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Canadian drilling activity remains at plateau, PSAC forecasts for 2019

The Petroleum Services Association of Canada (PSAC) has released its 2019 Canadian Drilling Activity Forecast. PSAC expects a total of 6,600 wells (rig releases) to be drilled in Canada in 2019. For 2018, the Association's final revised forecast predicts a yearly total of 6,980 wells.

PSAC bases its 2019 forecast on average natural gas prices of $1.45 CDN/mcf (AECO), crude oil prices of US$69/barrel (WTI), a WCS vs WTI differential of US$24.50/barrel, and the Canadian dollar averaging $0.80USD.

PSAC President & CEO, Tom Whalen, commented, "While we've recovered from the very dark days of 2015 and 2016, there really isn't any cause for celebration in the near term, as drilling activity is in its third year of a plateau, averaging around 6,900 wells per year. The unprecedented, wide heavy oil price differentials caused by our chronic pipeline constraints is nothing short of a crisis for Canada. At current differentials, it exceeds a $100 million cost to the industry and Canada.  Today, the only near-term line of sight to added pipeline capacity is Enbridge's Line 3 replacement which isn't projected to be in service until at least the third quarter of 2019.

"Based on recent industry analysts' reports, we currently have approximately 165,000 - 225,000 barrels/day of excess oil supply for the existing egress system. Consequently, we project slightly softer drilling activity in the first half of 2019 than we had in 2018. We've seen crude by rail volumes increase to over 200,000 barrels/day in recent months and we know there is more rail capacity building in progress. However, we only see rail providing some limited relief to those operators like Cenovus who are willing to step out and commit to longer-term contracts."

On a provincial basis for 2019, PSAC estimates 3,532 wells to be drilled in Alberta, and 2,422 wells for Saskatchewan, representing year-over-year decreases of 221 and 110 wells, respectively. At 255 wells, drilling activity in Manitoba is expected to drop by 16 wells year-over-year, whilst activity in British Columbia is projected to decrease from 415 wells in 2018 to 382 wells in 2019.

The projected total year-over-year decrease of 380 wells equates to approximately $1.5 to $1.8 billion less in capital spending by exploration and production companies. This translates into more pain for the oilfield services, supply and manufacturers as they are already competing for share of a smaller pie that's about to get even smaller.  This sector continues to suffer as prices for products and services in Canada are severely depressed. This ‘lower for longer' is forcing companies to consider alternatives such as moving more of their operations to other jurisdictions outside of Canada in an effort to survive as reported in PSAC's annual Business Issues Survey.

Whalen continued, "The on-again, off-again saga of the Trans Mountain pipeline expansion is another blow to investor confidence in Canada. It's not a positive signal to investors that it takes state ownership as a ‘last resort' means to move national interest projects forward. While there are numerous barriers to business going forward, if Bill C-69; the new Environmental Impact Assessment Act is passed into law, it is unlikely another major project will ever be proposed or built in this country. Unfortunately, the biggest casualties in this debacle are the hundreds of thousands of middle-class Canadians who rely on the resource sector directly or indirectly for jobs, indigenous peoples who would benefit from jobs, skills training, and economic opportunities to raise them out of poverty, as well as all levels of government that collects royalties and taxes used to support health care, education, and other public infrastructure that benefits all Canadians.

Market access and development of our natural resources would not only help reduce global emissions and help lift third-world countries out of energy poverty, but would continue to benefit all Canadians by providing energy security, LNG for remote and northern communities, great high-tech jobs and world prices for our resources so that they can continue to provide economic benefits to communities all across this great country."

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Bureau Veritas awarded major inspection contract for new oil field development

The frame agreement between Bureau Veritas and operator Neptune Energy will run until December 2022 and, as the development progresses, it may see Bureau Veritas provide third-party inspection services in Newcastle, Evanton, Le Trait, Ulveston, and other European locations and further afield globally.

Bureau Veritas, a leader in laboratory testing, inspection and certification services, has been awarded a four-year contract with Neptune Energy to provide second and third-party inspection services for the new Fenja oil and gas field development, offshore Norway.

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Drilling & Production
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Offshore Technology

Subsea Integration Alliance receives EPCIC contracts offshore Australia

The OneSubsea scope includes the provision of two vertical monobore on-wellhead production trees, wellheads, controls and installation and commissioning services.

Subsea Integration Alliance has announced the award of integrated subsea engineering, procurement, construction, installation and commissioning (EPCIC) contracts. These awards, by Esso Australia Pty Ltd, represent the first integrated subsea project for Subsea Integration Alliance in Australia combining OneSubsea and Subsea 7 expertise in subsea production systems (SPS) and subsea umbilical, riser and flowline (SURF) systems.

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Packers Plus successfully installs more than 200 PrimeSET liner hangers in North America

The PrimeSET Liner Hanger is designed for challenging applications. This technology can handle high torque, carry heavy weight and provides the ability to rotate, push and pull the liner while running in-hole without an early release of the running tool.

