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November 2002 - Issue 22


e-Business

Forum Success
Second Wireless, Telecommunications and e-Business Technology Forum

In October, 119 registrants attended the “Creating Value for the Oil and Gas Industry using Wireless, Telecommunications and e-Business Technology Forum”, the second forum in this series. PTAC thanks forum partners TELUS Mobility, Industry Canada and Fujitsu Consulting for their support.

The purpose of the forum series is to educate industry participants on the innovative use of wireless, telecommunications and e-business technology and to find new approaches to building innovation into oil and gas industry business processes. Oil and gas industry members were given opportunities, via moderated panel discussions and question and answer periods following case study presentations, to provide their input and create an industry ‘wish list’ of practical solutions to solve oil and gas industry challenges and to improve their bottom line financial performance.

A keynote presentation by TELUS Mobility outlined the current state of wireless technology and future possibilities. Case study presentations featured innovative wireless, telecommunications and e-business technology applied to actual oil and gas industry problems. A plenary session by Dr. Cooper Langford outlined the history of the wireless industry as it responded to the growing requirements of the oil and gas industry.

Demonstrated interest by both producers and vendors indicates a need for the forum series to continue to identify oil and gas industry needs and to allow vendors to offer proven solutions to industry challenges. A committee will be struck to plan a spring forum and to create a panel of subject matter experts to vet all presentations prior to acceptance for presentation.

To participate on the forum planning committee or as a presenter at a future forum, or if you have recommendations for additional topics or presenters, please contact –

Arlene Merling
Director, Operations
phone: (403) 218-7702

Pilot Projects Initiated
Wireless
City Workshop Generates Pilot Projects

As a result of the Calgary Technologies Inc. (CTI) Wireless City Initiative presentation at the “Creating Value in the Oil and Gas Industry using Wireless, Telecommunications and e-Business Forum,” a workshop was held on November 5, 2002 at the Nexen Theatre. Sponsored by Bell Mobility and facilitated by PTAC with Richard Belzil of CTI, the workshop’s goal was to facilitate partnerships between the oil and gas sector and the wireless, telecommunications and e-business solution providers. Seven producers met to discuss their project ideas, then reconvened with the 49 vendor representatives to identify and vote for potential projects.

Three project ideas of interest to the petroleum industry were fairly well-developed by the end of the day’s session.

1.   ConocoPhillips Pipeline Integrity Program

Working with ConocoPhillips’ existing Pipeline Integrity Project, Wireless City partners will showcase solutions to enable a remote workforce engaged in corrosion mitigation operations to record their activities. This is valuable to ConocoPhillips because it permits regulatory compliance reporting based on field activity, and allows the preventive maintenance program to be cost-controlled while mitigating risks of pipeline operation.

2.   Remote Site Access Technologies

A very broad field with wide interest, the approach to this project is to break it down to a number of sub-projects. There are many technologies to reach remote locations, but they don’t all have exactly the same economics and ideal application. An attempt will be made to isolate particular sub-topics of interest with each of the four producers who expressed interest in participating. The following possible sub-projects are under review:

  • Traffic Multiplexing: A project to showcase the use of common links for sharing critical applications (e.g. SCADA) with bursty, less critical applications. (e.g. Operator HMI, Invoicing, VoIP) at the wellsite.  May use bandwidth reservation techniques to segment the link.

  • Route Diversity: A project to showcase the use of alternate routes offsite to provide a higher level of system availability.

  • Shared Infrastructure: A project to showcase the use of VPN technology to share network infrastructure between adjacent sites belonging to different producers.

Having ROI visibility on these projects will have a huge impact on the usefulness of the outcomes to the producer community, so tracking costs will be a central theme.

Project participants will identify particular site opportunities, and technical points of interest. Interested link and networking participants please contact Richard Belzil of CTI.

3.  Asset Management

Keeping track of consumables at remote sites is an administrative headache. This project is essentially a mobile purchasing application geared to run remotely on a small-screen device, which can showcase either:

  • A mobility data solution (e.g. 1xRTT, GPRS or CDPD), or

  • A LAN-based solution (e.g. 802.11a/b) coupled with a permanent site link., or both

This project could also run in conjunction with the Traffic Multiplexing idea above, as one of the non-time-critical applications that can coexist on a multiplexed offsite link.

Husky and other interested producers are reviewing this project with CTI to determine whether their company possesses an existing purchasing function capable of remote, mobile data entry and their IT department’s availability for the project.

