202 Members
As of March 16, 2005

Acres Parsons E&C Ltd.

Advanced Geotechnology Inc.

Advanced Measurements Inc. – Oil and Gas Division

AGAT Laboratories Ltd – Hydrocarbon Division

Air & Gas Compression Systems Ltd.

Air Liquide Canada Inc.

Alfa Laval – Process Technology Oilfield Market Unit

Alpine Environmental Ltd.

ALS Environmental

AMEC Earth & Environmental

Amtech Aeronautical Limited

APA Petroleum Engineering Inc.

Aqua-Pure Ventures

Arkril Enterprises

Ashton Jenkins Mann Petroleum Consultants

Bekaert CEB Technologies Canada Ltd.

Beyond Compliance Inc.

Boreal Laser Inc.

Brenntag Stinnes Logistics

Brine-Add Fluids Ltd.

Burnet, Duckworth & Palmer – Energy Business Unit

Canada Tech Corp

Canadian Fertilizers Limited

Canitron Systems Inc.

Cantox Environmental Inc.

CDK Services Ltd.

Champion Technologies Ltd.

Chinook Engineering

Clearstone Engineering Ltd.

Computer Modelling Group Ltd.

Corac Group plc

Corion Diamond Products

Crimtech Services Ltd.
Critical Control

Custom Environmental Services Ltd.

Daily Oil Bulletin

Deep Blue Associates Inc.

Deloitte – Research and Development, Tax

DHV Canada Inc.

Digital Oilfield Inc.

Earth Canada Corporation

EBA Engineering Consultants Ltd. – Research Department

electroBusiness

ENEFEN Energy

Efficiency Engineering Ltd.

Enerflex Systems Ltd. – Mactronic

Energy Navigator Inc.

Enhanced Recovery Services Inc.

Envirodrive Inc.

Envirosoft Products Inc.

Envision Technologies Corp

Epic Consulting Services Ltd.

Ernst & Young Chartered Accountants LLP

Extreme Telematics Corp.

Ferus Gas Industries

Fleet Safety International Corp.

Fugitive Gas Emissions Ltd.

GartnerLee Ltd.

Gas Liquids Engineering Ltd.

G-Chem Environmental Ltd.

geoLOGIC systems Ltd.

GEOTrac International Inc.

GLR Solutions Ltd.

Gowling Lafleur Henderson LLP (Intellectual Property Development)

GRB Engineering Ltd.
IBM Canada Ltd.

Industrial Catalytic Technologies Inc.
Information Builders

Innovative Chemical Technolgies Canada Ltd.

ITW Tank and Well Servicing Ltd.

John Zink Canada

Katch Kan Limited

Kodiak Production Services

Komex International Ltd.

KPMG High Technology Practice Group

Kudu Industries

Macleod Dixon (Technology Enterprise Group)

Malibu Engineering and Software Ltd.

Matrix Solutions Inc.

Meridian Environmental Inc.

Millennium EMS Solutions Ltd.

Morrow Environmental Consultants Inc.

National Silicates – Drilling Fluids Group

New Paradigm Engineering Ltd.

New Paradigm Gas Processing Ltd.

Newalta

Newpark Environmental

Newsco Directional & Horizontal Drilling Service

Noetic Engineering Inc.

Norwest Corporation

Norwest Labs

Oasis Emission Consultants Inc.

Omnicon Consultants Inc.

OptiMax Energy Solutions Inc.

P.K. Services International

Pandell Technology Corporation

Pason Systems Inc.

Photon Control Inc.

Pildysh Technologies Inc.

Plains Marketing Canada, L.P.

Portfire Associates Inc.

Praxair Canada Inc.

Premier Production Solutions

PricewaterhouseCoopers LLP Technology (TICE) Practice

Prodont Inc.

Pro-EnviroCore Consulting Inc.

ProTechnics

Q’Max Solutions Inc.

Questor Technology Inc.

Quorum Business Solutions Inc.

