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June
2005 Issue 34 P-talk Newsletters Menu Links and Resources Oil & Gas R&D Projects Database Ready for Submissions and Searching PTAC News
New Members 2005 06 08 LF
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In this issue . . .
Technical Areas *TIS – Information on these Technology Information Sessions is available on PTAC’s web site at www.ptac.org/tis1.html or by contacting PTAC. |
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GO-EXPO June 7-9, 2005, Calgary – Roundup Centre, Stampede Park June 7 & 8 - 10:00 a.m. to 6:00 p.m. June 9 - 10:00 a.m. to 5:00 p.m. PTAC is pleased to announce its partnership with this year's GO-EXPO Gas & Oil Exposition. This year PTAC is sponsoring one of the World Oil Centre Stage Theatres where PTAC members will be presenting technology case studies. Leading companies will be presenting some of the best technology in these theatres, which are free to all GO-EXPO visitors. PTAC members are presenting on the following dates and times:
To view the complete presentation schedule, please visit the GO-EXPO web site at www.petroleumshow.com/GO-EXPO_2005_World_Oil_Centre_Stage_schedule.htm. GO-EXPO is the largest gas and oil exposition in 2005 with over 400 exhibitors showcasing the latest industry technology, from cutting-edge software programs to creative environmental solutions. 121,000 square feet of exhibition space will feature equipment demonstrations and some of the largest and most advanced machinery in the world as well as an International Recruitment Online Career Centre. NEW – KEYNOTE LUNCHEON SERIES Alberta’s Role on the U.S. Energy Stage Murray Smith, Alberta’s official representative to the United States WEDNESDAY, JUNE 8 Canada’s East Coast Energy Update Hon. Ed Byrne, Minister of Natural Resources – Newfoundland & Labrador THURSDAY, JUNE 9 Financing in a New Energy Market Environment Geoff Best and Mark Tonner from GE Commercial Finance INDUSTRY RECEPTION Wednesday, JUNE 8, 2005 at 6:00 p.m. Cowboys Dance Hall, 825 – 5 Street SW Participants will network with peers and enjoy complimentary food and beverages at one of Calgary’s favourite night spots. Your GO-EXPO event badge is required for admittance.
REGISTRATION INFORMATION Coalbed Methane / Unconventional Gas UPCOMING CONFERENCE Seventh Annual Unconventional Gas and Coalbed Methane Conference – Nov. 8-10, 2005 Planning is underway for the Seventh Annual Unconventional Gas and Coalbed Methane Conference. PTAC will facilitate and Canadian Society for Unconventional Gas (CSUG) will host this event scheduled for November 8-10, 2005 in Calgary. Last year’s highly successful conference attracted a record-breaking 795 participants, and included 42 exhibit booths, two ice-breaker receptions and the "Ain’t That a Gas" Gala Evening. With conventional gas supplies depleting and the demand
for natural gas increasing, unconventional gas is the key to present and
future energy supply. This conference will focus on how to move the industry
forward in achieving the goal of effectively producing unconventional gas.
This conference is the premier forum for industry, government, technology
researchers, and other interested stakeholders to collaborate in the
development and implementation of the many facets of this important energy
source. For further conference or exhibitor information, please
contact – If you are interested in obtaining proceedings from
previous conferences, please contact – Drilling
The PTAC Drilling Seasonal Load Leveling Business Case Project received
sufficient funding to proceed and was launched in March 2005 to develop and
present a coherent, complete and compelling argument for greater drilling
seasonal load leveling in the WCSB, capturing benefits relating to drilling
costs, safety performance, human resources and rig utilization. Deep Blue
Associates Inc. was chosen through an RFP process to perform this project
with assistance from Mike Read of Deep Well Projects Inc. The Drilling
Innovation Advisory Group (DIAG), comprised of government and industry
representatives, is providing oversight to this project. Deep Blue is examining drilling performance results of projects
benefiting from seasonal load leveling and comparing these results to
projects performed under more traditional peak season circumstances. This
analysis will allow Deep Blue to estimate cost implications and safety
benefits to companies that engage in seasonal load leveling, as well as to
ballpark dollar implications and safety benefits industry-wide. Industry
interest in load levelling has recently increased, but many companies are
neither fully aware of the relative cost and benefits nor cognizant of the
technologies and practices that could help them take fuller advantage of
load leveling. Deep Blue has received cooperation from more than 10 large operators in
the basin in securing well cost data for analysis. Each company contributing
data or funding will be provided with a comparative analysis showing that
company’s relative drilling efficiency/load leveling performance.