Project ideas generated during the producer breakfast and subsequent workshop are currently being reviewed for scope and likely producer/vendor partnerships. Participants will be identified to carry out the selected projects, with project meetings scheduled to begin the first week of December.

For more information, or to participate in a project, please contact –

Richard Belzil
Calgary Technologies Inc.
phone: (403) 284-6406
wireless@calgarytechnologies.com

Pilot Project Success
Trusted Communications Pilot Project a Success

PTAC, law firm Gowlings Lafleur Henderson LLP (Gowlings), a series of producers, technology companies and knowledge experts formed the PTAC Trusted Communications Working Group, meeting throughout late 2001 and 2002 to discuss an industry-driven solution for trusted communications. As a result of these discussions, it was determined that, from a technical as well as a business perspective, the best way to prove up the concept of trusted communications was to conduct an industry pilot. Thereafter, a smaller group of companies, led by Talisman, collaborated on making trusted communications a reality for Talisman’s wellsite geology operations. A steering committee chaired by Mo Crous, Manager of Exploration Technology for Talisman, with representatives from Gowlings, NON-ELEPHANT Encryption Systems Inc. (NE2) and Malibu Engineering & Software Ltd. (Malibu), was formed to initiate and oversee the pilot.

Principles of Trusted Communications

Trusted communications is based on the premise that data is a corporate asset. It follows that data needs purposeful and deliberate stewardship on the part of the company that owns the data.

Trusted communications can be described as a standard business operating environment whereby all information that a business needs to capture, relay, review, analyze and manage on an ongoing basis satisfies the following conditions:

  • it is freely available to those entitled;
  • it is secret to everyone else;
  • the partners who exchange data are authenticated and validated parties;
  • there is assured integrity as to origin, accuracy and currency; and
  • it is legally enforceable.

The Business Case for Trusted Communications

One challenge with technology investments is measuring the business impact and value. For Talisman, the trusted communications pilot produced a series of benefits for the corporation, including:

  • The implicit assurance that the data received is correct, secret when necessary and that it was sent from the correct person in the field and then delivered to the right people in the office and partners outside the company.
  • More transparent business processes that reduce the typical corporate information-is-power syndrome. All those who need to know information have access to it and this openness drives efficiency and encourages employee accountability and associated rapid response times.
  • Higher quality and rate of knowledge transfer. A secure knowledge management solution ensures that business processes are explicit rather than tacit; there is less of a need to rely on prior social context(s) to interpret and understand information.
  • The ability to query and use current and historical geo-logical information. A secure knowledge management solution incorporates business processes into the software and provides the ability for staff to customize data views, produce ad-hoc reports, make comparisons, drive workflow and measure progress over time.

Pilot Results and Next Steps

Talisman successfully piloted the Malibu-NE2 solution this past summer. Geological information was successfully and securely captured, transmitted, analyzed and distributed internally and externally by Talisman. Effective December 2002, Talisman is going forward with the Malibu-NE2 Trusted Communications solution within their wellsite geology operations for the next winter drilling season, a period of peak drilling activity.

An area of further focus is the encryption of data and information while resident on the local hard drives of laptops, desktops and servers. Once this is in place, and augmented by the use of username, password and SecurID or similar device, then the full trusted Communications model will be in place.

For more information on the Trusted Communication Pilot Project, please contact –

Joel Tennison
Malibu Engineering & Software Ltd.
phone: (403) 237-0909 ext 561
jct@malibugroup.com

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Environment

Target Energy Losses
Industrial Energy Audit Incentive

Upstream oil and gas energy use is worth over $4 billion/year.

PTAC provides access to –

  • the Industrial Energy Audit Incentive to identify losses and solutions,
  • energy audit management information, and
  • a matrix of energy audit contractors.

This program will benefit oil and gas producers interested in –

  • reducing ‘off-the-book’ losses,
  • increasing rate of returns,
  • saving energy by 10-20%,
  • receiving financial
  • incentives, and taking the first step!

NRCan Industrial Energy Audit Incentive Successfully Launched

PTAC Petroleum Technology Alliance Canada, Natural Resources Canada (NRCan), the Canadian Association of Petroleum Producers (CAPP) and the Small Explorers and Producers Association of Canada (SEPAC) are supporting a new initiative to facilitate the identification of energy reduction opportunities for oil and gas producers in Western Canada to be funded by NRCan’s Office of Energy Efficiency. Program objectives are to provide funding and technical support for producers and suppliers to implement facility energy audits over the next two years.