Rapid Technology Corporation

Reaper Pumps Inc.

REM Technology Inc.

Rigs and Bits Associates Ltd.

Rigstar Communications Inc.

Rockwell Automation – Calgary Oil and Gas Branch

RTS Services Ltd

Ruud Enterprises Ltd.

SAIC Canada

Schlumberger of Canada

Scientific Drilling International (Canada) Inc.

Sierra Systems

Sirius Products Inc.

Stecher Proprietary Interests, LLC

Storm Cat Energy Corporation

Tansley Associates Environmental Sciences

TELUS Business Solutions, Energy Vertical

The CO2 Hub

The Moorhead Group LLC

T.L. Watson & Associates Inc.

Total Combustion Inc.

Trican Well Service Ltd.

Tundra Controls Ltd.

UNICO Inc.

Unotec – Unique Oilfield Technology Services

VaporTech Energy Services

VECO Canada Ltd. – Alliance Group

Vikor Energy Inc.

WellDog Inc.

Winterhawk Marketing Services Inc.

XAcT Downhole Telemetry Inc.

XERGY Processing Inc.

zed.i solutions – Marketing and Sales Department

5
Government

• Facilitated two key recommendations of the Spudding Innovation report: the Energy Innovation Network (EnergyINet) Increased Recovery of Oil and Gas Business Case Project and the Innovative Energy Technologies Program (IETP)
• Launched five projects through the Technology for Emission Reduction and Eco-Efficiency (TEREE) initiative
• Facilitated the launch of 23 R&D projects or new project phases
• Facilitated the world’s largest Unconventional Gas Conference hosted by the Canadian Society for Unconventional Gas (CSUG)

PTAC Petroleum Technology Alliance Canada is the leading organization facilitating innovation, collaborative research and technology development, demonstration and deployment for a responsible Western Canadian upstream hydrocarbon energy industry. In 2004, PTAC facilitated 23 projects, 18 Technology Information Sessions, seven Request for Proposals, six forums, two workshops and one conference. PTAC is frequently approached by members and others in the industry to facilitate initiatives and events.

PTAC brought government, industry and academia together to launch several projects and initiatives in 2004. One of the most significant projects launched in 2004 was the Energy Innovation Network (EnergyINet) Increased Recovery of Oil and Gas Business Case Project. This project valued at $899,000 was developed to provide a detailed business case for increasing recovery factors in reserves of oil and gas in the Western Canadian Sedimentary Basin (WCSB). Funded by the Alberta Energy Research Institute (AERI) and industry, the project will identify in which pools project participants could deploy both existing and new technology to significantly increase oil and gas production.
PTAC’s Technology for Emission Reduction and Eco-Efficiency (TEREE) initiative, that seeks to identify the top opportunity areas and technologies to reduce greenhouse gases (GHGs) and emissions, made great strides in 2004. TEREE has made significant progress toward creating a toolbox of best practice solutions. PTAC has launched several jointly-funded projects under the TEREE initiative.

In 2004, PTAC facilitated the world’s largest Unconventional Gas Conference and several successful forums. PTAC’s first Drilling Peaks, Valleys and Safety Technology, Energy Conservation and Air Emissions Case Studies and Energy and Oil and Water Efficiency in Mature Operations forums were held in 2004 along with PTAC’s second Shallow Gas Production Technology Forum. PTAC also held its third annual Air Issues Forum and fourth annual Soil and Groundwater and Wireless, Telecommunications and e-Business forums. Several committees, projects and initiatives have resulted from these and other events keeping PTAC busy throughout the year.

PTAC facilitated the launch of 23 projects or new project phases valued at $6.0M during 2004, bringing the total number of projects launched since inception in 1996 to 186 with a value of $113.5M.

PTAC’s large contact database continues to grow with the multitude of technical committees, projects, events and sessions facilitated. PTAC is pleased to assist the prosperous upstream oil and gas industry in achieving socially and environmentally responsible recovery of Western Canada’s hydrocarbon resources through effective, market-driven collaboration, innovation, research, development and technology deployment.

