P-talk
Newsletter
       
  December 2004
Issue
33
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PTAC News

New Members
192 PTAC Members

Contact Us


2004 12 14 HM

 

  In this issue . . .

Technical Areas
Drilling
PTAC Releases Drilling Seasonal Load Levelling Business Case Request for Proposal
Emission Reduction / Eco-efficiency
Three TEREE Projects Offer Opportunities to Improve Energy Efficiency in the Oil and Gas Industry
Barriers to Environmental Technologies Deployment Identified at Industry Workshop
Growing Interest for Eco-efficient Technologies Noted at Second Annual Energy Conservation and Air Emissions Case Studies Forum
Environment, Health and Safety
ERAC Project Update – Foothills Model Forest to Launch Grizzly Bear Land Use Planning Tools at January Workshop, January 19, 2005
Environmental Specialists Identify a Need for Web-enabled Searchable Database
Oil Sands
Shell Appoints Lorraine Goobie to Unconventional Hydrocarbon Recovery Research and Technology Post
R&D Funding
PTAC Issues 2005 Energy Technology Capital Forum Call for Presentations
Keiretsu Forum Calgary Links Local Entrepreneurs to International Financing Network
Reservoir Recovery
EnergyINet Increased Recovery of Oil and Gas Business Case Project Now Underway

*TIS – Information on these Technology Information Sessions is not contained within this newsletter but is linked directly to a PTAC web site page. For all TISs please see www.ptac.org/tis1.html.

 

 


Drilling
Expressions of Interest Required
PTAC Releases Drilling Seasonal Load Levelling Business Case Request for Proposal

The purpose of this Request for Proposal (RFP) is to formulate, fund and complete a project that will provide a business case study and companion presentation for reducing winter drilling activity and spreading that activity out more evenly through the year.

Drilling activity in Western Canada typically peaks in the first quarter of each year at two to three times the activity levels experienced during the summer. Heightened winter drilling activity is the result of a number of factors – winter-access-only areas, corporate annual budget cycles that provide new capital funds starting in January, producer asset team timing and the habit of simply doing things “the same old way”. Doing things “the same old way” results in a number of undesirable outcomes including drilling costs that are up to 35% higher than necessary, human resource challenges for the service sector, increased fatalities and accidents, less than optimal rig fleet and associated services annual utilization and overall higher finding and development costs for the industry.

The Drilling Seasonal Load Levelling Business Case RFP 2004-DR-01 was written by the Drilling Innovators Advisory Group (DIAG) at a meeting held in October and was finalized in late November. The outlined needs were identified by the working group as a top priority for the oil and gas industry in 2004.

RFP 2004-DR-01 was released November 29, 2004 asking potential funders and suppliers to submit an Expression of Interest Form by January 15, 2005. RFP responses will be reviewed on January 19th, 2005.

For more information, visit the PTAC web site at www.ptac.org/techdrlr.html to view updates as well as specific conditions and requirements, or contact –

Arlene Merling
Director, Operations
phone: (403) 218-7702
amerling@ptac.org

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Emission Reduction Eco-efficiency
More Participation Required
Three TEREE Projects Offer Opportunities to Improve Energy Efficiency in the Oil and Gas Industry

Three joint industry technology study projects present an opportunity for your company to foster the improvement of energy efficient operating standards. The Technology for Emission Reduction and Eco-efficiency (TEREE) steering committee is asking for your financial contribution to fund the following technology research projects to improve the efficiency of immersion tube heaters, reciprocating engines and sulphur plant incinerators.

FIRE TUBE IMMERSION HEATERS
ENEFEN Energy Efficiency Engineering Ltd was selected as the successful project performer for the PTAC Fire-Tube Immersion Heater Efficiency Project and the work is now underway. Rising fuel costs and more stringent environmental regulations require improvements in the evaluation, design, operation and maintenance practices leading to low efficiencies of immersion heaters. Project funders will have access to the project results for up to one year prior to public release. Additional support is still being encouraged. Participate and share in the benefit of accessing results sooner and knowing you are working to become more energy efficient and reduce greenhouse gases as part of an industry wide initiative. The study is expected to be complete in February 2005.

