Oil & Gas Network - August 2009

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www.oilgas.netAugust 2009 Volume 10, Number 4

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August 2009 Volume 10, Number 4

Contents

Photos courtesy of Nexen / Dave Olecko

Oil & Gas Network, August 2009 3

Cover Image: Long Lake integrated oilsands facility.

5 Full Circle, Full Speed Ahead

7 Preserving the Alberta Promise

7 Crude oil and natural gas prices will have the most significant impact on the energy business in the next three years

8 & 9 Peak Water Theory in the Athabasca and the non renewable planet

10 Remote site surveillance system to assist oil sands companies in reducing operational risk

11 Report Foresees Bitumen Production Surge

14 & 15 Petrobank moving THAI into conventional oil

16 - 22 Industry still growing, but more

24 The Eco Environmental Solution for Expedient Construction of Helicopter Landing Pads

25 Go Expo - Heavy Oil the Future of Alberta?

25 Go Expo - Our Planet: Small, Flat, Smart

26 Go Expo - SAGD Goes Green

25 Oil and Gas Price Forecaster Cautions Against False Hope

27 - 29 ‘Canadian Gas at a Cross Roads’ Options for Producers to Preserve Value!

30 R&M Energy Systems’ SENTRY® Closure Features Innovative One-Piece Sea


Coll’s Corn

erFull Circle, Full Speed AheadAfter all the good efforts to Communicate the oilsands story of late, to opponents it’s stilljust a street fight, still just ‘spin’

It was at the height of the nefarious (some might say ingenious) “Dirty Oil” campaign awhile back. Ads were appearing in major U.S. magazines in newspapers with our belovedMaple Leaf dripping oil. Knowing the value of a soundbyte, a clever environmentalist

referred to the oilsands as the mythical land of Mordor from Lord of the Rings. And in a shock-ingly one-sided rant (known as a “drive-by” in the media community) the National Geographicgave many their first high-definition glimpse of this supposedly notorious land of shadowwhere the evil Sauron rules.

Coupled with the deepening recession, the Syncrude duck story that just doesn’t wantto die, Fort Chipewyan water concerns made worse by a poor government response, andcontinued uncertainty on future greenhouse gas emission regulations, 2008-2009 hassurely been the worst of times for the Canadian oilsands. And while economic recovery isdefinitely on the horizon, perhaps as early as late this year, few will dispute the game haschanged forever.

A while back, Suncor President & CEO Rick George was quoted as saying that the indus-try has not done a good job of communicating with respect to its environmental progress andoverall performance as well as some of the technological innovations that offer hope for pos-itive change.

This “failure to communicate” view appears to be widely held in the oilpatch executivesuite – I agree wholeheartedly but I think we need to make clear that the failure is not for alack of trying. Just the opposite may be closer to the truth.

We all know there’s a determined and increasingly desperate opposition out there whojust do not – and will not listen. Like a partisan politician that’s been pounding the back-benches for years, these folks earn their livelihood from their very opposition. The researchthey conduct or promote is inevitably biased in favour of a certain presupposed view — notat all a dispassionate, scholarly, middle-ground discussion. You can tell just from some of theirB-movie-like titles — Death By A Thousand Cuts, Danger in the Nursery — what these reportsare going to conclude before even reading them.

Without shareholders to answer to or a stultifying corporate hierarchy to navigate through,those who oppose the industry can act fast in taking the offensive. They have time to planand set course, cultivate, inculcate.

Industry is thus forced into a defensive shell and is often slow to respond. If an individualcompany responds aggressively, they risk distraction and getting pulled into an unwinnabledebate that can erode shareholder value in a heartbeat. When the industry responds collec-tively, it does so through an association or a spokesperson and the response is often lackingimmediacy and is just too complicated for television.

The media thrives on this conflict — as a colleague of mine once put it so indelicately,“they lap it up like pigs to swill.”

In my mind, the other reason for industry’s supposed “communication breakdown” is thefact that the environmental lobbyists don’t want communication anyway, damn it – they wantaction.

Witness the following, from the introduction to the Pembina Institute’s lastest anti-industry salvo entitled Oilsands Myths: Clearing the Air: “Focusing on public relations insteadof public policy is a strategy that backfires. Observers scrutinizing the oil sands see throughthe spin and shallow promises made by government and industry, which further diminishesCanada’s reputation.”

With the release of this report in June, the industry and its opposition have now comefull circle. Now, ironically, you have both sides taking the same approach: 1. take a common-ly used statement from opposition 2. Call it a “myth” 3. Present your facts here and debunkthe myth 4. Call it “reality.” 5. Provide bibliography of sources. 6. Issue press release.

So after all of the communication to date – the recently added Canadian Association ofPetroleum Producers oilsands website, A Different Conversation, complete with blog; the hir-ing of a communications professional to lead CAPP for, I believe, the first time in its history;the cross-country and cross-border efforts of the Oilsands Developers Group to debunk oil-sands myths; all of the individual company efforts to produce various materials – and whatdo you have?

As the Pembina report illustrates, it’s still just a vicious street fight, still just spin accord-ing to opponents. The battle for the hearts and minds of the public continues – trust remainsin tatters and the government is drifting with the tides.

Despite all the negativity out there, I think the industry’s earnest efforts to better listenand better communicate are starting to pay off. We are starting to get to that “glass half full”attitude Suncor President and CEO Rick George has been talking about.

My suggestion: don’t get dragged back into the morass of debate and dissent, continuethe good things we’re doing as an industry and as companies, knowing that it just takes timeand understanding some minds will never be changed.


Alberta has long been known for its promise of opportunity and prosperity, but that promise ison the line. Alberta, while traditionally recog-

nized as a place to thrive, is now seeing jobs and invest-ment flee, perpetuating a dramatic decline in industryactivity (to the tune of a 50 per cent decrease over lastyear) and a massive spike in unemployment whereAlberta is setting new records nation-wide.

Oil and gas makes up roughly half of Alberta’s econ-omy, so it’s fair to say that the industry is an intrinsicpart of the Alberta promise. And, while all industries andall provinces are struggling with the effects of the cur-rent global recession, the downturn in Alberta’s petro-leum industry began long before the current recession,and has been more severe than in neighboringprovinces.

The sector that has been hardest hit is the petrole-um service sector – the sector which completes workon behalf of oil and gas companies at well sites acrossthe province, and which is responsible for the majorityof rural oil and gas activity, employing over 100,000Albertans. As a result of the devastating declines in activity, layoffs and wage-rollbacks have been wide-spread in the sector, the effects of which are being feltin hotels, restaurants, and other businesses across theprovince, especially in rural areas.

At the same time, while the leading indicators of future activity in Alberta are forecasted to continue de-clining, new records to the positive are being set inSaskatchewan and BC, where both governments areworking very proactively to attract business and invest-ment. Clearly, the province of Alberta needs to becomemore competitive in order to preserve the Alberta prom-ise. A more competitive operating environment is essential in maintaining a thriving province and econo-my, within which Albertans have the freedom to createand the spirit to achieve.

The Stelmach government should be commended forits decision to pursue a competitiveness review. This re-view is the key to Alberta’s future and the province’s abil-ity to rebound from the current recession. We encouragethe government to move quickly on this review and todo so in a manner that is open and transparent, includesinput from economic stakeholders and contributors, andincludes a review of fiscal regimes including royalties toensure that Alberta is a competitive place to do business,relative to competing jurisdictions.

By taking appropriate, proactive measures now, thefuture for Alberta can be bright. Alberta has the poten-tial to enjoy continued prosperity and maintain its rep-utation as a place of opportunity where western valuescontinue to drive achievement. We are counting on thegovernment to get this right. On behalf of our 270 mem-ber companies and their 60,000 employees, we urge theStelmach government to deliver a competitive frame-work that ensures a bright future for Albertans by stim-ulating opportunity to fulfill the Alberta Promise.

Preserving theAlberta PromiseRob Gray, Manager, Communications & Member Relations

While 2008 was a year of two extremes, with oil and gasproducers experiencing boom and bust all within 12months and many responding by cutting their capital

spending plans for 2009 anywhere from 25% - 35%, they still con-tinue to plan for the future according to the Canadian EnergySurvey released today by PricewaterhouseCoopers (PwC) andJuneWarren-Nickle’s Energy Group.

- 70% of respondents expect prices to increase somewhatover the next year and 11% believe prices will increase substan-tially. Approximately 16% said crude oil prices will stay about thesame in the year ahead.

- The majority of respondents said oil prices will have to in-crease to at least US$70-$80 before they would consider increas-ing conventional drilling programs, although an almost equalnumber said prices will have to head north of US$80 before spend-ing more on conventional drilling.

- Close to 57% of respondents said the ability to adapt tochange is a critical requirement for their long-term sustainability;while 68% of respondents said attracting and retaining top talentwas viewed as critical for their long-term growth. Technological in-novation was seen by 40% of respondents as critical for ensuringsustainable growth.

- Respondents also said they expect to increase their invest-ment into research and development (R&D) over the next twoyears, with 23% indicating they plan to boost R&D spending in2011 versus only 4% this year and 22% in 2010.

- 72% of gas producers believe prices should recover withinthe next two years to a level that will lead them to increase theirdrilling programs whereas 28% believed it might take three yearsor longer for natural gas prices to recover to levels that will resultin more wells being spudded.

“The turbulent swing in energy prices from all-time highs in thesummer of 2008 to four-year lows in December is a powerful re-minder that the booms in commodities can quickly evaporate,” saysJohn Williamson, Partner and Canadian Energy Leader at PwC. “Atthe mid-way mark of 2009, while gas prices continue to languish,many believe natural gas fundamentals point to a recovery in 2010,

which will lead to improved drilling activity levels. Crude oil priceshave already rebounded from year-end 2008 levels.”