Packers Plus Energy Services Inc. has successfully installed the TREX PrimeSET Liner Hanger system in 216 wells across North America. This liner hanger system, which can be used in both cemented and open hole applications, is engineered with unique anti-preset features to ensure reliability and performance, resulting in time and cost savings for operators.

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Instrumentation, Systems & Automation

Ametek introduces AMEVision communication and display system capability for 3050 moisture analyzers

The 3050 series analyzer can be pre-configured at the factory to directly communicate with AMEVision, eliminating the need to set it up, which will ultimately save time in the field.

AMETEK has broadened its AMEVision communication and display system capabilities to include the 3050 series of moisture analyzers. Originally designed for WDG-V analyzers, the AMEVision system provides real-time moisture measurements and trend data while also detailing a variety of maintenance and troubleshooting information.

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Shows & Events

New work trucks and equipment rolling out at The Work Truck Show 2019

Show attendees will have the opportunity to check out products from 26 first-time exhibitors in a special New Exhibitor Pavilion that opens an hour before the exhibit hall on Wednesday, March 6 and Thursday, March 7. It’s located across from the Hall I exhibit hall entrance.

More than 100 companies have already announced plans to introduce new work trucks and equipment at Work Truck Week 2019.

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Occupational Health & Safety

Optical gas imaging tools for the oil and gas industry

An optical gas imaging camera is a highly specialized version of an IR or thermal imaging camera. It consists of a lens, a detector, electronics that process the signal from the detector, and a viewfinder or screen for the user to see the image produced by the camera.

Infrared (IR) thermal imaging cameras have been used for decades for a variety of oil and gas applications, including electrical/ mechanical inspections, tank level inspections, and even examinations of pipe integrity within process equipment. In recent years, new optical gas imaging (OGI) technology has been developed which can "see" hydrocarbon gases and volatile organic compounds (VOCs) that are venting or leaking to the atmosphere. OGI can be used for meeting regulatory emission reduction requirements, while also helping to reduce product loss, which in turn provides positive return on investment. OGI cameras are a huge time saver compared to other inspection technologies and also offer safety advantages for operators. Major energy companies are using OGI cameras like the FLIR GF320 to quickly check thousands of components and identify potential gas leaks in real-time.

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Instrumentation, Systems & Automation

KROHNE to manufacture OPTIMASS twin bent tube coriolis mass flowmeter

The OPTIMASS 6400 has been approved for custody transfers of both liquids and gases, making it ideal for process industries and specialist applications like LNG, CNG, or supercritical gases in terminal or storage/bunkering, along with custody transfer applications.

KROHNE, Inc. announces that it has begun manufacturing the OPTIMASS 6400 twin bent tube Coriolis mass flowmeter at its newly opened state of the art flow and level instrument manufacturing and calibration facility located in Beverly, MA. The OPTIMASS 6400 is ideal for standard liquid and gas applications in the chemical and petrochemical, oil and gas, pharmaceutical, food and beverage, and energy and power industries. The OPTIMASS 6400 is equipped with a new signal converter that features advanced device and process diagnostics, compliant to NAMUR NE 107.

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COSIA seeks presenters for Oil Sands Innovation Summit

We encourage submissions from academia - both students and faculty, companies of all sizes, associations, government, research organizations, and individuals who are advancing technologies in the four environmental areas: Land, Water, Tailings and Greenhouse Gases.

Canada's Oil Sands Innovation Alliance (COSIA), Alberta Innovates and Emissions Reduction Alberta (ERA) are seeking presenters to share their research or project results, knowledge and experience at the 2019 Oil Sands Innovation Summit.  

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2019 Ram Heavy Duty provides benchmark for performance and capability

The standard engine in the 2019 Ram 2500 and 3500 Heavy Duty is upgraded to the proven and potent 6.4-litre HEMI V8, delivering class-leading 410 gas horsepower @ 5,600 rpm and 429 lb.-ft. of torque @ 4,000 rpm to handle the payload and towing requirements of the heavy-duty truck user.

The 2019 Ram Heavy Duty is the most powerful, most capable pickup in the segment, according to the manufacturer, with a towing capacity of 15,921 kg (35,100 lbs.) and a payload capacity of 3,484 kg (7,680 lb.). Driving it all is a never-before-seen torque rating of 1000 lb.-ft. from the Cummins 6.7-litre High Output Turbo Diesel engine. The new Ram Heavy Duty also sets benchmarks in ride and handling, luxury, materials, innovation, and technology extending well past any competitive offerings. 

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Pipelines

T.D. Williamson introduces 4-inch inspection tool for small diameter, low pressure pipelines

According to Tod Barker, Senior Product Manager, Pipeline Integrity, the 4-inch tool overcomes challenges associated with conventional MFL inspections, such as difficulty navigating tight bends and speed excursions that limit data accuracy.