RECIPROCATING ENGINES
Reciprocating rich burn engines produce high emissions and consume more fuel per unit of horsepower than new engines of the same size. These characteristics may impact fuel costs and generate emissions higher than producers and regulatory agencies may desire. TEREE is facilitating a study to qualify the manufacturer’s claims of REMVue Technology’s offerings and to substantiate the effect on reliability and production with qualification of benefits to producers and the general public. The report will identify and validate the implications of adopting the technology for producers and the industry as a whole.

SULPHUR PLANT INCINERATORS
In support of the voluntary initiatives of Alberta’s gas processing industry in energy conservation and greenhouse gas reduction, CETAC West and Sulphur Experts Inc. have determined there is an opportunity to realize significant improvement through further investigation of the operation of SRU incinerators. More specifically, it is known that current modelling used to predict potential fuel gas savings in these incinerators is based on studies conducted by Western Research in the late 1970s using a limited database, and the incinerator burner technology, modelling techniques and engineering design practices existing at that time. Advances in burner technology and engineering design have necessitated improvement in incinerator modelling techniques, design and operating practices. The proposed study would commence in 2005 subject to industry funding.

Arriving at new design standards and operating parameters, while sharing in the financial and resource investment burden, is essential to improved efficiency. BP Canada Energy Company, EnCana Corporation, Husky Energy Inc., Nexen Canada Ltd., Petro-Canada Oil & Gas, CETAC – West and Natural Resources Canada have all proven themselves as energy-efficiency leaders by contributing funds toward these projects and are calling upon you to assist in these efforts.

For more information on the projects profiled in this article, please go to www.ptac.org/techeetp.html or contact –

Ralf Aggarwal
Technology Transfer Coordinator
phone: (403) 218-7711
raggarwal@ptac.org

Spudding Innovation Study Nearing Completion
Barriers to Environmental Technologies Deployment Identified at Industry Workshop

Over 50 registrants attended a workshop to assess environmental technology deployment barriers in October. The workshop is one element of a larger study – now nearly complete – to propose ways to overcome barriers and implement greater adoption of environmental technologies in the oil and gas sector. Preliminary output from the workshop indicated that reducing vented emissions was the top area of opportunity.

Workshop facilitators asked these key questions: “What are the barriers to deployment of environmental technologies and what are the possible solutions?” Commonly identified barriers included companies equating environmental investment with cost rather than cost savings; regulatory uncertainty; and a lack of internal resources required to evaluate and implement new environmental technology. Workshop participants identified incentives for compliance; legislation and/or regulation and enforcement; and joint industry and government-defined best practices and standards as possible solutions.

PTAC, assisted by consulting firm Deep Blue Associates Inc., and in cooperation with CETAC-West, designed the study based on the successful 2003 Spudding Innovation report recommendations. Spudding Innovation spurred earlier results in 2004 which led to the development of new royalty incentives by the Alberta government. The study consists of a literature review, facilitated workshops like the Barriers event, one-on-one interviews, focus group discussions, a web survey, and finally a report with recommendations.

The study will build on findings presented to the Technology for Emission Reduction and Eco-efficiency (TEREE) steering committee in May 2004 on the top five emission reduction opportunities in Alberta, British Columbia and Saskatchewan. These findings are posted for public access on the PTAC web site at www.ptac.org/links/dl/TEREEMatrix.xls.

A summary of the workshop output as well as workshop evaluation and feedback received have been posted on the PTAC web site at www.ptac.org/techeetf.html.
The complete report is scheduled for public release in January 2005.