Companies across the oilpatch are adopting a number ofmeasures to remain profitable, including capital budget cutbacks,moving operations to other jurisdictions with lower royalties, aswell as salary freezes or rollbacks, and layoffs.

While industry has cut staff, many energy companies prefer notto lay off employees because so much time has been spent train-ing them. In the survey, attracting and retaining top talent wasviewed by 68% of respondents as critical for their long-termgrowth. This driver was seen by respondents as the most criticalfactor that will influence future growth.

Financing The financial crisis has reduced access to both debt and eq-

uity. As a result, 39% of survey respondents expect to rely on cashflow to support their business over the next year, while 26% iden-tified debt and 14% equity as their primary sources of financing.

Two-thirds of respondents said access to capital and credit iscritical to sustain their growth over the long-term. But respon-dents also feel that debt will likely be the most difficult source offinancing to obtain in the short-term (over the next three years),with 63% saying it will be somewhat challenging and 26% be-lieving it will be very challenging. Close to 54% of respondentsalso believe it will be somewhat challenging to secure equity financing in the next three years, with 33% saying it will be verychallenging.

Operating Costs Fully 57% of survey respondents said they anticipate their over-

all operating costs to decrease over the next year, with declininglabour and material costs helping the bottom line. Some oil pro-ducers now say that labour and material costs have lowered somuch that projects may be economical at lower prices.

In addition, 76% of respondents said their land acquisition costswould stay the same or decrease over the coming year. In the first

Crude oil and natural gas prices will have themost significant impact on the energy business in the next three years

Continues on page 26

8 Oil & Gas Network, August 2009

Peak Water Theory in the Athabasca and the non renewable planetBy Patrick Brennan

The acute demand for resources renewable and non renew-able will be the driver of extreme volatility in financial mar-kets until passive alternatives are found. Humanity has

evolved and existed for thousands of years using renewable sourcesof energy as the cornerstone of consumption. Non-renewable resource dependence is a modern day preoccupation in most

sectors of our daily commerce and a source of political, social, andeconomic addiction around the globe. The peak oil debate boilsdown to the timing of an economic limit in delivering a finite resource to the energy consumer.

Despite the short term volatility in oil markets and the sugges-tion that demand destruction will play prominently in energy con-

sumption throughout North America, it is abundantlyclear the contango seen in the oil futures market sincethe financial debacle is applying continued upwardpressure on hydrocarbon products. This means con-tinued pressure on all resources. Pondering this strugglebetween the bears and the bulls in the energy marketsleads one to speculate on constraint of both finite andunlimited resources. What if the demand for resources,once considered unlimited, reach a bottleneck in the sys-tems natural capacity to deliver? Specifically what if thedemand for clean drinking water or fresh air became sointense capacity peaked? For almost two billion inhab-itants on the planet access to clean drinking water is adaily struggle, and for most large city dwellers air borneparticulates linked to adverse health effects are a con-cern. Suddenly renewable resources appear finite.

It is not a stretch to contemplate a Peak WaterTheory. The well documented case of the ColoradoRiver supported by the Ogallala Aquifer spanning fromTexas to South Dakota frequently running dry is a casein point. The aquifer has encountered a capacity limitin the natural earth systems ability to recharge giventhe agricultural, residential, and industrial uses withinthe rivers drainage area. At the 6th Biennial RosenbergInternational Forum on Water Policy after determiningthe effects of more than 70 river basins globally beingclosed to new water licenses...the idea of “rethinkingwater supply and maximizing the benefits that waterprovides” are likely to be profound metrics of economicwealth in the near future.

Closer to home in the Athabasca abundance in everycapacity is striking. The vast river systems, riparianareas, boreal forest and supporting waterscapes, and ofcourse the oil are seemingly endless. The reserve life forheavy oil and oil sands production is projected to lastover fifty years with anticipated production rates of 2.5– 3.5 million barrels of oil per day by 2020. The loom-ing national debate over system capacities has foundopinion in almost every household and town hall inNorth America. Consumers understand the need to extract the primary resource, but most have grown im-patient and suspicious of the methods. The concernlargely rests in measuring and putting limits on resourcesthat were once considered unlimited, or at the very leastrenewable. Carbon Capture and an associated tax orscheme of trade, seem to present a palatable option for‘the greening’ of clean air needs. Maybe solutions to thisproblem are manageable because the resource cannotbe seen. Exporting carbon offsets around the globe aseasily as a stock broker executes a trade for any of thethousands of public stocks, if nothing else offers animage of doing something. Water on the other hand isinherently more complex. Offsetting water from a nat-ural water course requires infrastructure as intricate asthe network to deliver crude oil or natural gas. In ad-dition the right of access to clean air is not in question.The right of access to clean drinking water has beenthreatened by physical limits in numerous communitiesin every country around the globe. In the Athabasca region every barrel of synthetic crude oil produced requires a minimum of three barrels of fresh waterdrawn either from ground water or surface withdrawalsfrom the Athabasca River drainage area. (This metric ispublished in the business plans of both mining andSAGD operations. Recycling through closed loop sys-tems means the actual water requirement per barrel isthree to four times the above number). Three millionbarrels per day of sco will require nine million barrels ofpermitted fresh water withdrawal every day to engage in the cumulative business plans of the Athabasca OilSands Operations.

A detailed review of the Alberta Government’s Waterfor Life Strategy and supporting documents such as the


Draft Directive for Thermal Insitu Recovery Schemes showwhere the holes are in the systems natural capacity to sup-ply fresh water and maintain a standard and right of access to clean drinking water for every Albertan.Legislation in the proposed directive based on variousguidelines for water conservation in the province ofAlberta state that; fresh water is defined as having lessthan 4,000 milligrams of Total Dissolved Solids (TDS) perlitre of water, brackish water is defined as having greaterthan 4,000 milligrams of TDS/litre of water.

Recent academic forums, with representatives fromboth industry and government have discussed the needto increase the definition of fresh water up to 10,000 mil-ligrams TDS per litre of water. This is required due to an-ticipated demand for this essential resource. The PembinaInstitute advocates a charge for industrial water use. TheERCB has officially stated that companies will have tocompete for water and disposal space in the future.

On January 21, 2009, using data from AlbertaEnvironment’s Water Management Framework CNRL,Suncor, Syncrude, and Shell’s Albian Sands projects wereasked to reduce the amount of water taken from thelower Athabasca downstream of Fort McMurray. A lowriver advisory, likely induced by ice jams, was a possibleexplanation for this reduced withdrawal. Subsequent datapublished by Alberta Environment showed several weeksof low river flows. The spring of 2009 will be remem-bered in Alberta for the drought conditions affecting agri-culture, forestry, and oil production. I will reword thequestion postulated above, is it a stretch to consider aPeak Water Theory in the Athabasca?

A true definition of a ‘draconian measure’ is to simplyevaluate water needs by a yard stick stuffed in the riverbank. The parade of elementary students at the June 2009Calgary’s Major’s day Expo featuring the City’s water infrastructure could tell you ‘groundwater systems arethe life blood of a river and our communities.’

A sophisticated investor perusing the business pagesof any Wall Street or Bay Street publication would be familiar with the financial metrics advising on the best energy companies to own stock in. An index on oil sandsoperations may weigh investment choices based on pro-duction performance, P/E ratios, chart patterns, forecasts,and guidance. None have considered the outcome ifthere was simply not enough water to execute the cumulative business plans of these operations. Marketspeculation might lead one to hypothesize the best in-vestments are based on the most sustainable processes.

There are numerous companies using technologies to mitigatethis risk in limited water supply. The simple suggestion that aPeak Water Theory in the Athabasca is a possibility, far exceedsthe view of a thirsty post mortem inquiry on how Alberta failedto measure its most precious ‘renewable resource.’

Without any further delay these investments include produc-tion systems that significantly reduce or eliminate water use. Suchas in situ air injection/combustion technologies, and heavy tolight oil upgrading at the well head offers hope. Absorption tech-nologies for tailings pond clean up and management. Electricallyinduce heat radiation technologies used in shale oils also ap-pear to be likely candidates for sustainable investment in thisfield. Biomass gasification processes that produce clean high en-ergy sources are the likely choices for short and medium runsuccess, both satisfying investor returns and generating capital

for solutions to this obvious need. Over the long run Albertans’will have to ask is the investment in nuclear technology justifiedto ensure long term viability of oil sands production or is the investment a clean energy source for every day access to powerthat is potentially fatal if mismanaged? Nuclear power posses itsown threat to a manageable fresh water supply if any of the abovearguments hold true.

Alberta’s future is anything but green and likely brackish ifpeak water theory in the Athabasca becomes a reality.Responsible consumption of both renewable and non-renewableresources is essential. Investment in sustainable processes are alikely modern day financial metric that could become vogue, andheavy oil and mining processes that mitigate peak water risk deserve attention for both access to capital and future access toclean drinking water.

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ACalgary-based company has created a unique technologysolution to help firms manage the operational risks associ-ated with bitumen resources located in remote areas.

“Oil sands producers face many safety, security, environmentaland operational risks every day. Our solution mitigates these risksthrough the application of our video analytics and real-time eventnotification,” says Dr. Wael Badawy, president and CEO of IntelliviewTechnologies.

Throughout the last decade, activity in the oil sands has risen dra-matically and even with the lull brought on by the recent econom-ic downturn, it continues to be Canada’s capital of oil production.

The oil sands contain 173 billion barrels of recoverable reserves ofthe nation’s total 179 billion barrels of oil.