Individuals who help their companies respond to the cost data request will
be eligible to submit their names for a draw prize (golf-and-hotel stay),
offered by PTAC as a gesture of industry goodwill. PTAC will host a Drilling Innovations Forum Sept. 21, 2005 to release
results of this study and provide further information concerning
technologies and best practices in load leveling. Mark this date on your
calendar – an official invitation and details will be forthcoming. If your company has yet to be contacted and is interested in contributing
data, please contact – To view the RFP, please visit the PTAC web site at www.ptac.org/techdrlr.html. Driving Safety The Driving Safety Technology Forum held at the Red Deer Lodge on April 21, 2005 sparked much discussion on driving safety technology challenges and solutions in the petroleum industry. According to the evaluation forms collected, 100% of respondents found the information presented at the forum valuable. A detailed summary of the evaluation/feedback forms collected can be viewed at www.ptac.org/techhasf.html.
Forum proceedings are now available for purchase –
To purchase forum proceedings, please contact –
For more information on this forum or other Driving Safety
events, please contact – e-Business PLANNING INPUT NEEDED Information and Communications Technology Forum Planning Meeting – June 14, 2005 PARTNER, SPONSOR AND EXHIBITOR OPPORTUNITIES COMING SOON PTAC is seeking additional producer input to help plan this fall’s Information and Communications Technology Forum, scheduled for October 6, 2005 at the Hyatt Regency Hotel. At the initial planning meeting held in May, the group reviewed last fall’s Wireless and Telecommunications Forum feedback and discussed the upcoming forum’s content and ideas for potential speakers, coming up with a new name in keeping with industry trends. The invitation and calls for speakers, partners, sponsors and exhibitors will be finalized at the next meeting, scheduled to convene: Thursday, June 14 12:00-2:00 p.m. in the PTAC suite of offices
located at: More input is needed from oil and gas producers to pinpoint industry information and communications technology needs to help plan this exciting industry event.
For information on how to participate as a planning committee
member, or as a presenter, forum partner, sponsor or exhibitor,
please contact – Eco-efficient and GHG Technologies PROJECT LAUNCHED PTAC Launches GHG Intensity Reduction Technology Study PTAC, with support from Natural Resources Canada, has launched a project to determine which technologies will be needed in the next 25 years to achieve the lowest practical greenhouse gas (GHG) intensity from conventional heavy oil production. Assessing technologies to reduce future GHG intensity in Alberta and Saskatchewan’s conventional heavy oil industry is the primary focus of this study, part of a larger endeavour on bitumen and heavy oil technologies, managed by CANMET Energy Technology Centre in Devon. The PTAC technology study will provide funding direction to the Climate Change Technology and Innovation Initiative (CCTII) in the area of conventional heavy oil production. Three key technology areas relatively unique to Canadian conventional heavy oil production will be reviewed during this study in the following time frames:
Over the next five months, PTAC will offer a series of workshops and working group sessions, will interview and engage key industry specialists, and will investigate key needs and potential solutions. Natural Resources Canada has funded $50,000 towards this technology study. PTAC is working to confirm an additional $50,000 to complete the full scope of work proposed for this project. To commit funding, or for more information, please contact – Environment 
2005 Water Efficiency and Innovation Forum for the Oil Patch
Under the Water for Life Strategy, Alberta has committed
to improve the overall efficiency and productivity of water use in Alberta
by 30% from 2005 levels by 2015. The hydrocarbon energy industry will
contribute to the success of this reduction target by applying innovative
water efficiency and productivity technologies and strategies. Featured presentations include:
An afternoon Coalbed Methane Water Management session includes the following presentations:
Participants at this event will have the opportunity participate in an open format priorities discussion on water issues and brainstorm solutions to address these issues. In addition, attendees can exchange findings and ideas and network with peers at the Poster/Networking Reception. Send in your registration with full payment before June 16, 2005. Invoices will not be issued. You may register online and pay by credit card via telephone, or fax a copy of the registration form to PTAC at (403) 920-0054 with complete credit card information, or mail your registration form with your payment, to Tannis Such at PTAC: Suite 700, Chevron Plaza, 500 Fifth Avenue SW Calgary, AB T2P 3L5 For more information on this forum, please contact – NEW COMMITTEE STRUCK Prior to launching the WIPC, PTAC members identified three primary needs: to focus environmental water research to improve its applicability to water use and storage; to identify related technologies; and to increase financial support for this research through coordinated and partnered efforts. The Alberta Government report Advisory Committee on Water Use Practice and Policy under the Water for Life Strategy released in August 2004, recommends that government and industry “[i]nvest in research to support the implementation of new methods or technologies that will reduce the volumes of underground injection of non-saline water.” (www.waterforlife.gov.ab.ca/docs/Final_Recommend_Online.pdf, p.5.) Industry and governments are responsible to maintain a high quality environment through