2005 Annual Report |
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facilitating technology solutionsmissionFacilitating innovation, collaborative research and technology development, demonstration and deployment for a responsible Western Canadian upstream hydrocarbon energy industry PTAC Technical Areas CO2 Enhanced Hydrocarbon Recovery Coalbed Methane / Unconventional Gas Drilling e-Business Eco-Efficiency / Emission Reduction / Energy Efficiency Environment Health and Safety Heavy Oil Heavy Oil Transportation Inactive Wells Innovation Instrumentation / Measurement Natural Gas Production Oil Production Oil Sands Pipelines R&D Funding Reservoir / Geoscience Resource Access Telecommunications Well Completion PTAC Members 30 Producers Anadarko Canada Corporation 4 Transporters / Midstream Processors Duke Energy Gas Transmission 163 Service and Supply Companies 3M Canada – Oil and Gas Division 7 Research Providers Alberta Research Council 8 Learning Institutions Lakeland College – Institute for Innovation Skills 5 Government Alberta Energy Research Institute 11 Individuals Blair, Jim Founding Supporter Canadian Business Networks Coalition (CBNC) |
2005 key accomplishments
Message from the Board of DirectorsPTAC 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 2005, PTAC facilitated 23 projects, 16 Technology Information Sessions, 10 forums, 11 workshops and one conference. PTAC brought government, industry and academia together for several important projects and initiatives in 2005. PTAC handled both the project management and banking for 10 projects which totalled $1.2 million. One of the most significant projects completed in 2005 was the Alberta portion of the Energy Innovation Network (EnergyINet) Increased Recovery of Oil and Gas Business Case Project. This entire project, valued at $978 thousand, 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 has identified in which pools project participants could deploy both existing and new technology to significantly increase oil and gas production and recoverable reserves. PTAC also launched the Unconventional Gas Technology Roadmap and the Expanding Heavy Oil and Bitumen Resources While Mitigating Greenhouse Gas (GHG) Emissions and Increasing Sustainability Technologies Roadmap in 2005, to provide guidance on future research and technology needs of the industry. PTAC’s Technology for Emission Reduction and Eco-Efficiency (TEREE) initiative, that seeks to identify the top opportunity areas and technologies to reduce GHGs and emissions, completed several significant projects in 2005. These included the Fire Tube Immersion Heater Project to improve heater efficiency and a project on Conventional Heavy Oil R&D Needs Including GHG Intensity Reduction. In addition, PTAC released the Barriers to Deployment of Environmental Technologies Report, which provides a series of recommendations to increase implementation of best practice technologies to improve environmental performance in the upstream oil and gas industry. In total, PTAC facilitated the launch of 23 projects or new project phases valued at $9.7 million during 2005, bringing the total number of projects launched since inception in 1996 to 200 with a value of $123.2 million. In 2005, PTAC facilitated the world’s largest Unconventional Gas Conference (hosted by CSUG). PTAC also facilitated forums on:
PTAC also launched the Water Innovation Planning Committee, Unconventional Gas Technology Roadmap Committee, Heavy Oil Transportation Committee and the Unconventional Heavy Oil Technology Roadmap Committee in 2005. PTAC’s contact database holds over 10,000 technical contacts from industry, academia, government and others. 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 2005 highlightsPTAC Launches Technology Roadmaps for Unconventional Gas and Unconventional Heavy OilIn 2005, PTAC launched two technology roadmaps: the Unconventional Gas Technology Roadmap (UGTR) and the Expanding Heavy Oil and Bitumen Resources While Mitigating GHG Emissions and Increasing Sustainability Technologies Roadmap. The Canadian Unconventional Gas Technology Roadmap for coalbed methane, tight gas, shale gas and gas hydrates outlines the business and societal challenges to development, the state of the current recovery technology and the best avenues for improved or new technology. Canadian unconventional resources may hold the key to greater future gas supply. However, the nature of these reserves, and the way they are trapped in the reservoirs, makes access difficult and costly. Technology development holds the key to unlocking these reserves, both to improve recovery and reduce costs. The development of a technology roadmap is a way to increase awareness of the opportunity offered by unconventional gas and bring the future development opportunity under the review of a wide stakeholder base. In this way, the industry can gain consensus on the technical challenges, help legislators understand those challenges, and where necessary make an appropriate response to encourage further development of these resources. The UGTR will cover the WCSB and is expected to be made available Natural Resources Canada contracted PTAC to develop the Expanding Heavy Oil and Bitumen Resources While Mitigating GHG Emissions and Increasing Sustainability Technologies Roadmap to support research and technology development (R&D) for the eventual development of deposits in the next 20-30 years. The funding contribution for the project is provided by the Climate Change Technology and Innovation Initiative, with the project focused on identifying potential technologies having the potential to lower GHG intensities of future developments. Sustainability, environment (air, water, land), economic and security (societal safety, risk management and energy supply) criteria will also be considered. The resources targeted include:
The PTAC Unconventional Heavy Oil Technology Roadmap Steering Committee was constituted to guide the development of this Roadmap. This roadmap is expected to be made available to the public by May 31, 2006. Roadmaps have gained wide acceptance as an excellent way to PTAC Nears Completion of TEREE Phase 1PTAC’s TEREE initiative, which takes a one-window approach toward identifying the top opportunity areas to reduce GHGs and emissions and reduce costs, is close to completion. Providing a toolbox of best practice solutions and proven, cutting edge technologies to the oil and gas sector, TEREE has made excellent progress facilitating:
The TEREE initiative formed with significant funding from Western Economic Diversification Canada in early 2003 is nearly complete. Since inception, six significant projects: Fire Tube Immersion Heater Optimization Project, Barriers to Deployment of Environmental Technologies Study, Efficiency Enhancements with REM AFR Systems Case Study, SRU Incinerator Optimization, Spectrasyne-Optical Measurement Technology Study and Conventional Heavy Oil R&D Needs Including GHG Intensity Reduction have been completed. PTAC‘s TEREE initiative has been successful working with producers, industry, non-governmental organizations and government to move projects forward to encourage energy efficiency to reduce GHGs and emissions. technology transferoutlookOutlook for 2006 PTAC also intends to build a stronger relationship with EnergyINet by jointly contracting a Director of Increased Recovery focused on both unconventional gas and conventional oil and gas R&D for both organizations. PTAC expects to proceed with Phase 2 of the TEREE initiative with funding from Western Diversification, the Alberta Government, Environment Canada and industry. Seven new TEREE projects valued at over $3 million are expected to be launched in 2006. Two remaining TEREE studies, Sulphur Recovery Unit Optimization and Emissions and Efficiency Enhancements with REM AFR Systems, are expected to wrap up TEREE Phase 1 in early 2006. PTAC will be moving into new office space on the fourth floor of the Chevron Building in June 2006. This new space will ensure our office needs are met for the next five years, while remaining in close proximity to most of our industry contacts in the Calgary downtown core. PTAC will work toward increasing its membership to include more stakeholders from all points along the hydrocarbon energy continuum, such as emerging production, oil sands, pipeline and service and supply companies as well as royalty trusts. PTAC will continue to collaborate with stakeholders to complete the British Columbia and Saskatchewan portions of the EnergyINet Increased Recovery Business Case project. PTAC will also complete the ongoing technology roadmaps for unconventional gas and unconventional heavy oil. PTAC will continue to facilitate the CAPP/SEPAC Environmental Research Advisory Council (ERAC) process in 2006, including facilitating 15 research projects. PTAC expects to host a number of information sessions, workshops and technical meetings in the environmental technical area. Three research forums will address air, soil, and ecological issues. PTAC will
facilitate a two day Water Innovation in the Oilpatch Conference in June
2006. The PTAC’s Driving Safety Working Group has identified the top driving safety issues in the upstream oil and gas industry and will focus on the physical and behavioural technologies available at the Driving Safety Technology Forum in April 2006. The PTAC Technology Roadmap for Inaccessible Bitumen and Heavy Oil Resources Workshop and Energy Conservation and Air Emissions Case Studies, Resource Access Technology, Water Innovation in the Oil Patch and Wireless and Telecommunications Technology Forums are planned for late 2006. developmentcreating value for the industryPTAC 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 Facilitating innovation, collaborative research and technology development, demonstration and deployment for a responsible Western Canadian upstream hydrocarbon energy industryfacilitateOngoing R&D ProjectsPTAC facilitated 23 R&D projects or project phases in 2005. PTAC provides a neutral forum for industry to: solicit proposals, launch projects and identify opportunities, problems and potential solutions that require research or technology development. 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. networkTechnology Information SessionsPTAC facilitated 16 Technology Information Sessions attended by over 900