On behalf of the Board, we would like to express our appreciation to PTAC staff and volunteers for their outstanding contributions to our success.

Eric Lloyd President of PTAC BACK TO TOP	Mike Singleton Chairman of PTAC

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outlook
Outlook for 2005

One of the most significant projects PTAC brought government, industry and academia together to launch in 2004 was the Energy Innovation Network (EnergyINet) Increased Recovery of Oil and Gas Business Case Project. The project was developed to provide a detailed business case for increasing recovery factors in reserves of oil and gas in the Western Canadian Sedimentary Basin (WCSB). The project is largely funded by the Alberta Energy Research Institute (AERI) matching industry and other government dollars. The total project cost to develop the business case for Alberta, Saskatchewan and British Columbia is $899,000.

The Spudding Innovation report identified this business case project as an important initiative in its recommendations. This initiative was deemed necessary for industry to learn in which pools they could deploy both existing and new technology to significantly increase oil and gas production. The goal of the project is to realize increased recovery of five billion barrels of oil and 25 trillion cubic feet of natural gas by 2015, in Alberta alone, through new technology and research. Participants will gain access to templates, tools, and methodologies for evaluating the potential impact of existing and new technologies. The project includes all pool types for which there is publicly available data, including tight gas. Results on the Alberta portion are expected to be made available to participants in June 2005.

The Alberta Department of Energy (ADoE) will be using the results of this project as a key consideration in their funding decisions under the $200 million Innovative Energy Technologies Program (IETP). The ADoE presented its Innovative Energy Technologies Program to an attentive audience at a PTAC Technology Information Session (TIS) in October 2004. Citing the 2003 Spudding Innovation report’s assertion that if innovation were encouraged via programs like the IETP, the ADoE announced that Alberta’s recoverable reserves of conventional oil could be increased as much as 14% of original oil in place or some 8.7 billion barrels.

For more information on the EnergyINet Increased Recovery of Oil and Gas Business Case Project please go to www.ptac.org/techresp.html.

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PTAC Makes Significant Progress with TEREE Projects

With the Kyoto Protocol coming into effect February 2005, many companies are realizing that reducing greenhouse gases (GHGs) and emissions may indeed be more of an economic opportunity than a cost. PTAC’s Technology for Emission Reduction and Eco-Efficiency (TEREE) initiative takes a one-window approach toward identifying the top opportunity areas to reduce GHGs and emissions and reduce costs. TEREE provides a toolbox of best practice solutions and proven, cutting edge technologies to the oil and gas sector.

With significant funding from Western Economic Diversification Canada, TEREE has made excellent progress focusing on reducing GHGs and emissions using new and existing technologies. The TEREE Steering Committee, comprised of members from industry, government and non-government organizations, has formed two subcommittees, one to evaluate projects and the other to market the message that environmental technologies offer positive returns as well as help producers discern the wheat (best-practice technologies) from the chaff (all the environmental technologies marketed to them).

Several jointly-funded projects were launched in 2004. PTAC launched the Barriers to Deployment of Environmental Technologies Study to examine the barriers preventing the upstream oil and gas companies from adopting emission-reducing technologies. In addition, the Fire Tube Immersion Heater Optimization Project was undertaken to improve the efficiency of fire tube heaters used in oil and natural gas processing. Final reports from both projects are expected to be available to project participants in 2005. TEREE supported the Spectrasyne-Optical Measurement Technology and Summary of Emission Reduction Opportunity Areas in Upstream Oil and Gas Industry projects in 2004.

PTAC hosted the Energy Conservation and Air Emissions Case Studies Forum in the fall of 2004 and is planning to hold a similar event in 2005.

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PTAC offers a variety of services to its members and the upstream hydrocarbon energy industry. For more information on PTAC’s value please visit PTAC’s web site at www.ptac.org/memser1.html.

