From the yearly archives: 2012

Snaking along mostly underground, for decades pipelines have been a rarely thought of fact of life in Western Canada and, indeed, the entire nation. They carried the economic life’s blood of the West to market and, while a line carrying gas or oil might occasionally burst, landowners were by and large more concerned about getting adequate – and annual – revenue from the pipeline companies.

Not any more. Recent controversy surrounding pipelines planned by Enbridge Northern Gateway, Keystone XL and Kinder Morgan has brought a myriad of environmental and safety issues to the forefront, polarizing the industry and the communities affected by it.

The nation has rarely if ever seen the level of controversy that surrounds the Northern Gateway pipeline stretching from the Alberta tar sands to BC’s west coast. Public hearings that are part of the Joint Review Panel process have become theatre, with environmentalists and other objecting stakeholders mounting a concerted campaign to torpedo the twin-line project, which would send product to an LNG (liquid natural gas) plant being constructed in Kitimat and return condensate to northern Alberta for use in the oilfields there. Not only Enbridge but also Ottawa and the supportive provincial governments of BC and Alberta have come under attack from those who say the environment would be needlessly threatened by an industry some characterize as being focused solely on its own self interest.

Significantly, the municipalities of Whistler, Prince Rupert, Terrace and Smithers, and the regional district of Skeena-Queen Charlotte have passed resolutions opposing the project, joining many First Nations. The Nuxalk First Nation recently pulled out of the pipeline review process, while other nations have refused to intervene all together. The Nuxalk say the Joint Review Panel has no mandate to consult with First Nations, and there has been no clarity provided by the federal government about how it will consult on issues that fall outside of the Joint Review Panel process. The withdrawal is seen as a sign that the federal government is mishandling its relationship with First Nations, including its statements that it will change the rules for the Enbridge pipeline hearings retroactively, which some say may further compromise the regulatory review process.

“How can we participate in a process driven by a government that has labeled us ‘socially dysfunctional’?” said Charlie Nelson, a Nuxalk hereditary chief, referring to recent statements by Natural Resources Minister Joe Oliver. “Where is the honour in the Crown stating that it’s prepared to violate our constitutionallyprotected title and rights before the work of gathering information on the scope of infringement is even done?”

Also, public hearings in the coastal community of Bella Bella, home of the Heiltsuk First Nation, were delayed after a peaceful community demonstration against the proposed Enbridge project with drumming and singing at the airport.

But against this backdrop of controversy, what does this industry mean to our economy and, indeed, that of the entire nation? How can the interests of business and the environment be balanced? As media, including social media and the blogosphere, are utilized in concerted messaging attempts, that question now occupies a place that is front-and-centre in the Canadian psyche.

This is big business. According to the Canadian Energy Pipeline Association (CEPA), the value of Canadian crude oil and natural gas exports in 2009 exceeded $60 billion. The 100,000 kilometres of existing Canadian pipelines carry more than 15 billion cubic feet of natural gas and 3.2 million barrels of oil each day – 97 per cent of the gas and oil transported in this country. The industry employs 6,000 people and pays taxes of more than $800 million annually.

“Pipelines are the safest, most economically and environmentally sound way of transporting crude oil and natural gas to market,” said CEPA spokesman Phillippe Reicher. “Transmission pipelines are extremely safe but not risk free, so we continue to work on improving our performance in the areas of pipeline integrity and emergency management for example.”

Spectra Energy, including previous incarnations as Duke Energy and Westcoast Transmission, has a wealth of pipeline experience – a century in Ontario and 55 years in British Columbia. And Gary Weilinger, Spectra’s Canada West vice-president of strategic development and external affairs, said the company’s core business is simple: “We like to keep what’s in the pipe in the pipe”.

He said pipelines are built and designed to the highest standards of safety and reliability and Spectra Energy spends $250 million annually to maintain the safety of its Canadian system. There is an immediate 24/7 response by highly trained personnel in the event of an emergency and pipeline integrity is continually managed once installed with extensive maintenance protection protocols that include high quality pipe coatings, routine patrols, and leak and corrosion detection systems.

“Committed to operating and maintaining the pipeline system in a manner that protects the people, the environment and the communities in which Spectra Energy operates, and to be compliant with all applicable standards and regulations,” Weilinger said, adding that Spectra has been using inline “smart” tool inspection since the early 1970s.

While he decried much of what is trumpeted in various blogs as “stupid stuff”, Weilinger said the industry needs to do a better job of getting its messages out to a public being buffeted by wrong or misleading information, dispelling the rumours with the truth. “We need to step up our game. They’re winning,” he said, adding that Spectra is developing strategies to get the correct information out to the public, through a variety of mechanisms that include media messaging and displays at community trade shows.

“People don’t really know lots about pipelines and we need to dispel the common misperceptions,” he said.

Contrary to much of what is being said by opponents, “Pipelines . . . have never been safer,” said CEPA’s Reicher. “Over the past 10 years, on federally regulated pipelines, our member companies’ failure rate averaged approximately 0.3 per 1,000 kilometres of pipeline. Pipeline incidents are extremely rare.”

Nor does Reicher think the industry operates in isolation, riding roughshod over the concerns of others. He said the pipeline industry works closely with environmental, aboriginal communities, landowners and other stakeholders to ensure conservation, environmental protection and land access. “CEPA promotes the use of world-class environmental management systems and our member companies performance in this area is also world-class. Over 83 per cent of landowners, according to an Ipsos- Reid survey, had a favourable opinion of the energy pipeline companies passing through their land.

