WINTER 2011

2012 DRILLING ACTIVITY FORECAST INDUSTRY INSIGHTS NEGOTIATING REDUCED LIABILITY

GIVING AND
Charitable donations and other initiatives help shine a positive light on the services sector and help organizations like STARS position themselves for success

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WINTER 2011

CONTENTS
4 6 7 18 20 22

Departments
MESSAGE FROM THE CHAIR 2012 DRILLING ACTIVITY FORECAST IN THE FIELD
News and notes from the industry

BUSINESS MATTERS
A good master service agreement can help prevent costly problems

PSAC IN ACTION
Advocacy and outreach initiatives from PSAC spread far and wide

COMMUNITY MATTERS
KUDU Industries Inc. pumps up community effort when it matters most

Features
Being involved in the community and supporting various charitable initiatives provides companies with advantages in the marketplace

13

INDUSTRY INSIGHTS
Thoughts from Albertas new Premier as the services sector looks to 2012

COVER

THE ART OF GIVING

13 22 20

18
WWW.PSAC.CA

MESSAGE FROM THE CHAIR

Building on a Successful History

that I write to you as the 2011-2012 Chair of the Petroleum Services Association of Canada (PSAC). As PSAC celebrates its 30th year and Canadas oil and gas industry is abuzz with activity, I am certain the year ahead will be both exciting and demanding. The 2011-12 board of directors represents the diversity of the upstream petroleum services sector and is stacked with tremendous expertise that will help guide PSAC forward into the next 30 years. PSAC is confident the coming year will be a period of growth for the organization, our members and our industry. The plans in place are measurable and responsible, and will be used to ensure PSAC continues to focus on the challenges confronting our members and industry. This year, PSAC has welcomed new talent to its ranks which will further strengthen the capacity of the team to deliver against expectations that tend to increase in times of growth and change. We will continue to work hard to maintain the high quality results that 30 years of standard setting performance have provided to our member companies and their employees. Mike Edmonds, psac Board chair The services sector has always been counted on to support our communities by donating time, effort and, of course, money. Giving back is a value I believe strongly in and I want to thank each person who has taken the time and made the effort to contribute to the many technical, educational and charitable endeavours that PSAC leads. These include initiatives like PSACs standing and sectorial committees, the PSAC Education Fund, and of course, the annual STARS and Spurs Gala presented by PSAC, which has contributed more than $4.6 million to STARS during the past 17 years. The importance of these efforts has not diminished and I want to thank all PSAC members for continuing to support them so generously. We are encouraging a fresh perspective on all PSAC initiatives to find new ways to deliver what members demand and what our industry expects. For example, new long-term communications programs are being developed, while at the same time we are working to address pressing issues like the current labour challenges. PSAC requires agility and steadiness to cushion any bumps in the road, and that requires a balanced approach to operations and long-range planning. While Canadas oil and gas industry showed an unparalleled resilience to the economic downturn that continues to shackle other industries and world economies, we cannot dismiss the murmurs of a recession 2.0, and as you would expect, PSAC will continue to operate in a financially prudent manner. Today, we collectively find ourselves with the world spotlight shining brightly on Canada and the story to be told is a positive one for the services sector. Over the coming year, we will work to help promote PSAC member companies since improvements in the productivity and environmental performance of the industry are directly tied to the innovation that is happening in the services sector. The year ahead will also focus on enhancing communications to increase the profile of PSAC and its members with our industry peers, government and the public. We consider this to be so important that it has been articulated into a new organizational value for PSAC. While in many ways PSACs 30-year track record has achieved our vision of being the recognized voice of Canadas upstream petroleum services sector, there is still work to be done to strengthen relationships with members and all key stakeholders. Our members voice, which is PSACs voice, can always be louder, stronger and more unified. Thank you for 30 years of tremendous support, we are eager to begin charting the next 30 years ahead! Sincerely,

T Is WITH gREaT plEasuRE

Mike Edmonds PSAC Board Chair

4 WINTER 2011

pETROlEuM sERvIcEs NEWs

This is what we do.