Producers are only starting to scratch the surface of this vast bitumen resource, but as oil sands development increases so alsodo the operational complexities associated with accessing thesereserves in remote areas that are subject to some of the harshestof environmental conditions. Petroleum companies continue toseek new solutions to keep pace with rising operational concernsand increasing regulatory compliance requirements.

Regulatory guidelines were recently launched by the EnergyResources Conservation Board (ERCB) to manage the lifecycle of

Remote site surveillance system to assist oil sands companies in reducing operational risk By Shelly Brimble

tailings ponds. Tailings ponds are created through surfacemining operations. Bitumen is removed from the oilsands through the addition of hot water. What is left afterthat process is put into a separator allowing the waterto rise to the top where it is skimmed off and the sandto drop to the bottom to be taken out. The sludge claymaterial that is left behind is put into tailings ponds tosettle and dry for reclamation.

There are currently 13,000 ha of land under wetablesurface as a result of the tailings ponds. “This is growingeach year, and unless industry changes the way it man-ages and reclaims tailings it will continue to grow,” saysStephen Smith, previous ERCB Fort McMurray executivemanager and current ERCB executive manager,Application. Smith added that Directive 74: TailingsPerformance Criteria and Requirements for OilSandsMining Schemes deals with existing mining operations,but the ERCB has already given industry the heads upthat once it is established, the Directive may well begrandfathered to older tailings ponds as well.

The regulations focus on finding measurable and accountable solutions. Smith noted that the ERCB doesnot prescribe any one technology solution, but rathersets the end results and leaves it up to industry to selectthe solutions.

“Directive74 reflects the growing concern for thesafety and monitoring of tailings ponds. The recent duckdeaths at Syncrude have spurred industry to reviewnew technologies. Our video analytics technology can bean important part of the solution for oil sands operators,especially for the surveillance of tailings ponds, and forremote sites in general,” says Badawy.

Intellivew provides a digital video recorder (DVR),with a suite of analytics on- board, to deliver local pro-cessing of video images. In effect, the system convertspassive cameras into intelligent video sensors. The sys-tem can be programmed to send an alarm only whenprescribed incidents occur. Within three seconds of anevent or condition, an alarm and jpeg image is sentthrough the company’s LAN, WAN or web server. This in-cident-only communication significantly reduces oper-ating costs since it minimizes the demands onbandwidth.

Since the entire surveillance system is manufacturedand programmed locally, it can be tailored to meet eachoperator’s unique specifications. “We are one of a selectfew analytics firms (less than 10 in the world) that hasour own sourcecode, and this gives us the capability tomodify the system to meet a customer’s specific needs,”says David Ruhlen, Intelliview’s business developmentmanager.



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www.oilgas.netAugust 2009 Volume 10, Number 4

Alberta remains on pace to significantly increase bitumenproduction over the next 10 years, the Energy ResourcesConservation Board (ERCB) reports.

In its recently released report, Alberta’s Energy Reserves2008 and Supply/Demand Outlook 2009-2018, the ERCB fore-casts that Alberta raw bitumen production will rise to 470,000cubic metres (m3) or 3 million barrels per day by 2018, basedon announced expansions of existing projects and com-mencement of new projects. In 2008, bitumen production averaged 208,220 m3 (1.31 million barrels) per day.

Based on newly available geological data and analysis, theERCB increased its estimate of the remaining established re-serves under active mineable development from 2.91 billion m3 (18.3 billion barrels) to 3.74 billion m3 (23.4 bil-lion barrels).

The annual report draws from the ERCB’s own geologicaland technical analysis and is a source of information on thestate of reserves and the supply and demand for Alberta’s diverse energy resources: bitumen, crude oil, natural gas, natu-ral gas liquids, coal, and sulphur. It includes estimates of

reserves at Dec. 31, 2008, and a 10-year supply/demand forecastfor each resource. A supply/demand forecast of electricity inAlberta is also provided. The report includes historical data forenergy resources production.

Alberta’s remaining established reserves of conventional oilare estimated to be 233 million m3 (1.5 billion barrels), a 3 percent decrease from 2007. This decline is consistent with thetrend over previous years.

In 2008, companies added 20.6 million m3 (130 million bar-rels) of conventional oil reserves through drilling, replacing 77

per cent of production for 2008. TheERCB estimates the remaining ultimatepotential of conventional oil at 590 mil-lion m3 (3.7 billion barrels).

Last year, Alberta produced 79,900 m3

(502,800 barrels) per day of convention-al oil.

The report also reveals that Alberta’sremaining established reserves of naturalgas stood at 1,098 billion m3 (39 trillioncubic feet) at the field gate as of Dec. 31, 2008. Reserves from new drilling replaced 81 per cent of production in2008, compared to 78 per cent replace-ment in 2007.

Several major factors have an impacton natural gas production, including nat-ural gas prices, drilling activity, the acces-sibility of Alberta’s remaining reserves, andthe performance characteristics of wells.Alberta produced 364 million m3 (12.9 bil-lion cubic feet) per day of marketable nat-ural gas in 2008, of which 22 million m3

(767 million cubic feet) per day wascoalbed methane.

Meanwhile, Alberta’s remaining estab-lished coal reserves are estimated at about34 billion tonnes (37 billion tons), while2008 production totalled 38 milliontonnes (42 million tons).

Report Foresees Bitumen Production Surge


The number of analytics algorithms in the IntelliView solu-tion suite is substantial, and the ease of programming the pol-icy rules is impressive. Companies can receive notification if aperson has crossed a virtual boundary, or fence-line, if an indi-vidual is loitering or has left an object behind, or even if a per-son has fallen and remains immobile. The analytics suite can alsobe used as an operational aid to monitor valves and other pro-duction equipment, and is currently being field tested to facil-itate and verify remote equipment start ups.

To further enhance its analytics solution, Intelliview has alsocreated a technology to compensate for environmental con-ditions that are often responsible for false alarms. Other ana-lytics solutions can be fooled by environmental conditionssuch as shadow, snow and glare, but IntelliView’s patentedEnvironmental Filter will reduce such false alarms by up to 96 per cent. The company confirmed this vastly improved

performance through an independent study using City ofCalgary traffic cameras.

“IntelliView has a decided edge in the remote monitoringof oil and gas sites because operators will quickly come to ignore any analytics solution that produces a high rate of falsealarms. Our solution delivers the real value of a video system,which is the accurate assessment of a site condition and thereal-time notification of the event,” adds Ruhlen. Till now, theharsh environmental conditions associated with remote sites,along with the lack of power and communications infrastruc-ture, have precluded the widespread use of video surveillanceas a monitoring option.

IntelliView’s unique system architecture is particularlyamenable toremote-site deployment. Cameras of virtually anytype (analogue, IP, fixed, PTZ, thermal or infrared) connect to thelocally housed DVR, and the supporting power infrastructure

can include solar panels, battery and fuel cell arrays, wind tur-bines and generator systems. The communications options areequally diverse, including radio, cellular and satellite connec-tivity.

The IntelliView system has recently been field-tested by amajor producer at a site near a rural community that has beenfrequently vandalized. Local teenagers used the location as agathering spot, and vandalism to the facility (including axemarks to a sour gas pipeline) became a regular occurrence. Theproducer needed know when the facility had been compro-mised, and it needed to know in real-time.

IntelliView’s system was easily deployed to the site on a mobile platform, complete with self contained power and com-munications infrastructure. The producer soon had the site backunder its control, and the facility was returned to a normal operating status.

Another IntelliView surveillance innovation includesa speed bump camera that records every vehicle com-ing into a remote location. Traditionally license platesare difficult to record so they are legible. Being in thespeed bump enables it to capture a close shot and thecamera operates in extreme conditions, including snow.

Knowing when an unauthorized vehicle has entereda remote site can provide operators with the informa-tion and the ability to react quickly to avert site damageor safety issues for their field staff. This can also help operators prove they have protected worker safetywhen dealing with Bill C-45 concerns.

“With increasing incidents in eco-terrorism in the in-dustry, this system can become a valuable tool to helppetroleum companies in combating this type of risk,”adds Ruhlen.

Continued from page 10


Having proven that THAI technology is working well ina pilot test facility near Fort McMurray, Calgary-basedPetrobank Energy and Resources Ltd.is ready to deploy

the innovation into conventional oil as well. The success of thistechnology has also captured the attention of internationalcommunity and negotiations are underway to deploy it over-seas.

Traditionally, new technology takes about five years to beintegrated into the oil and gas industry. Petrobank Energylaunched the technology in the Whitesands pilot facil-ity in 2006.Despite some initial sands issues that wereeasily overcome, the company reports that THAI isworking as anticipated in the project models.

“We don’t need any more proof...it is working in thefield and we are going to take this technology aroundthe world,” says,Chris Bloomer, Petrobank Energy senior vice president and chief operating officer, Heavy Oil.

The THAI process injects air into horizontal wells in-stead of steam into the oil sands to release the bitu-men. The air combusts in the sands causing an ignitionfront that sweeps the hot bitumen towards the pro-duction zone. Since this process uses air it requires lessenergy and no water when compared to traditionalSAGD operations.

These operational benefits have put Petrobank Energy’sTHAI technology in the spotlight game changer in bitumenproduction. A vast majority of bitumen will be obtained usingin situ technology since only 15 per cent can be reached bysurface mining.

Bloomer says that the proof of the THAI success in theWhitesands pilot facility is very evident in the overall well per-formance. “We can start up these wells in challenging reser-voirs. We have been producing upgraded oil since day one.

We know the coke is dropping out of the produced bitumenso it is coking in situ. The produced water separates easily fromthe oil. We are seeing a tremendous upgrade in the oil withTHAI at 12-14 degrees API,” he says.The pilot is currently pro-ducing about 250 barrels per day.

