PSAC Petroleum Service News Fall 2014

Reducing redundancy to drive down costs in doing business

FALL 2014

2014 Drilling Activity Forecast Update

Follow these 10 team-building commandments

Students hit the green at the Education Fund Golf Classic

Peak Paperwork

PM#40020055

T H E O F F I C I A L V O I C E O F T H E P E T R O L E U M S E R V I C E S A S S O C I AT I O N O F C A N A D A

PSAC_Fall_2014-p01.indd 1 2014-08-22 9:49 AM

Helping you Find Solid Ground in Changing Times

The oilfield industry is volatile. Fluctuating prices, erratic weather and technical innovations dramatically affect your day-to-day operations. Deep industry insight is essential to keeping you competitive and profitable regardless of market conditions. MNP has the experience and thought leadership to keep you on solid ground no matter what challenges you face.

Contact David Yager, National Leader, Oilfield Services at 1.877.500.0792 or [email protected]

Oil and gas M&A dives in 2013

Oilsands are a huge job creator

OFS to spend $6 billion on CAPEX in 2014

ARC Financial Corp Predicts Record Producer Revenue in 2014,

OFS to Benefit

Industry Drills Wells at Record Speed in 2013

Stay ahead of changing times. Sign up for our industry insight reports at

mnp.ca/news-ofs

000PSN-MNP-FP.indd 1 2014-08-01 2:00 PM

1-800-463-3187 www.firepower.ca

My warmest thank you to all of our employees, customers and fellow service companies for your valued support over the last 25 years. Our achievements and success with your contributions reflect on Fire Power reaching a milestone in the oilfield service industry. We are proud of our success and relationships as Fire Power celebrates this great achievement we are proud of.

Al Rupertus,President

Proudly servicing the Oil & Gas Industryin Canada since 1989!

Protect Oilfield Workers Equipment Resources

000PSN-FirePower-FP.indd 1 2014-07-23 1:41 PMPSAC_Fall_2014-p02-03.indd 2 2014-08-22 10:03 AM

Helping you Find Solid Ground in Changing Times

The oilfield industry is volatile. Fluctuating prices, erratic weather and technical innovations dramatically affect your day-to-day operations. Deep industry insight is essential to keeping you competitive and profitable regardless of market conditions. MNP has the experience and thought leadership to keep you on solid ground no matter what challenges you face.

Contact David Yager, National Leader, Oilfield Services at 1.877.500.0792 or [email protected]

Oil and gas M&A dives in 2013

Oilsands are a huge job creator

OFS to spend $6 billion on CAPEX in 2014

ARC Financial Corp Predicts Record Producer Revenue in 2014,

OFS to Benefit

Industry Drills Wells at Record Speed in 2013

Stay ahead of changing times. Sign up for our industry insight reports at

mnp.ca/news-ofs

000PSN-MNP-FP.indd 1 2014-08-01 2:00 PM

1-800-463-3187 www.firepower.ca

My warmest thank you to all of our employees, customers and fellow service companies for your valued support over the last 25 years. Our achievements and success with your contributions reflect on Fire Power reaching a milestone in the oilfield service industry. We are proud of our success and relationships as Fire Power celebrates this great achievement we are proud of.

Al Rupertus,President

Proudly servicing the Oil & Gas Industryin Canada since 1989!

Protect Oilfield Workers Equipment Resources

000PSN-FirePower-FP.indd 1 2014-07-23 1:41 PMPSAC_Fall_2014-p02-03.indd 3 2014-08-22 10:03 AM

14

20

Oil and gas companies face greater challenges today as they focus on maximizing profitability and shareholder value. As a result, they need practical advice and strategies from professionals who understand the issues that they are facing.

Our dedicated BDO Natural Resources team works closely with businesses like yours to provide quality services in audit, business and financial advisory, domestic and international tax, risk management, and business processes.

Assurance | Accounting | Tax | Advisory

www.bdo.ca

Calgary 403 266 5608

Edmonton 780 461 8000

Grande Prairie 780 539 7075

Lethbridge 403 328 5292

Red Deer 403 342 2500

BDO IS PROUD TO SERVE THE BUSINESSES OF ALBERTA

000PSN-BDO_Canada-FP.indd 1 2014-07-28 1:21 PMPSAC_Fall_2014-p04-05.indd 4 2014-08-22 10:03 AM

WWW.PSAC.CA 5

Features

Departments710

1223

2628

30

COVE

R

F A L L 2 0 1 4

THE SAFETY STREAMLINE Service sector companies

bear the burgeoning costs of

third-party registries in the

name of improving industry

safety. Its time for a standardized

reporting system

TEEING UP A WIN-WIN PSACs Education Fund Golf Classic

delivers a bright future for students

and member companies

14

20

MESSAGE FROM THE PRESIDENT

IN THE FIELD Industry news, notes and events

2014 DRILLING ACTIVITY FORECAST UPDATE

BUSINESS MATTERSRenowned management consultant Dan

Gaynor dishes out tips for better team-building.

PSAC IN ACTION

MEMBER PROFILEWith its employees in the drivers seat,

ENTREC shows no signs of slowing down

A LOOK AT LEADERSHIPGetting to know PSAC board members

Chris Hall and Trevor Haynes

28

14

WWW.PSAC.CA

26

20

CONTENTS

10

Oil and gas companies face greater challenges today as they focus on maximizing profitability and shareholder value. As a result, they need practical advice and strategies from professionals who understand the issues that they are facing.

Our dedicated BDO Natural Resources team works closely with businesses like yours to provide quality services in audit, business and financial advisory, domestic and international tax, risk management, and business processes.

Assurance | Accounting | Tax | Advisory

www.bdo.ca

Calgary 403 266 5608

Edmonton 780 461 8000

Grande Prairie 780 539 7075

Lethbridge 403 328 5292

Red Deer 403 342 2500

BDO IS PROUD TO SERVE THE BUSINESSES OF ALBERTA

000PSN-BDO_Canada-FP.indd 1 2014-07-28 1:21 PM PSAC_Fall_2014-p04-05.indd 5 2014-08-22 10:03 AM

PETROLEUM SERVICES NEWSTM Trademarks of Alberta Treasury Branches.

Leaders never quit.

They may take it on the chin, they may get knocked down, but leaders get back up. Weve done just that and continue to be in our clients corners, custom building solutions to help our clients do what they do best...lead. Because Alberta means the world to us.

atb.com/Leaders

000PSN-ATB-FP.indd 1 2014-08-01 1:54 PMPSAC_Fall_2014-p06-11.indd 6 2014-08-22 10:02 AM

WWW.PSAC.CA 7

Network. Connect. Learn. Get up to the minute facts and trends at the 2014 PSAC Industry Insights Forum. Industry experts and leaders will share their insights and opinions at this premier event which will feature Canadian commentator and author, Rex Murphy at the Industry Insights Dinner.

