
transportation, culture, weather, cost of living and other aspects
that will affect your lifestyle and your family’s lifestyle. Don’t forget
to check if there are employment options for your spouse.
Accommodation in smaller, more remote communities can be dif-
ficult to find and expensive, so pay particular attention to finding
a place to live. For some jobs – like those offering fly-in, fly-out
options – you may not even have to move. You may be offered
on-site accommodation in a camp, which is more common in the
oil sands sector. For other jobs, you may have to live in one place
and work in another. Make sure you ask your potential employer
about all the possibilities and find out if there is any relocation
assistance available.
WCJ_JanFeb12_p10-13.indd 12 1/27/12 4:07:06 PM
ENGINEERING A CAREER
Engineers work in all parts of the upstream petroleum industry,
including exploration, extraction, production and transportation. Ac-
cording to the Petroleum Human Resources Council of Canada, the
common denominator for engineers is that work typically involves
the professional design, construction, operation, maintenance, qual-
ity control and optimization of systems critical to the exploration,
production, processing and transportation of petroleum.
In the conventional oil and gas sector, companies hire from three
main engineering disciplines: chemical, mechanical and petroleum.
The training received during education can be built upon for a variety
of jobs in the industry. For example, a reservoir engineer may actu-
ally hold a degree in chemical, mechanical or petroleum engineering
and receive on the job training in reservoir engineering. In the oil
sands sector, job titles are more true to their discipline. For example,
chemical engineers are chemical or process engineers, while
mechanical engineers require a mechanical engineering degree.
The Decade Ahead
In 2011, people born in the baby boomer generation will begin turning 65. This will begin a trend where more workers leave than enter the
workforce. According to the Petroleum Human Resources Council of Canada’s Council’s latest long-term labour market report, more than 30
per cent of the industry’s core workforce is expected to retire within the next decade.
Labour Market Projections and Analysis for Canada’s Oil and Gas Industry to 2020, predicts that in a growth scenario:
105,000 workers will be needed to support new industry activity
65,000 workers will be needed in core occupations
Core occupations represent approximately 68% of the services sector workforce
Core occupations represent approximately 56% of E&P’s workforce
Core occupations represent approximately 74% of oil sand’s workforce
Core occupations represent approximately 39% of pipeline employment
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WCJ_JanFeb12_p10-13.indd 13 1/27/12 4:07:17 PM
14 JANUARY/FEBRUARY 2012 Well Construction Journal
HIS YEAR’S FORECAST FOR DRILLING
activity isn’t dramatically different from the
patterns that were established in 2011 re-
garding oil prices, labour shortages and hot
drilling spots within Western Canada. Although the
trends will be similar, economic volatility will also
be similar and assessing energy prices still remains
a challenge. “Where oil prices are supportive and
going up, and gas prices are non-supportive and go-
ing down, that’s a difficult issue to grapple with,”
says Andrew Bradford, head of energy research with
Raymond James Ltd.
That scenario also leads some producers to in-
crease their rate of capital spending, while others are
expected to decrease their rate of capital spending,
theoretically cancelling each other out. “It’s very
rare to see capital spending or the field activity stay-
ing flat – that’s not something we usually see in the
oil patch,” says Bradford. “It’s usually increasing or
decreasing and usually by fairly good margins.”
Mark Scholz, president of the Canadian Associa-
tion of Oilwell Drilling Contractors (CAODC), notes
the drilling industry’s biggest upcoming dilemma
will be the shortage of skilled labour for both the
short- and long-term. “Fortunately and unfortu-
nately in Western Canada, we have some great job
opportunities, which are going unfilled because we
don’t have enough bodies to go around,” Scholz
says. The biggest “pinch,” which has already been
felt, is in the senior level posts – such as drillers,
derrickhands and motor hands. While the labour
shortage might not affect the price of oil, the lack
of skilled labourers may hurt Western Canada’s
competitiveness. “When you struggle for people,
it places a high demand and a focus on raising
wages,” Scholz says. “And certainly when you raise
wages, it increases the cost of business overall and
we already operate in a very high cost basin.”
Areas expected to entertain the most drilling ac-
tivity next year are those focusing in crude oil, says
Scholz, therefore Alberta, Saskatchewan and Mani-
toba. “I would say for sure, at least 70 per cent (of
resources) are going to be on oil or liquid-rich gas,”
he says. The CAODC is also forecasting, on aver-
age throughout 2012, 49 per cent utilization across
Western Canada.
Bradford agrees that since oil currently has high
returns, the industry is going to keep its focus
aimed wherever the high-dollar returns are. Ray-
mond James Ltd.’s high-activity predictions point
towards the Pembina oil field in western Alberta,
in particular the Cardium formation. Also for 2012,
Bradford says a potential surprise area for bustling
activity is the Alberta Bakken in the southern re-
gion of the province. The Duvernay shale area,
southeast of Grande Prairie, is also worth noting.
“Activity on that given play (simple driven, high-
liquids content) is very low right now, but I expect
it will ramp up fairly quickly over the next couple
of years,” he says.
Securing equipment in an effort to ramp up ac-
tivity shouldn’t be a constraint facing operators.
Scholz says 35 rigs will be added to Western Can-
ada’s fleet in 2012, so the real issue comes back to
labour and whether or not there are enough crews
to man the drilling rigs.
Managing the time of drilling crews will be a
driving factor and Bradford notes that average
operating days and the length of the average
horizontal well will play a fairly important role
during 2012. Scholz sees operators’ ability to raise
capital as a major factor in well operating days.
“We have to realize that a happy operator is a
happy driller,” he says. “So if we have operators
(i.e. producers) willing to spend capital to get
projects moving, that in turn affects us.”