“The PTAC approach to facilitating collaboration for R&D and technology transfer has been extremely successful. Not only has it worked well for many technology areas, from IT to reservoir optimization, but also for all industry participants, from producers to service companies to R&D providers to government.”
Frank J. McIntyre, Husky Energy Inc.

“Since its establishment PTAC has done a marvelous job of identifying research and development projects needed to progress the energy industry in Alberta and Canada beyond its already strong capability. PTAC has been instrumental in facilitating interaction between industry groups and research providers.”
Dr. Thomas Harding, University of Calgary

“PTAC is a valued partner and industry contact. They are consistently able to bring together the knowledge and resources of industry, government and technology research to tackle tough issues in upstream oil and gas. The collaborative approach provides a win:win for all.”
Lynn Sveinson, Climate Change Central

facilitate

Ongoing R&D Projects

PTAC facilitated 23 Research and Development (R&D) projects or project phases in 2004. PTAC provides a neutral forum for industry to: identify opportunities, problems and potential solutions that require research or technology development, solicit proposals and launch projects. PTAC also ensures existing R&D is identified to raise industry awareness and minimize duplication. R&D proposals that meet the research or technology criteria are invited to present their proposal in a fair hearing of interested industry contacts. Please see www.ptac.org/projects1.html for a current list of projects.

network

Technology Information Sessions

PTAC facilitated 18 Technology Information Sessions attended by over 900 participants in 2004. PTAC facilitates Technology Information Sessions for members to: solicit interest, feedback, participation or potential funding for new R&D projects; find industry partners to complete proposed R&D or technology development (such as field test or pilot sites) or to report on field test or pilot results; provide information on technology-related services; and market new technology to the Canadian oil and gas industry. More information is available at www.ptac.org/tis1.html.

exchange

Forums, Workshops and Conferences

A total of over 1300 participants attended nine forums, workshops and conferences hosted by PTAC in 2004. This includes the Sixth Annual Unconventional Gas Conference hosted by CSUG and facilitated by PTAC.

PTAC forums focus on specific needs or technical areas. Information is shared on new technologies, case studies, and the objectives and results of current research.

PTAC conducts workshops to provide opportunities for participants to clearly define R&D issues, to identify potential solutions and to select the best approach to move forward. Potential suppliers of R&D have the opportunity to hear firsthand about issues and to contribute their expertise and ideas for solutions. PTAC hosts the workshops and provides the necessary facilitation, administrative support and coordination to launch projects. When identified, PTAC issues Request for Proposals (RFPs) and Expressions of Interest for each priority issue. Once those who will consider supporting the R&D have been identified, proposals are solicited from potential suppliers. PTAC brings together the interested organizations in a structured way that leads to new R&D, while protecting proprietary interests. Please see www.ptac.org/forums1.html and www.ptac.org/workshops1.html for more information.

inform

PTAC Knowledge Centre

The PTAC Knowledge Centre provides public access to non-proprietary technical information on commercially available upstream oil and gas related technologies. The collection focuses on resources to support the TEREE initiative that facilitates sustainable, eco-efficient, and GHG-reducing technologies.

In 2004, the Knowledge Centre acquired a subscription to access 13 core energy and premier technical databases. The Information Specialist offers support by providing literature searches and documents to technical steering committees, project performers, researchers and others, to help identify technologies and research needs, avoid duplicate research, monitor industry trends and prepare for meetings and make informed decisions.

Knowledge Centre services include literature searches, search alerts, contact information for subject experts in industry, government and academia, and information on local, national and international events.

PTAC members are invited to provide non-proprietary technical information, in hard copy or electronic format, to PTAC for display in the Knowledge Centre. Relevant materials are accepted on an ongoing basis.

identify

Surveys and Questionnaires

PTAC conducts surveys and questionnaires as requested by PTAC committees and members to seek industry feedback on various topics. PTAC received high response to the four surveys conducted in 2004.