1:30 pm - 2:30 pm: PSAC Annual General Meeting (Regular Members only)2:30 pm - 4:30 pm: 2015 Canadian Drilling Activity Forecast & Industry Outlook featuring: Mark Salkeld, President & CEO, PSAC; David Collyer, President & CEO, Canadian Association of Petroleum Producers (CAPP); Jeff Fetterly, Principal, Oilfield Services Analyst, Peters & Co. Limited; and, Representative, Wells Fargo & Company

4:30 pm - 6:00 pm: Networking Social6:00 pm - 8:30 pm: Industry Insights Dinner with keynote, Rex Murphy

To register, visit psac.ca/event

Wednesday, October 29, 2014 TELUS ConvEnTion CEnTrE, CaLgary, aLbErTa

PETroLEUm SErviCES aSSoCiaTion of CanadaS 2014 INdustry INsIghts FOrum

register today

Canadian Drilling Activity Industry Sponsor: Dinner Sponsors: Forecast Sponsor:

Toronto StockExchange

TSX VentureExchange

Bourse deToronto

Bourse deCroissance TSX


TSX VentureExchange

Bourse deToronto



TSX VentureExchange

Bourse deToronto


Network. Connect. Learn. Get up to the minute facts and trends at the 2014 PSAC Industry Insights Forum. Industry experts and leaders will share their insights and opinions at this premier event which will feature Canadian commentator and author, Rex Murphy at the Industry Insights Dinner.

1:30 pm - 2:30 pm: PSAC Annual General Meeting (Regular Members only)2:30 pm - 4:30 pm: 2015 Canadian Drilling Activity Forecast & Industry Outlook featuring: Mark Salkeld, President & CEO, PSAC; David Collyer, President & CEO, Canadian Association of Petroleum Producers (CAPP); Jeff Fetterly, Principal, Oilfield Services Analyst, Peters & Co. Limited; and, Representative, Wells Fargo & Company

4:30 pm - 6:00 pm: Networking Social6:00 pm - 8:30 pm: Industry Insights Dinner with keynote, Rex Murphy

To register, visit psac.ca/event

Wednesday, October 29, 2014 TELUS ConvEnTion CEnTrE, CaLgary, aLbErTa

PETroLEUm SErviCES aSSoCiaTion of CanadaS 2014 INdustry INsIghts FOrum

register today

Canadian Drilling Activity Industry Sponsor: Dinner Sponsors: Forecast Sponsor:


TSX VentureExchange

Bourse deToronto



TSX VentureExchange

Bourse deToronto



TSX VentureExchange

Bourse deToronto


will work to strengthen

PSACs leadership

position as the national

trade association for the

upstream service, supply

and manufacturing

sectors. Now more than

ever, our sector needs

strength in numbers to underscore our collective voice.

PSAC will continue to take the lead as the voice of our sector,

working to maximize the benefits of collaboration with our

peer associations on the issues that we face as a whole.

We are geared up and ready for the year ahead, and look

forward to representing the interests of the leading and

innovative companies that we proudly call our members

Cheers, Mark

MESSAGE FROM THE PRESIDENT

EPTEMBER MARKS THE KICK-OFF for the Petroleum Services Association of Canada (PSAC)s

2014-2015 season, and what a year its going to be!

PSAC is forecasting a steady pace in activity levels for

the rest of 2014 (see PSACs third-quarter forecast update on page

12), and we look forward to releasing our 2015 Canadian Drilling

Activity Forecast at our annual Industry Insights Forum. We are

very excited to welcome renowned Canadian commentator Rex

Murphy, who will entertain guests at our dinner event with his

insights and observations on Canadas oil and gas industry.

PSAC looks forward to strengthening our members outreach

efforts. PSACs board of directors and executive team will be

hosting a reception in Fort St. John, B.C., so members operating in

the area have a chance to network with their peers and hear about

current goings-on at PSAC.

We will continue to champion the interests of our members and

SThe Road Ahead Is Paved With Promise

Mark Salkeld, President & CEO

WWW.PSAC.CATM Trademarks of Alberta Treasury Branches.

Leaders never quit.

They may take it on the chin, they may get knocked down, but leaders get back up. Weve done just that and continue to be in our clients corners, custom building solutions to help our clients do what they do best...lead. Because Alberta means the world to us.

atb.com/Leaders

000PSN-ATB-FP.indd 1 2014-08-01 1:54 PM PSAC_Fall_2014-p06-11.indd 7 2014-08-22 10:02 AM

8 FALL 2014 PETROLEUM SERVICES NEWS

FALL 2014 VOL 14 No.2

PETROLEUM SERVICES ASSOCIATION OF CANADA 1150 800 6TH AVENUE SW

CALGARY, AB T2P 3G3TEL: 403.264.4195FAX: 403.263.7174

EMAIL: [email protected]

PRESIDENT AND CEO: MARK SALKELDVICE PRESIDENT, COMMUNICATIONS: KELLY MORRISON

PETROLEUM SERVICES NEWS IS PUBLISHED FOR PSAC BY

VENTURE PUBLISHING INC. 10259-105 STREET,

EDMONTON, AB T5J 1E3TEL: 780.990.0839FAX: 780.425.4921

TOLL-FREE: [email protected]

PUBLISHER: RUTH KELLYDIRECTOR OF CUSTOM CONTENT: MIFI PURVIS

MANAGING EDITOR: LYNDSIE BOURGONCONTRIBUTING WRITERS: ROBIN BRUNET, CALEB CASWELL,

ROBBIE JEFFREYART DIRECTOR: CHARLES BURKE

ASSOCIATE ART DIRECTOR: ANDREA DEBOERASSOCIATE ART DIRECTOR: COLIN SPENCE

PRODUCTION MANAGER: BETTY FENIAK SMITHPRODUCTION TECHNICIANS: BRENT FELZIEN, BRANDON HOOVER

DISTRIBUTION: KAREN REILLYACCOUNT EXECUTIVES: PEGGY BOGDAN, KATHY KELLEY,

DENNIS McCORMACK

PRINTED IN CANADA BY RHINO PRINT SOLUTIONS. RETURN UNDELIVERABLE MAIL TO 10259 105 ST.

EDMONTON AB T5J 1E3. [email protected] PUBLICATIONS AGREEMENT #40020055

CONTENTS 2014 PSAC. NOT TO BE REPRINTED OR REPRODUCED WITHOUT PERMISSION.

The Petroleum Services Association of Canada is the national trade association representing the service, supply and manufacturing sectors within the upstream petroleum industry. PSAC represents a diverse range of nearly 250 member companies, employing close to 75,000 people and contracting almost exclusively to oil and gas exploration and production companies.

You Gotta See thiSFrackinGthinG!

icsgroup.ca1-866-247-4460

Calgary s Edmonton s fort mCmurray s SaSKatoon s winnipEg

lift and maintain frac fluid temperature.mitigate scheduling risks.

iCS groups ground-breaking frac fluid Heating System is here! pit ponds, C-ring tanks, 400 barrel tank farms precise, reliable temperature control ensuring consistent up-time and service. you choose the fuel diesel, propane or, natural gas the rest is up to iCS.

iCS frac fluid Heating System you frac when youre ready, cause your water is always ready to go!

Ad Heading:You Gotta See...

Publication:Petrolium Services News

Art Deadline: Oct 30, 2013

Size: 4.75 (w) x 9.875 (h)

Color: 4-Colour

Strut Docket #: ICS-50

Leave nothing behind.

ncsfrac.com+1 403.969.6474

[email protected]

2014, NCS Energy Services, LLC. All rights reserved. Multistage Unlimited, GripShift, and Leave nothing behind. are trademarks of NCS Energy Services, LLC. Patents pending.