The in situ upgrading benefits of the THAI process providesmany environmental and operational benefits. THAI is more viscous pouring like a glass of orange juice as compared to bitumen that is like sluggish molasses in the fridge. Bitumen viscosity usually causes additional transportation costs sinceoperators need to add diluent to enable it to flow throughpipelines. The produced oil is also a higher quality whichBloomer believes refiners will eventually pay a higher price foronce higher production capacity has been established. “This isa huge difference in costs because we only need to take a THAIbarrel from 13 degrees to 22 degrees API gravity. The differ-ence is $5to $10 per barrel in operating costs,” adds Bloomer.

Petrobank also did a first in the world application atWhitesands by inserting a catalyst directly into a THAI well.Known as CAPRI, this catalysts is expected to provide evengreater upgrading results. The CAPRI well isstill being observedso the final results are not available yet, butPetrobank has re-ported some changes. “In our CAPRI well (PB3) the oilis lighterand it smells different.

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a cookie cutter off the shelf solution so that every componentcan be easily sourced by third party suppliers.This simplicityas well as the upgrading associated with the THAI process also enables Petrobank Energy to reduce operating costs. As aresult, they have become one of the lowest cost operators(about CDN$10per barrel).

Although Petrobank has clutched back on some of their roll-out plans due to the economic condition and low commodityprices, they are still planning to move ahead with multiple de-ploymentplans for THAI technology. Two kilometers from thepilot project willbe the location of the first large scale com-mercial THAI project thatwill evolve into a 100,000 barrel perday operation.

The May River project is expected to start soon since withthe initial phasefor 10,000 - 15,000 barrels per day is already

under regulatory review. This next phase THAI project has been designed with self-sufficientpower generation, sulphur recovery, is CO2 capture ready and will alsobe a net water pro-ducer. Bloomer expects it will take 18-24 months to completethe project once it begins.

Once regular production is established on from Whitesandsand May River, Bloomer is confident that the company will gainmore financial benefits. He expects the THAI produced oil willfetch Petrobank more (about $2 to $3 per barrel) thentheircompetitors in the future because it will be a better qualityofoil for the refiners.

Near Conklin Alberta, Petrobank Energy isalso rolling outanother THAI project known as the Dawson Project. This proj-ect is being deployed with a new partner, Shell Canada Limited,whobought the previous partner (Duvernay Oil Corp.) inAugust 2008.Regulatory applications are already underway andthe company expects to begin construction soon to gain accessto significant 11 degree American Petroleum Institute (API)gravity oil in place. There are cold production projects operat-ing in the area but, these are only recovering about 10 per centcompared to the THAI outlook for 80 percent recovery.

Early exploration has also begun in the 23,000 acre oil sandslicense at Sutton, Saskatchewan. Already 35 kilometers of 2Dseismic has been acquired over key target areas and initial results are showing strong potential for THAI potential.

Petrobank has also targeted other heavy oil reserves forTHAI technology and plans tofield test it in a heavy oil projectat Kerrobert, Saskatchewan in athird party THAI license proj-ect. Saskatchewan, like Alberta has a vastamount of its oil resources found in heavy oil reserves. It is estimated that THAIwould hit a bulls eye in Saskatchewan by unlocking another

20 billion barrels of conventional heavy oil resources.“Conventional heavy oil is a new market for THAI and this

could have a big impact inSaskatchewan where there is lot ofheavy oil. Once we have established this, we can then go afterthe same type of oil with low recovery and no other technol-ogy solutions internationally,” he adds.

Already international interest in the THAI technology is ris-ing with many third part opportunities emerging. The THAItechnology has been developed through Archon TechnologiesLtd., a wholly owned subsidiary. Plans are underway to marketthis Canada-made heavy oil solution to the rest ofthe world.“International deals are taking more time to solidify due totheeconomy, but they are still progressing and there are new play-ers coming to the table,” he says.Compressors used to inject air

into the THAI process.An aerial view of Whitesands


The downturn in the oilsands industry was rather sharpand rather sudden, but the climb back out will takelonger, industry experts and analysts agree.

This decline is different from any other in Alberta’s history,says Jacques Marcil, senior economist for the Canada West

Foundation. Marcil is the author of a

recently released report entitled A RoughPatch: Alberta Economic Profile and Forecast.

“In the past, the price of oil has gone down, but the rest ofthe economy in Alberta just kept chugging along,” Marcil says.“Or the energy industry kept growing while the national econ-omy was struggling.“

But this time, they both went on a downward spiral at thesame time. And the price of a barrel of oil increasing is onlypart of what’s necessary to return to calm waters. In July 2008,the price of U.S. crude hit a high of $147 and one year latercloses around $60. Yet that is almost double from the low of$32.70 in January.

Marcil says to watch the economy of the United States toget a picture of how soon the economy here will rebound. “Itreally depends on how fast the U.S. gets out of their recession,”he states, adding that the energy policy the U.S. is set to releasewill also have an impact on Alberta’s oilsands industry.

The Canada West Foundation is forecasting that Alberta’sreal GDP will decline by 2.4 per cent in 2009 and grow by 1.9

per cent in 2010. It will take the oilsands industrysome time to climb out of this down-

turn in part simply because theprojects are on a such a

large scale. “It takesawhile after they

say ‘go’, sothere’s a

delay,”Marcil

says.There

is already somegood news on the oil-sands horizon.

Don Thompson, presidentof the Oilsands DevelopersGroup, says that the group’s mem-bers are spending $18-billion in operating expenses this year and plan-ning to go forward with about $8-billionin capital investment this year.

“The oilsands is not dead,” Thompson says.“It isn’t as if investment has gone to nothing.For any other industry, this would be boom time.The oilsands is still a huge contributor to the Albertaeconomy.”

But it is a far cry from what oilsands developers origi-nally had planned for 2009.

“I think nobody in the world predicted the depth and extentof the global economic meltdown. The price of crude oil veryquickly went down lower than anyone ever predicted,” saysThompson.

The Oilsands Developers Group usually releases a forecastannually, but this year plans to release two. The first one cameout in March with an update is planned for September.

“Things are very fluid right now, so we will try to do a six-month update,” Thompson says. “I would hate to say the worstis behind us. I don’t think I have ever experienced somethingso broad across all industries.”

Meanwhile, the Canadian Association of PetroleumProducers (CAPP) released its 2009 crude oil production fore-cast and markets outlook in June.

“CAPP’s production forecast indicates that evenwith delays due to current economic circumstances,oilsands production is expected to grow, althoughthe pace of development has slowed,” says GregStringham, CAPP’s vice-president, markets and oil-sands.

For the oilsands component of Canada’s oil sup-ply, the share of supply coming from in-situ projectsincreases slightly over the forecast period and theproportion of total oilsands that is upgraded remainsrelatively unchanged over the forecast period of2009-2025.

Bob Dunbar, president of Strategy West, a Calgary-based consulting firm that focuses on the oilsands,echoes others remarks that while the oilsands willsee growth over the long term, but that’s there’s stilluncertainty about how long that will take. “It doeslook a little more promising now because it looks asif we have seen the bottom, but there is some un-certainty as to how long the bottom will last,“Dunbar says.

Provincial budget forecasts for 2009-2010 showthat oilsands revenue is expected to drop to about

$1 billion this year because of the global recession.The economic downturn is allowing the oil-

sands the luxury of some breathing room thatit simply didn’t have a couple of years ago.

“The recent credit crisis and collapsein energy prices can be seen as a

chance for the industry to stepback and focus on the next

moves in the developmentof the oilsands,” says

CERIsenioreconomist DavidMcColl in a report calledThe Eye of the Beholder: Oilsands Calamity orGolden Opportunity?

“Herein lie opportunities: to secure high-qualitylabour being let go by organizations, to secure com-ponents and products at costs that have not beenseen in almost a decade, and to prepare for the

Industry still growing,but more slowly


2010, butwill begin a re-

assessment and refi-nancing period that could takeseveral years. Some projects arelikely to be deferred until 2015,which will create a further backlogin projects, pushing those with 2015plans (as announced in 2006 to early2008) beyond 2020.”

Encouraging SignsAfter a series of announcements in the last quarter

construc-tion activitieswere restarted at itssecond 10,000 barrel perday SAGD facility in northeast-ern Alberta.

The company said it anticipates con-struction activities at Algar and the drilling of 15SAGD well pairs will take about 275 days to complete.

The fact that so many companies deferred projects or ex-pansions is of benefit to those who have now decided to go ahead,

says Strategy West’s Dunbar. “Construction costs have been goingdown. Labour availability is going to be easier, especially finding fully

skilled workers,” he says. “Engineering costs have come down because engineering firms are hungrier for work.”

On the plant operations front, Nexen has already found that findingskilled labour is somewhat easier now than it was in the past few years.

Recruitment personnel from the operator of the Long Lake integrated oilsands facility, headed to British Columbia, Nova Scotia and Newfoundland in June to fill a

number of long-term positions.

eventual return of higher oil prices and economic activity whileyour competitors scramble to catch-up.”

The catch is, the companies have to be rich enough to takethe risk, he says.

The Canadian Energy Research Institute’s 2009 EconomicSlowdown Projection indicates that $218 billion will be in-vested in the oilsands for new production.

That figure is $97 billion less than previously projected bythe Institute last year. The study assumes that oil stays belowUS$60 a barrel for most of 2009 and credit markets still lackliquidity.

Under this projection, economic recovery begins in early2010, and oilsands development stalls until 2013, with no majorgrowth until 2015.