T
What Lies Ahead
If the experts are right, drilling trends in 2012 will look
similar to the previous year
NUMBERS
By the
By Michelle Lindstrom
WCJ_JanFeb12_p14-17.indd 14 1/27/12 4:07:56 PM
Well Construction Journal JANUARY/FEBRUARY 2012 15
Alberta Rig Counts December 1, 2011
Drilling Down Total Utilization
Northern Alberta 72 50 122 59%
Central Alberta 215 147 362 59%
Southern Alberta 43 40 83 52%
Totals 330 239 569 58%
Source: Divestco
Historical Utilization
Drilling Utilization Wells
2008 351 40% 16,844
2009 209 24% 8,278
2010 346 43% 11,587
2011 405 51% 12,555
Source: Canadian Association of Oilwell Drilling Contractors
Canadian Rig Counts December 1, 2011
Drilling Down Total Utilization
Alberta 330 239 569 58%
B.C. 49 26 75 65%
Manitoba 21 3 24 88%
New Brunswick 0 2 2 --
Newfoundland 0 1 1 --
Saskatchewan 92 44 136 68%
Totals 492 315 807 61%
Source: Divestco
2011 Total Numbers Wells Completed in Western Canada during 2011: 12,555
Active Rigs Fleet Utilization Operating Days
First Quarter 534 788 68% 47,495
Second Quarter 190 791 24% 16,339
Third Quarter 454 798 57% 40,754
Fourth Quarter 443 805 55% 39,767
Average 2011 405 796 51% 144,355
Source: Canadian Association of Oilwell Drilling Contractors
2012 Forecasted Numbers Estimated Wells Completed in Western Canada during 2012: 12,672
Active Rigs Fleet Utilization Operating Days
First Quarter 558 821 68% 50,090
Second Quarter 165 827 20% 14,811
Third Quarter 441 833 53% 39,587
Fourth Quarter 462 840 55% 41,472
Average 2012 407 830 49% 145,730
Source: Canadian Association of Oilwell Drilling Contractors
WCJ_JanFeb12_p14-17.indd 15 2/1/12 5:09:20 PM
16 JANUARY/FEBRUARY 2012 Well Construction Journal
NUMBERS
By the
Price Point
Energy and Market Prices
December 1, 2011
Oil: WTI - $100.20 / Brent - $109.35
Natural Gas: Henry Hub - $3.49
2012 Energy Market Prices Forecast
FirstEnergy Capital
Oil: 2012 average estimate for WTI - $90.25 / Brent - $110.75
Natural Gas: 2012 average estimate for Henry Hub - $5.15
CIBC World Markets
Oil: 2012 average estimate for WTI - $95
Natural Gas: 2012 average estimate for Henry Hub - $4.75
BMO Capital Markets
Oil: 2012 average estimate for WTI - $92
Natural Gas: 2012 average estimate for Henry Hub - $4.60
GLJ Petroleum Consultants
Oil: 2012 average estimate for WTI - $90 / Brent - $105
Natural Gas: 2012 average estimate for Henry Hub - $4.75
Alberta Land Sales
Year Parcels Sold Total Bonus Total Hectares Average $/Hectare
2011 5,815 $3,323,693,043.74 3,791,858.3700 $876.53
2010 6,392 $2,387,812,738.41 3,853,300.4712 $619.68
2009 4,564 $731,762,723.29 1,740,609.0232 $420.41
2008 6,139 $937,598,856.47 2,022,576.1877 $463.57
2007 6,561 $710,685,624.99 1,871,920.6340 $379.66
2006 8,473 $1,471,853,475.66 2,692,912.3020 $546.57
2005 8,796 $1,827,239,438.48 2,888,212.1560 $632.65
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1817 10th Avenue SW Calgary, AB T3C 0K2 Telephone (403) 266-4094 Fax (403) 269-1140
Docket: 33656 Due Date: Nov.10.10 Client: ATB Description: Corporate Financial Services Ad: Sanjel
Size: 8.25"x10.75" (8.75" x 11.25" bleed) Insertion Date: Winter Issue Publication: PSCA News Colour: cmyk
Account Ex: N.Moe Designer: S.Shymko Production: B.Pfleger
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JANUARY/FEBRUARY 2012 19 Well Construction Journal
STORY
Feature
By Steve Macleod
HE OIL SANDS HAVE COME INTO FOCUS AS A SIGNIFICANT CONTRIBUTOR
to the global energy supply mix. The proven reserves are now coupled with the
demonstrated ability to access the bitumen with a variety of cost-effective meth-
ods. The combined region of the Athabasca oil sands, the Cold Lake oil sands and
the Peace River oil sands holds 173 billion barrels of recoverable bitumen and there could
be as much as 2.5 trillion barrels. The amount of contingent resource in the oil sands
accounts for 97 per cent of the oil found inside Canada’s borders and puts Canada third
on the list of largest reserves by country. Only Saudi Arabia and Venezuela hold more,
which makes Canada’s reserve the largest that isn’t state-owned or controlled. The vast
majority of the resource can only be accessed through drilling operations and in 2011,
for the first time, in situ production outpaced mining production in Alberta’s oil sands.
T
Oil Sands
at a
Glance
Oil Sands
at a
Glance
LOCATION: Northeast Alberta
AREA: 142,200 square kilometres
RESOURCE: Bitumen
PRODUCTION: 1.76 million bbl/d in 2011
ESTIMATED RESERVES: 173 billion barrels of oil
MAJOR PRODUCERS: Canadian Natural
Resources Ltd., Syncrude Canada Ltd.,
Shell Canada, Suncor Energy Inc., Imperial Oil,
Cenvous, Nexen Inc.

1817 10th Avenue SW Calgary, AB T3C 0K2 Telephone (403) 266-4094 Fax (403) 269-1140
Docket: 33656 Due Date: Nov.10.10 Client: ATB Description: Corporate Financial Services Ad: Sanjel
Size: 8.25"x10.75" (8.75" x 11.25" bleed) Insertion Date: Winter Issue Publication: PSCA News Colour: cmyk
Account Ex: N.Moe Designer: S.Shymko Production: B.Pfleger
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want ATB as their financial partner. ATBresponds.com
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000PSN1.ATB_FP_wBL.indd 1 11/10/10 2:38:20 PM WCJ_JanFeb12_p18-23.indd 19 1/27/12 4:19:44 PM
20 JANUARY/FEBRUARY 2012 Well Construction Journal
HEN A FEW EXPLORATION AND PRO-
duction companies started experiment-
ing with extracting bitumen from the
ground in northern Alberta, they were
literally and figuratively just scratching the surface.
Mining the area north of Fort McMurray began
more than 40 years ago, but as recently as the 1990s
the oil sands industry was still viewed as a strange
experiment in the hinterland.