GripShift Sleeves vs Ball-Drop Sleeveswith cement with packers

GripShift casing sleeves

Cemented annulus for stage isolation

Recorded pressure data verifies stage isolation

Each sleeve positively located for frac

Sleeve shifting verified three ways

Single-point injection, precise frac location

Verified frac spacing

Verified propped volume in each frac

Identical sleeves can be installed in any order

All sleeves have full-drift ID at all times

Closable version is available

Real-time frac-zone pressure data

Screenouts easily and quickly removed

Sleeves easily located and isolated for restimulation

Ball-drop sleeves

Open-hole packers for stage isolation

Unverifiable stage isolation, known failures

No way to positively identify active sleeve

No verification of sleeve shift

Unknown where fracs initiate

No control over frac spacing

Unpredictable propped volume in each frac

Sleeves must be installed in exact order

Ball seats restrict ID until drilled out or retrieved

No closable option unless retrieved

No real-time frac-zone pressure data

Screenouts are costly

Well segments difficult to isolate for restimulation

To clear up any confusion about frac sleeves:

For a long time, the big frac debate was about whether plug-and-perf or ball-drop sleeves-and-packers are better for multistage completionsshots versus sleeves. Now there is a third choice that has quickly changed the debate: the Multistage UnlimitedTM coiled tubing frac system. This system also uses sleeves, which has led to some confusion, even though Multistage Unlimited GripShiftTM casing sleeves dont even use balls. To help clear things up, heres a quick comparison:

The Multistage Unlimited GripShift casing sleeve is not a ball-drop sleeve.

000PSN-NCS-FP.indd 1 2014-04-21 10:14 AMPSAC_Fall_2014-p06-11.indd 8 2014-08-22 10:02 AM

Leave nothing behind.

ncsfrac.com+1 403.969.6474

[email protected]

2014, NCS Energy Services, LLC. All rights reserved. Multistage Unlimited, GripShift, and Leave nothing behind. are trademarks of NCS Energy Services, LLC. Patents pending.

GripShift Sleeves vs Ball-Drop Sleeveswith cement with packers

GripShift casing sleeves

Cemented annulus for stage isolation

Recorded pressure data verifies stage isolation

Each sleeve positively located for frac

Sleeve shifting verified three ways

Single-point injection, precise frac location

Verified frac spacing

Verified propped volume in each frac

Identical sleeves can be installed in any order

All sleeves have full-drift ID at all times

Closable version is available

Real-time frac-zone pressure data

Screenouts easily and quickly removed

Sleeves easily located and isolated for restimulation

Ball-drop sleeves

Open-hole packers for stage isolation

Unverifiable stage isolation, known failures

No way to positively identify active sleeve

No verification of sleeve shift

Unknown where fracs initiate

No control over frac spacing

Unpredictable propped volume in each frac

Sleeves must be installed in exact order

Ball seats restrict ID until drilled out or retrieved

No closable option unless retrieved

No real-time frac-zone pressure data

Screenouts are costly

Well segments difficult to isolate for restimulation

To clear up any confusion about frac sleeves:

For a long time, the big frac debate was about whether plug-and-perf or ball-drop sleeves-and-packers are better for multistage completionsshots versus sleeves. Now there is a third choice that has quickly changed the debate: the Multistage UnlimitedTM coiled tubing frac system. This system also uses sleeves, which has led to some confusion, even though Multistage Unlimited GripShiftTM casing sleeves dont even use balls. To help clear things up, heres a quick comparison:

The Multistage Unlimited GripShift casing sleeve is not a ball-drop sleeve.

000PSN-NCS-FP.indd 1 2014-04-21 10:14 AMPSAC_Fall_2014-p06-11.indd 9 2014-08-22 10:02 AM


News, events and activities in the industryIN THE FIELD

DITCH HITCH, the industry leader for safe vehicle recovery,

has been nominated for an

Ernest C. Manning Award. The

Manning awards recognize and

support Canadian innovators

who have demonstrated recent

innovative talent and have suc-

cessfully marketed their prod-

ucts. The 2014 award winners

will be announced in October.

Associate Member Ditch Hitch Receives Prestigious Award Nomination

PAISLEY HAYES IS THE RECIPIENT of the 2014 PSAC Roger Soucy Legacy Scholarship, funded by KPMG, in the amount of

$2,500. Hayes, who is affiliated with Halliburton Group of Canada, has

demonstrated exceptional academic achievement and commitment to

her community of Olds, Alta. She is currently enrolled in the welding

program at Olds College, and has donated many pieces of art to assist

the charities in her community with their fundraising efforts.

PSAC will begin accepting applications for its 2015 scholarships on

psac.ca in January 2015.

PSAC IS PLEASED TO ANNOUNCE that Patrick Delaney, vice president, health and safety, recently completed Athabasca Universitys

Master of Business Administration program. Congratulations to

Patrick on this outstanding achievement, and the effort and sacrifice

you undertook to achieve this challenging goal.

PSAC Roger Soucy Legacy Scholarship Funded by KPMG

COMING EVENTS

PSAC PRE-DRILLING SEASON MEETINGSeptember 10, 2014

Pomeroy Hotel

Fort St. John, B.C.

PSAC ANNUAL GENERAL MEETINGOctober 29, 2014

TELUS Convention Centre, Calgary, Alta.

2015 CANADIAN DRILLING ACTIVITY FORECAST AND INDUSTRY OUTLOOKOctober 29, 2014

TELUS Convention Centre, Calgary, Alta.

2014 INDUSTRY INSIGHTS DINNEROctober 29, 2014

TELUS Convention Centre

Calgary, Alta.

Featuring Canadian author

and commentator Rex Murphy.

For more information

about PSAC events, visit

www.psac.ca/events

NEW MEMBERS

REGULAR MEMBERSCorpro Canada Ltd.

Great Prairie Energy Services Inc.

QMax Solutions Inc.

SB Navitas Tubular Inc.

Sterling Crane

ASSOCIATE MEMBERSBlack Spruce Merchant Capital

Edmonton Hotel and Convention Centre

Parkland Fuel Corporation

Sequira Partners Inc.

Renshi Consulting Group Ltd.

PSAC Staff Member Receives MBA

CONGRATULATIONS TO THE 2014 WINNERS of PSAC scholarships. Regular Member Scholarships are available to PSAC Regular

Member employees or their children pursuing post-secondary education,

and are valued at $1,000 each. This years recipients are:

2014 PSAC Scholarships Awarded

NATHAN ANDERSON Bachelor of Education, Edmonton - Ferus Inc.

LAINE BLANCHETTEInstrumentation Engineer Certificate, Moose Jaw, Sask. - Gibson Energy

KAITLYN BUDGELLBachelor of Arts, Grande Prairie, Alta. - Welltec Canada Inc.

SHEILA GREGORIOBachelor of Education, Calgary, Alta. - Halliburton Group Canada

MARCUS PEIRITSCHBachelor of Business Management, Okotoks, Alta. - Calfrac Well Service Ltd.

PSAC_Fall_2014-p06-11.indd 10 2014-08-22 10:02 AM

WWW.PSAC.CA 11

C

M

Y

CM

MY

CY

CMY

K



Strong Performance for Canadian Oilpatch

DRILLING ACTIVITY FORECAST UPDATE

BRITISH COLUMBIA: 707

ALBERTA: 6,762

SASKATCHEWAN: 3,544

MANITOBA: 430

TOTAL IN CANADA: 11,460

2014 CANADIAN DRILLING ACTIVITY FORECAST(NUMBER OF WELLS)

Note: Total includes activity in Northern and Eastern Canada.