WINTER 2011 VOL 11 No.3

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 over 250 member companies, employing more than 58,000 people and contracting almost exclusively to oil and gas exploration and production companies. PSAC member companies represent over 80 per cent of the business volume generated in the petroleum services industry. PETROLEUM SERVICES ASSOCIATION OF CANADA 1150 800 6TH AVENUE SW CALGARY, AB T2P 3G3 TEL: 403.264.4195 FAX: 403.263.7174 PRESIDENT AND CEO: MARK SALKELD DIRECTOR OF COMMUNICATIONS: KELLY MORRISON COMMUNICATIONS COORDINATOR: LINDA ALDRIDGE

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WWW.PSAC.CA

2012 DRILLING ACTIVITY FORECAST

Looking Well for the Oilpatch

PSAC FORECASTS INCREASED DRILLING ACTIVITY IN 2012
Association of Canada (PSAC) 2012 Canadian Drilling Activity Forecast predicts a total of 15,100 wells drilled (rig released) across Canada for 2012. This is 10 per cent more than the expected nal tally of 13,700 for 2011. Drilling activity levels are increasing, says Mark Salkeld, president and CEO of PSAC. Generally, activity continues to increase across all major activity areas and we are optimistic that activity is going to continue to rise in the years ahead. GRAPH PSAC is basing its 2012 Forecast on averageDrilling Activitygas prices ofwells) natural Forecast (number of Hed: 2011 CDN$3.50/mcf (AECO) and crude oil prices of US$85.00 barrel (WTI). British Columbia: 554 We all know that oil and gas activity isAlberta: 8,732 3,043 on price, Salkeld predicated Saskatchewan: Manitoba: 587 says. In 2012, oil prices will be adequate to sustain oil drilling related Total in Canada: 12,950 activity. As a result, we are forecasting an increase in drilling for oil in regions like central and southern Saskatchewan and northeast Alberta. Gas pricing, on the other hand, remains relatively low and we are not expecting any signicant gas price turnaround in 2012. Thus we are Alberta: 8,390 expecting to see 80 per cent of wells drilled in the basin be oil and liquids British Columbia: 700 Saskatchewan: 3,075 rich gas wells. This compares to an expected 74Manitoba: 550 of drilled wells per cent Canadian Total: 12,750 being focused on oil in 2011.

HE PETROLEUM SERVICES

We were being conservative in our forecast for 2012 because of restrained capacity due to labour and equipment shortages, Salkeld adds. Now more than ever, industry and government have got to come together to address the pressing issues constraining productivity and the labour issue is not going away.

ALBERTA: 9,255

SASKATCHEWAN: 4,650

BRITISH COLUMBIA: 640

MANITOBA: 525 TOTAL IN CANADA: 15,100

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The PSAC Team is Growing

the Petroleum Services Association of Canada (PSAC) as the new Executive Assistant. Doug will provide day-to-day administrative support and office management to the Association. Doug comes to PSAC from the financial services industry after 15 years, where he was responsible for office management and network support. Linda Aldridge also recently joined PSAC as the new Communications Coordinator. Linda has several years experience in marketing and communications, supporting major events and campaigns. Her primary responsibilities include developing marketing and communications materials supporting events, and stakeholder relations with a focus on member relations.

in The field

News, events and activities in the industry

Doug JourneAy JoinS

PSAC Members Helping to Build Vibrant Communities

banded together to raise $50,000 in support of the rebuild effort underway in Slave Lake and surrounding communities. The funds were generously matched with a corporate grant from CCSs community investment fund. The money raised will be used to help complete the construction of Slave Lakes new hockey arena, as funding for the project had been redirected in the immediate aftermath of the fires that ravaged the town in May. Stimsol Canada Inc. Summit Liability Solutions Inc. Warrior Manufacturing Services Ltd. Wrangler Rentals Ltd. Associate Members DCO Risk Deloitte FPI Marketing Grant Thornton LLP Patching Associates Acoustical Engineering Ltd. Vada Capital