“Our industry is working very hard to try and dispel any misunderstanding with respect to pipeline safety and operations,” he said. “We encourage open dialogue with all our stakeholders and would welcome the opportunity to explain the facts. Pipelines are the safest form of transportation in moving large volumes of crude oil and natural gas over land. Our member companies operate pipeline systems every day using over 100,000 kilometres of pipe and there is rarely an incident. However, in the extremely rare chance that a pipeline would leak, our member companies can respond immediately using the best available technologies to restore pipeline systems and the environment. The pipeline systems are monitored 24 hours a day, seven days a week.”

Reicher said good safety and environmental performance go hand-inhand and he stressed that CEPA member companies have built an “outstanding” pipeline system to transport energy in the safest and most environmentally sound way, “and there is no reason for us to believe that these practices would not continue to exist for future pipeline projects”.

He said the real issues go beyond just pipeline safety. “We believe that the controversy associated with large pipeline projects such as Northern Gateway and Keystone XL relate to the broader issue of climate change where, in fact, concerns with pipeline safety are concerns with the products these pipelines carry, such as the oil sands.”

Citing a reliability rate of major transmission pipelines in Canada that sits at 99.9 per cent, Reicher said, “You will not find a better performance in any other transportation sector. Pipelines are and will remain the safest way to transport oil and gas products over long distances.”

Enbridge’s Gateway Pipeline project has been a lightning rod for differences between the industry and environmentalists and other stakeholders. Virtually every environmental group has come out against the project citing potential threats from pipeline breaks and further risks associated with tankers shipping the product along the BC coastline to Asian markets.

“We don’t believe Gateway should be built,” insisted Will Koop, co-ordinator of the Canadian Tapwater Alliance, one of those groups. “There are too many problems with it.”

He said Enbridge wants to “break” the 40-year-old moratorium on tanker traffic along the West Coast and doesn’t care that its pipeline would create hazards to the freshwater systems along its route, “critical ecosystems” that are a source of drinking water for many communities. Citing difficulties local officials had getting industry reparation money after the Pine River pipeline break near Chetwynd, BC a decade ago, Koop said pipeline companies including Kinder Morgan with their TransMountain Pipeline in Southern BC should have to post bonds as high as $50 million to ensure money is available to repair damage they may cause.

Such opposition doesn’t surprise Enbridge’s senior communications strategist Todd Nogier. “When it comes to the scope and size of Northern Gateway, a $5.5 billion pipeline and marine terminal and the largest private-sector infrastructure project in British Columbia’s history, it is inevitable that you get attention,” he said.

Nogier said opposition to Northern Gateway, as well as the Keystone XL pipeline and others has really come from just a minority. “This vocal minority has, in no small part, been mobilized by a collection of well-funded, well-organized environmental activist organizations.

“It’s also important for Canadians to understand the strategic goals of organizations opposed to Gateway and other export pipelines. Michael Brune, the executive director of the Sierra Club, was quoted in the New York Times recently explaining that opposition to pipeline projects ‘is part of a broader effort to stop the expansion of the tar sands. It is based on choking off the ability to find markets for tar sands oil’.”

The reality is that a largely silent majority supports these pipelines, said Nogier. A recent Ipsos Reid poll done for Enbridge found that 48 per cent of British Columbians support Northern Gateway, compared to 32 per cent who are opposed. In that same survey, support for Northern Gateway jumps to 55 per cent in Northern BC, where familiarity with the project is highest.

“It’s our belief that people’s concerns decrease as they learn the facts about what we’re proposing and our commitment to safeguard the environment and the interests of all stakeholders,” he said.

“Clearly the public is getting an inaccurate view of the extent of the opposition to Northern Gateway and, likely, pipelines in general.”

Nogier and other Enbridge officials recognize that the most common concern raised with respect to Northern Gateway’s proposed pipeline system is the likelihood of an oil release and, if one occurs, the likely resulting environmental damage.

“We take those concerns very seriously and work very hard to provide Canadians with the facts on the extent of risk related to pipeline operations,” he said. “Spills have occurred, generating concern among the public. But Canadians should note that the reality is (that) pipelines are the safest and most efficient way of transporting large amounts of oil. Given the volume of crude oil and petroleum products Enbridge transports, spills are rare.”

He cited figures indicating that in 2010 Enbridge transported more than 950 million barrels of petroleum products with a safety record of 99.99 per cent. Most of the spills Enbridge experiences on their liquids pipeline system are small and take place at company facilities such as pump stations and terminals, he said.

“As a result, we are able to clean them up quickly and they have either low or no environmental impact,” he said. “For example, 83 of the 89 spills we experienced in 2009 (the last year for which we have a detailed breakdown) involved fewer than 100 barrels of product, and 80 of these spills (about threequarters of our total spill volume) were contained within Enbridge facilities.

“That said, our goal is zero spills and we are working very hard, and spending very considerable dollars, to avoid spills.”

Public engagement has become a priority for Enbridge and other pipeline companies. While they acknowledge that the task is difficult, educating the public on the real extent of risk associated with pipelines and the benefits of transporting that energy, it has become a major objective for the company and the industry.

“Given the increasing scrutiny on our industry, it is important that pipeline operators understand what concerns Canadians most and to respectfully remind them of the benefits of oil and the transportation of energy,” said Nogier, adding that Enbridge has engaged in thousands of meetings of varying sizes with thousands of Canadians to talk about the issues and to ensure there is a clear understanding of the risk versus benefit related to the industry.