All the decades of innovation eventually paid off.
Shortly after the turn of the century, as the price of
a barrel of oil started to rise and mining operations
became more efficient, production of bitumen
ramped up and the world started to notice. “The
Oil and Gas Journal came asking about how much
resource we had,” says Travis Davies, spokes-
man with the Canadian Association of Petroleum
Producers (CAPP). “That’s when the oil sands
became a large part of the global supply mix.”
The combined region of the Athabasca oil
sands, the Cold Lake oil sands and the Peace River
oil sands holds 173 billion barrels of recoverable
bitumen and there could be as much as 2.5 trillion
barrels. The amount of contingent resource in the
oil sands accounts for 97 per cent of the oil found
inside Canada’s borders and puts Canada third on
the list of largest reserves by country. Only Saudi
Arabia and Venezuela hold more, which makes
Canada’s reserve the largest that isn’t state-owned
or controlled.
The only problem is about 80 per cent of that
reserve is beyond the depth that mining operations
can access it. So, while companies were busy trying
to make mining economically efficient, research
and development was already under way on tech-
niques that would allow drilling operations to reach
deep below the surface and produce bitumen.
After a couple of decades of research and devel-
opment, in situ operations in the oil sands finally
became the prominent production procedure in
2011, outpacing production from mining opera-
tions for the first time. Of the 1.76 million barrels
per day produced from Alberta’s oil sands, 797,000
came from in situ and 779,000 came from mining.
With Imperial Oil’s Kearl mining project expected
to begin production this year, mining will once again
be the top producing technique in the oil sands for
2012, but it’s a trend that won’t last long. “We project
that by about 2015, in situ breaks out ahead and
never looks back,” says CAPP’s Davies.
OIL SAND IS MADE UP OF GRAINS OF QUARTZ SAND,
surrounded by a layer of water and clay, which is
covered in bitumen. The heavy oil is currently recov-
ered from the oil sand using one of two methods:
mining or in situ.
A number of initiatives were implemented during
the 20th century in an effort to separate bitumen
from the clay-packed landscape near Fort McMurray
in northeastern Alberta. Earlier mining techniques
utilized a bucketwheel, dragline and conveyor
system to transport the exposed oil sands to the
processing facility. Those systems were completely
phased out by 2006 as hydraulic power shovels
and 400-ton hauling trucks proved to be more eco-
nomically efficient. The trucks transport the oil sand
to a crusher to break up the resource before a
conveyor transports the debris to the extraction
plant. At the processing facility, hot water is used to
separate the bitumen from the sands. In the separa-
tion vessels, injected air forms tiny bubbles, which
are then trapped in the bitumen as it separates from
the sand granules. The air bubbles float the bitumen
to the surface where it forms a thick froth that is
W
Drilling Finds a Home
in the Oil Sands
For the first time ever, the majority of oil sands production
came from in situ operations. Further advancements aim
to keep it that way
STORY
Feature
In Situ: is a latin term, which
means in the natural or
original position or place
Suncor’s Firebag site came
online in in 2004 and a
second phase went live in
2006. Stages three to six at
the SAGD operation are part
of Suncor’s growth plan.
WCJ_JanFeb12_p18-23.indd 20 1/27/12 4:19:59 PM
JANUARY/FEBRUARY 2012 21 Well Construction Journal
skimmed off, mixed with a hydrocarbon mix and
spun in a centrifuge to remove the remaining solids,
water and dissolved salts from the bitumen.
Approximately two tonnes of oil sands must be dug
up, moved and processed to produce one barrel of oil.
Suncor was one of the pioneering companies in
Alberta’s oil sands and the company’s first 45,000
barrel per day project officially opened on Septem-
ber 30, 1967. The total area of mineable reserves in
the oil sands is about 4,800
square kilometres, which ac-
counts for about 20 per cent
of the estimated reserves
in the region. To access the
vast majority of the bitu-
men, companies like Suncor
would have to dig deeper and begin drilling. In 2002,
Suncor began production at its first in situ project –
MacKay River. The company’s Firebag in situ project
came online in two phases – in 2004 and 2006 – and
like MacKay River utilizes the steam-assisted gravity
drainage (SAGD) technique. SAGD consists of two
parallel horizontal wells, one above the other. Steam
is injected into the upper well to heat and release the
bitumen so that it can flow to the lower well, where
it is pumped to the surface.
The in situ projects are much smaller in scale than
mining. The smaller surface footprint and fewer
infrastructure requirements have reduced the barri-
ers of entry to operating in the oil sands and have
brought more producers into the region. Although
in situ operations will help the various producers ac-
cess the 80 per cent of bitumen reserves that are too
deep for mining, drilling in the oil sands has only
been developed during the past 20 years, which
makes it a relatively young technology.
“SAGD was invented to recover bitumen from the
Athabasca reservoir,” says Brij Maini, professor in the
department of petroleum and chemical engineering
at the University of Calgary. Maini worked for sever-
al years at the Petroleum Recovery Institute after re-
ceiving his PhD from the University of Washington.
“None of the techniques from the ‘80s worked. Most
of those techniques were developed for California’s
heavy oil fields,” he says.
And while gravity-drain-
age was a known technique,
when applied to vertical
wells there wasn’t enough
production to make it
an economical option in
Alberta’s oil sands. “Then horizontal drilling came
along and the need for a horizontal drain hole was
filled,” Maini explains.
While researchers and innovative companies
figured out a way to make in situ operations
economically viable, there are still challenges
to drilling in the oil sands. “There are still issues
when it comes to SAGD. It’s not a sure shot thing
because it doesn’t work everywhere,” Maini says.
“That’s where research is going, to find a way to
make it work.”
One of the challenges facing drilling and comple-
tions specialists is the geology. Low vertical perme-
ability or horizontal permeability, shale streaks, gas
streaks or bottom water can all cause problems and
severely reduce a well’s efficiency. “Having a clear
picture of the geology you’re dealing with is impor-
tant because the Athabasca reservoir can be quite
complex,” Maini says.
“We project that by about 2015 in situ
breaks out ahead and never looks back.”
– Travis Davies, spokesman with
the Canadian Association of
Petroleum Producers.