The emPloyeeS of CCS CorPorATion

COMinG eVenTS
STARS & Spurs Gala presented by PSAC January 21, 2012 BMO Centre, Stampede Park , Calgary, Alberta PSAC 2012 Spring Conference April 17 & 18, 2012 Capri Hotel & Convention Centre Red Deer, Alberta

PSAC Mid-Year luncheon April 2012 Calgary, Alberta For more information on all PSAC events, visit www.psac.ca/events

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KEEPS ON

COMMUNITIES BENEFIT FROM THE SUPPORT OF CANADAS SERVICES SECTOR AND MORE CORPORATIONS ARE FINDING THOSE CHARITABLE ACTS HELP SUPPORT THEIR BUSINESS
non-prot, charitable organization, STARS has been providing helicopter emergency medical transport for more than 25 years. Since its rst mission in 1985, STARS has carried out over 21,000 missions and now provides coverage to 94 per cent of Albertas population. After 26 years of service in Alberta, STARS is broadening its horizons to offer services in Saskatchewan and Alberta. A new base in Regina is expected to open in April 2012, followed by Saskatoon in the late fall of 2012. STARS is also currently on a contract extension with the Manitoba government stemming from the ood response in the spring and is working with the government toward a long-term agreement.
Over the next few years, STARS plans to add two new AugustaWestland 139 (AW139) helicopters to its eet in Alberta. The new helicopters y faster and further than the organizations current helicopters and have the

Gift Giving
THE THAT

space to care for two patients at a time. Each new AW139 helicopter has a $15 million price tag attached to it, this includes the highly specialized medical interior required to provide critical care to patients. As there are also signicant costs associated with mission operations, fundraising is an essential activity of the organization. We have a need for both operational and capital funding, says Dr. Greg Powell, founder and CEO of STARS. Corporate support, particularly from the oil and gas industry, has been important for both, and has signicantly funded the capital portion which is mainly our helicopters. Providing emergency medical services in remote areas has earned STARS the support of the Petroleum Services Association of Canada (PSAC). Many worksites in the oil and gas industry are in remote areas and not easily accessible by road or hours away from local emergency personnel. STARS has become an important safety net for the services sector.

WWW.PSAC.CA

MARK MENNIE

DROP-IN CENTRE: Newalta employees are always cooking up ways to support the community.

PSAC and STARS put together their rst fundraising event in support of STARS 18 years ago. During the ensuing years, the annual STARS & Spurs Gala presented by PSAC has become the most attended fundraising event in STARSs history, averaging about 1,000 people each year and raising $4.6 million during the nearly two decades of collaboration between the two organizations. As a result of the ongoing support, a decal of PSACs logo is emblazoned on the side of the STARS helicopters, alongside other substantial donors. STARS also supports donors by visiting communities to participate in company safety exercises. While PSAC supports STARS because of the important emergency medical services it provides, being able to promote the collaboration and getting recognized for the support is important for PSAC and its member companies. We are privileged to partner with community-minded organizations like PSAC and its members who are committed to the health and well-being of their employees and the communities where they operate, Powell says. With more than 2,000 employees in about 80 communities across Canada and the U.S., Newalta has to balance the personal and family priorities of a lot of people. The Calgary-based waste management and recovery business focuses much of their community initiatives on wellness and education. All of it is about building a better world and building a better future, says Terry Donaleshen, Senior Vice President of Organization Development with Newalta. From there it depends on charities and areas of need. Whether its local, national or international, Newalta has broken down its corporate social responsibility initiatives into four key areas: supporting the United Way and UNICEF, community health and well-being, environment and recreation, and arts and culture. We want to be respectable citizens and a respectable