resource management and regulatory decision-making systems. These systems need current scientific information. The oil and gas industry and governments obtain the information they need through new research and related scientific activities and, where possible, by accessing existing knowledge. The WIPC will explore research needs and identify technologies that address water issues such as alternatives to fresh water use for waterfloods. This committee will also develop recommendations and coordinate management of research projects, which provide the oil and gas industry and governments with information to better manage water issues of concern to industry, government and the public. The WIPC will promote the sharing of resources and will create arrangements to enhance development, delivery and implementation of research results and will request expertise from suppliers when required. Industry and government own the challenges and opportunities that can be addressed with new research and technology. One of the anticipated outcomes of this committee will be to launch research and pilot projects directly related to current industry and regulatory challenges. The first water-related event – 2005 Water Efficiency and Innovation Forum for the Oil Patch will be held June 23, 2005. For more information, please contact – DEADLINE EXTENDED – FRIDAY, JUNE 17,
2005 The petroleum industry plays an important role in sponsoring environmental research in Canada. The upstream oil and gas industry has a long record of initiating and funding studies that offer practical, cost-effective solutions to environmental issues. The Environmental Research Advisory Council Fund (ERAC) is seeking applications for the 2006 funding cycle for projects that are of focused interest to industry. ERAC is part of the upstream oil and gas industry's Broad Industry Initiatives (BII) fund. BII funds are generated through an Alberta well levy, collected on behalf of CAPP and SEPAC by the Energy and Utilities Board (EUB). The selection of projects for funding follows a close examination by a panel comprised of three Governors of CAPP and a Director of SEPAC. The selection criteria ensure the projects funded have an Alberta focus and that the Broad Industry Initiative (BII) funding mechanism is not the only source of funding for each initiative. In 2005, ERAC funded over $1M in environmental research projects. CAPP’s priorities for 2006 are to identify cost-effective ways to carry out the following tasks:
PTAC has been contracted to facilitate this program and is neutral in the ERAC process. ERAC funds are distributed with direction from CAPP and SEPAC as part of their commitment to improving environmental, safety and health performance of their member's operations. To be approved for funding, projects must provide science-based solutions to current and emerging environmental issues that are critical to the industry. This fund is for research projects only, not technology development. For more information on this process, please visit the PTAC web site at www.ptac.org/env/envframework.html to view the Framework and Process Model for Collaborative Environmental Research and Technology Development (R&D) in the Western Canadian Oil and Gas Industry. The deadline for applications has been extended to June 17th, 2005. For more information on this forum, please contact – 2005 PROJECTS APPROVED ERAC projects are collaboratively funded and managed by
PTAC technical steering committees. Fifteen projects were approved for 2005
totaling $1 million dollars. To view the complete list of 2005 ERAC projects, or to see the Framework and Process Model for Collaborative Environmental Research and Technology Development (R&D) in the Western Canadian Oil and Gas Industry posted on the PTAC web site at www.ptac.org/erac1.html. For further information, please contact – WORKING TOGETHER – SHARING THE COST Environment Canada administers funding from Natural Resources Canada (NRCan) under the Program of Energy Research and Development (PERD) to conduct UOG air issues research under the Program at the Objective Level to promote information sharing and capacity building regarding environmental issues. PTAC facilitates the Air Research Planning Committee (ARPC), comprised of individuals from industry, federal and provincial governments, regulators and research funders. This committee will promote the resource sharing and create arrangements to enhance development, delivery and implementation of research results. This four-year contract will help the ARPC to accelerate air issues knowledge gathering and sharing. The results of this initiative will be accomplished in several ways: first by enabling the ARPC to identify UOG issues and assess the barriers and needs for future UOG performance improvement, technology development and implementation. Secondly, by facilitating development of science and technologies to identify; quantify and reduce the industry’s impact on the environment, while improving profitability and eco-efficiency. Finally, once research results are in, the committee will communicate and disseminate research results and encourage expedient uptake of newly developed technologies or operating procedures effectively and in a timely manner. For more information, please contact – Oil