“Our way of life, our standard of living, depends heavily on our availability of energy and our ability to transport energy vast distances from where the resources are developed, to where they are needed.”

Nogier said it’s vital to recognize energy trade’s position as the cornerstone of Canada’s economy. In 2010 Canada’s single largest export was crude oil – $50 billion worth – and nearly all of that went to just one customer – the United States. As senior governments and industry seek to facilitate trade with Asian markets and others, they are hampered by the lack of an outlet to access tidewater (marine transport). That dependence has begun to cost Canadian energy producers greatly; some estimate $50 million a day.

“This is due to a confluence of factors including pipeline constraints in the US, flatlining demand Stateside and the fact Canada has no outlet to sell its most important export to where demand is greatest – Asia,” Nogier said. “Northern Gateway would give Canadian producers, and Canada, that option.”

Economists have predicted that an outlet to Asia via Northern Gateway would provide the following benefits: $270 billion in GDP over 30 years; $400 million in employment and contracts for aboriginal communities and businesses; $4.3 billion of labour-related income across Canada during construction; $2.6 billion in local, provincial and federal government tax revenues; and 1,150 long-term jobs throughout the Canadian economy.

“Given the very real budgetary challenges of most levels of government, it’s important that Canada’s most lucrative export, one of its largest industries, continues to thrive to support all the things Canadians cherish – schools, health care, infrastructure, transit, the list goes on,” Nogier said. “If we don’t, all of Canada will suffer.

“Northern Gateway is a nationbuilding infrastructure project.”

 

As the industry grows, so does the equipment and finding the best way to coordinate its use is as important as the equipment itself.

 

RyTy knows how to do it big and do it with confidence. It’s no small undertaking to move an 84-wheel trailer – 98 if you count the push truck – that is able to haul 150 tonnes and with 1,100 hp pushing this thing. It’s payload potential is 320,000 lbs and there is nothing this big north of Edmonton, and in BC it’s like is nowhere to be found says RyTy Manager Shaun Lawrence.

“With oil and gas being the primary way of living in this area, so many companies have compressors which is the main thing we haul with it,” says Lawrence. There is a definite need for something this big. It is a monster all right, but RyTy thinks it’s worth all the effort to make the equipment work for them and their clients. One of the biggest benefits it that loads don’t have to be broken down for transport.

However planning is paramount when it comes to putting all the pieces together to make that happen and the logistics could make you dizzy. It’s not only coordination that’s needed, but cooperation as well. Permits, dealing with traffic, power companies, crews, and routing are all part of the puzzle where routing alone can take days.

“It takes weeks to get permits,” says Lawrence. Permits from the province, the county, lining things up with the power companies and it all gets more complicated when dealing with Calgary. “I don’t call them and say I’m coming in with this load on this date. I call them and they tell me when I can go into the city…you’re at their mercy,” says Lawrence. It takes at least two weeks to dot the Is and cross the Ts.

And then comes the start of the journey. It takes days to bring together everyone needed to get that monster loaded and on the road. Where the load is placed is a critical factor and there is really “only one shot to get it right”. It is ultimately an issue of time is money. And when it finally is ready to move, other considerations come into play and not all of them serious.

“Just about all the drivers here grew up and our toys and sandboxes got bigger,” says Lawrence. “Who wouldn’t want to come to work and haul 300,000 lbs down the road and then go to the bar and puff your chest out about it?”

Despite that tongue-in cheek observation, Lawrence does stress that safety is always a primary consideration. While any experienced driver can move this trailer, it has a few features to make that a little bit easier. “It has state-of-the-art hydraulic steering which no one else has out there – nobody,” says Lawrence. Accusteel designed it especially for this piece of equipment.

There are three failsafe mechanisms on the trailer to prevent any wandering on the road and if one hydraulic line breaks, there are contingencies. “It would have to be a complete disaster for it to do some damage,” says Lawrence.

“When you get into tight spaces, there are motors on the back that run hydraulics and you can steer it with the remote control,” says Lawrence. A supervisor always goes with this trailer and can see from a rear vantage point if anything goes wrong and can also steer the back when needed but on the highways that’s not needed – it steers itself.

“They cruise at an average of 60 kmph empty or loaded. Without the push truck in the back, that speed drops to 40 kmph because of the sheer weight of it. Unloaded, it weighs 75 tonnes. There is no doubt that this piece of equipment is one-of-a-kind but RyTy has other equipment that isn’t found just anywhere including two of three FN900 Nodwells that exist in the world.

“We have the largest fleet of offroad equipment in Alberta,” says Lawrence. Specializing in heavy hauling, RyTy is intimately acquainted with the petroleum industry and their ‘new toy’ is just one more addition to a busy and successful company.

Do you know someone that has something to say? Do you know of an achievement that we can tell people about? Do you have a technology you want people to know about? Send the information to joei@sharplinkcommunications.com

 

In recent issues we noted that Alberta receives more patents per capita than any other province, and that the Peace Country may be the most innovative region in Canada. Grande Prairie is the most entrepreneurial city in Canada.

Who then are these innovators? Finding the answer to this question may have important implications for public policy and the Centre for Research & Innovation (CRI). To obtain insight, the CRI conducted a survey of its clients, who are typically the leading innovators and inventors in the Peace Country. What follows is a profile of the CRI client, and by implication the innovative community within the Peace Country.

The Peace Country innovator is typically male and in middle to late middle age. He grew up in a northern community of 5,000 population or less, but now lives in Grande Prairie. He is well educated, often with several years of post secondary education. Nearly half have capability in a second language. Peace Country innovators read 1 to 3 hours a day, and infrequently watch television. He uses social media minimally or not at all.