company in the community, says Donaleshen. It helps create a healthy community employees are proud of and want to live in; and it makes us viewed as a good company to have in the community. For many years, Newalta kept these initiatives to themselves. Then, two years ago the company began documenting all their community initiatives as part of their Sustainability Report. We had quietly done our thing without a lot of fanfare, Donaleshen says. Our take was to begin talking about it as one of our core values. This is a way to communicate, reinforce and support what we do for our shareholders, employees, regulators and clients. Its about getting the Newalta story into the marketplace. The written report provides stakeholders with a statement of accountability and is a good resource to understand what the company is doing in different markets. The Sustainability Report has also played a role in helping Newalta expand its investor base. It has allowed us to be included in green or environmental funds, which is important in Europe, Donaleshen says. As well as allowing Newalta to attract investment, community involvement allows the company to engage with the residents who live where the company operates and Donaleshen says, When reaching out to communities we can talk about our business, our plans and why were a different kind of company. Companies that embrace community investment and develop employee giving programs develop a long-term competitive advantage in attracting talent these programs strengthen brand positioning and provide additional value, which are a big factor in retention of employees. In 2008, PwC Global polled more than 4,000 university graduates from 40 different countries as part of PwCs Millenials at Work Survey. The results showed 88 per cent of respondents would choose an employer with corporate social responsibility values that reected their own. Alternatively, 86 per cent of respondents said they would consider leaving an employer whose corporate social responsibility values didnt match their own. The reality is that in a few short years, this generation will form the bulk of the workers and available labour pool. Cheryl Knight, Executive Director of the Petroleum Human Resources Council of Canada, says that as the industry continues to be involved in more small communities, corporate social responsibility has become a signicant business driver. Employees make choices about what companies and communities they join based on personal and family values, Knight says. Employers just simply need to broaden their approach and look at it as a more holistic way to attract people. Employees are more than the person coming to work. They have personal and family interests, and employers need to engage all of those things. Deciding to become involved in the community is the rst step, but a company also needs to gure out how to focus their efforts. Knight says many companies survey their employees to get a feel for how they would like to participate in the community, but some common initiatives are: sponsoring sports teams, athletic programs or recreation facilities; initiatives helping families; cultural organizations; and charitable organizations that provide funding for different initiatives. But Knight says companies do need to be careful not to force their values or participation onto employees. The more employees can make choices, the happier they are, she says. You have to be careful not to steer too much towards company choices. You have to respect that people have personal and family priorities.

JAQUELINE BEAN

10 WINTER 2011

PETROLEUM SERVICES NEWS

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THE 2011 ANNUAL GENERAL MEETING OF THE PETROLEUM SERVICES ASSOCIATION OF CANADA SERVED AS AN OCCASION TO CELEBRATE THE PAST AND SET THE COURSE FOR FUTURE ACCOMPLISHMENTS
HE 2011 AGM

CELEBRATING 30 YEARS

marked PSACs 30th year with many accomplishments to celebrate over its three decades representing the interests of the petroleum services sector. Highlights included the introduction of incoming Chair for 2011-2012, Mike Edmonds, and the presentation of Distinguished Service Awards and Long-standing Member Awards to more than 80 individuals and companies for their enthusiastic commitment and participation in PSAC initiatives. Outgoing Chair, Brian Coston, discussed the many outstanding accomplishments PSAC achieved during his tenure and members reviewed nancial statements and elected new PSAC board members. 2012 CANADIAN DRILLING ACTIVITY FORECAST AND INDUSTRY OUTLOOK Industry experts presented PSACs 2012 Canadian Drilling Activity Forecast to a full house at the TELUS Convention Centre on November 3, 2011. PSAC President Mark Salkeld notes, Our forecast is positive but conservative because of restrained capacity due to labour and equipment shortages. See page 6 for more details. INDUSTRY INSIGHTS DINNER Premier Alison Redford and industry leaders marked PSACs 30th anniversary at its annual Industry Insights Dinner Moving Towards New Horizons. With many accomplishments achieved over PSACs three decades and with the release of an optimistic 2012 Drilling Activity Forecast, there was much to be celebrated at this years event. Premier Redford honoured the industry in her address and touched upon the importance of the petroleum services sector to the Albertan and Canadian economies. I am committed to work in partnership with industry, commented Premier Redford. Alberta has much to be proud of, and that message needs to be heard. Redford says. The Premier also noted that the Government of Alberta has made it a priority to work with the petroleum services industry to tackle issues related to competitiveness, productivity and labour. We are pleased that the Premier has committed to working together with PSAC and the industry as a whole, says Mark Salkeld, president of PSAC. As Canada moves towards mapping a national energy strategy, it will be imperative that government and industry work alongside one another. We