The Western Canadian oil and gas industry consumes approximately $4 billion per year in energy based on an assumed average energy cost of $3/GJ. Audits supported by NRCan in other industrial sectors across Canada have demonstrated that significant energy reduction opportunities can be identified through proactive audits. PTAC believes there are significant energy reduction opportunities in oil and gas operations as a result of new technologies and practices now available.

NRCan’s energy audit incentive will pay 50% of the cost of an audit up to $5,000 per facility. This incentive, designed to help defray the cost of hiring a professional energy auditor, is available to companies who sign up as Industrial Energy Innovators.

On behalf of NRCan, PTAC will supply user-friendly technical support to facility managers or field level foremen to achieve reduced energy use and improve bottom-line performance of their business units.

A technology information session marking the launch of the program on October 30, 2002, was well attended with 80 participants.

For more information, visit PTAC’s web site at www.ptac.org/iei1.html or for technical information, please contact –

Bruce Peachey
New Paradigm Engineering Ltd.
phone: (780) 448-9195
newparadigm@shaw.ca

For program information, please contact –

Brenda Belland
phone: (403) 218-7712

Pilot Project a Reality
PTAC VAPEX Pre-pilots Enable $30 million Heavy Oil Pilot Project – DOVAP Technology to Reduce Emissions

While the VAPEX Process research history reaches back over 20 years, PTAC’s facilitation of several pre-pilot VAPEX projects over the past few years has made the pilot a reality.

This new recovery method could reduce carbon dioxide emissions by 85 per cent in heavy oil extraction.

In early October, the Alberta government announced it was joining forces with nine leading Canadian oil and gas producers (the DOVAP consortium) to invest in a $30 million heavy oil research project to test the economic, environmental and technical viability of a new recovery technology.

The Vapex Process involves injecting vapourized solvents into heavy oil and promises to virtually eliminate greenhouse gas emissions and significantly reduce water consumption, as compared to other extraction technologies currently being used.

The Alberta government, through the Alberta Energy Research Institute (AERI), is contributing $7.5 million to the project from their existing budget, and the DOVAP consortium is contributing $15 million. The federal government, through Technology Partnerships Canada, previously announced its $7.5 million contribution in June 2001.

The long-term research project will be conducted at the Dover site in Fort McMurray and will be operated by Devon Canada. The project will be integrated with existing facilities to reduce costs and is expected to last between five to 10 years.

The DOVAP Consortium is an association of Canadian oil and gas producers, including Devon Canada, Chevron Canada Resources, Imperial Oil Resources, Gibson Energy Ltd., Petro-Canada, TotalFinaElf E&P Canada Ltd., Suncor Energy, Canadian Natural Resources and Nexen Petroleum Canada.

For more information, contact –

Glenn Guenther
Director of Communications
Alberta Innovation and Science
phone: (780) 427-0285
glenn.guenther@gov.ab.ca or

John Pearce
Manager, Thermal Heavy Oil Exploitation
Devon Canada
phone: (403) 232-7111

Request for Technology
Infrared Driving Safety Request for Technology Meeting

An Infrared Driving Safety Request for Technology (RFT)was issued to potential supporters and suppliers of the proposed technology in August 2001. This technology commercialization initiative was a direct result of work by Shell Canada and others and was identified by participants at a PTAC Driving Safety Workshop as a priority for the Canadian upstream oil and gas industry. It is also of potential interest and value to many other industrial sectors that experience driving safety losses due to wildlife/vehicle strikes.

PTAC was recently contacted by Veridian, an organization from Michigan, USA, who have expressed an interest in demonstrating a commercial Infrared Driving Safety System to meet the needs outlined in the subject RFT. A meeting is scheduled with PTAC Infrared Driving Safety contacts and other interested individuals to discuss the response from Veridian and convene a working group to move forward with required action at a luncheon on December 4th.

To view the RFT, visit PTAC’s web site at www.ptac.org/techhasf.html.

For more information, please contact –

Tannis Such
Environment, Health and Safety Coordinator
phone: (403) 218-7703

ERAC Applications
Environmental Research Advisory Council Funding Status

PTAC thanks those who submitted applications to the 2003 ERAC competition for funding. The funding approval process is well underway and decisions will be finalized by the end of November. PTAC will advise the status of the applications early in December.

The ERAC Application Process

PTAC initiates the ERAC funding cycle by distributing a Call for Applications. PTAC collects and processes the applications by compiling the application data and reviewing applications for completeness. Once the application deadline has passed, PTAC forwards to CAPP a summary of all project applications along with a private web site link to view the applications for CAPP to provide to their voting members for evaluation.