T.D. Williamson (TDW) has commercialized a 4-inch magnetic flux leakage (MFL) + deformation (DEF) + internal versus external discrimination (IDOD) tool that helps ensure pipeline integrity by detecting pitting and general corrosion as well as interacting features such as dents with metal loss in small diameter, low pressure pipelines.   

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Portable vehicle scales​ help heavy-haul carriers stay compliant

Heavy-haul carriers transport oversized objects using public roadways. While these loads may weigh hundreds of thousands of pounds, operators must still comply with permitted limits, while also completing their job safely. Intercomp has a variety of options to fill this unique application for a range of applications including construction, oil & gas, waste and recycling, heavy-haul transportation and electrical utility.

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Allen Engineering promotes Kyle Baker to national sales manager

In his new position, Baker will be responsible for managing, training and recruiting all the Allen direct sales personnel as well as the independent sales representatives that sell Allen Equipment in the United States and Canada.

Allen Engineering Corp. recently announced that Kyle Baker has been promoted to national sales manager for all sales operations in the United States and Canada.

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Power Systems

Encana selects Siemens to provide rotating equipment for Pipestone Processing Facility

Siemens’ SGT-750 turbine offers customers lower life cycle costs compared to competing turbines in the industry.

Siemens was recently selected to provide one feed and sales gas train and one refrigeration compression train for Encana's Pipestone Processing Facility in Grand Prairie, Alberta, Canada. Designed to accommodate future capacity expansion, the Pipestone Processing Facility will provide Encana with 19,000 barrels per day of net raw condensate processing capacity plus 170 million cubic feet per day of net inlet natural gas processing capacity. Keyera will own the Pipestone Processing Facility and provide processing services to Encana. The Facility will have total processing capacity of 200 million cubic feet per day and is expected to start up in 2021.

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Pipelines

TransCanada plans name change to TC Energy

TransCanada Corporation has announced its intention to change its name to TC Energy to better reflect the scope of the company's operations as a leading North American energy infrastructure company. TransCanada's shareholders will be asked to approve a special resolution to change the name at the company's next Annual and Special Meeting of Shareholders.

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Husky considering sale of non-core downstream assets

Husky's retail and commercial network consists of more than 500 stations, travel centres, cardlock operations and bulk distribution facilities from British Columbia to New Brunswick. The myHusky Rewards loyalty program has about 1.6 million members.

Husky Energy will undertake a strategic review and will potentially sell its Canadian retail and commercial fuels business and its Prince George Refinery.

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Seeq announces availability of R21 with new scorecard and FFT analytics

Seeq now supports Fast Fourier Transform (FFT) and expanded reporting capabilities in latest release, increases headcount to support larger and worldwide customer deployments.

Seeq Corporation announces the availability of their latest release, R21, an advanced analytics solution for process manufacturing customers. Seeq enables engineers and scientists in process manufacturing organizations to rapidly analyze, predict, collaborate, and share insights to improve production outcomes. Customers include companies in  oil & gas, chemical, energy, mining and other process industries.

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Pipelines

Demand to drive Canadian oil prices higher in 2019: Deloitte

Deloitte notes that Canadian oil prices should also strengthen in 2019 because of improved export capacity as a result of the Alberta government's plan to purchase additional rail cars to transport crude oil and the expanded capacity of Enbridge's Line 3 pipeline, which transports a variety of Canadian crude oil to the United States.

Prices for Canadian heavy and light oil should improve somewhat in 2019 because of increased demand from refineries in the United States, improving transportation capacity and mandatory productions cuts in Alberta, according to Deloitte's Resource Evaluation and Advisory (REA) group. In its latest report, Deloitte says these factors should begin to reduce the current oversupply of Canadian oil and help narrow the larger-than-usual differentials with WTI prices that were present in the final quarter of 2018.

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Sphera acquires Petrotechnics to enhance end-to-end operational risk solution

Petrotechnics is based in Aberdeen, Scotland. Established in 1989, Petrotechnics has helped keep people safe in hazardous industries, such as Oil & Gas, Chemical and Rail, among others.

Sphera, a global provider of Integrated Risk Management software and information services with a focus on Operational Risk, Environmental Health & Safety and Product Stewardship, has announced the acquisition of Petrotechnics, a leading global provider of operational risk software for hazardous industries.

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Instrumentation, Systems & Automation
Power Systems

Electro Static Technology appoints Mathew Laufik as global sales manager

Electro Static Technology appoints Mathew Laufik as global sales manager

Electro Static Technology, the manufacturer of AEGIS Shaft Grounding Rings, and specialist in low- to medium-voltage motor protection technology, has appointed Matthew Laufik as Global Sales Manager.  In this new role, Mr. Laufik will be responsible for the sales of AEGIS products to motor repair shops, motor manufacturers and end users in a range of processing industries worldwide through the company's international sales organizations and distribution network.  He will also manage all sales, marketing, and customer service personnel.

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