“We assume this resumption to be limited to establishedoilsands projects and others with adequate financingin place prior to the credit collapse of 2008. Ittakes at least two years for most miningand in situ projects to start produc-tion after construction begins,”states McColl’s report.

“However, manyprojects will notstart con-structionin

of 2008 about project delays, recent news has been more positive.

The Rough Patch report by the Canada West Foundationhighlights the March acquisition by Suncor of Petro-Canada ascreating a new, healthy $43 billion giant. The deal will allow thetwo companies to cut $1.3 billion in annual costs, said the pres-idents of Suncor and Petro-Canada.

And while some projects remain on the back burner,Imperial Oil’s announcement in May to invest more than $8 bil-lion in its previously stalled Kearl oilsands project is anotherpositive step for the industry. Production is estimated at 110,000barrels per day and is scheduled to start in 2012.

Fluor Corp. was awarded the contract to build infrastruc-ture and facilities for the

first phaseof

the Kearl project located 70 kilometres northeast of FortMcMurray.

Imperial Oil has captured what CERI senior economistDavid McColl calls a “golden opportunity. They basically saved25 to 30 per cent off their capital costs relative to if they didit in the latter half of 2008. They are probably going to get thebest deal on labour and materials because they are the firstout of the gate,” he says.

Imperial Oil spokesman Pius Rolheiser says Imperial Oil isnot “overly bothered” by the current lower price of oil.

“In this case, the change in the economic condition hasseemed to work in our favour,” he says. “Certainly costs oflabour and commodities are lower now, but what they will bea year from now I wouldn’t venture a guess.”

The major construction period at Kearl will be 2010-2011with a workforce of between 2,000 and 3,000. Currently an estimated 1,000 personnel are working on the project.

Another project considered by analysts to mark re-newed investor confidence is privately-owned oil-

sands player MEG Energy Corp.’s applicationin June for the third phase of its

Christina Lake in-situ project.And Connacher Oil and

Gas Limited an-nounced in early

July that

Photos courtesy of Nexen / Dave Olecko.



They were seeking to fill positions in the areas of technical,engineering, health and safety, power engineering, shift super-vision and maintenance positions including millwrights, pipefitters, instrumentation and welders.

“I think people are more open to relocating to FortMcMurray than they have been in the past,” says Kirk White,Senior Recruiter for the Long Lake oilsands facility. “The qual-ity of resumes was pretty good and people came out with agood expectation of living in Fort McMurray. We certainly pro-moted the philosophy of Nexen wanting a local workforce andhaving employees who live in and volunteer in the local com-munity.”

The Long Lake facility is located 40 kilometres southeast ofFort McMurray.

In stark contrast to a year ago, the situation for oilsands employers has shifted to a buyer’s market. “There are now morepeople than jobs, which is a lot different than a year ago whenthere were more jobs than people,” White concludes. “And that’sgood for Long Lake.”

Tracking PerceptionsThe Canada West Foundation has begun keeping track of oil-

sands stories published in the media and already has a bettersense of public perception about the industry, said researcherDan Gibbons. The findings show that there are concerns aboutthe impact the oilsands is having on the environment.

“We put out monthly reports and we’ve been trackingCanadian coverage, international coverage and internet cover-age,” he said. “The greatest source of negative criticism comesfrom environmental websites.”

In May, “environmental impact is still the largest issue andlargest source of criticism and most passionate source of crit-icism. Carbon emissions tend to drive it,” Gibbons said.

Many stories tracked in May related to the ecumenical del-egation organized by KAIROS, which toured the oilsands in thelatter part of the month and then released its conclusions.

The group said it believes “the tar sands pose serious, com-plex questions for Alberta, for Canada and beyond. We agreewith the Indigenous peoples’ and environmentalists’ calls for independent studies on the cumulative impacts of the tar sandsdevelopment, especially concerning water and ecosystems.”

Getting the Word OutOilsands companies such as Syncrude and Suncor Energy

have stepped up their environmental endeavors after a spateof negative publicity that has reached around the globe.

Suncor has set company-wide environmental performancegoals to reduce water intake by 12 per cent by 2015, to increaseland area reclaimed by 100 per cent by 2015, to improve en-ergy efficiency by 10 per cent by 2015 and reduce current airemissions by 10 percent by 2015.

Suncor pled guilty in April to three environmental chargesstemming from two separate incidents. Two Firebag charges related to failure to construct vapour recovery facilities andfailure to provide information required under the legislation.The other charge related to exceeding regulatory limits for totalsuspended solids from the wastewater treatment and disposalplant at Millennium Lodge, near the base plant.

“These incidents should not have happened,” says KirkBailey, executive vice-president of oilsands. “While there was noharm done to the environment or to human health, we fellshort of the expectations of regulators, and Albertans – andourselves.”

Syncrude was charged by the federal government over thedeaths of about 1,600 ducks in a northern Alberta tailings pondin April 2008. Syncrude faces one count under the federalMigratory Birds Convention Act and is expected to be back incourt to enter a plea in September. The company offered whatit called “a heartfelt and sincere apology for the incident” in an open letter that is posted on its website. President TomKatinas said the company will “learn from what happened” andimprove its practices.

The oilsands companies, as well as oilsands organizations,are talking about their environmental practices more than everbecause of more intense media coverage on those issues.

Meanwhile, the Oilsands Developers Group, which has amission to address the need for accurate, credible informationabout activity in the Athabasca oilsands deposit region, is hop-ing people will take the time to get all the “facts.”

“A lot of environmental concerns come as a result of whatI consider to be half-truths,” says Don Thompson.

He has heard concerns about the boreal forest being de-stroyed through oilsands mining, but says the reality is that only0.1 per cent of the boreal forest is able to be mined. In the last40 years of oilsands development, 530 square kilometres ofland has been disturbed and 65 square kilometres has been reclaimed.

The rest of the oilsands in that area is too deep to be mined,so in-situ methods must be used, which means no mines and

no tailings ponds.Environmental groups have pushed for more protection of

the Athabasca River, but Thompson said that the oilsands with-draw just one per cent of the mean annual flow from the river.“People have to have the true facts placed before them. Givethe full story and let people decide,” he says.

The Oilsands Developers Group has tried to do that by giv-ing media tours of the oilsands, yet National Geographicshowed photos of the mined land, but chose not to includephotos of the reclaimed land, Thompson said. The group is con-tinuing it public education campaign.

The Pembina Institute is also focusing on public educationabout the oilsands, but with a different spin.

In June the Pembina Institute distributed copies ofClearing the Air on Oil Sands Myths to Canadian and U.S. decision makers.

“Government and industry brochures and presentations thatdefend status quo oilsands development are littered with mis-leading statements,” says lead report author Jennifer Grant. “Wewanted to make sure that decision makers, the public and themedia had access to the full story when considering and dis-cussing oilsands development.”

The environmental organizations, such as the PembinaInstitute, the Sierra Club and Greenpeace, which had activistsenter Syncrude’s Aurora site without permission last summer,seem to be winning the public relations battle, said Bob Dunbar,president of Strategy West.

“Environmental issues are very important for the industry,but the public image is not good,” he says.

Government DirectivesThe Government of Alberta has released a comprehensive

20-year strategic plan for Alberta’s oilsands that aims to reducethe environmental footprint, optimize economic growth, andincrease the quality of life in Alberta’s oilsands regions.

Responsible Actions: A Plan for Alberta’s Oilsands outlineslong-term strategies and immediate actions that address eco-nomic, social and environmental challenges and opportunitiesin the oilsands regions. The plan showcases current efforts such as carbon capture and storage, and strengthens the approach for land reclamation, cumulative effects managementand environmental conservation.


Continued on page 21


The Alberta government announced a $2-billion carbon cap-ture and storage fund last summer and has now announcedthat the money will be divided among seven companies. Thecompanies selected include Epcor, Enbridge, Chevron Canada,Shell Canada, Enhance Energy, Marathon Oil Sands andNorthwest Upgrading.

Other government involvement includes the EnergyResources Conservation Board’s directive to develop new industry-wide criteria for managing oilsands tailings and spe-cific enforcement actions if tailings performance targets arenot met.

Oilsands mines must now prepare tailings plans and reporton tailings ponds annually, reduce the accumulation of fluidtailings and specify dates for construction, use and closure offluid tailings ponds deposits and file that information with theERCB by Sept. 30, 2009.

“There has been a complete overhaul of the regulatory land-scape for oilsands from what it was five years ago,” says DavisSheremata, ERCB spokesman.

In addition to creating some new environmental directives,this year the ERCB also expanded the boundaries of the surfacemineable area for oilsands. The current area encompassed 37townships and the expansion will add 14.5 townships.

The Role of TechnologyOilsands companies can no longer rely on high oil prices

to increase the profit margin, says Soheil Asgarpour, presidentof the Petroleum Technology Alliance Canada (PTAC). Instead,technology and knowing where it’s best to use each applica-tion will help give the industry the boost it needs, he con-tinued.

PTAC, along with the Alberta Energy Research Institute(AERI), ConocoPhillips, EnCana and StatoilHydro had sched-uled a July 15 information session on the development of theClean Bitumen Technology Action Plan, where collaborationwill be a focus.

“It is a technology road map; a very proactive approach,”Asgarpour says of the technology action plan. “We are lookingat oilsands development from four perspectives.

One is making sure to reduce the environmental footprint,secondly to make sure it is profitable, thirdly security of sup-ply and fourthly minimizing social impacts.”

The industry seems to have been put in the penalty box forits impact on the environment, he said, adding that can changewith more public education and new technological advances.

A steering committee will be formed to identify the gaps interms in oilsands technology. Over the next 12 months a sched-ule of workshops will result in a document that will serve asan action plan for technology development and foundation forfuture policy, strategy and investment decisions.