At the Suncor oil sands
mine, huge 240 to 380
tonne trucks deliver about
500,000 tonnes of oil
sand per day to the ore
preparation plants.
WCJ_JanFeb12_p18-23.indd 21 1/27/12 4:20:08 PM
22 JANUARY/FEBRUARY 2012 Well Construction Journal
STORY
Feature
With SAGD, there’s also the amount of water that
needs to be turned to steam and the natural gas pre-
dominantly used as the energy source to cause the
transformation. Maini says the target ratio of steam to
produce a barrel of oil is three or four to one. “If you’re
under three then you’re in good shape,” he says.
It’s no surprise then completions specialists are fo-
cused on reducing the amount of water and natural
gas during the SAGD process. One recent solution
has been smart wells, which helps control the injec-
tion rates into the reservoir. “Now there are some
service companies that provide a system where
wells are placed along the tubing and valves can
be opened and closed at the surface to control the
steam,” notes Maini.
OTHER SYSTEMS AIM TO ELIMINATE THE NEED
for water and steam all together. Petrobank Energy
and Resources Ltd. developed a toe-to-heel air injec-
tion (THAI) process and set up a pilot at the company’s
May River site in the Athabasca oil sands, which holds
624 million barrels of contingent resource. Petrobank
started to put serious research and development be-
hind THAI in 2005 and began production in May
River at the Conklin Demonstration Project in 2006.
Similar to SAGD, THAI technology uses heat to
reduce the viscosity of the bitumen; however, the
heat is generated underground by the combustion
of a small portion of the bitumen in the ore body.
Also, rather than a pair of horizontal wells, the
injector well in the THAI process is a vertical air in-
jection well. Instead of injecting steam to cause flu-
idity in the heavy oil, the THAI process injects air
and relies on underground combustion of a portion
of the oil in the ground to generate the heat required
to melt the remainder of the bitumen and allow it to
flow into the production well.
Air is injected into an injection well where the
process ignites oil in the reservoir where it smolders
like the embers of a campfire and creates a verti-
cal wall of hot embers. This firewall moves from
the injection well (the toe) to the production well
(the heel), pushed forward by the pressure of the
injected air, causing the heavier oil components to
burn and softening the lighter components caus-
ing them to flow ahead of the firewall and into the
production well where they can be pumped to the
surface. “We’re just using atmospheric air to get a
reaction underground,” McLellan says. He also says
there are changes to the injection rate, but that’s a
trade secret.
The heat used during the THAI process “cokes”
the bitumen underground, leaving heavy carbon
molecules behind as it moves through the ground
towards the production well. This results in a lighter,
partially upgraded oil product being brought to the
surface. But the real benefit is the reduction of natu-
ral gas and water.
“When you bring in a clean fuel and turn water
into steam to inject it downhole there are environ-
mental and economic issues,” McLellan says. While
the currently low natural gas prices make SAGD
cost-effective at this point, the plans for costal LNG
plants and expanded export markets does suggest
prices could be headed back to the $12 mcf range in
the foreseeable future.
University professor Maini agrees. “Natural gas
makes it expensive and there’s a threshold where
this option might not be profitable,” he says.
While Petrobank’s Conklin pilot operation hit pro-
duction rates in excess of 400 barrels of oil per day,
“When you bring in a clean fuel and
turn water into steam to inject it
downhole there are environmental
and economic issues.”
– Dave McLellan, manager of intellectual
property with Petrobank Energy and
Resources Ltd.
Cenovus Energy Ltd.’s Foster
Creek project began in 1996
and in 2002 the SAGD
operation started commercial
production. It has grown in
five phases to its current size
of over 185 wells producing
more than 120,000 gross
barrels per day.
WCJ_JanFeb12_p18-23.indd 22 1/27/12 4:20:18 PM
JANUARY/FEBRUARY 2012 23 Well Construction Journal
Continuing Along the Path of Innovation
Looking for innovative completions solutions through research and development in the oil sands has
a much broader focus than improving the economics of operating in the Athabasca oil sands region.
“Now that the producers have made it economic, there are challenges on environmental areas. The
goal is to improve cost reductions and gain efficiencies that make the industry sustainable,” says
CAPP’s Davies. “The steam to oil ratio is the key landmark that needs to be driven down. It will
increase the bottom line and reduce the amount of greenhouse gas emitted into the atmosphere.”
Another research area that Maini figures the industry will continue to chase down the proverbial
rabbit hole is in situ upgrading of bitumen. “The goal is to find a process that will help with recovery,
but convert it to a lighter synthetic crude oil at the same time,” he says. “We’re already heating it up
with steam, so we need to find a catalyst to inject with the steam that might be able to upgrade the
bitumen before it comes to the surface.”
As well as preventing bitumen from being double cooked – when it’s coaxed up the well and again
during upgrading – upgrading bitumen in situ would also conserve energy, Maini says. “If you can
leave behind the sulphur and heavy metals underground, and just recover the key parts of the barrel,
it should be more economic,” he adds.
Petrobank’s McLellan agrees that increasing the recovery factor – THAI offers between 60 and 70
per cent – is the industry’s next goal and upgrading in situ to pipeline spec would be monumental.
And the Alberta oil sands today, like they have for decades, tend to inspire innovation. “It’s
soaked in sand and clay; and the 40-below climate demands and commands you pay attention to
innovation,” McLellan says. “Sitting on top of a great big pile of poor quality resource is a great
factor for innovation.”
Toe to Heel Air
Injection (THAI)
gets heavy oil out of
the ground in a new
and interesting way.
Unlike Steam-Assisted
Gravity Drainage
(SAGD), the current
oil sands industry
standard for sucking
up deep bitumen,
THAI uses compressed
air instead of
vaporized water.
Here’s how it works:
the company shut down the project during 2011. A
second generation of the THAI process was in pro-
duction at Kerrobert in Saskatchewan’s heavy oil belt
and the thinner pay zones of the original project
continued to hamper Conklin. “Could we produce
enough oil to make it a commercial project? That
was in doubt,” McLellan says. “We had Kerrobert up
and running, so we could focus our efforts there.”
Kerrobert was expanded from a two well-pair
demonstration project to 10 well-pairs and will be
the company’s first commercial THAI project. In ret-
rospect, one of the downfalls of THAI at Conklin was
that it was overbuilt, despite having only about two-
thirds the size of the footprint of a typical SAGD fa-
cility. The experience translated into improvements
at Kerrobert.