Nearly all Peace Country innovators have owned or co-owned multiple businesses. A very large majority (87 per cent) of these businesses were start ups and three-quarters had innovation as the central role. Nearly all CRI clients (97 per cent) self-identify as being an innovator and like innovating. They provide nearly as strong a response (93 per cent) about being an entrepreneur, but less so for management (82 per cent). Interestingly 59 per cent do not like the role of being a marketer or salesman.

Peace Country innovators starts young – 57 per cent had their first innovative ideas at 15 years of age or younger. Ideas are generated when innovators are: in a good mood (96 per cent agreement); happy (88 per cent); helping another person with a problem (77 per cent); travelling (73 per cent); and concentrating intensely (64 per cent).

Peace Country innovators have a hierarchy of motivations to innovate. In order of importance, these are: internal personal motivations (achievement, creativity, problem solving, risk taking): community motivations (contributing to the community, contributing to the Peace Country, helping aspiring innovators, economic opportunity) and external personal motivations (ambition, personal gain, recognition).

The most dominant attributes of Peace Country innovators are: optimism (96 per cent), passion (96 per cent) and independence (89 per cent). All innovators are motivated by risk taking, at least in the realm of innovation and possibly business. For most, this extends into risky sports and similar activities. However, half of respondents are also somewhat or strongly wary of risk. This suggests that innovators may seek to manage risk. 71 per cent have a life insurance policy of $100,000 or more.

This profile of the Peace Country innovator provides important insights. For example, innovation is a life-long pursuit; our innovators start young and continue innovating well into middle age. Innovators are typically entrepreneurs and innovators in near equal measure. However, they are not inspired by marketing and sales. The implication is that there needs to be more marketing programs and services to regional innovators, and that we attempt to engage them at a younger age.

Gary Christopherson, adjunct staff member to the Centre for Research & Innovation.

 

While organizations need an influx of fresh ideas, their efforts may be hindered as staff are often too busy juggling their day-to-day responsibilities and dealing with problems that arise, results of a recent Robert Half survey suggest.

Nearly half (49 per cent) of chief financial officers (CFOs) interviewed blamed being bogged down with daily tasks or putting out fires as the greatest barrier to their company being more innovative.

The survey, developed by Robert Half International, was conducted by an independent research firm and is based on interviews with more than 270 CFOs from a stratified random sample of Canadian companies with 20 or more employees.

CFOs were asked, “What is the greatest barrier to your company being more innovative?” Their responses:

• Being bogged down in daily tasks/
putting out fire……………………….49%
• Too much bureaucracy……………..9%
• Lack of new ideas……………………..5%
• Ineffective leadership………………..2%
• Other………………………………….6%
• Don’t know/no answer…………….29%

“All professionals deal with solving problems and handling daily tasks, but they also need to make setting aside time for generating new ideas a priority,” said Kathryn Bolt, president of Robert Half Canada.

“Managers should regularly encourage their staff to break away from their routines and develop innovative programs that will benefit the business,” Bolt added. “To give staff time to accomplish this, managers can work with their teams to reprioritize projects and also bring in additional support during peak activity periods.”

Robert Half offers six tips for inspiring innovation among work teams:

1. Engage the entire team. Empowered employees tend to be more innovative because they have a bigger emotional stake in the firm’s success. Cultivate a culture in which staff at all levels can easily share solutions for improving the business. Maintain an open-door policy and also encourage people to offer ideas in meetings, through an internal website or even an old-fashioned suggestion box.

2. Remove the red tape. Examine internal processes to ensure company procedures aren’t generating unnecessary red tape. Employees become disillusioned when they put their time and energy into devising ingenious ideas only to wait forever for them to be approved and implemented.

3. Keep it collaborative. A healthy level of competition between employees can spur innovation. But if a workplace becomes too competitive, team members may be reluctant to speak up for fear that their suggestions will either be stolen or ridiculed. Create policies that support the open exchange of information and a team-first atmosphere.

4. Build a better brainstorm. Too many potentially great ideas are discarded prematurely in brainstorming meetings. Rein in the nay-sayers who relish in saying why novel proposals won’t work. Support “blue-sky thinking”.

5. Give ‘em a break. Burnout does not beget brilliance. When employees are consistently overworked, they’re likely to have more “uh-oh” than “a-ha!” moments. Implement programs that promote work-life balance, and consider bringing in temporary professionals during peak activity periods to keep your team fresh and focused.

6. Seek inspiration. As a leader, you set the tone. You’ll have difficulty motivating staff to ignite creative sparks if you’re feeling uninspired yourself. Research shows a person in a relaxed, positive mood has more innovative thoughts. Feeling the pressure? Occasionally get away from your desk and unplug by going for a head-clearing stroll.

 

Within a month two major energy firms should be deciding if they will embark on a project that would see a Gas-To-Liquids (GTL) plant being built somewhere in northwestern Alberta or northeastern British Columbia.

South Africa’s Sasol Ltd. and Talisman Energy Inc. last year formed a joint partnership that involved Sasol buying into Talisman’s operations in the Montney Basin and exploring the feasibility of siting a GTL plant capable of processing up to 96,000 barrels a day in the region late in 2012. The feasibility study report is expected in June.

“We’re looking for other opportunities to monetize gas,” explained Rob Gibb, Talisman’s Manager, Corporate and Public Affairs for the GTL Project. “If this goes forward it will do more on the value added side.”