PTAC conducted a survey to assess social, regulatory and other non-technical barriers associated with the deployment of environmental technologies in the oil and gas industry (oil sands and offshore excepted). The Barriers to Deployment of Environmental Technologies in the Upstream Oil and Gas Industry report is available at www.ptac.org/techeetteree.html. 

The Driving Safety Questionnaire created to identified top driving safety issues in the upstream oil and gas industry providing the PTAC Driving Safety Working Group sound direction and insight. The questionnaire proved valuable in developing the agenda for the Driving Safety Technology Forum to be held in April 2005. The results of the questionnaire can be found at www.ptac.org/techhass.html.

In support of NRCan’s Industrial Energy Audit Incentive initiative, PTAC issued a questionnaire to determine the level of support for energy audits and for energy conservation in the Western Canadian oil and gas industry. The results of the questionnaire are available at www.ptac.org/iei1.html.

The PTAC CSUG Research and Development Survey conducted during the Sixth Annual Unconventional Gas Conference sought to identify research interests and needs in unconventional gas. The survey results identified common issues and R&D needs as well as individuals interested in forming an unconventional gas research and development committee.

PTAC’s technical committees help to identify opportunities for research and technology development; raise awareness of existing R&D; find solutions including soliciting proposals and launching new projects; and inform appropriate industry people of new R&D proposals.

PTAC has 22 technical areas and requires participation from senior technical people to identify important issues that require technology transfer or R&D. To obtain more information please contact PTAC.

PTAC facilitates the following committees:

• Air Issues Research Planning Committee
• CO2 Enhanced Hydrocarbon Recovery (EHR) Steering Committee
• Drilling Innovators Advisory Group
• Driving Safety Working Group
• Ecological Research Planning Committee
• Natural Gas and Conventional Oil Recovery (NGCOR) Energy Innovation Network (EnergyINet) Advisory Group
  • EnergyINet Increased Recovery of Oil and Gas Business Case Working Group
• Soil Research Planning Committee
  • Salinity Working Group\
  • Weathered Hydrocarbon Project Committee
• Technology for Emission Reduction and Eco-Efficiency (TEREE) Steering Committee
  • TEREE Marketing Subcommittee
  • TEREE Project Evaluation Subcommittee
• Water Innovation Planning Committee

“The CO2 committee within PTAC has provided a valuable forum for companies producing, using or disposing, and transporting CO2 to discuss opportunities and challenges related to their respective areas of interest.“
Larry Frederick, Devon Canada Corporation

collaborate

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R&D Projects or New Project Phases Launched in 2004

PTAC facilitated the launch of 23 projects or new project phases valued at $6.0M during 2004.

Environment

• A Re-evaluation of the Toxicity of CCME Petroleum Hydrocarbon Fraction 3, and Interaction Effects Between Fractions
• Assessment of Phytoremediation as an In Situ Technique for Cleaning Oil Contaminated Sites Phases 1 and 2
• Biodiversity
• CCME Fraction 3 Gap Study
• Caroline Livestock Study
• Compost Amendment of Oil Field Waste to Remediate High Concentrations of Petroleum Hydrocarbons F3 and F4 Fractions
• Controlled Human Exposure Studies to H2S Investigation of Neurobehavioural Potential API
• Development of Drought Tolerant/Salt Tolerant Native Grass, Forb and Legume Ecotypes for use on Disturbed Land in the Prairies and Boreal Forest
• Flare Performance Research Initiative
• Foothills Model Forest Grizzly Bear Research Project
• Imaging the Fate and Transport of Salts with Time-lapse Resistivity
• Monitored Natural Attenuation
• Native Species for the Sandy Soils Disturbances of the Parkland Ecoregion
• Reclaimed Soil Quality Benchmark Study
• Recovery of Caribou Ranges in Alberta, Boreal and West Central
• Removing the Wellsite Footprint

Reservoir Recovery/Geoscience

• Energy Innovation Network (EnergyINet) Increased Recovery of Conventional Oil and Gas Business Case
• Enhanced Gas Recovery by Downhole Compression