DRILLING FORECAST: PSAC estimates a total of 15,100 wells drilled (rig released) across Canada in 2012.

feel strongly about the leadership role that the Province of Alberta will take in that dialogue, and we look forward to seeing what changes the new Premier will usher in supporting the leadership position of the province. Highlights of the evening included the introduction of PSACs new Board of Directors, including Board Chair Mike Edmonds, President of Import Tools Corp. Ltd. It is an honour to be taking on the position as Board Chair for PSAC this year, explains Edmonds. In 30 years, PSAC has accomplished a great deal and I strongly support the organization and the value it delivers to its members.

AARON PARKER

WWW.PSAC.CA

13

Another highlight included the presentation of the PSAC Chairmans Award to Ray Frehlick, President of Prairie Mud Services. A long-time PSAC supporter, Ray has actively promoted PSAC in Saskatchewan giving PSAC the opportunity to connect with current and prospective members. Keynote speaker Robert Johnston, director of the Global Energy and Natural Resources Practice at Eurasia Group, highlighted some of the emerging global trends and risks, including an outlook for the Keystone XL pipeline approval process and the impact of unconventional gas drilling on global markets. The story of unconventional gas is not just a Canadian story, but a global one which was created by the expertise and leadership here in this room, explains Johnston. To read more about PSACs year in review, please access the 2011 Annual Report at www.psac.ca. Not yet a PSAC Member? Join today by visiting www.psac.ca.

Outgoing Chair Brian Coston presents the PSAC Chairmans Award to Ray Frehlick, President of Prairie Mud Services.

Robert Johnston, Director of Global Energy and Natural Resources Practice at Eurasia Group

Premier Alison Redford

DISTINGUISHED SERVICE AWARD RECIPIENTS Gail Purdy, NOV - Distribution Services Group Brian Coston, Canamara United Supply Rhys Renouf, KPMG LLP Lucas Mezzano, DYNAenergetics Canada Inc. Fred Farmer, Halliburton Group Canada Lee Emond, Import Tool Corp. Ltd. Clyde Bonnell, National Oilwell Varco - Distribution Services Ron Logan, Strike Energy Services Inc. David McHattie, Tenaris Global Services (Canada) Inc. Travis Strube, Topco Oilsite Products Ltd. Brian Farmer, Trojan Safety Services Garry Lane, retired Renee Vanderwolf, National Oilwell Varco - Varco Canada Ltd. Kevin Crumly, Trican Well Services Ltd. Ross Whelan, High Arctic Energy Services

PSAC THANKS OUR SPONSORS FOR THEIR GENEROUS AND ENTHUSIASTIC SUPPORT OF OUR EVENTS:
Canadian Drilling Activity Forecast Session Sponsor: Industry Sponsor:

Industry Insights Dinner Co-Sponsors:

14 WINTER 2011

PETROLEUM SERVICES NEWS

PHOTOS: AARON PARKER

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PSAC 2011 LONG-STANDING MEMBERS