PSAC ADJUSTS DRILLING ACTIVITY FORECAST UPWARDS

N ITS THIRD UPDATE to the 2014 Canadian Drilling Activity Forecast, the Petroleum Services Association of Canada (PSAC)

expects to see 11,460 wells (rig releases) drilled across Canada this

year. This figure represents a six per cent increase, or 660 wells,

over the original forecast released in late October 2013. PSAC is basing

its updated 2014 forecast on average natural gas prices of $4.75 CDN/mcf

(AECO), crude oil prices of US$100/barrel (WTI) and the Canadian dollar

averaging $0.90 USD.

PSAC has revised its figures based on a stronger than anticipated

performance during the first two quarters, with 245 more wells drilled

during that period, explains Mark Salkeld, PSACs president and CEO. We

are confident this performance trend will continue, and we are forecasting

an additional 415 wells to be drilled in Q3 and Q4.

On a provincial basis, the updated forecast includes increasing

activity across most of western Canada. Specifically, Alberta is expected

to see an additional 207 wells drilled, up from 6,555 for a total of 6,762

wells, representing a three per cent change from the October outlook.

Additionally, PSAC expects a decent uptick in activity in British Columbia,

with 157 additional wells for the year (a 28 per cent increase), to a total of

707 wells in that province. In Saskatchewan, PSAC is forecasting a new

total of 3,544 wells, which represents an increase of 348 wells or 11 per cent

I over October numbers. However, PSAC has adjusted the activity expected in Manitoba to 430 wells, a decrease of 10 per cent from 480 wells.In terms of well type, the first six months of 2014 followed the trend of drilling for oil over natural gas, with 2,862 oil wells versus 509 gas wells drilled. Additionally, 84 per cent of wells drilled in the first half of the year

were horizontal and directional, as compared to 16 per cent for vertical wells.

There are a variety of factors driving the better than expected activity this

year, says Salkeld. A key factor is the increase in natural gas prices, which

is partially being driven by low gas reserves that are at the lowest they have

been in more than 10 years, so there is a corresponding increase in demand.

Beyond that, well completions continue to gain efficiencies and that is

speeding up activity levels in key formations.

The 2015 Canadian Drilling Activity Forecast will be released on October

29, 2014, in Calgary, Alta. Highlights of the forecast will be presented during

PSACs Industry Insights Forum, a full-day event which includes PSACs

Industry Insights Dinner featuring renowned Canadian commentator and

author Rex Murphy.

The Canadian Drilling Activity Forecast can be used with the PSAC Well

Cost Study to effectively determine potential drilling and completion market

sizes, as well as pricing and activity direction. For more information, contact

PSAC at [email protected] or 403.264.4195.

UFA.com

serviceAT YOUR

2014 UFA Co-operative Ltd. All rights reserved.08/14-20751

Bulk Fuel and Oil DeliveryThe right products, at the right time. UFA Bulk Fuel and Oil Delivery gives you the fuel, lubricants and fluids you want, when and where you need it. Our Fuel Quality Assurance Program ensures we meet or exceed the demands of your equipment through continual monitoring.

On a job site, for your shop or out in the field talk to your local UFA Petroleum Agent today.

Fueling your life on the road, in the fields and everywhere in between.

000PSN-UFA-FP.indd 1 2014-08-13 8:42 AMPSAC_Fall_2014-p12-13.indd 12 2014-08-22 12:10 PM

UFA.com

serviceAT YOUR

2014 UFA Co-operative Ltd. All rights reserved.08/14-20751

Bulk Fuel and Oil DeliveryThe right products, at the right time. UFA Bulk Fuel and Oil Delivery gives you the fuel, lubricants and fluids you want, when and where you need it. Our Fuel Quality Assurance Program ensures we meet or exceed the demands of your equipment through continual monitoring.

On a job site, for your shop or out in the field talk to your local UFA Petroleum Agent today.

Fueling your life on the road, in the fields and everywhere in between.

000PSN-UFA-FP.indd 1 2014-08-13 8:42 AMPSAC_Fall_2014-p12-13.indd 13 2014-08-22 10:00 AM

WWW.PSAC.CA 15

BY ROBIN BRUNET

Service sector companies bear the burgeoning costs of third-party registries in the name of improving industry

safety. Its time for a standardized reporting system

ITHIN REGULATORY CULTURE, the one sure area of growth is the paperwork that prevents people from getting things done. Thats a given in an industry as complex as

oil and natural gas, but there comes a point when the redundancy and needless expense generated by paper-work becomes too much to tolerate.

Thats exactly where the services sector which is increasingly under

pressure from operators to provide new, innovative and affordable

solutions is poised.

Of particular concern are the health and safety registry databases

that require service companies to deposit information. Were seeing

enormous expenditure of time and money on the part of our members in

order to comply with the process of submitting information, says Patrick

Delaney, vice president, health and safety, for the Petroleum Services

Association of Canada (PSAC).

Our members are getting frustrated with the constant requests for

data submission and updates, requests for copies of their Certificate of

Recognition (COR) audits and the number of audits of their operations

being conducted by their customers, the operating companies, he

adds. The costs to individual service companies for supplying all this

data can easily run to tens of thousands of dollars yearly they are not

convinced that the use of these third-party registries is making a positive

contribution to the industrys safety performance.

W

STREAMLINESAFETY

THE


WWW.PSAC.CA 17

In theory, registries are straightforward: a service company prepares

the paperwork to prove its fully compliant with all safety regulations

and practices. The paperwork is submitted to the registry, reviewed and

kept on file. Once certified as a safe operator by the registry, the service

provider is then allowed to bid on

contracts with exploration and

production (E&P) companies.

Many oil and natural gas

companies require vendors

to submit safety data for

prequalification, relying on

private registries to handle the

administration. However, by

virtue of the fact that there is no

standardization amongst the

registries, contractors who work for many clients are forced to use different

databases with different standards.

In recent years, there has been an increase in the number of registries

used by E&P companies, and some of them do not have systems that

support data sharing. This has resulted in some service companies having

to deal with each registry separately when submitting data, adding to the

cost and time of the process.

Associations like PSAC have called for the establishment of a

standardized reporting system, but so far nothing substantial has been

achieved. This is troubling to Doug McNeill, chief strategic officer for

Stream-Flo Industries Ltd. There continues to be great interest in

improving fiscal efficiencies for both the producers and equipment and

service providers, but duplication in the reporting regime has a cost

impact to both sides, he says. One example of this is multiple registries

causing duplication in our monitoring and reporting. No two registries are

the same, so the impact can be appreciated. Innovation and driving cost

out of drilling wells is the key for both operating and services companies

like Stream-Flo. To pursue that, we need to eliminate any duplication in

reporting, so the monies can be better used for innovative technology

development.

Stream-Flo, a wellhead and christmas tree equipment manufacturer,

has flourished since its inception in 1962, precisely because it has invested

in and improved technology.

As such, it is better equipped to provide consistent customer service,

and the customer service translates into improved quality, reduced cost of

the finished product and shorter delivery schedules.

McNeill, whose clients include a wide cross-section of Canadian

operators, finds his hands are increasingly tied when it comes to dealing

with five or more registries. The situation has become extremely

challenging, he says. Even though I have to report to a third party registry

company, the operators will ask me to submit the same information to

them directly. Then, even though Im being audited by the third-party

registry, the oil company will request an additional audit undertaken by

its safety group. The operator does not charge Stream-Flo to conduct the

audit, but our resources are required to support the audit process. Our

employees time and resources cost money, and the operators have their

own additional costs.