PTAC is hopeful that many oilsands companies and levelsof government will come the table to share expertise and fund-ing. “This is an area where collaboration makes the most sense.You really want to make sure your costs are down signifi-cantly,” Asgarpour says.

Two years ago, such an initiative may not have worked, but

the atmosphere is now perfect for additional collaboration,he adds. “We now have more of people’s time available.Before they were too busy and this is about participation ofthe experts.”

Eddy Isaacs, executive director of the AERI, agrees that thein-kind contribution of people’s time has increased lately, pro-viding more brain power.

In the past, oilsands companies tended to direct research onhow to increase production, but now research on how to reduceemissions and use less water is significant. “These things go inphases. We had just come through a phase where companieswanted to increase production,” says Isaacs.

But now that the industry is in a downturn, the focus hasshifted.


“When the price of oil was very, very high, they may nothave time to look at efficiencies,” he says. “I see a fusion be-tween energy and the environment now. There is a muchgreater integration.”

Isaacs points to research projects currently taking place thatare looking to help oilsands have less impact on the environ-ment while saving money and using less energy to harvest bitumen.

The University of Alberta’s Centre for Oilsands Innovationis doing a great deal of research on non-aqueous extraction, toreduce the amount of water used in oilsands extraction.

EnCana Corp. committed $1 million to the University ofCalgary to research Canadian Plains mitigation and reclama-tion. The aim of the research is to increase understanding ofthe direct and indirect effects of oil and gas activity on theenvironment.

The FutureIn the immediate future, oilsands companies will continue

to experience uncertainty with investors, as will other sectors,says David McColl, a senior economist with CERI. That uncer-tainty has loosened slightly in the past few months.

“Things are still in a bit of a holding pattern, but there issome light at the end of the tunnel,” says McColl.

Companies are continuing to evaluate this year if expansionprojects that were deferred will be feasible to move forward.

Bob Dunbar, president of consulting firm Strategy West, be-lieves the next big announcement will come from Suncor.

“My guess is one of the most likely ones would be Suncorresuming Firebag 3 construction,” he says.

Suncor made a decision in January to halt the Firebag con-struction, along with its Voyageur upgrader.

A Suncor spokesman says no decision on Voyageur will bemade until the Suncor Petro-Can merger is finalized, which isexpected to take place in the third quarter of 2009. If the dealgoes ahead, the newly merged companies will become the fifthlargest energy company in North America overall.

ERCBOilsands used to be all about surface mining, but the future

focus is in-situ extraction and bitumen upgrading, says the EnergyResources Conservation Board (ERCB) annual report AlbertaReserves 2008 and Supply/Demand Outlook 2009-2018.

Investment in much-needed pipeline infrastructure to movethe product to new and existing markets is also anticipated.

The report shows that in 2008, bitumen production de-creased by one per cent from 2007. Bitumen production lastyear averaged 1.31 million barrels per day.

The ERCB expects annual bitumen production to increase

to one billion barrels, or three million barrels per day, by 2018.It is basing its analysis on the expectation that crude oil pricesin North America will continue to be volatile, averaging US$55per barrel in 2009 and rising steadily to an average of US$120per barrel by 2018.

The U.S. economy is going to continue to heavily influenceactivity in Alberta’s energy sector since it is the largest im-porter of Alberta’s fossil fuels, states the Supply/DemandOutlook report.

Alberta’s economy is expected to contract in 2009 but to

continue to be among the nation’s best performers from 2010onward. The positive economic outlook will continue to con-tribute to excellent job prospects, low levels of unemployment,real increases in average employment earnings, and growth inpersonal disposable income.

The ERCB expects the high costs related to construction investment, such as material, labour, and transportation, to decrease in 2009. The recent cancellation and deferral of proj-ects should keep costs lower than what Alberta has experi-enced in the past few years.


that significantly impact overall project costs. This is especially truein remote sites, where transportation of materials is most commonlydone via helicopter. The requirements and costs associated with trans-portation of the helipad materials are many times the single greatestcost item in developing the site. Therefore, the number of trips thehelicopter must make to deliver all materials and labor crew intothe site is directly related to the weight of the helipad materials.One trip with all materials and the installation crew is most cost-effective.

In addition, environmental regulations may restrict or limit materials deemed suitable for use in certain environments, climatesor geographical areas. In many areas, helipads are developed in environmentally-sensitive or protected areas where minimal negativeenvironmental impact is required.

Materials that are brought in must be completely removablewhen the site is closed and may also need to meet other require-ments: 1) must be chemical and weather-resistant, and able to with-stand the effects of harsh climatic conditions (i.e. tropical, arid, arctic,high elevation), 2) be effective with varying and often unstable soils,3) be removable and reusable (if required) and 4) require minimummaintenance.

The GeoTerra Mat Solution A proven system for constructing helipads that complies with all

of the above requirements has been successfully employed for notonly constructing helipads, but also for oil drilling platforms, con-struction access roads and equipment storage. The Presto GeoTerra®system is a highly cost-effective structural mat structure that exhibitsthe following characteristics:

Exceptional material performance and adaptability: The GeoTerrasystem is manufactured from high strength, durable polyethylene resistant to industrial chemicals and inert to natural elements. Thestructural units are designed to support loads over very poor soil sur-faces and can be assembled to meet all project size requirements. Thesystem’s PadLocTM connection device allows for assembly of the unitsto the required mat size, and disconnection of the mats for removaland reuse.

Low material weight and delivery costs: GeoTerra units are light-weight and can be preassembled into larger mats off-site and trans-ported to the installation site with minimal cost.

Ease of installation, removal and recovery: Once on site, the matsystem can be installed quickly using any available unskilled laborwith minimal training. Once no longer needed, the system can bequickly disassembled and readied for extraction from the site, reusedon the same site or stored and used on future sites.

Environmentally-friendly: The GeoTerra system can structurallystabilize surface soils making development of vegetated surfaces pos-sible as it does not impede surface drainage. Impact-absorbing sur-face: The GeoTerra system’s non-rigid surface absorbs dampeningenergy during touchdown. The impact-absorbing surface results inless stress accumulation for the mechanical and structural compo-nents of the helicopter as well as lower impact to the personnelwithin the helicopter.

Safe surface prevents debris movement: A helipad system whichreduces or prevents particles from becoming airborne is essential.Airborne particles can be dangerous to ground personnel near thesite during landing and takeoff of the helicopter as well as harmfulto the engines of the helicopter when drawn into the air- intake ofthe helicopter. Also of concern is the potential visibility reductioncreated by swirling materials upon takeoff and landing. The GeoTerrasystem completely separates the underlying soils over which it is installed from the surface thereby preventing movement of typicalsurface debris associated with non-stabilized surfaces.

Used on several remote Amazon Basin oil exploration and pro-duction sites, the GeoTerra structural mat system was ideal for theharsh environment and proved successful in creating low-impact,low-cost, and highly-effective helipads that met all of the environ-mental and logistical criteria.

Environmental and Other Challenges As oil exploration efforts expand around the world,

balancing the need to access land while adhering to environmental regulations and maintaining a minimalfootprint can be a challenge.

Access and transportation of materials into oil, gas,and mineral exploration sites create logistical challenges

The Eco Environmental Solution for ExpedientConstruction of Helicopter Landing Pads Article by Daniel Senf, PE, CPESC and Patricia Stelter, Presto Geosystems


Heavy Oil the Future of Alberta?GO EXPOBy Seema Dhawan

Petrobank offers a solution to increase production of heavy oil in a demanding oil industry that caters to a global market. The solution is producing more heavy oil. “Thereis probably three times of heavy oil in the world compared to light to medium oil,” said

Chris Bloomer, SVP and COO Heavy Oil, Director of Petrobank.A fundamentally technology driven company, Petrobank is moving beyond the pilot stage

of their technology THAI™ and are in the feed engineering stage of their product, now mov-ing to commercial.

THAI™ is an evolutionary new configuration for in-situ combustion which combines a hor-izontal production well with a vertical air injection well placed at the toe.

“We have basically proven in the past three years [why] we use this technology and demon-strated it,” said Bloomer. “It’s a heavy world going forward, it’s all about heavy oil,” he added.

The system designed by Petrobank has no corrosion in the pipes making it very straight-forward.

It has no delay, “we inject the air and get the combustion,” said Bloomer. The process doesnot use pumps and works completely on gas pressures.

The line drive combustion is ideal for oil. Its horizontal design results in oil having a lowerpermeable point. Bloomer said Petrobank knows conclusively that air in equal’s air out dailyin their system. The production is at approximately 12 degrees API and therefore has verylow viscosity.

“This is dramatic, day in day out pipe line spec oil,” said Bloomer. “[This is the] only placein the world where this is being done,” he added.

The THAI™ system also has lower environmental impact because of its negligible freshwater usage, 50 per cent less greenhouse gas emissions, smaller surface footprint and easierreclamation.

Still a technology company, Petrobank is looking at enhancing creative technology.“We want to build an integrated technology that has long term sustainability,” said Bloomer.“This is cookie card, design one build away,” he added.

Our Planet: Small, Flat, SmartGO EXPOBy Seema Dhawan

IBM gave a glimpse of what they call a smarter planet, at the gas and oil exposition thisyear. The world is smaller and flatter and this evolution to a smarter planet has impactedour ability to deal with goods and services. Steve Edwards, a Partner of IBM Global Business Services, said the use of interconnected

technologies is going to change the world. A global world means frozen credit markets andlimited access to capital, economic downturn and future uncertainty, concern for climatechange and volatility in price and demand for energy worldwide.