GTL takes a low-priced commodity like natural gas, now priced below $3 per gigajoule and “delinks” it from the low gas price to higher-priced liquid commodities such as diesel and naptha and its derivative deluent, a blend used for shipping bitumen, he explained. While the two giants are 50-50 partners in the feasibility study, if the study favors construction of a GTL plant then discussions about a joint venture to take it forward would be held.

Sasol, the world’s largest producer of motor fuels made from coal and gas, recently paid $1.08 billion for a 50 per cent share in Talisman’s Cypress A project, its second shale gas acquisition in less than three months, following its $1.05-billion acquisition of 50 per cent of Talisman’s Farrell Creek operation. This gives Sasol a presence in the North American shale gas market as they bet gasbased projects will be more profitable than their core business of producing motor fuels from coal. In 2007, Sasol built the world’s largest GTL plant in Qatar in a joint venture with Qatar Petroleum, and uses proprietary and world-leading Fischer-Tropsch technology to convert gas into motor fuels.

“Our culture of innovation began in the 1950s when Sasol developed our unique blend of coal gasification and technology for the original coal-to-liquids operations at Sasolburg, South Africa,” said Debbie Pietrusik, Sasol Canada’s Corporate Relations Manager.

“Today, this state-of-the-art-technology enables Sasol to use coal, natural gas or biomass feedstocks to produce a clear, clean liquid synthetic fuel for use primarily as diesel, jet fuel or chemical feedstock that is compatible with the existing fuel distribution infrastructure and modern diesel and jet engines.”

While natural gas has become a major presence in the global power generation market, until recently it lacked the versatility to address other pressing energy needs. But now, natural gas can be transformed into a range of energy and chemical products including fuels, waxes, naptha, base oils and paraffin’s.

“With the abundant and growing supply of natural gas resources in Canada, Sasol’s world-leading technology is a value-added solution to produce clean GTL fuel from a clean energy source,” Pietrusik said.

She said this development is a good fit for her company. Sasol Petroleum International (SPI) manages the upstream interests in oil and gas exploration and production in several international regions such as Mozambique, South Africa, Gabon, Nigeria, Papua New Guinea, Australia, and now in the shale deposits in British Columbia. “SPI pursues gas exploration opportunities that integrate into existing Sasol investments as well as for feedstock to potential future Sasol GTL plants,” she said.

“With Western Canada’s tremendous growth in recent years in natural gas reserves, its strong product market (especially for diesel) and its energy industry creating high demand for naphtha, the region appears ideally positioned as a location for a GTL plant.”

Those opportunities could include a GTL partnership with Sasol if the feasibility study warrants it, Gibb said. Many factors must be considered, including the risks involved in the regulatory process, along with developing capital and operational costs confidence. While he couldn’t speak about any specifics they’ve discovered in their research thus far, he did say there have been no surprises as they considered potential locations.

Among the issues that must be considered are: access to markets; capital costs; synergies with other industries; infrastructure such as pipelines, rail, roads and power; and the availability of skilled labour. While competing in the global marketplace is an obvious consideration, another is public support. Gibb explained that risks to the environment could prompt some public concerns but he said the high quality of the diesel produced from the GTL process ensures low pollution levels that are nearly sulphur free.

“I’m sure you can attract protests because of concerns about environmental impacts,” he said, “but this is very much a good news story. Overall, it’s a value-added opportunity.”

If the GTL plant goes forward, up to 7,000 construction jobs will be created, while 600-700 jobs would be required to operate it. Gibb would not give a construction cost estimate, other than to say it would be a “big ticket number”.

 

While collapsible frac tanks are being promoted as better for the environment and a financial boon for industry, others say they won’t do much to reduce the debate over this controversial natural gas extraction method.

SEI Industries of Delta, BC has developed a collapsible frac tank system they say will reduce carbon footprints while saving on transportation costs.

“With increased interest from the public around the role of fracking, a new product is making that task a little easier on the environment,” the company says in a press release. “Since most frac jobs require millions of gallons of water that is typically delivered by trucks making hundreds of trips, the carbon footprint and cost of transportation can be prohibitive.”

A frac tank is used to hold water or other liquids on site when a well is being fractured. The material is held in a frac tank and connected by a hose or pipeline to a pump that will f low it down the wellbore at a high pressure to push open the formation and then is used to keep it open.

“That’s just a minor point,” Canadian Tapwater Alliance coordinator Will Koop said of the innovation. “There are greater issues.”

The Alliance and many other environmental groups are opposed to fracking on principle, especially concerning the way the process uses and disposes of water and its impact on soils and groundwater tables. “”We don’t think fracking should be done. We think it’s too dangerous.”

But SEI says their tanks are one step in solving the environmental impact puzzle – with some economic benefits for industry thrown in. For example, the large, heavy, expensive steel storage tanks generally used for water storage can damage the ground they sit on and be as costly to remove as they were to purchase. Steel tanks can also have a long wait time – from purchase to delivery – depending on the inventory available, which can hold up well site exploration and development.

Collapsible tanks ensure complete isolation from surface soil and water and significantly reduce truck traffic to and from the site (and its related carbon footprint). In fact, one semi-truck can transport 24 tanks with a combined storage capacity of an astounding 1,200,000 USG (28,800 BBLs (US) or 4560 m3). It would take 57 trucks to transport the same storage capacity in standard 500 BBL steel tanks.