Adding insult to injury are instances when Stream-Flo is asked by third

parties for more information in order to keep their databases current,

and a subsequent time lag occurs while the data is input by the registry.

Updated data is submitted, and during the time it takes to upload it, a

company goes into the category of non-conforming service provider

which is the absolute last thing

you want to be listed as while

a simple data update is being

conducted, says McNeill.

The cumulative effect on

service providers, in the name

of multiple reporting registries

for safety and other issues, has

a lasting effect on performance.

Most companies today are

faced with few avenues for

efficiency improvement initiatives, says McNeill. The last thing the

industry needs is for margins to be eroded to provide a cheaper price,

leaving no resources to pursue innovation opportunities.

That innovation is needed more than ever. The challenges were faced

with these days are along the lines of: How do we reduce the time required

to drill a well? How can we run equipment faster and more reliably? How

do we set up multi-stage fracking more quickly? says McNeill.

Speaking of these myriad obstacles, McNeill says there needs to be a

heightened level of communication between producers, operators and

the service and equipment providers, in order to drive out waste.

Delaney takes a slightly different tack: At the root of the third-party

registry problem is the fact that oil companies have become as large

INNOVATION AND DRIVING COST OUT OF DRILLING WELLS IS THE KEY FOR BOTH OPERATING AND SERVICES

COMPANIES LIKE STREAM-FLO. TO PURSUE THAT, WE NEED TO ELIMINATE ANY DUPLICATION IN

REPORTING, SO THE MONIES CAN BE BETTER USED FOR INNOVATIVE TECHNOLOGY DEVELOPMENT.

- DOUG MCNEILL



A HERITAGE OF POWER, STRENGTH AND INCREDIBLE VALUE.Sterling Western Star Trucks Alberta Ltd is the leader supplying premium product and service to the commercial trucking industry. We are dedicated to exceeding our customers expectations in quality, delivery and cost through continuous improvement and customer interaction a one stop shop from purchasing a Western Star Truck, to parts and most important first rate service. The staff and management thrive in an atmosphere of sophistication. We adapt to the changes in our industry so our customers can depend on us to be there when needed in all kinds of weather.

Doing our job so our customers can do theirs.

9115 - 52 Street SECalgary, Alberta T2C 2R4Telephone: 403-720-3400Toll Free: 800-874-5812

7690 Edgar Industrial CourtRed Deer, Alberta T4P 4E2Telephone: 403-314-1919Toll Free: 888-314-1919 www.sterlingwesternstar.ca

and complex as government, with multiple departments each with their

own mandate overlaid with myriad approval processes, and, from what

I can see, very little interdepartmental communication between the

procurement and safety processes.

To which McNeill adds, Sometimes were our own worst enemies

when it comes to silos within companies. When the safety initiative saves

customers money, thats great; but

when we step outside that particular

group and its budget, we see the

costs of doing business mounting.

Theres an opportunity to reduce the

costs, and we can make great strides

in driving out the costs of doing

business to the benefit of all.

Despite ongoing frustrations, Delaney points to an initiative that would

see occupational health and safety regulations for the oil and gas industry

harmonized across the western provinces.

PSAC has been working with trade associations that represent

the other sectors of the Canadian upstream petroleum industry on

proposals for changes to Part 37 of Albertas Occupational Health and

Safety Code dealing with oil and gas operations. As part of the process,

the associations reviewed the regulations of the four western provinces

and have had discussions with regulators about areas where these

regulations might be harmonized.

To date, the discussions have been positive, and if an agreement can

be reached, the industry in Western Canada could enjoy a degree of

standardization previously unheard of. We hope to get feedback from

the regulators before the end of this

year, says Delaney.

The question is, could

standardization migrate into other

badly needed areas of the industry?

Delaney will say only that PSAC

has made very good headway

with the Alberta regulators in the

discussions about revisions to Part 37 of the Alberta OH&S Code.

As a businessman, McNeill believes standardization has the potential to

drive out the costs in doing business. The service industry has embraced

the Certificate of Recognition (COR) safety program, which has been

compared to third-party safety registries, he says. Reviews have

identified COR as much more extensive in scope and a much more robust

auditing process. COR is a requirement for all members of PSAC.

THERES AN OPPORTUNITY TO REDUCE THE COSTS, AND WE CAN MAKE GREAT STRIDES

IN DRIVING OUT THE COSTS OF DOING BUSINESS TO THE BENEFIT OF ALL.

- DOUG MCNEILL, STREAM-FLO INDUSTRIES LTD.


WWW.PSAC.CA 19

medical safety consulting H2S safetyindustrial health environment trainingblow out and well control turn-arounds

Our goal is to get you home safely, every day.

Your safety is our business. At Enform, our vision is to eliminate work- related incidents and injuries in the upstream oil and gas industry. Everything we do is dedicated to continuously improving your safety.

Working with our industry partners, we provide leading training programs and services that touch the lives of hundreds of thousands of workers every year. We promote health and safety practices through safety management planning and support, training programs, and by providing the resources that you need to get the job done safely. We were created by industry, for industry and together

we are making a difference.

Learn more about us at

www.enform.ca

Enform Rig Watch Magazine 1/2 page.indd 1 14-07-21 1:19 PM



WIN-WIN

TEEINGUP A

LENTY OF WINNERS walked away from this years

2014 Education Fund Golf

Classic, held once again at the

Calgary Elks Lodge and Golf Club. Yes, there

were those that earned trophies and prizes, but

the true winners were the students who received

scholarships from PSAC thanks to the funds

raised at the tournament.

Due to the generosity of PSAC members, the

golf tournaments guests and sponsors raised more

than $50,000 this year. This funding makes it pos-

sible for PSAC to continue providing scholarships

to students pursuing post-secondary education,

and the program helps increase awareness of job

opportunities in the sector. Since its inception in

2001, the Education Fund has awarded more than

P

The PSAC Education Fund Golf Classic Committee, from left to right: Brian Farmer, Committee Chair; Linda Aldridge; Caterina Furlan; Garry Lane; Graham Maglio; Lee Emond; Victoria Assen; Marty Price; Travis Strube; Karoline Beninger; Blake Lawrence; Brett Noble; Michael Van Olm; Mark Salkeld. Missing: Clyde Bonnell; Heather Doyle; Kelly Morrison; Glenn Walker.

PSACs Education Fund Golf Classic delivers a bright future for students and member companies


WWW.PSAC.CA 21

INSURANCEEXPERTSfor the oil & gas sector

Providing insurance solutions

to oil & gas companies locally

and around the world

rogersinsurance.ca

Austen [email protected]

Lee [email protected]

Toll free: 1.800.565.8132600 - 1000 Centre Street N. Calgary, Alberta T2E 7W6

2014 PSAC scholarship winners Marcus Peiritsch (left), and Paisley Hayes (centre) with Education Fund Chair, Dieter Wentzel.

$230,000 in scholarships and grants to deserving students, and has raised the

awareness of careers in the petroleum services sector.

What a spectacular day and what a result, said Mark Salkeld, president

and CEO of PSAC. We are tremendously grateful for the generosity shown

by everyone attending.