5 YEARS Recon Petrotechnologies Ltd. Calmena Energy Services Inc. Redline Well Control Inc. Cathedral Energy Services Ltd. Select Energy Systems Inc. CIMARRON Engineering Ltd. Silverline Oil Tools (668961 Dresser-Rand Canada Inc. AB Ltd.) Enersul Inc. Tesla Exploration Ltd. Essential Energy Services Ltd. Trojan Safety Services Lorick Corrosion Inc. Welltec Canada Inc. Premier Integrated Withers LP Technologies Ltd. PROMORE, a Division of Core Laboratories Canada Ltd. 10 YEARS Prodrill Fluids Technologies BJ Tool Services Ltd. C-Tech Oilwell Technologies Inc. Pulse Seismic Inc. Grant Production Testing Pure Energy Services Ltd. Services Ltd. Savanna Drilling Innicor Perforating Systems Savanna Energy Services Inc. Corp. Ketek Group Inc. Savanna Well Servicing Premay Equipment LP TestAlta 15 YEARS MRC Mideld 6607063 Canada Inc./ Nabors Canada Winalta Transport Peak Energy Services Trust Cameron Canada Corporation Ryan Energy Technologies CCS Corporation XL Perforating Partnership Katch Kan Limited Kudu Industries Inc. 20 YEARS Hollimex Products (Division of Diversity Technologies Corp.) Swanberg Bros. Trucking L.P. Tucker Wireline Services Canada Inc. 25 YEARS Trican Well Service Ltd. 30 YEARS National Oilwell Varco Argus Machine Co. Ltd. Distribution Services Group BJ Services Company Canada Newpark Canada Inc. Canamara United Supply Pajak Engineering Ltd. (Division of Diversity Rig Service Tools Ltd. Technologies Corp.) Schlumberger Canada Limited CE Franklin Ltd. Shaw Pipe Protection Limited, Guardian, A ShawCor Company A ShawCor Company Halliburton Group Canada Topco Oilsite Products Ltd. Import Tool Corp. Ltd. Weatherford Canada M-I SWACO, A Schlumberger Partnership Company

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BUSINESS MATTERS

Risky Business
ADVICE TO KEEP YOU FROM CRUMBLING UNDER THE WEIGHT OF ONE-SIDED MASTER SERVICE AGREEMENTS
BY ERIC ASTLEY

between oil patch operators and petroleum services providers, master service agreements (MSAs) can present signicant risks to providers. Brian Davison, Partner with Calgary law rm Davison Worden Mather LLP, points out that signing an MSA can mean betting the farm or perhaps, the drilling rig. MSAs are put together by oil companies on terms and conditions they want, and theyre very one-sided, says Davison, who authored an MSA document for the Petroleum Services Association of Canada (PSAC). MSAs put forward by operators can contain clauses that place potentially ruinous responsibility on service providers for things like environmental cleanup and various kinds of negligence. Our service companies are chasing work, and theyre afraid that if they dont agree to what the operator wants then theyre never, ever going to work again, says Davison. The reality is that if they accept a one-sided master service agreement and something goes wrong, theyre never, ever going to work again anyway, because theyre going to be bankrupt. Strategizing and negotiating MSAs is even more of a pressing issue as, according to Davison, unbalanced agreements are on the rise in the petroleum services industry. The biggest problem I have is the shifting contract landscape, he says. What we are seeing now is a shift or resurgence by the operators to push liability for things that should remain on their plate over to the service providers. The status of the labour market can colour negotiations with operators. Shortages of skilled labour favour service providers, while surpluses favour operators. The playing eld, whether it ips to the operator side or to the contractor side, is all governed by the state of the industry, Davison says. He estimates the market is roughly balanced at present, but expresses hope a busy winter will create better conditions for service providers. Of course, if the global economy continues to wobble in such alarming fashion, it might depress overall demand for oil, strengthening the side of operators in MSA agreements. Things look really good in Alberta, says Davison, but they dont look very good in the rest of the country. To help maintain the balance, Davison offers some advice. A LITTLE INSURANCE Investigate insuring the risks mentioned in the agreement. All of these risks that our people are being asked to assume, youve got to nd out whether or not you can get insurance for those, Davison says. See if the risks that theyre asking you to assume can be covered by your insurance, and if so, what the cost is. THE RIGHT LEVEL It is important to assess the risks themselves to determine their potential penalties. If its high-risk work fraught with responsibility or