SEI Industries offers a collapsible pillow-style frac tank designed specifically for oil and gas industry that is easy to set up and can be used immediately with almost no site preparation required. The tanks are lightweight, fully collapsible, environmentally friendly and don’t damage the ground beneath them. One individual frac tank can store 50,000 USG (1200 BBLs (US) or 190 m3). In a day, using a manifold system, multiple tanks can be set up to provide whatever volume of storage is required. Even better, SEI’s frac tank can be acquired in half the time it takes to get a steel tank. The company says its collapsible frac tanks stand up to frequent moves and harsh field conditions because they’re constructed from a proprietary industrial fabric that is high-strength, high abrasion and chemical-resistant. Coloured in high-visibility safety orange, the tanks are being touted as ideal for use in winter temperatures as low as -50 C where it can be folded and unfolded in extreme cold. The tank can also be used constantly with heated fluids up to +72 C (with limited exposure to +82 C liquids). In addition, the tank’s low profile design helps to maintain its fluid temperatures better compared to vertical steel tanks, SEI says.

Another feature of this unique fabric is its high resistance to abrasion – an important aspect when tanks are continually moved from site to site. Common tank fabrics have abrasion resistance of 6,000-13,000 cycles while SEI’s tank fabric has a 73,000-cycle abrasion resistance to handle the wear and tear of continual movements. Recently, SEI also launched its optional mechanized Frac Tank Deployment System that allows the quick unroll and roll-up of tanks while also significantly reducing the staff required.

 

Long term planning.

Sound planning is an important component of business success. Many businesses plan between one and five years ahead with some assurance but beyond year five, uncertainties often make reliable planning problematic.

Uncertainties include the vagaries of the business and commodity cycles, shifting markets and foreign exchange rates, changing consumer trends and environmental standards, a tight labour market, estimating reserves and depletion rates for non-renewable natural resources, disruptive new technologies, or end of product cycle/demand for your services.  The inability to predict these uncertainties frequently means that business plans do not extend into the long term, and the firm has no process for effectively analysing opportunities and evaluating trends. However, tools do exist to aid in long term and very long term planning.  Perhaps the most useful of these is called Foresight.

 

CRI and the Foresight Process

In the Autumn of 2011, the Centre for Research & Innovation led an exercise in very long term planning for the Peace Country.  The process started with the drafting of a question that defines the planning horizon, the stakeholders and desired outcomes.  The CRI’s question was: “By 2050, what must the Alberta Peace Country offer its citizens, stakeholders, industries and global markets to be socially responsible and economically prosperous?”

The CRI then invited approximately 40 participants to identify the trends in a workshop setting. In all, 20 trends were identified (full list available on the CRI website). From the list the delegates agreed that Geo-economics and Regional availability of appropriate knowledge and skills are the most important to the region.

The next step was to create four scenarios around these critical uncertainties. The scenarios described four possible outcomes: (1) the best possible situation, whereby the region is the beneficiary of favourable geo-economics and appropriate knowledge and skills; (2) the worst possible situation, whereby the region faces unfavourable geo-economics without the right knowledge and skills; (3) a situation whereby the region has favourable geo-economic conditions but lacks the knowledge and skills to take advantage of these conditions; and (4) a situation whereby the region has the right knowledge and skills but the geo-economics are against us.

The 40 delegates then divided into four groups to develop these four scenarios.  Delegates needed to debate the constellation of trends and circumstances required for the full development of each scenario by 2050. The process also required the creation of a timeline describing those circumstances.  The end result was a ‘story’ that described the trends and events which will unfold if the scenario comes to pass.

Nobody knows which scenario will unfold, but it is certain that geo-economics and knowledge/skills will have a substantial affect on the region within the next four decades, and the four scenarios will likely capture many of the future possibilities. Managers who are aware of these scenarios will be in a better position to recognize trends as they develop, and to appropriately respond to opportunities and threats.

Gary Christopherson, is an adjunct staff member to the Centre for Research & Innovation.

 

Ryan Gilmore was frustrated with high school and considered dropping out. Then he learned of the dual credit programs offered by the Northern Opportunities initiative and signed on to train as an automotive service technician while still in high school. Now he’s graduating with the highest mark in his course.

Photo courtesy of NLC

“It’s the best decision I’ve ever made in my life,” he said in a testimonial for the program. “I’ve got more than enough credits to graduate (high school) and I have a whole life plan ahead of me now.”

Noting that he can earn up to $50 an hour right out of school, he said, “That’s a pretty good deal.”

Northern Opportunities, developed by industry and educators in Northeastern BC, is going a long way toward addressing skills shortages and keeping students in school until graduation – and working in their home area afterward. Now, a decade after its inception, other jurisdictions are looking carefully at the program as a potential solution for their areas, too.

Northern Opportunities began to take shape through discussions with Duke (now Spectra) Energy and local educators in 2001 about how to address skilled labour shortages along with recruitment and retention issues in Northeastern BC. It was formalized by the Northeast BC Community Learning Council in 2002 to increase awareness of and participation in trades and technical careers among secondary schools in the region.

Experts even then knew that a skills and labour shortage was looming and graduation rates were plummeting as students left school early, seeking work in the oilpatch where even unskilled labour could bring six-figure wages.

“The value to students is that this allows them to start their career pathway while still in high school and receive the necessary specialized training to transition into the workplace,” said Northern Opportunities program director Cheryl Anthony. “This in turn provides a skilled workforce to meet the communities’ needs.”

The program is driven by a consortium of partners including the three school districts in Northeastern BC, aboriginal schools, Northern Lights College and local industry. Students take the regular required coursework to meet BC Graduation requirements and supplement those with dual credit course options, receiving credit towards high school graduation as well as credit at the college level.