Without the need for facilities and infrastruc-
ture to handle natural gas and water, as well as the
horsepower to inject the heating element, the sur-
face footprint is reduced with THAI. The well con-
struction itself at Kerrobert was also improved to
integrate more mesh inside the well for better sand
control. But that doesn’t mean Petrobank has any
plans to abandon its oil sands operations. “We’d like
to get back there with THAI 3.0,” McLellan notes.
“Like any innovation you don’t stop, you just move
the ball forward incrementally.”
1 Vertical injection wells force
compressed air down towards
one end of a bitumen deposit.
2 When the air hits the bitumen, it
spontaneously ignites. Combustion
continues as long as injection goes on.
3 As the combustion front moves
over the deposit, the heat makes
the bitumen flow more easily and
partially refines the hydrocarbons.
4 The liquefied bitumen, along
with water produced by the
combustion, gets collected by
horizontal wells drilled along
the bottom of the deposit.
5 Plant facilities treat the bitumen
and send it to market.
2011 Archon Technologies Ltd.
WCJ_JanFeb12_p18-23.indd 23 2/1/12 5:09:42 PM
ACCOUNTING CONSULTING TAX MNP.ca
The oil and gas industry is always changing. That’s why you need strategic business advice
from professionals who put their energy into knowing your business and the market in
which you operate.
Here’s what TOG Systems, an oilfeld telecommunications company and MNP client, had to say:
“We engaged MNP’s services about three years ago and we couldn’t be happier with our
decision. The expertise and level of service we experienced from MNP’s business advisors
have surpassed our expectations and have proven to be invaluable. Not only do we take all
our accounting and tax questions to them but have turned to them for advice on a number
of different issues as they seem to have an infnite pool of people and resources within their
organization to call upon. It is incredibly valuable to me as a business owner to know that I can
trust and depend on the people at MNP to give me advice and provide the experts we need to
succeed. MNP has not just saved us money, they’ve proven their value by making us money.”
Diane Nordhagen, CEO - TOG Systems Ltd.
At MNP, our teams of consultants, taxation advisors and oil and gas service specialists
deliver premium solutions to resolve your most complex issues and keep your business
opportunities fowing.
Think FWD. To fnd out how we can put our energy to work for you, contact
Dustin Sundby, CA, Oilfeld Services Leader at 1.877.500.0779 or dustin.sundby@mnp.ca.
We put our energy into knowing
your business.
TOG Systems Ltd.: A Satisfied Client
000PSN.MNP_FP.indd 1 10/27/11 9:35:17 AM WCJ_JanFeb12_p24-27.indd 24 1/27/12 4:20:45 PM
JANUARY/FEBRUARY 2012 25 Well Construction Journal
By Steve Macleod
TEAM-ASSISTED GRAVITY DRAINAGE (SAGD)
changed the landscape of Alberta’s oil sands.
The ability to pull bitumen from depths be-
yond the reach of mining operations has
unlocked about 80 per cent of the bitumen in the
northeastern Alberta oil sands region that was pre-
viously out of reach.
In 1974, the Alberta government created a crown
corporation to work with researchers and industry
to develop new oil sands technologies. According
to the Oil Sands Developers Group, this corpora-
tion – known as the Alberta Oil Sands Technol-
ogy and Research Authority (AOSTRA) – set out
to examine areas of the Athabasca oil sands that
held reserves deeper than 70 metres below surface.
Four years later, Dr. Roger Butler introduced the
concept of steam-assisted gravity drainage and be-
came commonly known as the “father of SAGD.”
With industry and government support, AOSTRA
developed an underground test facility for SAGD
technology. The site was just north of Fort McMur-
ray and was owned and operated by 10 industry
partners and received government funding. It was
here that the SAGD process was confirmed to be
commercially viable. The underground test facil-
ity was conducted in three phases: The first phase
consisted of drilling two horizontal well pairs sep-
arated by 25 metres and 60 metres in length; the
second phase used three well pairs about 600 me-
tres in length that were horizontally and vertically
separated by 70 metres and four metres, these wells
operated for approximately 10 years; and the third
phase involved a slant-drilling rig used to drill two
horizontal well pairs 650 metres in length and six
metres in vertical separation.
The first commercial in situ operation began
at Imperial Oil’s Cold Lake property in 1985. Al-
though SAGD is viewed as a fairly new technology,
producers in the oil sands are already tinkering
with the process in an effort to improve production
rates and apply the technology in a broader range
of geological formations.
S
A Tale of
Two Technologies
Tweaking SAGD techniques could help a couple
of companies improve production rates
STORY
Feature
STEAM-ASSISTED
GRAVITY DRAINAGE
(SAGD) – SAGD
consists of two parallel
horizontal wells, one
above the other. Steam
is injected into the
upper well to heat and
release the bitumen
so that it can flow to
the lower well, where
it is pumped to the
surface.
ACCOUNTING CONSULTING TAX MNP.ca
The oil and gas industry is always changing. That’s why you need strategic business advice
from professionals who put their energy into knowing your business and the market in
which you operate.
Here’s what TOG Systems, an oilfeld telecommunications company and MNP client, had to say:
“We engaged MNP’s services about three years ago and we couldn’t be happier with our
decision. The expertise and level of service we experienced from MNP’s business advisors
have surpassed our expectations and have proven to be invaluable. Not only do we take all
our accounting and tax questions to them but have turned to them for advice on a number
of different issues as they seem to have an infnite pool of people and resources within their
organization to call upon. It is incredibly valuable to me as a business owner to know that I can
trust and depend on the people at MNP to give me advice and provide the experts we need to
succeed. MNP has not just saved us money, they’ve proven their value by making us money.”
Diane Nordhagen, CEO - TOG Systems Ltd.
At MNP, our teams of consultants, taxation advisors and oil and gas service specialists
deliver premium solutions to resolve your most complex issues and keep your business
opportunities fowing.
Think FWD. To fnd out how we can put our energy to work for you, contact
Dustin Sundby, CA, Oilfeld Services Leader at 1.877.500.0779 or dustin.sundby@mnp.ca.