For more information on this initiative, please contact –
Ralf Aggarwal
Technology Transfer Coordinator
phone: (403) 218-7711
raggarwal@ptac.org
 

Forum Success
Growing Interest for Eco-efficient Technologies Noted at Second Annual Energy Conservation and Air Emissions Case Studies Forum

As a follow-up to last year’s successful Green Toolbox Event, PTAC hosted the Energy Conservation and Air Emissions Case Studies Forum on October 13th, 2004. PTAC thanks ConocoPhillips Canada for providing a host venue and Climate Change Central for their financial support as a bronze partner. PTAC also wishes to thank all of the individuals who presented case studies showcasing current and potential energy and cost reduction technologies.

The forum built on the interest in green technologies from last year’s event by communicating the success stories from the oil and gas industry in saving energy, fuel costs and at the same time reducing greenhouse gas emissions. Companies are now employing efficiency engineers who focus on the triple bottom line – cost, energy and positive public relations. The 63 registrants who saw 10 case study presentations also had an opportunity to speak with these efficiency experts and learn how to optimize their operations. 74% of all survey respondents felt their expectations for the session were met and 26% felt they had been exceeded. All forum presentations, along with a summary of the forum evaluation and feedback received have been posted on the PTAC web site at www.ptac.org/techeetf.html.

For more information on the Energy Conservation and Air Emissions Case Studies Forum, or if you are interested in presenting an energy-reduction technology case study to PTAC, please contact –

Ralf Aggarwal
Technology Transfer Coordinator
phone: (403) 218-7711
raggarwal@ptac.org

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Environment
ERAC Project Update

Foothills Model Forest to Launch Grizzly Bear Land Use Planning Tools at January Workshop

The Foothills Model Forest team will be in Calgary in January to host a one-day workshop to share ERAC project results and introduce grizzly bear land use planning tools to Alberta’s oil and gas industry. The grizzly bear study was initiated and funded through the Environmental Research Advisory Council Fund (ERAC). The team will introduce the resource selection function and grizzly bear mortality risk models developed during the course of the study at a workshop on January 19, 2005 at the EnCana Amphitheatre in Calgary

A resource selection function model incorporates many factors (grizzly bear location points, vegetation, industrial activity, roads, and topography) to calculate and, in turn, illustrate how grizzly bears use the landscape. This tool defines grizzly bear occurrence along a gradient. At one end there is a high probability of grizzly bear occurrence and, logically, at the other end a low probability.

The second tool is a grizzly bear mortality risk model. This tool was developed in response to the research finding that the greatest threat to grizzly bears in the original study area is human-caused mortality. From 1999 to 2003, seven bears were illegally killed and most incidents occurred within 100 metres of a road. The risk model couples road layers with resource selection function models to quantify and illustrate the risk of human-caused mortalities to bears.

Grizzly bear research has been conducted by the Foothills Model Forest program since 1999. The research began in response to industry and government’s need to manage grizzly bears along the northeast slopes of Alberta’s Rocky Mountains in a coordinated and cooperative manner. The goal of this project is to provide managers with the necessary knowledge and planning tools to ensure the long-term conservation of grizzly bears.

In 2004, the study area expanded south to the Montana border and in 2005 will expand north to the Northwest Territories border. The expansion enables existing grizzly bear maps and models to be tested and validated over Alberta’s entire grizzly bear habitat. Currently, resource selection function models are complete for a 103,405 square-kilometre area from Grande Prairie along the eastern slopes to Cochrane.

In 2004, the Grizzly Bear Study expanded south to the Alberta / Montana border. The study will expand to the Northwest Territories border in 2005.

For more information about the grizzly bear planning tools, please visit the Foothills Model Forest web site at www.fmf.ca/CE/FN_F04/Fn_F04_tc.html.