Tuition costs are supported by the school districts and the industry partners while industry also provides assistance through scholarship and bursary awards. Some students also engage in paid work experiences while participating in dual credit programs, which helps offset training and education costs and improves accessibility to all students, Anthony said.

The success of the Northern Opportunities program cannot be denied. A study from 2006-2010 shows the dual credit graduation rate is 86.3 per cent, while the dual credit aboriginal graduation rate is 75.8. That compares favourably with the traditional graduation rate of 68 per cent (53.4 per cent for aboriginal students – especially since the traditional rates include students in dual credit programs.

The dual credit concept actually surfaced 20 years ago when a Dawson Creek student interested in a welding career with help from local educators was allowed to take a college welding program while still in high school, said Jeff Lekstrom, Dean of Instruction, Trades, Apprenticeship and Technology at Northern Lights College. “From then on he was a success. He got three ‘tickets’ and has done very well. It kept growing from there.”

Lekstrom said while the dual credit concept wasn’t new, Northern Opportunities was the “catalyst” that brought it all together. One school district acting alone didn’t have the resources to take it to the next level. Northern Opportunities did.

The program’s three primary objectives are: (1) to increase successful high school completion and transition to post-secondary education and employment by northern students; (2) to support a community-driven program which builds the capacity of students to benefit from opportunities in local industries, with an expanded focus on non-trades and continued focus on trades and technology; and (3) to provide information, support and resources to enhance student achievement. The target group is youth currently in the school system, including aboriginal students, potential dropouts, and female students who could benefit from an alternate educational delivery model. This includes those students at both ends of the learning spectrum as well as those in the middle.

Students in the program are usually in Grades 11-12 although some have begun as early as Grade 10 – if they show dedication and have the pre-requisite courses. They then take Northern Lights College courses for up to three semesters, completing with Level 1 certification in their chosen trade, sometimes even Level 2. Every trade offered at the college, up to Red Seal Certification, can be taken as a dual credit program, Lekstrom said.

“Dual credit provides a mechanism to go directly to the workplace and be valuable to employers,” he said. “It’s not a test drive. The students are dedicated and they know what they want. There are great advantages. Their jobs are generally high paying, they pay taxes and they contribute to society.”

Lekstrom said that’s in large part due to the changing requirements of the workforce. Gone are the days, he said, when it was enough to be “big and tough” to succeed in the trades. In today’s workplace, students need good grades to manage the advanced technology requirements. “Now you have to work with your head as well as your hands.”

The first phase included the development of dual credit courses to increase the number of students in trades and technology; the collection of data on key success indicators; increased information and marketing efforts (including middle school students and parents); increasing the involvement of industry partners; and securing sustainable sources of funding. A new, expanding phase is offering non-trades courses while seeking further business partners and sponsorships.

“The decision to expand into non-trades courses was one that seemed ‘a logical next step’ based on the success of our trades phase,” said Anthony.  “We wanted to provide the same opportunities to students in other vocational and academic areas in which there is also a demand for skilled workers, for example, health sciences, business, graphic arts, education, etc.”

The non-trades program includes courses in early childhood education, plus a variety of courses in arts and sciences: English, math, accounting, criminology, biology, psychology, visual arts and health sciences. The intent was to diversify opportunities for students, allowing them to get a head start on university level courses. And it’s exceeding expectations, said Steve Roe, the college’s Dean of Academic and Professional Programs, noting that one-third of the 2011 graduating class at North Peace Secondary School in Fort St. John had taken academic dual credit classes. More than 85 per cent of the students in dual credit graduated – far above the provincial norm.

“We’re almost at the saturation point,” he said. But he doesn’t see an immediate expansion to include offering every course available at the college. “We’ve seen tremendous growth over the past three years but we should appreciate the success we’ve experienced before we need to make decisions about how we grow.”

The program’s success makes it evident that more seamless education is coming for students who can more easily “ladder” from one level to the next by removing barriers, Roe said. The academic dual credit program has expended to include online courses offered in conjunction with the Northern BC Distance Education School, which allows students from other jurisdictions as far away as the BC North Coast to participate.

“We’re on the cutting edge here and this is an educational trend that’s likely to continue.”

The good work being done in this region is sparking interest in other districts. Several are following the Northern Opportunities model, though in many cases the colleges in those areas don’t have as many dual credit programs available as does Northern Lights College.

“But here, the sky’s the limit,” Lekstrom said. “There are lots of choices and limitless opportunities for our young people.”

That doesn’t mean there aren’t challenges. “The future looks great as far as program interest and enrollments go,” said Anthony. “The recruitment and retention of skilled labour is still a need in our area where the economic development and workforce opportunities are amongst the best in our country.

“Our biggest challenge is the financial sustainability of these programs. To date, with two three-year grants from the Northern Development Initiative Trust, the Northern Opportunities Partnership has been able to establish . . . more than 25 dual credit programs that are running well. But it will be difficult to maintain or grow them without designated funding.”

 

Nicole Schartner says she is glad to be in the Power Engineering program at GPRC (Grande Prairie Regional College) Fairview Campus not only because she enjoys the work, but because it allows her to “talk shop” with family.

Photo courtesy of GPRC

The soon to be 19-year-old, whose grandfather and two uncles are also power engineers, became interested in the program right out of high school. “I went on the job with them and found out what it was all about. I liked the work itself and when I found out the schooling was short – it was even better.”

She now finds more to talk about when the family gets together.  “It’s pretty awesome!  It’s definitely better with my uncles because I can relate to them a lot more.  One uncle was pretty excited and he definitely encouraged it.  My grandpa was pretty excited but he was concerned about how I would be treated as a woman.”