We put our energy into knowing
your business.
TOG Systems Ltd.: A Satisfied Client
000PSN.MNP_FP.indd 1 10/27/11 9:35:17 AM WCJ_JanFeb12_p24-27.indd 25 1/27/12 4:20:55 PM
26 JANUARY/FEBRUARY 2012 Well Construction Journal
LARICINA ENERGY LTD.
Ever since Laricina Energy launched in 2005, the
company has been experimenting with SC-SAGD.
The SC attached to the steam-assisted gravity drain-
age technique the Calgary-based company is tweak-
ing doesn’t stand for super charged, although that’s
ultimately what Laricina is trying to do to increase
production rates. So far, field tests are indicating the
exploration and production company is on the right
track with a 30 per cent increase in production rates.
Solvents are the key, hence the SC, but it’s not
an area Laricina’s vice-president of enhanced oil
recovery Neil Edmunds says the company is neces-
sarily pioneering. Edmunds says PanCanadian was
experimenting with solvents at the Senlac field in
Saskatchewan. “By the time we started they had
field results and they were as good as expected,
quite spectacular actually,” Edmunds says. “They in-
creased oil recovery rates by 30 to 40 per cent with-
out increasing the steam rate.”
The PanCanadian tests, which became property of
Encana and then Cenovus, used butane to help stim-
ulate the reservoir. Laricina, meanwhile, will be test-
ing the effectiveness of a handful of hydrocarbons,
including propane, pentane, hexane and heptane.
Laricina lit up its pilot project just over a year ago at
the company’s Saleski site. Saleski is located within the
Athabasca oil sands region, but sits above the carbon-
ate Grosmont Formation. The Saleski pilot originally
started in 2009 as a typical SAGD operation, so Lar-
icina could gain a greater understanding of the forma-
tion. Testing of the addition of solvents to the SAGD
process to help lower the steam requirements and im-
prove recovery rates will begin in 2012. “Because it’s
a new formation, we started with just a steam-based
line before adding solvent,” Edmunds says.
In the meantime, Edmunds and his team have
been performing extensive computer modelling in
an effort to figured out how to apply the solvent.
“We have the type figured out, but not the ratio,”
he says. “A big part of the issue is not the choice of
solvent; but how you manage it, the amount you
use and when you use it.”
In an effort to expedite the trial and error process,
Laricina has developed an in-house software system
using a genetic algorithm. “The number of combi-
nations is equal to the number of atoms in the uni-
verse – there’s an infinite number,” Edmunds says.
“In the old fashioned way of getting an engineer to
do a run and then try something better, it could take
years and years. With the genetics algorithm it can
be done in a couple of weeks.”
As well as speeding up the completions develop-
ment process, it also allows the engineers on the
project to re-optimize the process on the fly and
save years of research and development capital.
While Laricina tinkers with the completion of its
SAGD wells, the actual well design isn’t expected
to be altered from a typical SAGD operation. That
means the company can focus on the recovery rates
from the solvent reaction. “We’re expecting a 30 per
cent increase in the productivity of the wells,” Ed-
munds says. “If it works as expected, we could imag-
ine increases in profitability of 50 per cent.”
ATHABASCA OIL SANDS CORP.
The Leduc carbonate formation also resides inside
Alberta’s oil sands region and for the past couple of
years Athabasca Oil Sands Corp. has been acquir-
ing leaseholds in the Dover West asset. The private
company developed a system based on SAGD to ex-
tract bitumen from the reservoir and began a test
run in April 2011.
Similar to SAGD, AOSC’s thermal-assisted gravity
drainage (TAGD) process utilizes horizontal wells,
but the big difference is TAGD doesn’t use steam
to heat the reservoir. Instead, AOSC places electric
heaters in the upper horizontal well. “They are re-
sistive heaters, much like a stove top or a toaster,”
says Bruce Roberts, chief reservoir engineer with
AOSC. “Steam follows the path of least resistance
and could bypass oil in the process. TAGD heats the
reserve more evenly.”
AOSC began drawing up its initial concept for
TAGD in early 2010. The idea of using electric heat-
ers for oil recovery wasn’t entirely new. Roberts says
strides were made in Sweden during the 1940s and
more recently, companies such as Shell and E-T En-
ergy have been testing the use of electricity in the
oil sands region. AOSC is currently conducting a
two-well field test at Dover West with potential oil
production of up to 6,000 barrels per day.
Part of the key in making the TAGD operation
economically viable is the reduction in temperature
of the process compared to SAGD, which reaches
temperatures of about 240 degrees Celsius. “We are
typically between 140 and 150 degrees Celsius,”
Roberts says. “Some advantages of a lower tempera-
ture are it reduces energy requirements and a lower
cost is a bit of an economic driver.”
For AOSC’s pilot project the electricity needed to
power the heaters in the upper well is produced by
on-site generation. For a larger full-scale commercial
application, Roberts figures they’ll have to tap into
STORY
Feature
Laricina Energy Ltd.
Athabasca Oil Sands Corp.
WCJ_JanFeb12_p24-27.indd 26 2/1/12 5:10:02 PM
the power grid or use a standalone power plant.
As well as reducing the operating temperature,
TAGD also eliminates the need for steam in the up-
per well, which means no water and no natural gas
to transform the water into steam. On the ground
surface, this requires less infrastructure for process
facilities, but there is a need for more upper hori-
zontal wells.
While construction and drilling of the produc-
er well is the same as in a SAGD operation, there
could be a few more upper wells in AOSC’s system.
“The number of wells depends on the thickness of
the reservoir,” Roberts says. “We’re still looking at
configurations, but it could be anywhere from four
to seven.”
AOSC plans to continue running its pilot project
throughout 2012 and the decision on when the
company can begin commercial production using
TAGD will follow shortly after.
“A decision will be largely based on the pilot, but
we’ve done quite a bit of modelling,” Roberts says.
“If everything goes according to plan, we’ll have it
in the Leduc carbonate.”
THERMAL-ASSISTED GRAVITY DRAINAGE (TAGD) – TAGD consists of several
horizontal wells. Electric heaters are placed inside the upper horizontal wells
and the heat generated allows the bitumen to flow down into the producer well
below, where it is pumped to the surface.