To register for this workshop or to obtain more information on this project, please visit the Foothills Model Forest web site at www.fmf.ab.ca or contact –

Lisa Jones
Communications and Extension Manager
Foothills Model Forest
phone: (780) 865-8329
lisa.jones@gov.ab.ca

Environmental Specialists Identify a Need for Web-enabled Searchable Database

The PTAC Ecological Research Planning Committee (ERPC) is made up of a collective of oil and gas representatives who specialize in the Environmental Sciences, including representatives from oil and gas companies, Alberta Environment, the Forestry industry, Alberta Sustainable Resource Development, and the Canadian Parks and Wilderness Society. Representation is also pending from Saskatchewan Environment, the British Columbia Ministry of Land Water and Air Protection, Northwest Territories Department of Resources, Wildlife and Economic Development, the Yukon Department of Environment, Environment Canada and Ducks Unlimited.

A 2003 ERPC forum was attended by a number of nationwide environmental specialists, including stakeholders from academia; ENGOs; forestry, oil and gas industries; and provincial and federal governments. Workshops were held at the end of the forum to identify issues preventing the full integration of environmental concerns into Alberta’s resource development sector. The most commonly identified issue was the need to establish a multi-user system to track and monitor data for Alberta’s land and natural resources in a meaningful manner, to make this data available to the public, and to allow interface with other national and private databases.

The ERPC recognized that one major challenge in developing such a system is the ability to access data that is privately owned, which can usually only be accessed for a large fee. Examples of such would be data held by Accumap, Alberta Vegetation Inventory Data, data held by private environmental and GIS consulting firms, and forest and energy sector companies.

In an effort to move the initiative forward, this committee issued a Request for Proposal (RFP) entitled “Pilot Project Designing A Web-enabled Searchable Database of Existing Ecological Research in the Chinchaga /Hamburg/Kakwa area, as it relates to the Oil and Gas Industry.” The committee received numerous proposals in response to this RFP and selected GeoArctic as the most knowledgeable and capable. Funding was approved in principle by the Canadian Association of Petroleum Producers (CAPP), unfortunately, due to circumstances beyond their control, the funding was not made available and this project did not get off the ground.

This committee continues to be interested in working with government and other stakeholders to develop solutions. Some suggestions for action include: organizing a stakeholder workshop to collectively identify potential ways to address this issue; utilizing the lessons learned by other provinces (such as Ontario, BC, and NWT) who have already introduced such data housing systems; and undertaking a legal and business review of the current intellectual property situation in Alberta. The ERPC will continue to explore possible partnership opportunities.

For more information, please contact –
Tannis Such
Environment, Health and Safety Coordinator
phone: (403) 218-7703
tsuch@ptac.org

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Oil Sands
New Research Appointment
Shell Appoints Lorraine Goobie to Unconventional Hydrocarbon Recovery Research and Technology Post

Lorraine Goobie, currently Manager - HSE Services & EP Safety and Environment with Shell Canada Limited, has been named Research Consultant within the Shell International Global Research Program, effective January 1, 2005. Lorraine will be located at the Calgary Centre for Innovative Technology (CCIT), a facility dedicated to collaborative research within the Faculty of Engineering at the University of Calgary.
In her new role, Lorraine will coordinate Shell International's interests in Canada's research and technology relating to unconventional hydrocarbon recovery. A key area of focus will be Shell Canada's Peace River bitumen recovery technologies.

Lorraine has also been appointed an Adjunct Professor in the Department of Chemical and Petroleum Engineering at the University of Calgary, where she will work with the existing research and academic community to develop and conduct research as part of Shell International's global research program.