N THE GRAND OLD DANCE

unknowns, why should we accept those risks? asks Davison. If its low-risk, maybe youre prepared to accept those responsibilities. A SHARED MODEL One way to work towards an equitable distribution of risk in an MSA is a knock for knock provision. Some of the risks youre being asked to assume, it would be fair that the operator also assumes those, explains Davison. This can involve each party listing the other on their respective insurance policies. WALK THE WALK Service providers should keep in mind that breaking off negotiations is always an option if theyre uncomfortable with the risks involved in an MSA. Consider if youre prepared to bet the farm or bet your kids college education on doing the work, Davison says. This strategy does run the risk of burning bridges, alienating operators and eliminating future work, but according to Davison, if an operator isnt willing to negotiate it will likely be to their disadvantage in the long-term. To say, Its our way or you never work for us, is probably not a very mature attitude, Davison says. Its not something thats going to stand them in good stead for very long. LAWYER UP Finally, the single best tip, according to Davison, is to run any prospective MSA by the assiduous eyeballs of some trusted legal counsel. The old adage is when you get these MSAs, run them past your friendly lawyer and get some advice, he says. I remember the Fram Oil commercials when I was a kid that said, You can pay me now, or pay me later. That adage rings true when youre dealing with master service agreements.

18 WINTER 2011

PETROLEUM SERVICES NEWS

Trusted Advisers to Canadas Energy Services Sector

Michael McKerracher National Energy Leader (403) 691 8056 mmckerracher@kpmg.ca

Rhys Renouf National Leader, Energy Services (403) 691 8426 rrenouf@kpmg.ca

Dan Adams KPMG Enterprise Leader, Calgary (403) 691 8035 dbadams@kpmg.ca

kpmg.ca
WWW.PSAC.CA
2011 KPMG LLP a Canadian limited liability partnership and a member firm of the KPMG network of independent , member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

19

PSAC IN ACTION
THE PETROLEUM SERVICES ASSOCIATION OF CANADA CONTINUES TO KEEP THE SERVICES SECTOR FRONT AND CENTRE THROUGH ADVOCACY AND OUTREACH
PSAC MEETS WITH NEW FEDERAL MINISTER OF NATURAL RESOURCES CANADA PSAC met with federal Minister of Natural Resources Joe Oliver to present the ndings from the PSAC commissioned CERI and Mission Capital studies showing the economic contributions of the upstream petroleum industry. The meeting provided the opportunity for PSAC to provide Minister Oliver with critical information for understanding the size and diversity of the services sector, and the current issues creating challenges for PSAC members. PSAC also met with Tim Norris who is the Director of Policy in the Ministers ofce. PSAC MEETS WITH MINISTER OF INTERNATIONAL TRADE AND ASIA-PACIFIC GATEWAY PSAC staff and CEOs from several Canadian oil and gas service and manufacturing companies were invited to a closed roundtable meeting with Ed Fast, Canadas Minister of International Trade and Minister for the Asia-Pacic Gateway, to discuss current challenges, issues and opportunities for Canadian rms to expand and compete in foreign markets. Follow-up meetings will be organized to further the discussions around issues impacting PSAC member companies and to continue developing resources to help companies access key foreign markets. PSAC PARTICIPATES IN THE DEVELOPMENT OF AN ALBERTA NATURAL GAS STRATEGY In July and August, PSAC participated in workshops regarding a future Alberta Natural Gas Strategy. The workshops were hosted by the Government of Alberta and attended by a broad-based group of industry representatives. The government will be compiling an initial report that will take account of the issues facing the industry and recommendations to deal with key issues that were discussed at the workshops. An ofcial report of the ndings from the roundtable discussions will be provided to the general public. PSAC MEETS WITH MINISTER SNELGROVE ABOUT THE ELIMINATION OF TEFU/PROP PSAC, together with two PSAC member companies and representatives of the Canadian Association of Oilwell Drilling Contractors(CAODC), met with Lloyd Snelgrove, the then Alberta Minister of Finance and Enterprise regarding the elimination of TEFU/PROP rebates in the Alberta governments 2011 spring Budget. PSAC ATTENDS ROUNDTABLE WITH FEDERAL MINISTER GOODYEAR PSAC attended a roundtable discussion with Gary Goodyear, Minister of State (Science and Technology), Industry Canada. PSAC provided an overview of the petroleum services sector and highlighted the research and development (R&D) being done by PSAC members. In addition, the group discussed ways of increasing the levels of R&D in Canada and how to improve access to current incentive and funding programs for R&D. PSAC MEETS WITH FEDERAL MINISTERS TO DISCUSS THE EMERGING LABOUR CRISIS FACING INDUSTRY PSAC met with federal Minister of Citizenship, Immigration and Multiculturalism Jason Kenney and federal Minister of Public Works Rona Ambrose to discuss Canadas services sector and key issues related to labour and immigration. Another meeting between industry associations, Minister Kenney and federal Minister of Human Resources and Skills Development Diane Finley took place in October to further discuss policy alternatives and other solutions for the increasing shortage of skilled labour. PRE-DRILLING SEASON MEETING Approximately 40 member company representatives attended PSACs 12th annual Pre-Drilling Season Meeting in Fort St. John, B.C. this fall. Presentations were made by WorkSafeBC, the local RCMP detachment, Commercial Vehicle Safety and Enforcement and the B.C. Safety Authority. PSAC LAUNCHES PRESIDENTS ROUNDTABLE SERIES The rst PSAC Presidents Roundtable took place in Ft. St. John, B.C. in September. Hosted by Mark Salkeld, president and CEO of PSAC, member company representatives joined Mark for an open discussion about PSACs advocacy efforts. Roundtable events are being organized throughout 2011-2012 in communities across B.C., Alberta and Saskatchewan. ALBERTA IS ENERGY PRESENTATION IN DRAYTON VALLEY In order to support the Alberta is Energy initiative, PSAC President Mark Salkeld made a presentation to the Drayton Valley Chamber of Commerce. Facts about Canadas energy industry were discussed in order to further residents knowledge of the positive impacts of the industry. Read more about Alberta is Energy and the important contributions the oil and gas industry makes in the lives of Albertans at www.albertaisenergy.ca.