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WCJ_JanFeb12_p24-27.indd 27 1/27/12 4:21:13 PM
28 JANUARY/FEBRUARY 2012 Well Construction Journal
HEN IT COMES TO THE WORLD’S
energy supply, Canada’s oil and gas
sector is fast becoming the centerpiece
of political debate. Heavy opposition to
oil sands development, in particular, has both the
Albertan and Canadian governments defending
the industry’s reputation in the U.S. and Canada.
Efforts even stretched across the Atlantic Ocean,
after the European Union proposed amendments
to its Fuel Quality Directive (FQD) in November.
The European Commission proposed a number
of initiatives to drastically
reduce the EU’s emissions.
According to media reports,
among the amendments
was a proposal to assign
a default greenhouse gas
emission value of 107 grams
of carbon per megajoule
to Alberta’s oil sands, com-
pared to 87.5 grams for conventional crude.
Despite the fact Europe isn’t a big market for cur-
rent oil sands production, the provincial and federal
governments were disappointed with the message the
default value would send about the industry. Accord-
ing to Environment Canada, the oil sands industry
accounts for 6.5 per cent of Canada’s GHG emissions
and just over 0.1 per cent of global GHG emissions.
News of the amendment to the FQD was espe-
cially disheartening considering the efforts oil sands
producers are undertaking in trying to improve the
industry’s environmental stewardship through in-
novative projects in both bitumen extraction and
land reclamation. The Canadian Association of
Petroleum Producers reports that since 1990, GHG
emissions associated with every barrel of oil sands
crude produced have been reduced by 29 per cent.
One of the industry’s main focuses in reduces emis-
sions is reducing the amount of steam used during
the steam-assisted gravity drainage (SAGD) process
in in situ operations. Using natural gas to turn water
into steam for SAGD is the most common process,
so reducing the steam to oil ratio essentially reduces
the amount of natural gas burned in the process.
Many producers target a ratio between three and
four to one, but at Cenovus Energy Ltd.’s Foster
Creek and Christina Lake in situ projects, the com-
pany has worked to cut the steam-to-oil ratio down
to two and a half to one.
The reduction was made
possible through a num-
ber of innovations, chief
among them Cenovus’s
wedge well system. In
this construction, an ad-
ditional horizontal well is
drilled between the SAGD
well pairs. The wedge well
collects the remaining oil without sharply in-
creasing the steam needed for extraction. As well,
Cenovus is looking at the prospect of adding a
re-useable solvent to its steam that can further
enhance the oil’s liquefaction process. The com-
pany predicts that the addition of solvent in the
process will reduce the steam-to-oil ratio even
further for their SAGD process.
Reclaiming developed land is another main goal
of industry leaders. Companies like Devon Energy
put much emphasis on leaving the land as close to
its original state as possible. In 2010, Devon con-
tributed $50,000 to the New Mexico Association
of Conservation Districts for the restoration of a
4,000-acre tract northeast of Artesia. The money
went toward controlling the growth of mesquite
in the area, which chokes off the grazing land for
animals like prairie chickens and deer.
W
Greener Pastures
Innovation and environment go
hand-in-hand in Alberta’s oil sands
STORY
Feature
“There are a lot of areas where we can
improve, and we’re going to continue to
try to reduce our impact.”
– Drew Zieglgansberger, senior
vice-president of Cenovus’s
Christina Lake project
By Jesse Snyder
WCJ_JanFeb12_p28-29.indd 28 1/27/12 4:22:33 PM
JANUARY/FEBRUARY 2012 29 Well Construction Journal
Devon Energy won the U.S. Bureau of Land
Management’s One Million Acre Award for its
reclamation work in 2009. Vicky Sanchez, Devon’s
regulatory advisor for New Mexico, said in a press
release Devon Energy focuses on reclamation for
the “opportunities to reduce our temporary surface
disturbance.” Since 2006, the company has given
$200,000 towards the federal agency’s Restore New
Mexico Program.
Though even as industry leaders look to reduce
their emissions and reclaim land after developing
it, public perception remains divided. Plenty of
work needs to be done, says Drew Zieglgansberger,
Cenovus’s senior vice-president of the Christina
Lake project. That means working with industry
innovators to use the smartest technologies and
cut overall on-site emissions. “By no means are we
perfect,” he says. “There are a lot of areas where we
can improve, and we’re going to continue to try to
reduce our impact.”
A NUMBER OF ENVIRONMENTAL IMPROVEMENTS
AIR
Total GHG emissions in the oil sands in 2009 was
45 million tonnes
Oil sands account for 6.5% of Canada’s GHG
emissions and just over 0.1% of global GHG
emissions
Since 1990, GHG emissions associated with
every barrel of oil sands crude produced have
been reduced by 29%
The Government of Alberta implemented GHG
regulations in 2007 (the first jurisdiction in North
America to do so) requiring a mandatory 12%
reduction in GHG emissions intensity for all large
industrial sectors including existing oil sands
facilities or a payment in lieu with a current
carbon price of $15 per tonne
WATER
In 2009, the oil sands industry withdrew 21
barrels of water per second – total of 670 million
barrels – from the Athabasca River. This is 0.5%
of average total river flows and about 3.4% of the
lowest weekly winter flow
Drilling in oil sands currently requires an
average 0.5 barrels of fresh water for every
barrel of oil produced
Mining currently requires between 2 – 4 barrels
of fresh water for every barrel of oil produced
Oil sands fresh water use in 2009 was
approximately 1.1 billion barrels. This water was
used to produce half of Canada’s oil supply
LAND
An Alberta Biodiversity Monitoring Institute
(ABMI) report states that the Lower Athabasca
region’s living resources are 94% intact
0.02% of Canada’s boreal forest has been
disturbed by oil sands mining operations over the
past 40 years
Since operations began in the 1960s,
approximately 10% of the active mining footprint
has been or is being reclaimed by industry.