For more information, please contact –
Lorraine Goobie
Research Consultant, Shell International Global Research Program
lorraine.goobie@shell.com

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R&D Funding
Upcoming Forum
PTAC Issues 2005 Energy Technology Capital Forum Call for Presentations

PTAC invites presentation submissions along the entire funding S-curve for the upcoming Energy Technology Capital Forum scheduled for June 2005. Presentations are welcome from capital providers interested in new and maturing technology investment opportunities in the energy sector; energy producers with technology investment case studies, technology developers seeking capital funding, and technology developers who have successfully attracted financing. In addition, the forum seeks presentations from business process and patent experts involved in the capital funding process. Presentations should target audiences with an intermediate level of understanding.
The scope of the conference includes, but is not limited to, the following major topics as they relate to energy technology investment:

  • Capital providers representing a variety of capital funding sources for emerging and maturing energy technologies
  • Future directions of the energy industry
  • Customer (oil and gas producer) case studies and technology needs presentations
  • Commercial success stories
  • Business requirements, evaluation parameters, patent considerations and mechanics involved in obtaining capital funding
  • Emerging and maturing energy technology companies in need of capital presentations on their specific technologies

An educational morning session will include a keynote presentation, with capital provider and business expert presentations followed by a panel Q&A. The afternoon session will consist of emerging and maturing technology company presentations of 15-minutes' duration, each followed by a five-minute Q&A.

All presentations will be screened for suitability and adherence to the presentation guidelines found at www.ptac.org/techrdff.html prior to acceptance. Presenting energy technology companies will be chosen from the Calgary Technologies Inc. Concept to Capital (C2C) Program which begins February 15, 2005, (www.calgarytechnologies.com/c2c), the Deal Generator (www.dealgenerator.com/entrepreneur.html), potential Ernst & Young Boot Camps, (TBA), and the Keiretsu Forum Angel Network (www.k4calgary.com).

Visit the PTAC web site at www.ptac.org/techrdff.html for more information as details become available.

For more information on the 2005 Energy Technology Capital Forum, please contact –
Arlene Merling
Director, Operations
phone: (403) 218-7702
amerling@ptac.org

Forum Sponsors Lend Support
Keiretsu Forum Calgary Links Local Entrepreneurs to International Financing Network

PTAC and the Keiretsu Forum Calgary will work together to promote the PTAC Energy Technology Capital Forum scheduled to take place on June 6, 2005 in conjunction with the Canadian International Petroleum Conference. Keiretsu has agreed to lend their expertise to help screen potential energy technology company presenters for the upcoming event.

Keiretsu Forum Calgary is the largest and fastest growing accredited angel investor group in Calgary. In the last 15 months, Keiretsu has monetized five early stage companies with lead investment of $1 million, triggering follow-on investment of $3.5 million. Keiretsu is one chapter among seven that are spread across the United States, from Boston, MA to Hawaii. Altogether, it is the only international angel investor group in North America. To date, Keiretsu has monetized 51 companies with over $40 million in capital.

Candidate presenting companies undergo a rigorous deal screening process to ensure quality deal flow for Keiretsu’s exclusive membership of accredited private equity investors, venture capitalists, and institutional partners.

The Calgary Keiretsu brings the unique strength of energy technology expertise to the community on both an investor and deal flow basis.

To view the 2005 Energy Technology Capital Forum Call for Presentations, please visit the PTAC web site at www.ptac.org/techrdff.html.

For further information, please contact –

Randy Thompson
Chapter President
phone: (403) 260-5234
thompson@k4calgary.com

Spencer Ord
Entrepreneur Director
sord@k4calgary.com

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Reservoir Recovery
Alberta Slice of Project Funding Achieved
EnergyINet Increased Recovery of Oil and Gas Business Case Project Now Underway

PTAC has secured enough financial support to begin the Alberta portion of the EnergyINet Increased Recovery of Oil and Gas Business Case Project. The project aims to provide a detailed business case for increasing recovery factors in reserves of oil and gas in the Western Canadian Sedimentary Basin. The goal for the Alberta portion of this project is to pinpoint and obtain additional recoverable reserves of 5 billion barrels of oil and 25 trillion cubic feet of natural gas in Alberta by 2015 through new technology and research.