participants in 2005. PTAC facilitates Technology Information Sessions for
members to: solicit interest, feedback, participation or potential funding
for new R&D projects; find industry partners exchangeForums, Workshops and ConferencesA total of over 3100 participants attended 22 forums, workshops and conferences hosted by PTAC in 2005. This includes the Seventh Annual Unconventional Gas Conference hosted by CSUG and facilitated by PTAC. PTAC
forums focus on specific needs or technical areas. Information is shared
on 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. informPTAC Knowledge CentreThe PTAC Knowledge Centre provides public access to non-proprietary
technical The Knowledge Centre offers access to 13 core
energy and premier technical databases. The Information Specialist
provides literature searches and documents to technical steering
committees, project performers, researchers and others, to help identify
technologies and research needs, avoid duplicate research and monitor
industry trends. 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. deliverPrograms and IncentivesOn behalf of Natural Resources Canada’s Office of Energy Efficiency, PTAC continues to deliver the energy and emission audit incentive to identify energy and emission reduction opportunities and to provide access to information to encourage implementation of recommendations to reduce energy use. Several events are hosted by PTAC in Alberta and Saskatchewan that focus on technical issues relating to energy use and encourage energy efficiency in the upstream oil and gas industry. PTAC added ten new topic areas to
the Oil and Gas Energy Efficiency section of PTAC continues to facilitate the ERAC funding program on behalf of CAPP. ERAC projects are collaboratively funded and managed by PTAC technical steering committees. Fifteen projects were approved for 2005 totaling $1 million dollars. These projects provide science-based solutions to current and emerging environmental issues that are critical to the industry. “I am currently involved with the Soil and Groundwater Research Committee and Salinity Working Group of PTAC. As an upstream oil and gas industry representative, I feel that this involvement is valuable as PTAC facilitates collaborative R&D work with government and regulators that is an integral part of industry’s commitment to improve environmental performance. I greatly enjoy working towards the goal of providing practical, science-based solutions to environmental challenges.” Chris Meloche, Husky Energy Inc.
“PTAC has facilitated some valuable interactions between industry and
government that have led to improved environmental management Gordon Dinwoodie, Alberta Environment
activitiescollaborateTechnical CommitteesPTAC’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 21 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:
“I consider my membership in PTAC’s ARPC and TEREE committees to be essential to my role as Environmental Specialist - Air Issues. These committees provide invaluable avenues for information regarding the technology and science of emissions, emissions monitoring and emissions reduction. PTAC currently represents the best opportunity for me to collaborate with industry, government, and non-governmental organizations to not only move emissions technology and science forward but to actually apply the learnings.“ Sean Reilly, Talisman Energy
Inc. R&D Projects or New Project Phases Launched in 2005PTAC facilitated the launch of 23 projects or new project phases valued at $9.7 million during 2005. Coalbed Methane / Unconventional Gas
Environment
Heavy Oil
Innovation
Reservoir Recovery/Geoscience
Technology for Emission Reduction and Eco-Efficiency
For further information, please refer to PTAC’s newsletters at www.ptac.org/ptalk1.html or to the project index on PTAC’s web site at www.ptac.org/projects1.html. financialsAuditor’s ReportWe have audited the statement of financial position of PTAC PETROLEUM TECHNOLOGY ALLIANCE CANADA as at DECEMBER 31, 2005 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 organization 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 organization 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 organization as at DECEMBER 31, 2005 and the results of its operations and its cash flow for the year then ended in accordance with Canadian generally accepted accounting principles.
Lo Porter Hetu
measurementaccountabilityMembership Revenue by CategoryAt year-end 2005 PTAC had 217 members grossing $548,400 revenue as shown in the graph below. PTAC members produce approximately 78% of Canadian oil and gas. Visit www.ptac.org/members1.html for more information on PTAC members.
Project Expenditure by Technical Area since InceptionPTAC has facilitated the launch of 200 projects valued at $123.2 million since inception in 1996. PTAC facilitated the launch of 23 projects or new project phases valued at $9.7 million in 2005.
boardBoard of Directors
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For further information, |
Arlene Merling, PTAC |
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© PTAC 2006 |
2006 07 21 HM |
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