CAPP forwards the summary to approximately 35 CAPP member companies – typically those member companies with an Environment, Health and Safety Department (EH&S). Each application is ranked high, medium or low according to its level of interest to industry as a whole and to individual companies. The ranking results are collated by CAPP staff and presented to the CAPP EH&S Executive Policy Group for recommendations. These recommendations are presented to the CAPP Broad Industry Initiatives Committee for approval.

When PTAC receives these funding decision results, a formal letter is sent to applicants advising them of the outcome of their applications.

ERAC Project Requirements

ERAC projects are overseen by PTAC Technical Steering Committees (TSC). A CAPP member Project Manager will manage the project and report the status of the project to the TSC quarterly.

The project results are made public as they become available on the PTAC web site at www.ptac.org/techenvp.html.

For more information on ERAC funding, please contact –

Tannis Such
Environment, Health and Safety Coordinator
phone: (403) 218-7703

Request for Participants
Ecological Integrity Technical Steering Committee

PTAC is soliciting participation in an Ecological Integrity Technical Steering Committee (EITSC). This committee will meet quarterly to discuss the status of ongoing Ecological Health projects, identify new research priorities and solicit funding opportunities. Ongoing projects that will report to this committee include the Foothills Model Forest Grizzly Bear Research Project (Foothills Model Forest), the Native Species for the Sandy Soils Disturbances of the Parkland Ecoregion Project (Alberta Research Council), and the Woodland Caribou Project (Boreal Research Program).

PTAC welcomes participation from the upstream oil and gas industry, funding organizations, provincial and federal governments, regulators, and oil and gas associations.

For more information please contact –

Tannis Such
Environment, Health and Safety Coordinator
phone: (403) 218-7703

Project Update
InsOil Demonstration Project Update

The ATCO Electric - InsOil Canada Ltd. “Dynamic Nitrogen Blanketing System” (DNBS) pilot project launched in May 2002 is posting some promising results. At last report, relatively few data were available to show the effects of the Dynamic Nitrogen Blanketing System (DNBS). Since then, the increased number of laboratory test results illustrates the trend of the enhancements. In addition, further steps have been undertaken to provide further proof that the removal of dissolved oxygen and decay products significantly improves the internal insulation of aging transformers.

A comparison of the dielectric properties of the windings before and after the removal of dissolved oxygen was planned for the end of September. The possibility of oil reclamation in October with a subsequent final Doble test to assess the effect of the oil free of oxygen and decay products on the solid insulation was examined.

The opinion of scientific monitors regarding the content of this report as well as the comments of any participant in the project would be most welcomed.

To view this progress report in its entirety, please visit PTAC’s web site at www.ptac.org/env/dl/envt0203r1.pdf.

For more information on this pilot, or to provide your comments, please contact –

John Sabau
Project Coordinator
InsOil Canada Ltd.
phone: 403-547-0103
jsabau@insoil.ca

Technology Development
Research Continuing on Treatment of Oil-Contaminated Drill Cuttings by Supercritical Fluid Extraction

Imagine taking a common greenhouse gas, converting it into a solvent and then using it to wash and recover oil from drill cuttings. A research project headed by Dr. Selma Guigard of the University of Alberta’s Department of Civil and Environmental Engineering is exploring just that.

Dr. Guigard and master’s students Olusegun Odusanya and Jairo Lopez Gomez are working with carbon dioxide (CO2), an environmentally-friendly, non-explosive or flammable, inert, inexpensive solvent under supercritical conditions (high heat and pressure), to extract oil from drilled solids – a technique referred to as supercritical fluid extraction.

After preliminary results for this promising technology were presented at PTAC’s Drilling Waste Management forum in December, 2001, Guigard and Odusanya began working with Unique Oilfield Technology Services (UNOTEC) to further their research and explore the upscalability of the process.

For more information on this project, please contact –

Ari Laurell
Land
Reclamation
UNOTEC - Unique Oilfield Technology Services
phone: (403) 294-3431
ari@unotec.com or

Dr. Selma Guigard
Department of Civil and
Environmental Engineering
University
of Alberta
phone: (780) 492-8585
selma.guigard@ualberta.ca

Project Launched
Standards for Heavy Oil Vent Volume Quantification

Nexen Inc. and New Paradigm Engineering Ltd. are pleased to announce the launch of a Joint Interest Project (JIP) to develop Standards for Heavy Oil Vent Volume Quantification. Currently the four project participants are: Nexen Inc., Husky Energy Inc., ExxonMobil Oil Canada Energy and Petrovera Resources Limited, with in-kind support offered by the Alberta Energy & Utilities Board (EUB).