Highlights of this years tournament and barbecue include cheque presen-

tations to Marcus Peiritsch, a University of Lethbridge student affiliated with

Calfrac Well Services Ltd., who was awarded a $1,000 PSAC Regular Member

Scholarship. Paisley Hayes, a welding student at Olds College in Olds, Alberta,

was awarded the 2014 PSAC Roger Soucy Legacy Scholarship, funded by

KPMG, in the amount of $2,500. Paisley, affiliated with Halliburton Group

Canada, received this award for achieving academic excellence and demon-

strating commitment to her community.

PSAC Regular Member Scholarships were also awarded to four other

students this year. They are Nathan Anderson of Edmonton, affiliated with

Ferus Inc.; Laine Blanchette of Moose Jaw, Sask., affiliated with Gibson

Energy; Kaitlyn Budgell of Grande Prairie, Alta., affiliated with Welltec Can-

ada Inc.; and Sheila Gregorio of Calgary, Alta., affiliated with Halliburton

Group Canada.

PSAC will begin accepting applications for its 2015 scholarships in January

of next year. For more information about PSACs Education Fund and its

scholarships, visit psac.ca.


D000PSN-GrantThornton-FP.indd 1 2014-08-19 9:24 AMPSAC_Fall_2014-p22-25.indd 22 2014-08-22 9:57 AM

WWW.PSAC.CA 23

BUILD RELATIONSHIPS: One of the most basic lessons that I teach, day in and day out, is that followers care about leaders who care about them, says

Gaynor. While its common for those in leadership positions to keep a

professional buffer to avoid getting too close to their employees (Gaynor

calls it the doctrine of distance), he finds that the benefits of connec-

tion outweigh possible detriments. Having closer relationships gave me

the forum to have tough discussions with people, says Gaynor, and to

make decisions with more confidence, because I knew what my employees

were about and what their motivations were. [But] you just can never let a

friendship come ahead of making a right decision for the organization.

FOCUS ON WHATS MOST IMPORTANT: Here, Gaynor quotes American football coach Vince Lombardi, who led the Green Bay Packers to five NFL championships

within a seven-year span: Success demands a singleness of purpose. Its not

only important to define what the team should be doing but also to ensure

the company works towards a unified goal. >> CONTINUES ON PAGE 24

AN GAYNOR IS AN expert at saving companies in peril. In

1999, working relationships at

the Calgary Herald had broken

down, to the point where a bargaining union

was established and a strike was inevitable. It

looked as though the paper, which had only

recently celebrated its centennial anniversary,

would eventually collapse. To part the angry sea

of strikers and lead the paper to salvation, they

called Gaynor.

What makes Gaynor the man of the eleventh

hour is his zeal for leadership. Through his

company, Gaynor Consulting, he coaches com-

pany management and leadership. Below, he

gives us his 10 tips for job site team building:

The 10 CommandmentsRENOWNED MANAGEMENT CONSULTANT DAN GAYNOR DISHES OUT TIPS FOR BETTER TEAM BUILDING

BY CALEB CASWELL

BUSINESS MATTERS

D

000PSN-GrantThornton-FP.indd 1 2014-08-19 9:24 AM PSAC_Fall_2014-p22-25.indd 23 2014-08-22 9:57 AM


BUSINESS MATTERS

For more information contact us at

E: [email protected]: 403.214.7570

WWW.KRDRILLGEAR.COM

PERFORMANCE. FOCUSED.Design and fabrication of high quality, innovative Drilling Rigs and components, Service Rigs, Stimulation Equipment, Oilfield Surface Equipment, and custom fabrication.

Canadian Inspiration. Global Innovation. Local Service.

FIELD TESTED AND PROVEN RIG PACKAGES

ESTABLISH A CODE OF CONDUCT: At the St. Catharines Standard, Gaynor was in charge of helping redefine the papers code of conduct. As we started

purposefully building the kind of team we wanted to be together, instead

of the team we were, he says, people got pretty enthused about what we

were doing and the kind of team they were becoming. That meant they

were building something they were proud of.

SET GOOD GOALS: There are four defining factors to a good goal, and Gaynor says all companies should measure their corporate goal against this ru-

bric. They should be: clear, challenging, achievable and worthwhile.

APPLY THE FOUR Ps: Planning, preparation, practice and performance are the alliterative keys to making sure your team functions well. Prepara-

tion is oftentimes the most overlooked part of the four Ps, says Gaynor.

I think every good leader [needs to] pause once he or shes developed

their goals and say, How prepared is my team for this, and what do I

need to do to make sure theyre ready?

COMMUNICATE WELL: Consistent updates keep dialogue open between staff and management, making people feel they matter and allowing

for consistent guidance towards the teams goal. During his time at

the Calgary Herald, Gaynor would hold three meetings a day one in

the morning, one in the afternoon, and one at 1 a.m., for the press and

production team.

BE STRONG UNDER FIRE: I came to the conclu-

sion very early that every

team reflects its leader,

says Gaynor. In high-stress situations, its the leaders

job to set an example. If the leader becomes unglued,

it gives employees the excuse to act similarly.

PROVIDE LOTS OF FEEDBACK: Positive feedback comes in two forms: encouragement and correction. Both reach

their full potential when delivered in a specific, clear,

consistent and respectful manner. Its also important

to know the line between professional comment and

personal attack.

ACCEPT NO EXCUSES: Its easier for people to accept their mistakes when they know theyre working under a

leader that wants to help them move beyond them.

Dont focus on the problem; focus on the solution.

MAKE EVERY PERFORMANCE COUNT: Dont ignore or avoid opportunities to encourage or correct your team. Every day is a chance to tighten the

organizations performance, and each conversation acts as a small step

toward a better work environment.


WWW.PSAC.CA 25

Land SurveyingOil and Gas Services

Pipeline Right-Of-Way

Environment

Engineering

Safety

Consultation100 Year History On Budget

On Time

Utilities

Construction

Opus InfrastructureQualityMapping

Find out more at www.opussw.com

Opus Stewart Weir

Head Office, Sherwood Park, ABt. +1 780 410 2580

Experience, Quality & Service.

Solutions for all your problems.

CompassBending.com

7320 30 Street S.E. Calgary, Alberta T2C 1W2 Phone: (403) 279-6615 Fax: (403) 236-4249 Toll free: (800) 708-7453

Pipe Bending?

We at Compass Bending pride ourselves in providing the highest possible level of quality and service. We have also doubled in size in order to bring this about with the same degree of efficiency we have had in the past. We value your business and will continue to do whatever is necessary to ensure your complete satisfaction.

Industrial professional experts for all your pipe bending needs and more.

Additional Services: Insulation, taping and coating, including YJ bends 3D and 5D bends Bends of all sizes Structural bending Hot-shot service



THE PETROLEUM SERVICES ASSOCIATION OF CANADA (PSAC) CONTINUES TO KEEP THE SERVICE, SUPPLY AND MANUFACTURING SECTORS FRONT AND CENTRE THROUGH ADVOCACY AND OUTREACH.

PSAC IN ACTION

BRITISH COLUMBIA: PSAC met with, and made a presentation on hydraulic fracturing to,

members of the B.C. Legislative Assembly, highlighting PSACs Working

Energy Commitment and Hydraulic Fracturing Code of Conduct.

PSAC held informal discussions with ministers and MLAs at the BC

Liberal Leaders Dinner hosted by the Honourable Christy Clark,

premier of British Columbia.

PSAC attended a ministerial round table with the Honourable Bill Bennett,

minister of energy and mines and minister responsible for core review.