Sands A bitumen recovery research and development study funded by NRCan, and with in-kind support from Alberta Energy Research Institute (AERI) released the project’s final report titled, “Bitumen Recovery Technology: A Review of Long Term R&D Opportunities” in early 2005. This report’s primary intent is to advise federal and provincial government funding agencies of the priorities for R&D investment in bitumen recovery to at least the year 2010, including pre-competitive R&D that should be considered for joint industry and government funding. A Review of Long Term R&D Opportunities also assesses the potential for greenhouse gas mitigation through new technology. The report prepared by Lenef Consulting builds on last year’s Alberta Chamber of Resources report, “Oil Sands Technology Roadmap: Unlocking the Potential.” Len Flint of Lenef Consulting credits recent studies by AERI and the Cleaner Hydrocarbons Technology Futures Group who have also addressed oil sands bitumen upgrading technology development needs. This document expands on these studies, lists opportunities for stable long term research and development, and emphasizes the role of publicly-funded research to the year 2010. Breakthrough innovation and a collaborative, integrated approach are required to overcome barriers to expanded oil sands production. Current bitumen recovery processes rely heavily on natural gas and water resources to recover and upgrade bitumen, and also emit high levels of CO2, and the report describes why these usage and emission practices are not sustainable. To overcome these barriers, the author suggests three ways to bridge the potential gap between applied research and the innovative use of that research to produce commercially viable products, processes or services:
EnergyINet is named as the evolving vehicle for the needed collaboration between industry, government, research providers and involved not-for-profit associations. The report recommends expanding EnergyINet to include more people who share the urgency of the need for energy innovation, and the belief in a collaborative, integrated approach. The report emphasizes the need for financial support from provincial and federal research funders; input from industry decision-makers on priority energy issues with a commitment to actively implement a long-term innovation agenda, as well as input from other key industry stakeholders. Tom McCann, who provided the greenhouse gas background and analytical input to this report, passed away suddenly on December 22, 2004. Tom is recognized for his expert contributions to the oil sands industry and greenhouse gas issues. To read the entire report, please visit the PTAC web site at www.ptac.org/links/dl/osdfnlreport.pdf.
For more information on this report, please
contact –
For more information on EnergyINet, please
contact –
R&D Funding The Alberta Department of Energy announced that the deadline to apply for the second round of funding from the Innovative Energy Technologies Program (IETP) is October 31, 2005.
The initial IETP announcement made in
June 2004, offers royalty adjustments of up to $200-million over
five years to specific pilot and demonstration projects that use
new or innovative technologies to increase environmentally sound
recoveries for existing reserves and to encourage responsible
development of new oil, natural gas and in situ bitumen reserves.
The program is designed to assist industry to find commercial
technical solutions to the gas over bitumen issue that will allow
efficient and orderly production of both resources. IETP will
encourage innovation and faster commercialization of new
technologies by sharing in the financial risk. The application, along with regulations and policy pertaining to the process, is available on the Department of Energy web site at www.energy.gov.ab.ca/2858.asp. For further information, please contact –
Sandra Locke, Director, Oil
Development
Tom Ross, Oil Development
Matthew Foss, Electricity and Gas
Les Little, Innovation and Science Reservoir Recovery PTAC’s EnergyINet Increased Recovery of Oil & Gas Business Case Project is nearly complete. This project was designed to provide a detailed business case for increasing recovery factors in reserves of oil and gas in the Western Canadian Sedimentary Basin. Project funders were scheduled to meet at the end of May, 2005 to receive a progress update and to provide feedback. 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 TCF of natural gas in Alberta by 2015 through new technology and research. PTAC thanks the following organizations for their support:
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. Additional information is available at – www.ptac.org/res/rest0402.html.
To participate, please contact – NEW AND SIMPLER TAX AND ROYALTY REGIME Saskatchewan Announces Enhanced Oil Recovery Incentives The Government of Saskatchewan announced tax and royalty changes, effective April 1st, 2005, along with other measures to increase the amount of oil produced in Saskatchewan through enhanced oil recovery (EOR). The changes include a revised and simplified tax and royalty structure for EOR; a renewed and improved Saskatchewan Petroleum Research Incentive program (SPRI) and Provincial Sales Tax and Fuel Tax exemptions on substances injected into oil-bearing formations for EOR purposes. The changes reflect the outcome of discussions with industry on steps that could be taken to expand Saskatchewan's oil production through EOR. Premier Lorne Calvert likens Saskatchewan's oil resource to a sleeping giant. Calvert says an estimated 35 billion barrels of oil have been discovered in Saskatchewan, and roughly 15 per cent is recoverable through current proven technologies. According to Calvert, heavy oil recovery rates are in the 5-10 per cent range. The incentives were developed by Saskatchewan Industry and Resources following consultations with the Canadian Association of Petroleum Producers and other stakeholders. The objective was to identify existing constraints to expanding EOR production and means of addressing them.
A new and simpler tax and royalty regime for EOR brings it into line with
lower rates currently in place for EOR projects involving carbon dioxide
injection. The revised structure will apply to all new and expanded EOR
projects, as well as any possible future oil sands and oil shale projects.