The initial project task is to conduct two workshops to collect input to better define the issues and problems associated with vent quantification, and to determine which specific areas most lend themselves to development of standards. The first session, to collect information on field issues related to measurement, analysis and internal reporting was set for late November in Lloydminster. A second workshop will be held in early December to address head office issues related to GHG mitigation strategies, long-term vent volume forecasts and external reporting needs.

Input from the workshops and analysis of other data collected over the coming months will be used to develop standards for key aspects of vent measurement, analysis and reporting. Completion of the base project is scheduled for April 2003.

This JIP is open to additional participants for a $15,000 contribution towards expanding data available for the base work scope and extending the work scope to address other vent flow variability issues.

For more information, please contact –

Bruce Peachey
New Paradigm Engineering Ltd.
phone: (780)448-9195
newparadigm@shaw.ca

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PTAC News

Resources
Publish your Success Story in this Newsletter

Has your Joint Interest Project, Technology Information Session or Workshop resulted in a successful project or partnership? Publishing your non-proprietary project results in P-talk can keep your project’s momentum going in the following ways:

  • Solicit interest, feedback, participation or potential funding for new R&D projects.
  • Solicit additional funding or participation for ongoing 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 offered by members (such as funding, legal and tax).
  • Market new technology or proven technology that is new to the Canadian oil and gas industry.

Along with the printed version of the newsletter, your information will be published on PTAC’s web site in pdf and searchable html documents.

PTAC would like to hear from you.

To submit your article for a future issue of P-talk, please contact –

Arlene Merling
Director, Operations
phone: (403) 218-7702

www.ptac.org
What’s New?

Search Engine Ready to Roar

Looking for information on a PTAC session or an oil and gas industry topic you heard about through PTAC? Try out PTAC’s new search engine at www.ptac.org/search1.html.

This addition to PTAC’s web site will allow you to explore the contents of available html documents on this site.

Explorers can further refine their searches by limiting them to a particular Technical Area of Interest.

PTAC welcomes your feedback on the effectiveness and ease of use of our web site. Please submit your feedback to –

Arlene Merling
Director, Operations
phone: (403) 218-7702

New Members
177 PTAC Members

PTAC now has 177 members. We welcome the following new members:

Service and Supply Companies

  • Adoil Inc.
  • Ashton Jenkins Mann Petroleum Consultants
  • Deep Blue Associates Inc.
  • Newalta Corporation
  • Object Reservoir Inc.
  • Omega Oil Company
  • P.K. Services International
  • Quorum Business Solutions Inc.
  • RightsMarket Inc.
  • Rigstar Communications Inc.
  • XERGY Processing Inc.

Individuals

  • Alain Durand
  • Duncan McBane
  • Michael Olanson
  • Bill Penhale
  • Brendon Rose

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PTAC Petroleum Technology Alliance Canada

Facilitating Innovation, Technology Transfer, and Collaborative Research and Development (R&D) in the Upstream Oil and Gas Industry

PTAC is a not-for-profit association governed by a volunteer board of directors made up of representatives from producers, service and supply companies, research and educational institutions, inventors and government.

P-talk is published quarterly – both electronically and in hard copy – and is available through PTAC. If you would prefer not to receive the hard copy, please contact Lorie Frei of PTAC.

Material may be reprinted without permission but credit would be appreciated.

Contact Us
For further information, please contact PTAC

PTAC
Petroleum Technology Alliance Canada
Suite 750, Hanover Place, 101 - 6th Ave. S.W.
Calgary, Alberta T2P 3P4
www.ptac.org

fax: (403) 920-0054

Eric Lloyd
President
phone: (403) 218-7701

Denis Gaudet
Director, Technology Transfer
phone: (403) 218-7710

Arlene Merling
Director, Operations
phone: (403) 218-7702

Brenda Belland
Information Specialist
Technology Centre for Natural Gas (TCNG)
phone: (403) 218-7712

Lorie Frei
Administrative Assistant
phone: (403) 218-7700

Kerri Markle
Technology Transfer Coordinator
phone: (403) 218-7711

Tannis Such
Environment, Health & Safety Coordinator
phone: (403) 218-7703


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© 2002 PTAC