There is little doubt that the world is connected economically, socially and technically.“Globalization produces many benefits but challenges as well,” said Edwards. In a new worldof interconnectedness the need for progress is clear.

On an average it takes 90,000 man hours to execute turnaround effort every two yearson an offshore platform. By adopting best in class asset management strategies the amountof man hours spend can be reduced by 10 per cent.

New technologies that can make seismic mapping efficient by 85 per cent, increase 1.5per cent of oil recovery and improve asset utilization by 10 per cent also exist.

The three key factors to be successful in these changing times are to meet the worlds grow-ing requirements of energy, energy affordability and environmental impact.

IBM emphasizes the need to transform raw data into actionable insight. To do so compa-nies need to become instrumented, interconnected and intelligent.

There are now 1 billion transistors for each person on the planet.“We have an internet community of one billion people, we have four billion mobile phone

subscribers,” said Edwards. This technology can then mould itself to a consumers need andhelp connect with others in entirely new ways. The intelligence then propels the system fur-ther, bringing it all together.

“What makes it the mark solution is the intelligence, it is the next step we need to make,”he said. Using intelligent technology also enables companies to make quick and accuratechanges to plans and ensures better results by predicting and optimizing for future events.

Adapting this technology is risk free and many companies are following IBM’s footsteps,some of which have collaborated with IBM.

GoExpo

Continued on page 26


Calgary can speed up its ability to do reservoir modeling by five to fifteen per cent. This is important to ensure global supply of [oil], retain decade’s worth of expertise and be-

cause it is possible to do some of these things now.“You can first time really look at a range of operations and fields, something that is actually

very hard to do,” said Edwards. IBM invites companies as they move forward to harness “the ability to make the world smarter

and [an] easier place to live,” he added.

SAGD Goes GreenGO EXPOBy Seema Dhawan

Afina Energy’s technology may be the answer for making SAGD green in a world wherebeing environmentally friendly is becoming increasingly important. “We are looking at developing a commercial prototype,” says Guido Bachmann, CEO of Afina Energy.

SAGD can be green, says Bachmann, and should be in light of the continuous negative atten-tion the oil and gas industry receives. Though the “dirty oil card” will continue he says.

“SAGD producers have to think about this like energy producers need to think of globalwarming,” he says. It does not matter if global warming is happening or not when a large popu-lation believes it, therefore action must be taken. “Here we go, it’s starting, and it’s starting now,”he added.

Post carbon removal is too costly making pre carbon removal the easier option. The BioSynGasification Process, a Canadian developed technology, reduces environmental impact in SAGDoperations via low severity gasification. The process goes through thermal oxidization of feed-stock. “It[the process] does reduce environmental impact,” said Bachmann. The cool down andheating session of this technology is significantly less in comparison with current technologies.The expected efficiency of the Afina system is approximately 50 per cent higher with much lowerutility and operation costs as well. This system requires 1000kPa of pressure compared to thecurrent average requirements of 10,000 kPa.

“[The] Gasification process is not in itself enough,” said Bachmann. An additional oil pro-cessing island would remove the top end of the diluent and the bottom end of oil. The recov-ered diluent would be sent back to SAGD.

The systems modules are sized for 10,000 BDP but can be smaller or larger, using multiplemodes, if necessary. At this point a consumer of this system can decide what they want to dowith the syngas.

By using this process companies can acquire gas credits and avoid 90 per cent of carbon emis-sions in comparison to natural gas. Almost all of the CO2 of syngas is removed in this process.

Bachmann predicts that conservation of water will be the next concern after carbon emis-sions. “Water is even more important,” he said. Not only does the low severity gasification to SAGDsignificantly reduce carbon emissions it also reduces waste water disposal, diluent usage and associate transport, energy intensity of SAGD operations, and gives producers the ability to pro-duce the environmental products from syngas.

half of 2009, producers paid the Alberta government an average of $137 per hectare for petro-leum and natural gas rights versus $307 per hectare in the first six months of last year.

Climate Change Canada’s climate change plan aims to reduce the country’s total greenhouse gas (GHG) emis-

sions by 20% from 2006 levels by 2020 -- and by 60-70% by 2050. Survey respondents indicatedthey are taking a number of steps to respond to the issue of climate change, and, within the next12 months, 40% will make strategic investments to lower GHG emissions, 35% will adopt morerigorous risk management processes, 34% plan to optimize their supply chain management and32% anticipate deploying new technologies

“All Canadian oil and gas producers -- from small juniors to trusts to large integrated compa-nies – are affected by a list of growing concerns related to the economic downturn: volatile andweakened commodity prices, input costs misaligned with current prices, changing royalty situ-ations and the disruption of capital markets,” says Stephen Marsters, Editorial Director atJuneWarren-Nickle’s Energy Group. “Respondents to the Canadian Energy Survey provided detailon the state of the industry, their own set of challenges as well as key drivers affecting growthand we felt it was important to provide this forward-looking view of the industry.”

Methodology and Demographics The 2009 Canadian Energy Survey contains results from an online survey, conducted by

PricewaterhouseCoopers and JuneWarren-Nickle’s Energy Group during the 22-day period fromMay 25 to June 15, 2009, to better understand issues currently impacting the industry. Close to85% of the 140 respondents fill senior roles within the energy sector (49% in a leadership role;35% in a managerial role), with the balance comprising employees and consultants.

The majority of respondents work for exploration and production (E&P) companies that pro-duce a mix of natural gas and crude oil. Just over 50% of respondents reported their company’sannual revenues at more than $500 million, with about 17% listing revenues at $100 million to$500 million per year, and close to 16% said annual revenues were $10 million to $100 million.About 15% of respondents said revenues were $5 million or less per year. For more information, please visit www.pwc.com/ca/energy.


Oil and Gas Price ForecasterCautions Against False HopeRecent rise in crude oil price not driven bysupply and demand fundamentals

Calgary, AB, July 6, 2009 – In its June 30, 2009 oil and gas price forecast, AJM PetroleumConsultants cautions against false hope driven by the recent rally in the crude oilprice. While AJM economist and Vice President Operations Ralph Glass still sees con-

ditions setting up for a longer-term recovery in Alberta into 2010, he believes the rise in crudeoil price over the past few months has been driven more by speculation and currency mar-kets than by a real shift in supply and demand.

“As the US dollar has dropped in relation to the euro, the crude oil price has risen corre-spondingly,” said Mr. Glass. “When the US dollar begins to decline, money traders start mov-ing dollars into commodities like crude oil. This can influence the crude oil price even thoughdemand has not changed. In fact, we haven’t seen any indication of an increase in demandfor crude oil, other than speculation, since demand dropped off as the recession took holdin October 2008.”

Mr. Glass believes that, until such time as there is an indication of a sustained US recov-ery that would affect crude oil demand – and until decreased drilling brings about a pro-duction decline in natural gas – current price increases may be a short-term phenomenon. Asimilar situation occurred in June 2008 when speculation, rather than a sustainable supplyand demand equation, drove prices.

With this in mind, AJM’s current price forecast shows crude oil prices in constant dollarsbased on a WTI forecast of US$65.00/bbl for 2009, rising to US$70.00/bbl in 2010, then reach-ing US$100.00/bbl by 2016 and holding for the balance of the forecast. The US NYMEX nat-ural gas price in constant dollars is expected to average US$4.50/Mcf in 2009, rising with oilto a long-term price in 2016 of US$9.00/Mcf. The Canadian priced AECO forecast, which hasbeen cut by $0.50/Mcf for the first four years of the forecast to reflect Canadian natural gasbeing supplanted by US shale gas, is expected to average Cdn$4.50/Mcf in 2009 rising toCdn$8.00/Mcf in 2016. Complete forecast tables, commentary and documentation for AJM’sJune 30, 2009 Price Forecast are available for download at www.ajmpetroleumconsul-tants.com.

AJM Petroleum Consultants, a privately owned Calgary-based company, has extensive ex-perience in exploration prospect reviews, basin evaluation studies, and reserve evaluationsincluding evaluations of the unconventional reserves and resources of tight gas, shale gas,coalbed methane, bitumen and heavy oil. With a staff of more than 60 engineers, geologistsand technicians, AJM consults for clients including active oil and gas exploration and produc-tion companies, natural gas transmission companies, regulatory bodies, financial houses, banksand investment analysts in Western Canada, North America and around the world.



Massive value destruction is occurring for the shareholder, or unit holder, for each Mcf ofgas produced today at low prices. Core gas reserves are being sold/depleted that sim-ply cannot be replaced by the cash generated.

While Oil prices have recovered very quickly from their dramatic plunge, Gas prices remainextremely low. At a price of C$3/Mcf at AECO, gas is selling for a 2/3 discount to oil --- discon-nected from the traditional oil/gas price relationship. For over 3 years, Ziff Energy has voiced itsconcern regarding the dire economics of new gas in Western Canada. The chart below showsan increasing ‘lost Value’ gap between producers’ average full cycle cost to add new gas, and whatthe market is willing to pay.

To validate our understanding, last year Ziff Energy undertook and released a major study onthe economics of new gas in basins across all North America, including LNG and Northern Gas(‘Economic Ranking of North American Gas Basins’). The results were even more dramatic thanfirst thought: whereas a US study in 2007 informed the Alberta Government that Canadian gasplays were among the most economic in North America,

Ziff Energy found the opposite, as the next Chart confirms. (A later study by Canada’s NationalEnergy Board, “Energy Brief – Natural Gas Supply Costs in Western Canada in 2007”, Sept. 2009,reported similar high costs for most WCSB plays).