Elizabeth Aquin, Senior Vice President of PSAC and federal Minister of International Trade Ed Fast.

20 WINTER 2011

PETROLEUM SERVICES NEWS

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21

COMMUNITY MATTERS
Kudu CEO Ray Mills travelled to Slave Lake to present employees with money raised by the rest of the company. From left are Jesse Potvin, Josh Boissonneault, Joel Blanchette, Ray Mills and Darin Busk. Another Kudu Slave Lake service centre employee, Joseph Mentzelopoulos, is missing from the picture.

KUDOS FOR

S
22 WINTER 2011

CALGARY-BASED SERVICES COMPANY STEPS UP FOR A SMALL TOWN AND EMPLOYEES IN NEED

KUDU
BY MICHELLE LINDSTROM
donations dollar for dollar. The total came just shy of $27,000. For the size of the company that we are, it was a very generous donation by everyone, says Damnjanovic. Approximately ve weeks after the wildres, Kudus CEO Ray Mills presented the money raised to the ve Slave Lake service centre employees in their hometown. Thirdly, Kudus Slave Lake employees were told not to worry about their paycheques. Many of them are paid hourly and therefore, time missed at work directly affects their income. They were told, Right now just focus on that youre in a safe place and get some information so you know whats going on, Damnjanovic says. To take one thing off their minds, it was a small thing that we could do. And its the small things, especially in times of need, that count. Damnjanovic says, It was just a combination of all those little things that encouraged people and kept people positive at a time when things were quite bad.

LAVE LAKES MID-MAY WILDFIRE was

an unexpected disaster, but the tragedy brought people and organizations together to support the northern Alberta towns 7,000 residents. Kudu Industries Inc., a progressing cavity pump manufacturer, was one of those supportive organizations that raised money and community spirit, while helping their five Slave Lake-based employees. Kudu undertook three initiatives. The rst was to donate $5,000 to the Red Cross immediately after news spread of the res. They urged other companies to donate as well. Alex Damnjanovic, Kudus COO, says the companys thinking was, Lets challenge our peers and create a bit of a contest out of this. Secondly, Kudu created a donation bucket in its Calgary ofce. Employees dropped whatever they could in the bucket for roughly a month and then the company matched the

PETROLEUM SERVICES NEWS

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