Funding committed by the Alberta Energy Research Institute in the amount of $425,000 is conditional on matching funding from industry and other governments. So far, Alberta Electric System Operator, ARC Resources Ltd., BJ Services Company Canada, Paramount Resources Ltd., Burlington Canada Resources Ltd., ConocoPhillips Canada, Devon Canada Corporation, EnCana Corporation, EnerPlus Resources, Halliburton Energy Services, Husky Energy Inc., Industry Canada, MGV Energy Inc., New Paradigm Engineering Ltd., Nexen Inc., Northrock Resources Ltd., Pioneer Natural Resources Inc., Point Energy Ltd., Primrose Drilling Ventures Ltd., Schlumberger of Canada, Shell Canada Resources Ltd., Suncor Inc. – Resources Group, Trican Partnership, and West Energy Ltd. have committed funding totaling $295,500. The Alberta Energy and Utilities Board has also contributed database information valued at $35,000 to the project. This is enough to complete the Alberta portion. The total project cost of Alberta, Saskatchewan and British Columbia is $840,000.

Only project funders receive early and complete release of all project material. Funders will learn in which pools they can deploy technology to significantly increase oil and gas production as well as gain access to templates, tools, and methodologies for evaluating the potential impact of existing and new technologies. The project will cover all pool types currently discovered with available public data including tight gas.
Detailed project information is available at www.ptac.org/techrest.html.

To commit funding, please fill out the form posted on the PTAC web site at www.ptac.org/techrest.html or contact –

Eryn Rizzoli
Technology Initiatives and Communications Coordinator
phone: (403) 218-7708
erizzoli@ptac.org

To obtain technical information on the project, please contact –

Richard Baker
Epic Consulting Services
phone: (403) 444-1406
richard@epiccs.com

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PTAC News

New Members
192 PTAC Members
PTAC now has 192 members. We welcome the following new members:

Learning Institute

  • Lakeland College - Institute for Innovation Skills

Service and Supply Companies

  • Canadian Fertilizers Limited
  • Canitron Systems Inc.
  • Earth Canada Corporation
  • EBA Engineering Consultants - Research Department
  • Fugitive Gas Emissions Ltd.
  • Newsco Directional & Horizontal Drilling Services Inc.
  • Reaper Pumps Inc.
  • Scientific Drilling International (Canada) Inc.
  • VaporTech Energy Services
  • WellDog Inc.
  • XAcT Downhole Telemetry Inc.
  • Industrial Catalytic Technologies Inc.
  • Oasis Emission Consultants Inc.
  • Photon Control Inc.
  • Plains Marketing Canada
  • Pro-EnviroCore Consulting Inc.

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 publishes eight issues per year – alternating electronic with hard copy issues 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 700, Chevron Plaza,
500 Fifth Avenue S.W.
Calgary Alberta T2P 3L5

www.ptac.org
info@ptac.org
General Information (403) 218-7700
fax: (403) 920-0054

 
Eric Lloyd
President
phone: (403) 218-7701
elloyd@ptac.org

Denis Gaudet
Director, Technology Transfer
phone: (403) 218-7710
dgaudet@ptac.org

Arlene Merling
Director, Operations
phone: (403) 218-7702
amerling@ptac.org

Ralf Aggarwal
Technology Transfer Coordinator
phone: (403) 218-7711
raggarwal@ptac.org
 

  Brenda Belland
Information Specialist – Knowledge Centre
phone: (403) 218-7712
bbelland@ptac.org

Lorie Frei
Operations and Web Site Administrator
phone: (403) 218-7707
lfrei@ptac.org

Kerri Markle
Society Coordinator CSUG –
Canadian Society for Unconventional Gas
phone: (403) 218-7720
kmarkle@ptac.org

 

Eryn Rizzoli
Technology Initiatives and Communications Coordinator
phone: (403) 218-7708
erizzoli@ptac.org

Tannis Such
Environment, Health and Safety Coordinator
phone: (403) 218-7703
tsuch@ptac.org

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© 2004 PTAC