The drop in Alberta drilling, land bonuses, seismic activity etc. validates our analysis. Today,the Canadian Gas industry is far different than 2 decades ago. Paul Ziff, CEO says:

“First, WCSB gas production has peaked --- 8 years ago, for conventional production.Unconventional gas (Tight, CBM, & Shale) is moderating the Western Canada decline, but not re-versing it.

Second, the Gas Reserve Life (or Reserves to Production Ratio) has plummeted from 20+ yearsto below 9 years, well below the US average.”

Seeing the large gap in gas vs. oil values – the largest in many years, Ziff Energy undertook research to compare the fiscal results of ‘Gas vs. Oil’ production at current price levels for a set ofmainly oil producers vs. ‘pure’ gas producers. This represents today’s economics.

‘Canadian Gas at a Cross Roads’ Options for Producers to Preserve Value!



Gas Producers are retaining a perilously low amount of cash flow, and every Mcf producedgenerates a large loss. We do note that Interest, G&A, Processing & Transportation (if firm serv-ice) and at least half of,

Operating costs are fixed. Royalty cost drops right away --- Drilling and Operating costs aremuch ‘stickier’ on the way down.

With an average Gas Reserve Life under 9 years, Gas Producers need to replace 12% of theirreserves each year, just to sustain current production. The ‘Iceberg’ analogy below shows that thecost to find & develop new gas averages $3.50/Mcf, and the current ‘full cycle’ cost is $8/Mcf(this will gradually moderate with lower levels of activity in the basin).

Paul Ziff concludes: “Massive value destruction is occurring for the shareholder, or unit holder, for each Mcf of

gas produced today. Core gas reserves are being sold/depleted at market prices that simply can-not be replaced by the cash generated --- so producers’ reserve base shrinks, and in the near fu-ture more equity, or debt will need to be issued to fund replacing the gas produced today”.

PRESERVING VALUE Ziff Energy believes that there are solutions to preserve the Gas Producers’ value, and sustain

the Western Canada Gas Industry. The traditional ‘tools’ for a gas Producer are Fundamental andFinancial.

Fundamental:1. Rigorous and persistent focus to be Low Cost Producer (driller, finder, operator); annually independently validate progress (similar to reserve & financial audits)


• logically a quarter (25%) of Gas Producers can be ‘Top Quartile’; but three quarters (75%) claim to be!

2. Reduce Capital Spending (CapEx) to match realistic expected Cash Flow • an operators reserves are ‘cannibalized’ (i.e. the reserve base is produced at a loss, and the borrowing base is reduced, decreasing borrowing amounts --- a ‘death spiral’) • this pattern, everyone spending cash flow when prices are high, fuels inflation of land costs & service costs, especially in Canada, and the Deepwater Gulf of Mexico

3. Shift Spending Focus from Gas to Oil • Conventional oil prospectivity in Western Canada is limited – there are not many oil plays “waiting on the shelf”, especially for ‘pure’ gas producers.

Financial: 1. Buy Back Shares (‘Financial Engineering’, to meet Analyst expectations) Majors and the largestIndependents do this – but it doesn’t add reserves; there is no impact on organic sustainabilityof the industry, or those companies. And aren’t those shares cheaper today?? 2. Hedging -- this can be a powerful tool to give predictability of distributions or dividends andcapital programs.

Hedging is for a short duration (e.g. a year) --- hedges need to be replaced, although NYMEXis always optimistic! The goal is not to “beat the house”, i.e. one is not trying to outsmart themarket, but to generate predictability for investors and create a sustainable spending program.

Executives often complain that they get no credit from Analysts for good hedges – those sameanalysts should look in the mirror at the success of their own institutions, before casting stones.What is the ‘win’ percentage of any top sports team? 3. Buy Reserves (when valuations are attractive) – good for an individual trust (very active)or company; but does not increase the overall basin reserves, and therefore the industry’s‘sustainability’.

New Options for Gas Sustanability: Ziff Energy believes the traditional options are not sufficient for today’s critical situation, and

suggest 3 key options be considered. Paul Ziff comments: “First, shut-in some gas production, essentially ‘holding gas reserves’ until the market will paya decent price, sufficient (or closer than now) to replace those reserves, to sustain yourCompany’s future.”

[Chesapeake, the 2nd largest US gas producer (despite high debt) does this regularly, andEnCana and Paramount have just announced (June 15) some modest shut-ins. Some operatorsface greater challengers to do this: e.g. Trusts or high debt gas producers.]

“In our opinion, the Shareholder or Unit holder is not well-served by the Operator giving awaytheir gas reserves --- there is little or no contribution to the Replacement Cost, so one is onlypostponing the day of reckoning. The Financial equivalent is issuing new shares not at the mar-ket price, but at a large discount! Management’s role is to ‘lead’ (please see Ziff Energy’s‘Comment’ Newsletter, Spring 2009 http://www.ziffenergy.com/download/newsletter/com-ment2009-03.pdf) and communicate to the investors, and bankers; the reason: to preserve share-holder value.”

Several analogies:• Natural Gas Liquids Business: marketers store in summer, to take advantage of higher winter prices. • Oil Marketers: were recently storing oil on tankers, waiting for oil prices to rebound [they did] • Gas Pipeline expansion from Western Canada -- 15 years ago the price of WCSB gas was very depressed, due to constrained pipeline capacity out of Western Canada. The combina-tion of TCPL expansion, and the Producer-initiated Alliance Pipeline project expanded the ‘take-away’ capacity. The result was a dramatic decrease in the ‘basis differential’ (or discount), resulting in much higher Canadian gas prices.

“Second, invest ‘counter the cycle’, over-spending Cash Flow when costs are low, and ‘lock in’low F&D/Future DD&A (generates higher future profits); and under spend when costs are highA few companies are doing this:

• well-funded Majors: - Exxon/Imperial at the Kearl Lake Oil Sands project, - BP for Tight Gas • Junior Celtic (despite debt) is a notable exception, taking advantage of the Alberta Drilling

Relief Program to cut net gas Drilling costs by half, effectively reducing their F & D costs (andfuture DD&A). Companies with a demonstrated low cost resource play and low debt levels caneasily pursue this strategy. This strategy would not apply to ‘early development’ resource plays(e.g. Horn River Shale, where costs are still high at this early development stage).”

“Third, a New Relationships with Suppliers, Banks, & Government The conventional Western Canada Sedimentary Basin (WCSB) is mature and tired; not dead,

but certainly not the lowest cost. The stakes are high. A collaborative strategy would require anew approach by Operators, Service companies, Banks, and Governments, to promote a sus-tainable gas future in Western Canada.”

a. Suppliers (Drillers & Service Companies) The up & down cycles are harmful for capability -- staffing and even equipment. For Service

companies (especially the Trusts), there is a Value to predictability and sustainability. Alliances/Gainsharing have been tried; while challenging, they can align Producer & Service company inter-ests. One analogy would be US retail mega-marketers who lend their Efficiency specialists to

suppliers to jointly reduce costs, which leads to greater volume sales. The time may be some-what early to develop these relationships with service companies --- we hear that costs are stillhigher in Western Canada as compared to the US. For unconventional resource plays, suppliesof some key services and goods can delay development. Chesapeake solved this by buyinginto the service companies. Another option is a long term agreement, with fixed prices (a ‘ser-vice cost hedge’).

b. Banks & Investment Firms Last year some Canadian banks were forecasting a $150-200/barrel oil price. Now they

have slashed their price forecasts, with the effect of curtailing credit at exactly the timewhen its expansion would allow E & P companies to create higher value opportunities.While ‘CYA’ (or ‘CYCR’ – Cover Your Credit Rating) and higher facility fees are ‘least risk’ forlenders in the short term, they do not represent a collaborative long term relationship.Does anyone really doubt that energy prices will rise? Economic growth does not occurwithout energy; cars still run on gasoline, and North American winters are still cold! Energyrisk is low.

Investment Analysts are too prone to ‘flavour of the year’ themes such as Shale gas &Bakken oil this year, previously SAGD, Tight Gas, CBM, etc. This reflects the exaggerated expectations of Wall Street/Bay Street for ‘unreal’ returns that are multiples of the inflationrate. This psychology led to the Enron & gas marketer ‘melt- downs’, the creation of non-transparent securitization markets, and big risks and speculation being taken by pensionfunds such as La Caisse [not to mention crooks like Madoff]. The record of many of thesesame ‘investment banks’ (notably American, like Lehman, Goldman, etc.) speaks for itself.However, analysts penalize companies that reduce production/cash flow on a short termbasis, to preserve value. The best analysts focus more on Management’s long term strategyand execution. But most analysts focus on ‘growth for growth’s sake’, e.g. producing moregas at current prices, and very short term cash flow. Considering that analysts give no cred-it for positive hedges, this is illogical. The quick ‘grow & flip’ (i.e. sell out) scenario is gone--- traditional value is ‘in’.


R&M Energy Systems’ SENTRY®

Closure Features Innovative One-Piece Sea

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benefits that are not available in other types of closures. The SENTRY closure’s one-piece seal:• Is molded in all sizes with no vulcanized splices • Is available in FKM (Viton), EDR FKM (Viton), NBR, or HNBR low temperature materials

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ensure secure sealingInstallation of the one-piece replacement seal is quicker than ever resulting in reduced main-

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The Oil & Gas Network has an opening on their sales team. If you are a dynamic individual with excellent communications skills,

this is your chance to join a great organization. The successful applicantwill be responsible for an active client list, developing new business, selling ad space in special features, online sales and providing ideas

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overwhelming desire to succeed. You have a proven track record of sales success and are able to work effectively to deadlines.

To respond to this opportunity e-mail your resume to John Robertsen at [email protected].

All resumes must be received by Sept 4th, 2009Thanks you in advance for all resumes.

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Documents

Oil & Gas Network - August 2009