Reclaimed land will be certified by government
when it can be returned to public use
In Alberta alone, approximately 34,750 sq. miles
(or about 24%) of the boreal forest is protected
from development
AIR
WATER
LAND
WCJ_JanFeb12_p28-29.indd 29 1/27/12 4:22:47 PM
30 JANUARY/FEBRUARY 2012 Well Construction Journal
DEEPER
Drilling
EGARDLESS OF HOW REVOLUTIONARY OF A
product a company is selling, if it can’t
make it into the marketplace for consum-
ers to buy it or use it, then the product is
pretty much worthless. Or, in the case of bitumen
from Alberta’s oil sands, trading at a pretty signifi-
cant discount. The low point in the price spread
on the commodity market between the West Tex-
as Intermediate (WTI) benchmark price attached
to Canadian crude and the Brent benchmark at-
tached to European crude was reached September
22, 2011. The gap closed to less than $10 per bar-
rel in November when Enbridge purchased a stake
in the Seaway pipeline with plans to reverse the
line, which would allow crude to flow from Cush-
ing, Oklahoma to the U.S. Gulf Coast. To maintain
those gains, further efforts to reduce the bottle-
neck of supply in the U.S. Midwest will need to
be achieved and producers in Alberta’s oil sands
will need outlets for their product. “It wouldn’t
get produced if there wasn’t demand,” says Travis
Davies, spokesman with the Canadian Association
of Petroleum Producers (CAPP). As global demand
for oil and gas grows, so could demand for Cana-
dian resources. Sitting behind Saudi Arabia and
Venezuela, Canada has the third largest reserve
by country at 178 billion barrels – 173 billion of
which is in the oil sands – Canada holds the larg-
est world reserve that is not state-owned or con-
trolled. “It’s not constrained currently, but it will
get pretty tight over the next few years if we don’t
get Keystone,” Davies says. “There is some pretty
imaginative thinking with folks like Enbridge and
the Seaway reversal, and there could be a focus on
feeding the east coast and the west coast.”
Demand, Meet Supply
Even if environmentalists and
regulators accept oil sands
bitumen as a part of the global
supply mix, there’s still the
matter of infrastructure
R
Supply & Demand
Current oil sands production:
1.76 million barrels/day
Projected oil sands production by 2025:
3.7 million barrels/day
Global oil and gas consumption in 2010:
86.7 million barrels/day
Projected global oil demand by 2035:
99 million barrels/day
Top oil consuming country, U.S. in 2009:
18.8 million barrels/day
Top U.S. crude oil supplier, Canada:
1.97 million barrels/day
Total U.S. crude oil imports:
9.2 million barrels/day
Export
Canadian exports via pipeline:
1.73 million barrels/day
Canadian exports via tanker:
240,000 barrels/day
Canadian exports via rail:
between 10,000 – 20,000 barrels/day
Pipeline Projects
Northern Gateway: Petroleum from Edmonton to
Kitimat – planned capacity of 525,000 barrels/day
Keystone XL: From Hardisty, Alberta to the U.S. Gulf
Coast – when completed capacity will be increased
from 591,000 barrels/day to 1.1 million barrels/day
Trans Mountain Expansion: From Edmonton to
Vancouver – current capacity 300,000 barrels/day,
full expansion to 700,000 barrels/day
Upgrading
60% of crude oil produced in Alberta is upgraded
in the province
Trusted Advisers to
Canada’s Energy
Services Sector
© 2011 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
kpmg.ca
Michael McKerracher
National Energy Leader
(403) 691 8056
mmckerracher@kpmg.ca
Rhys Renouf
National Leader, Energy Services
(403) 691 8426
rrenouf@kpmg.ca
Dan Adams
KPMG Enterprise Leader, Calgary
(403) 691 8035
dbadams@kpmg.ca
000PSN.KPMG_FP.indd 1 10/25/11 1:42:25 PM WCJ_JanFeb12_p30-31.indd 30 1/27/12 4:23:10 PM
Supply & Demand
Current oil sands production:
1.76 million barrels/day
Projected oil sands production by 2025:
3.7 million barrels/day
Global oil and gas consumption in 2010:
86.7 million barrels/day
Projected global oil demand by 2035:
99 million barrels/day
Top oil consuming country, U.S. in 2009:
18.8 million barrels/day
Top U.S. crude oil supplier, Canada:
1.97 million barrels/day
Total U.S. crude oil imports:
9.2 million barrels/day
Export
Canadian exports via pipeline:
1.73 million barrels/day
Canadian exports via tanker:
240,000 barrels/day
Canadian exports via rail:
between 10,000 – 20,000 barrels/day
Pipeline Projects
Northern Gateway: Petroleum from Edmonton to
Kitimat – planned capacity of 525,000 barrels/day
Keystone XL: From Hardisty, Alberta to the U.S. Gulf
Coast – when completed capacity will be increased
from 591,000 barrels/day to 1.1 million barrels/day
Trans Mountain Expansion: From Edmonton to
Vancouver – current capacity 300,000 barrels/day,
full expansion to 700,000 barrels/day
Upgrading
60% of crude oil produced in Alberta is upgraded
in the province
Trusted Advisers to
Canada’s Energy
Services Sector
© 2011 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
kpmg.ca
Michael McKerracher
National Energy Leader
(403) 691 8056
mmckerracher@kpmg.ca
Rhys Renouf
National Leader, Energy Services
(403) 691 8426
rrenouf@kpmg.ca
Dan Adams
KPMG Enterprise Leader, Calgary
(403) 691 8035
dbadams@kpmg.ca
000PSN.KPMG_FP.indd 1 10/25/11 1:42:25 PM WCJ_JanFeb12_p30-31.indd 31 1/27/12 4:23:18 PM
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.
Support CADE by sponsoring our technical lunches,
our website and the well construction journal.
YOUR SPONSORSHIP INCLUDES:
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industry news and articles, presented in a high quality,
well-read magazine
’ G]c`Z]U]W\bVS¹BVO\Yg]cb]]c`a^]\a]`aºTSObc`S
on the CADE website and in every issue of Well
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’ G]c`Z]U]]\bVS¹BVO\Yg]cb]]c`a^]\a]`aºRWa^ZOg
ObSdS`g1/23BSQV\WQOZ:c\QVS]\
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in marketing materials
Connect with Canada’s Drilling Industry
Become a CADE Sponsor
2012 SPONSORSHIP PACKAGES ARE NOW AVAILABLE
SIGN UP NOW!
Contact Scott H. Payne at 403-400-4032 or by email scott@eastsidemedia.ca
www.cade.ca
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