As a woman in a male-dominated profession, Schartner initially found resistance when looking for a student practicum position. This challenge turned out to be a blessing in disguise when she was chosen to work elsewhere. “I ended up at Encana Sexsmith, and it’s absolutely phenomenal. I love it.”

She has found the group she works with to be a pleasure; she even bakes cookies and brings them in for her colleagues.  “I’m just turning nineteen and all the guys I work with are in their late 30s with kids. I could not have asked for anyone better to work with because these guys treat me like a niece or a daughter.”

The program offered at GPRC is expanding to a two-year flexible program, allowing candidates the option of finishing with Fourth Class, obtaining their Gas Processing certification or continuing to full Third Class Power Engineering Certification.

Brent Boutilier, Power Engineering instructor for GPRC says the industry offers plenty of variety in terms of where you can work.  “With a Power Engineer certificate (First to Fourth), there are a number of streams power engineers can go into, the biggest one being oil and gas.  But there’s also breweries, petro-chemicals, fertilizer plants, food processing plants, power generating plants and hospitals, just to name a few.  It’s needed just about everywhere.”

Schartner agrees.  “That’s what is so great about this field.  Once you have your ticket, you have a piece of paper that says you are an engineer.  You can do so many things and go wherever you want; you can even be shipped out of the country.  There are so many options that I’m not even sure where I’ll go with it.”

According to Boutilier, the industry is going to continue to grow.  “The nice thing about power engineering is once they (students) are finished building the new plants, all the construction trades go off to build another plant, but we stay there for another 40 or 50 years running it,” says Boutilier, adding that the typical salary for a power engineering graduate starts at approximately $60,000 a year and there is potential for it to grow quickly.  “I’ve got one student who’s making $120K after a year in the field,” he says.

Schartner, who will be a fourth class power engineer when she finishes her first round of schooling this spring, plans to gain her second class certification in the next six years.

“I am so glad that I got into this – it’s incredible. I think the best part is you always learn, you never stop learning and every day I go to work it’s something new.  That’s always pretty exciting when you go to work,” she says.

As for Nicole, she concluded, “I definitely made the right choice – this field is open to everyone”.

Contributed by Grande Prairie Regional College

 

Priding itself on being a family friendly community, Fort St. John still manages to find plenty of room for industry and business.

“There’s tons of stuff going on,” said Fort St. John Brent Hodson.

Mayor Lori Ackerman agrees. “I have always loved the energy here. We have a very strong volunteer base here that provides opportunities for our youth, social infrastructure, arts and cultural and sport…Our ability to think outside the box is part of our DNA.”

Being the “second largest community” north of Kamloops affords plenty of opportunities she added. Walking trails, a busy cultural centre, library, and plenty of local and nationally recognized musicians help to create a vibrancy and excitement for residents. With a very young population, that is no small achievement.

Fort St. John also sports a facility that provides for year round indoor soccer as well as the Pomeroy Sports Centre with an indoor walking track, ice rinks, and a world-class speed skating oval. It also has the distinction of providing classroom space for education.

“The Energetic Learning Centre is a partnership between School District #60 and the City of Fort St John that sees project based learning being facilitated in our new Pomeroy Sport Centre.  I love the T-Shirts that the youth had made – ‘You know you are Canadian when you go to school in a hockey rink, Eh!’.”

Providing quality of life across generations is one of the things that keeps people in the community, but most of the time it’s the work that gets them there. And right now, that is posing challenges for the growing community.

Businesses of all kinds are finding themselves challenged to find enough people to fill all the jobs in the area. In fact, Hodson says the unemployment rate is “so low it can’t even be measured properly”.

“We all know someone who ‘came up for a couple of years’ and stayed,” says Ackerman. “I think it’s because you will come here to work, connect with the community and stay for the life.”

That influx of people, while desirable, creates another critical challenge – finding living accommodations for them all – but it is a bit of a catch 22 situation.

There is a shortage of housing stock, says Ackerman but while she recognizes that there are “developments coming forward that will create some beautiful neighbourhoods”, the lack of skilled trades keeps the ability to get things built slower than is ideal.

The business community and the municipal government are both addressing the issue of planning for growth. With the assistance of urban planners and the completion of the Official Community Plan, “the city has really taken the initiative”, says Hodson.

If there was one thing that he would change about the city, he says it would be the way the city is laid out. Like other communities, the downtown core has had its struggles. Part of the current planning includes the “infill” of that area to create higher density. That also extends out to the city boundaries, says Ackerman, so that the city can make the best use of existing infrastructure.

Despite the challenges there is still a fair amount of investment in the city, says Hodson. While the Chamber of Commerce is doing its part to support businesses, the city is also doing their part to encourage businesses to operate in Fort St. John.

“Fort St John has initiated strengthening partnerships with the industries that are significant to our economy. These include the energy, forestry and agriculture industries,” says Ackerman.

Fort St. John’s uniqueness lies in the blend of industries, agriculture and “some of the most beautiful nature escapes in Canada” she says.

Whether it’s the dollars that flow to the province, or the contributions to community organizations, industry plays a huge role in the community but other business also play their part.

“Retention and expansion of local small- and medium-sized businesses are key to moving forward as the CEO’s and owners of the local businesses are our best ambassadors for any new business considering Fort St John as home,” says Ackerman.

“Fort St John is a community that has been underestimated for years.  It has been through the tenacity of the people who live here and the rich resources that will continue to make it a great place to be.”