SASKATCHEWAN: Along with the Saskatchewan Industrial Mining and Suppliers Association

(SIMSA) and Government of Saskatchewan, PSAC co-hosted the

Saskatchewan Business Reception at this years Global Petroleum Show.

PSAC hosted Mike Carr, deputy minister of labour relations and

workplace safety, at the recent Human Resources Committee meeting

to inform members about the employment standards regulations

enacted to support the new Saskatchewan Employment Act.

To further connect with leaders in the province, including former

energy minister Ian McMillan and the Honourable Bill Boyd, minister

of the economy, PSAC attended the Premiers Dinner hosted by the

Honourable Brad Wall, premier of Saskatchewan.

FEDERAL: In June, PSAC met with the Honourable Greg Rickford, minister

of natural resources and minister for the Federal Economic

Development Initiative for Northern Ontario, in Calgary to

introduce the new minister to the association and to highlight

challenges facing the services sector.

Also in Calgary, PSAC hosted several Alberta MPs,

including and the Honourable Greg Rickford, Joan Crockatt,

MP Calgary Centre and MP Earl Dreeshen (Red Deer) on a

member facility tour, demonstrating the technology behind

hydraulic fracturing operations.

ALBERTA: PSAC spoke with the Honourable Diana McQueen, Alberta

energy minister, and the Honourable Dave Hancock, interim

premier, about the outlook for the oil and natural gas

industry, highlighting issues facing PSAC members including

skills development, market access and competitiveness.

PSAC also took the opportunity to speak with Jim Prentice,

Ric McIver, MLA, and Thomas Lukaszuk, MLA, at the

Alberta PC Leadership Candidate Kickoff Reception.

To continue to increase awareness and understanding of PSAC, our

members and their operations, Mark Salkeld, PSAC president and

CEO, delivered remarks at the following events:

Rimbey Regional Synergy Group Open House, which brought

together more than 100 local residents to hear from PSAC,

industry representatives and the regulator about work to engage

local communities in productive conversations about how the

industry operates. PSAC presented on the Working Energy

Commitment, the Hydraulic Fracturing Code of Conduct and

the Community Partners program.

PSAC presented to a group of Canadian Trade Commissioners

from posts all around the world during the Global Petroleum

Show. This was an opportunity to address investment

opportunities with Canadian petroleum services companies,

highlighting essential foreign markets and encouraging

companies to look at expanding internationally.

PSAC CONNECTS WITH CANADIAN LEADERS

PSAC REACHES OUT TO LOCAL, NATIONAL AND INTERNATIONAL STAKEHOLDERS

At the Petroleum Technology Alliance Canadas 2014 Hydraulic

Fracturing An Environmental Perspective Forum, PSAC

introduced the Hydraulic Fracturing Code of Conduct.

PSAC participated in the panel discussion Exchanging Policy,

Regulatory and Operational Best Practices in Unconventional Gas

at the annual board meeting of the China National Petroleum

Corporation-Alberta Petroleum Centre. This event was an

opportunity for informal discussion with the Honourable Diana

McQueen, minister of energy, and Jim Ellis, CEO, Alberta Energy

Regulator.

FOR MORE INFORMATION: To learn more about PSACs advocacy efforts, contact [email protected] or 403.264.4195.


WWW.PSAC.CA 27

Pictured here: Greg Rickford (centre, blue shirt with thumbs up), Mark Salkeld, PSAC president and CEO (left of Mr. Rickford), Joan Crockatt, MP, Calgary Centre (right of Mr. Rickford), Scott Van Vliet, PSAC board member and co-president of Environmental Refuelling Systems Inc. (far right, standing), Darin MacDonald, president and CEO of Sanjel Canada Ltd. (kneeling, left of Mr. Rickford), and representatives from PSAC, Environmental Refuelling Systems Inc., and Sanjel Canada Ltd.

PSAC HOSTS FEDERAL LEADERS AT MEMBER FACILITY

Relevant Independent Objective

Soon To Be ReleasedCanadian Oil Sands Supply Costs

and Development Projects (2013-2047)

Natural Gas Liquids in North America: Future Look

North American Oil Pathways

Oil Sands Environmental Impacts

All of CERIs research is available on our website at www.ceri.ca

PublicationsCERI Commodity Report - Natural Gas

CERI Commodity Report - World OilGeopolitics of Energy

Upcoming ConferencesNatural Gas: March, 2014

Oil: April 21-22, 2014Petrochemical: June 7-9, 2014

For more information call: (403) 282-1231; visit our website: www.ceri.ca; or email: [email protected]

For more information call: (403) 282 - 1231; visit our website: www.ceri.ca; or email: [email protected]

Canadian Energy Research Institute

Partners in

Complianc

e

Excellenceon our roadways

Partners In Compliance&HUWLHGRUJDQL]DWLRQVH[FHHG

EHQFKPDUNVGHYHORSHGE\LQGXVWU\OHDGHUV$OEHUWD7UDQVSRUWDWLRQDQG(QIRUFHPHQW3,&PHPEHUVKDYHWUDQVIRUPHGWKHLUVDIHW\SURJUDPVLQWRVDIHW\FXOWXUHV

Please Contact us to learn more about WKHEHQHWVRI3,&PHPEHUVKLS

18774487456 ext 6143ZZZSDUWQHUVLQFRPSOLDQFHFRP

psac ad copy.indd 1 10/18/2013 2:30:52 PM


28 FALL 2014 PETROLEUM SERVICES NEWS 2013 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. 2249

Its a done dealMergers & Acquisitions Winning the deal is easier when you hold all the cards. At KPMG, our network of mergers and acquisitions professionals possess the experience and forward thinking necessary to help you meet the time constraints of the deal.

kpmg.ca

Michael McKerracher National Energy Leader (403) 691-8056 [email protected]

Rhys Renouf Managing Director, KPMG Corporate Finance (403) 691-8426 [email protected]

Alex Henderson Partner, Transaction Services (403) 691-8140 [email protected]

2249 PSAC_8.25x10.75_Apr2013_FINAL.indd 1 4/19/2013 9:33:47 AM

000PSN-KPMG-FP.indd 1 2014-08-01 1:59 PM

ONNING A Forrest Gump- inspired beard, and averaging 50

kilometres per day, 23-year-old

Curtis Hargrove the Cold

Lake Runner inspired by Terry Fox ran

across Canada throughout 2012 and 2013

to raise $1 million for Edmontons Stollery

Childrens Hospital Foundation. That Har-

grove was an employee of ENTREC Corp., a

leader in heavy-lift and heavy-haul services

across western Canada and the United States,

is a fitting coincidence for a company that

likes to hire ambitious, motivated people that

strive to make a difference. Anybody can buy

iron, says John Stevens, president and CEO of

ENTREC. Its attracting the right employees

that counts. In the race for above-and-beyond

results and exceptional labour, ENTREC clear-

ly leaves its competition in the dust.

We want to be the employer of choice, says

Stevens. I absolutely believe that if you have en-

gaged employees, they will deliver excellent cus-

tomer service. Underpinned by five core values

(safety, customer service, engaged employees,

community and environment, respect and in-

tegrity), ENTREC supports local initiatives, and

their local employees, at events like the Dawson

Creek Fall Fair and Exhibition and Guitars

and Wagons Weekend in Grande Prairie. The

company sent heavy machinery to High River,

where some of ENTRECs Calgary employees

live, during last summers catastrophic flood.