Technology for Emission Reduction and Eco-Efficiency

• Barriers to Deployment of Environmental Technologies Study
• Fire Tube Immersion Heater Optimization Project
• Efficiency Enhancements with REM AFR Systems Case Study\
• Spectrasyne-Optical Measurement Technology Study
• Summary of Emission Reduction Opportunity Areas in Upstream Oil and Gas Industry Project

For further information, please refer to PTAC’s 2004 newsletters at www.ptac.org/ptalk1.html or to the project index on PTAC’s web site at www.ptac.org/projects1.html.

innovate

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We have audited the statement of financial position of PTAC PETROLEUM TECHNOLOGY ALLIANCE CANADA as at DECEMBER 31, 2004 and the statements of operations, changes in net assets and cash flow for the year then ended. These financial statements are the responsibility of the organization's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

In common with many not for profit organizations, the Association derives revenue from events and other sources, the completeness of which is not susceptible to satisfactory audit verification. Accordingly, our verification of these revenues was limited to the amounts recorded in the records of the Association and we were not able to determine whether any adjustments might be necessary to revenue, excess of revenue over expenditures, assets and surplus.

In our opinion, except for the effects of adjustments, if any, which might have determined to be necessary had we been able to satisfy ourselves concerning the completeness of the revenue referred to in the preceding paragraph, these financial statements present fairly, in all material respects, the financial position of the PTAC PETROLEUM TECHNOLOGY ALLIANCE CANADA as at DECEMBER 31, 2004 and the results of its operations and the changes in its net assets and cash flow for the year then ended in accordance with Canadian generally accepted accounting principles.

Hamilton & Rosenthal
Chartered Accountants
Calgary, Alberta
February 28, 2005

integrity

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board
Board of Directors
As of March 16, 2005

Mike Singleton, Chairman, PTAC
Director, Technology Planning and Integration,
Suncor Energy Inc.

Eric Lloyd, President, PTAC
Petroleum Technology Alliance Canada

Ross Curtis
Assistant Deputy Minister, Province of British Columbia

Claude Durocher
Business Manager, Schlumberger of Canada

Cal Fairbanks
CEO, electroBusiness.com Inc.

Lorraine Goobie
Consultant to the Shell Global Research Program on Oil Sands and Heavy Oil,
Shell Canada Limited

Eddy Isaacs
Managing Director, Alberta Energy Research Institute (AERI)

Rich Kerr
Chief Engineer, Nexen Inc.

Dave Kopperson
Vice-President, Business Services, Encana Corporation

Pam Lulman
Manager, Exploration, Operations and Services,
ConocoPhillips Canada

Brian Moreland
VP Development, Southern Business Unit,
Burlington Resources Canada Ltd.

Phillip Murray
VP Energy, Alberta Research Council (ARC)

Susan Payne
Manager, Technical Services, Engineering and
Project Management, Husky Energy Inc.

Ken Putt
President, K.W. Putt Consulting Inc.

Laurie Schramm
President and CEO, Saskatchewan Research Council (SRC)

Earle Shirley
Executive Manager, Applications Branch,
Alberta Energy and Utilities Board (EUB)

Derril Stephenson
President, Vikor Energy Inc.

Bill Svrcek
Professor, Department of Chemical and Petroleum Engineering, University of Calgary

Murray Todd
President, Todd Resources

Don Towson
Industrial Technology Advisor, National Research Council’s
Industrial Research Assistance Program (IRAP)

Dean Wall
Senior Associate, AMEC Americas Limited

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measurement

At year-end 2004 PTAC had 187 members grossing $388,700 revenue as shown in the graph below. PTAC members produce approximately 70% of Canadian conventional oil and gas. Visit www.ptac.org/mempro1.html for more information on PTAC members.

PTAC Petroleum Technology Alliance Canada
Suite 700, Chevron Plaza, 500 Fifth Ave. S.W.
Calgary, Alberta T2P 3L5
fax: (403) 920-0054
www.ptac.org
info@ptac.org

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