It is consistent with the overall objective of using simple, fair,
competitive taxation as one means of improving Saskatchewan's climate for
growth.
Renewal of the SPRI program for a further five fiscal years will provide as
much as $30 million in tax and royalty credits on new small-scale EOR pilot
projects. All pilot EOR projects will be eligible for SPRI.
The Sales Tax and Fuel Tax exemption on propane, butane and other chemicals
injected into oil reservoirs to increase the recovery rate brings them into
line with the tax exemption already in place for carbon dioxide used in EOR
projects.
For more information on Saskatchewan’s Oil & Gas Resources, visit the
Saskatchewan Industry and Resources web site at
www.ir.gov.sk.ca/Default.aspx?DN=3383,3384,2936,Documents
or contact –
The first project is called SRU Incinerator Optimization whereby Sulphur
Experts proposal is to complete a Phase 1 of a multi-phase program dealing
with aspects of Sulphur Plant Incinerator Optimization. This program will
directly benefit the gas processing industry in Alberta in the area of
energy conservation, by enabling a better understanding of incinerator
operation that will result in a significant reduction in fuel gas
consumption and the associated greenhouse gas emission.
The project will deliver a formal report summarizing the current status of
incinerator optimization in the plants and quantifying the estimated
incremental opportunity for additional optimization.
The second project is REM AFR Systems. Rich burn engines produce high
emissions and consume more fuel per horsepower than new engines of the same
size. These qualities may impact fuel costs and generate emissions higher
than producers and regulatory agencies may desire.
Applications of new technology with specialized ignition and fuel controls
can be employed to reduce emissions and fuel consumption. One such
manufacturer of this technology is REM Technology Inc., who are providing
their REMVue system through Spartan Controls. The REMVue system claims to
achieve these results by running the engine at leaner fuel mixtures with
enhanced engine controls. Modifications to the carburetor, fuel gas system,
wastegate and turbochargers are required with this technology to sustain
reliable operation of the engine.
The project will conduct a field study to collect preliminary data and make
sure equipment condition is adequate and undertake surveys to verify fuel
economy and emission reduction. The third party report will then correlate
field and theoretical data to document the findings in reduced emissions.
For more information on TEREE or these projects, please contact – Links and Resources PTAC, with support from Industry Canada, the Alberta
Energy Research Institute (AERI) and the Alberta Department of Energy (ADOE)
developed the Oil & Gas R&D Projects Database to foster collaboration in
industry. The database provides technology developers, researchers, funders,
government agencies, producers, supporters and equipment manufacturers
access to information on current industry technology developments and R&D
efforts. In February 2005, PTAC surveyed researchers, innovators, developers
and those in early phases of commercialization on their research projects. After the initial survey to garner input was completed and
assessed, a workshop was held in March 2005 to determine which technology
areas did not receive research or innovation activity submissions, and then
increased efforts to locate researchers specializing in the identified
areas. PTAC, Advantage Insight Group Inc., Portfire and Associates, the
University of Alberta and New Paradigm Engineering Ltd. collaborated on this
project. SUBMITTING PROJECTS The database contains information on more than 150 new
technology projects. PTAC encourages you to support this initiative by
entering your R&D projects at your earliest convenience. To include your R&D
project in the database, please submit an online, brief public domain
summary of your R&D oil and gas-related project. Background information,
input guidance and the input form are available at
www.ptac.org/rdd1.html. One
form should be completed for each R&D project. SEARCHING To search the database, please visit
www.ptac.org/rdd1.html.
Industry can use this tool to locate research projects aligned with their
needs, while researchers may identify partners for complementary
technologies and for applications development. Researchers who submit
project information will have increased exposure to industry and government
stakeholders. PTAC is currently seeking additional funding for updating
and maintaining the Oil & Gas R&D Projects Database. To participate as a project funder, or for information on
submitting or searching for a project, please contact – PTAC News BOARD CHANGES
Retiring Board Members
NEW MEMBERS AS
OF JANUARY 1, 2005 Producers
Transporters
Service and Supply Companies
Research Provider
Government
Learning Institutions
WWW.PTAC.ORG PTAC Petroleum Technology Alliance Canada PTAC is dedicated to the facilitation of innovation, technology transfer and collaborative research, development, demonstration and deployment of technologies for the responsible development of Western Canada’s upstream hydrocarbon energy 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, 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. For further information, please contact PTAC – PTAC 500 Fifth Avenue S.W. Calgary Alberta T2P 3L5 www.ptac.org info@ptac.org General Information (403) 218-7700 fax: (403) 920-0054
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