Stevens is adamant that if its important to our

employees, its important to us.

ENTREC began operations with one truck

and four trailers under the name Schell

Equipment in 1995. As it grew, the company

was acquired by Transco, later to be bought by

Flint, where the ENTREC name was born. The

Weve Come a Long Way Together

DSpruce Grove-based company provides service to the oil and gas, min-

ing, petrochemical, hydroelectric, construction and mining industries,

and is benefiting from a recent large-scale expansion of its crane fleet.

In 2012, acquisitions in B.C. made it the biggest local crane company

in the Prince Rupert, Terrace and Kitimat area, leaving ENTREC well

positioned to take advantage of new LNG developments, and setting off a

precipitous 309 per cent growth in its annual revenue that year. ENTREC

is also active in the Bakken oil formation in North Dakota, with oper-

ations in Watford City and Dickinson. Obviously, labour is always the

challenge, Stevens says. But our management has experience in U.S.

markets, and the Bakken is a very busy area.

Another acquisition further north, along the border between Alberta

and B.C., made ENTREC the biggest crane and transportation compa-

ny servicing the oil and gas industry near Grande Prairie, Fort St. John

and Dawson Creek. Busy with projects around Bonnyville, Cold Lake

and Conklin, ENTREC recently moved into a state-of-the-art facility in

Grande Prairie and built a new shop in Whitecourt. The company also has

several cranes on site for the multi-billion-dollar modernization of the Rio

Tinto Alcan aluminum smelter in Kitimat. Through decades of planning,

hard work and employee satisfaction, ENTREC has proved that big ambi-

tions offer tremendous results. Just ask Curtis Hargrove.

WITH ITS EMPLOYEES IN THE DRIVERS SEAT, ENTREC SHOWS NO SIGNS OF SLOWING DOWN

BY ROBBIE JEFFREY

MEMBER PROFILE

ANYBODY CAN BUY IRON. ITS ATTRACTING THE RIGHT EMPLOYEES THAT COUNTS.

- JOHN STEVENS, PRESIDENT AND CEO OF ENTREC.


2013 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. 2249

Its a done dealMergers & Acquisitions Winning the deal is easier when you hold all the cards. At KPMG, our network of mergers and acquisitions professionals possess the experience and forward thinking necessary to help you meet the time constraints of the deal.

kpmg.ca

Michael McKerracher National Energy Leader (403) 691-8056 [email protected]

Rhys Renouf Managing Director, KPMG Corporate Finance (403) 691-8426 [email protected]

Alex Henderson Partner, Transaction Services (403) 691-8140 [email protected]

2249 PSAC_8.25x10.75_Apr2013_FINAL.indd 1 4/19/2013 9:33:47 AM

000PSN-KPMG-FP.indd 1 2014-08-01 1:59 PMPSAC_Fall_2014-p28-29.indd 29 2014-08-22 9:54 AM


SMART FINANCING GOES DEEPER THAN DOLLARS.Dig deep with GE Capital.

Our asset-based, cash ow and structured loans come with decades of GE industry experience. Collaboration within the supply chain on investment opportunities and innovation is only the start. GE Capital is more than just nancing, we are energy industry partners.

What we know can help you grow.

GECapital.ca/partners

000PSN-GE_Capital-FP.indd 1 2014-08-01 1:58 PM

IF YOU COULD DO ANY OTHER JOB, WHAT WOULD THAT BE? CG: Medical doctor (specialist).TH: There is no other job I would rather be doing, or company Id rather be associated with.

WHAT IS YOUR FAVOURITE BOOK OF ALL TIME? CG: The Da Vinci Code.TH: I have lots of favourites. The Driver by Garet Garrett is a little-known gem.

WHAT ABOUT MOVIE?CG: The Great Gatsby.TH: The Shawshank Redemption.

WHAT DO YOU THINK IS THE BIGGEST CHALLENGE FACING CANADAS ENERGY INDUSTRY AT THIS TIME? CG: The overall public perception on the environmental impacts of Albertas oil industry.

TH: International competitiveness and market access. Theyre essentially one issue.

WHAT WOULD YOU SAY IS YOUR BIGGEST ACCOMPLISHMENT TO DATE? CG: Remaining true to myself.TH: Having convinced great people to work with me.

WHAT MOTTO OR PHRASE DO YOU LIVE BY? CG: Never let go of your dreams.TH: The will to prepare to win is more important than the will to win.

WHAT TALENT WOULD YOU MOST LIKE TO HAVE? CG: To be a Renaissance-era artist like Leonardo. It is gratifying how artists can generate ideas and then translate them onto paper.

TH: The talent to make my answers to these kinds of questions sound interesting.

IF YOU COULD CHANGE ONE THING ABOUT YOURSELF, WHAT WOULD IT BE? CG: My appetite for excellence, which can turn into a never satisfied level of expectation.

TH: There are many areas for improvement. I would like to be more effective at making people around me feel good about themselves,

their ideas and their accomplishments.

WHAT IS YOUR MOST TREASURED POSSESSION? CG: My family. TH: They arent truly possessions, but my children are what I treasure the most.

IF YOU COULD TRAVEL ANYWHERE IN THE WORLD, WHERE WOULD YOU GO?CG: Florence, Paris and Egypt.TH: Ive travelled extensively; its a passion of mine. I would like to explore Antarctica at some point.

WHO ARE YOUR HEROES IN REAL LIFE? CG: My parents.TH: People with a vision, people with determination, people who make a difference. I have the privilege of being around them every day.

IN A FEW WORDS, WHAT WOULD YOU SAY ABOUT HOW 2014 IS GOING TO TURN OUT? CG: Optimistic, challenging, growth, perseverance, entrepreneurial.TH: 2014 will prove a transitional year for Canadas resource industry, as a good part of the groundwork for global market access will have

been established. It is up to us to make it happen.

CHRIS GALLVice President, Global Supply Chain

Calfrac Well Services Ltd.

TREVOR HAYNESPresident and CEO

Black Diamond Group Limited

PETROLEUM SERVICES NEWS TALKS WITH PSACS BOARD OF DIRECTORS AND TAKES A PERSONAL LOOK AT LEADERS IN THE SERVICES SECTOR

CHRIS GALL TREVOR HAYNES

A LOOK AT LEADERSHIP


SMART FINANCING GOES DEEPER THAN DOLLARS.Dig deep with GE Capital.

Our asset-based, cash ow and structured loans come with decades of GE industry experience. Collaboration within the supply chain on investment opportunities and innovation is only the start. GE Capital is more than just nancing, we are energy industry partners.

What we know can help you grow.

GECapital.ca/partners

000PSN-GE_Capital-FP.indd 1 2014-08-01 1:58 PMPSAC_Fall_2014-p30-32.indd 31 2014-08-22 9:53 AM

READY-MADE PIPELINE SYSTEM

Flexpipe Systems corrosion-resistant composite linepipe products are ideal for use in Canada. Operating temperatures of up to 82C, fl exibility and minimal equipment requirements make Flexpipe Systems the answer to your next pipeline project.

fl expipesystems.com

SC_Flexpipe_LW_PSAC_031814.indd 1 14-03-20 4:28 PM000PSN-FlexpipeSystems-FP.indd 1 2014-05-02 9:26 AMPSAC_Fall_2014-p30-32.indd 32 2014-08-22 9:53 AM

Documents

PSAC Petroleum Service News Fall 2014