Oil & Gas Section 2014 Black Gold in the Heartland
A supplement to
Castorr
A A dd vv aa nn cc ee
al ion Reg
w weekender
2014 OIL & GAS SECTION
PAGE 2
OCTOBER 2014
Castor area is under focus again for natural gas production Joel van der Veen Expansion in the Castor area may soon be in the cards for a Calgary-based energy company. N. Desmond Smith, Pennine Petroleum Corporation’s chief financial officer, said that the company has a crew on site to determine the viability of a natural gas well located east of Castor. “We’re on site and we’re doing the work,” he said in an interview on Wednesday, Sept. 24. It was announced in July that the corporation had signed a joint operating agreement with its partner on the property, and was appointed operator of the project. On Sept. 15, the corporation announced that it expected to be on site within a week to conduct tests on the well, which was drilled in 1989 and abandoned a decade later as natural gas prices dropped. Now that prices are stable, Smith said Pennine had made the decision to re-enter the well and, once its productivity has been measured, to connect it to a nearby pipeline. “This is the beginning of positive asset-building activities of the corporation,” said director John Garden in a press release, “and will kick off the corporation’s move to expand interests in the Castor area.” Smith confirmed that Pennine is interested in expanding further in the region, but said the ultimate decision would be determined by the success of the testing currently in progress.
“We’re going through the process of determining the integrity of the old well bore,” he said. Once that’s complete, the company will do further testing to determine the flow rate, and from there it will make the decision whether or not to tie the well into a pipeline and market the gas that is produced. A public announcement on the company’s decision was expected by Sunday, Sept. 28. “We’re keeping our fingers and toes crossed,” Smith said, but added he anticipated good news based on “indications from earlier years.” The well site, referred to as “Castor 2-22” in company documents, is located roughly 500 metres from transportation infrastructure and about one kilometre east of the town site. Smith said during the interview that, on average, six or seven crew members were on site, including management, subtradesmen operating the drill rig, and ancillary companies responsible for other tasks. According to the Sept. 15 press release, the well would be re-entered in the Mannville Formation where, following a 90-minute drill stem test over the target zone, maximum natural gas rates of 629,000 cubic feet per day were recorded, with 59 feet of drilling mud recovered. The company press release describes Pennine as an “emerging oil and gas exploration and development company currently active in Alberta and Saskatchewan.”
Pennine’s strategy, the release continues, is based around growing the company’s cash flow through drilling and well recompletions on the specific land areas in which it operates. According to Bloomberg Businessweek, the company holds a 50 per cent working interest in the Success area, located near Swift Current, Sask., and a 66.7 per cent working interest in the Chauvin South East Central area, consisting of two wells located southeast of Edmonton.
R A B T E I N G 2 01 L E C 2 0 2 20
TEN YEARS OF METAL BUILDING SOLUTIONS R A B T E I NG 2 01 L E C 2 0 0 2 2014 OIL & GAS SECTION
OCTOBER 2014
PAGE 3
2
METAL BUILDINGS INC. TEN YEARS OF 4204 - 46 Avenue METAL BUILDING SOLUTIONS Phone 403-742-1300
If you’ve traveled the highways and bi-ways of Alberta, you have likely seen one of our buildings housing the very equipment that keeps our economy Ɵcking. Without these buildings, equipment would freeze or overheat, emit noise and toxic odors, and present a hazard to wildlife and people alike. Local employer METALEX does everything from design to fabricate to erect, or can provide Supply Only services. Our ExperƟse is in Self Framer, Foam Panel, Interlock and Hybrid systems for Industrial, Oil & Gas, Agricultural, Commercial and ResidenƟal applicaƟons. METALEX Western Canada X sservices ervices aallll W estern C anada and can export products inter-provincially or internaƟonally. For background, METALEX has been design/building metal buildings for 12 years and has tackled quite an array or projects. Further Further facts facts about about METALEX: METALEX: • Design and FabricaƟon facility located in SteƩler Alberta’s Oil and Gas Heartland • Service facility in Edmonton • Services virtually all of Alberta, B.C., Saskatchewan and NWT • Staī located in SteƩler, Red Deer, Edmonton and Calgary • Design/ build large and small industrial enclosures • Specializes in modular, mobile equipment staƟons • Municipal, residenƟal and agricultural structures • Provides engineered commercial buildings Clay and • CAN/CSA A660 cerƟĮed (Manufacturer of Steel Structures) Lorisa Brower • Averages over a thousand buildings per year, of various sizes, locaƟons and applicaƟons • Full capabiliƟes for Self-framer and polyurethane foam panel steel buildings • InsulaƟng division for structures as well as vessels and piping projects • Respected Safety and QC program • Family owned and operated business founded by Clay and Lisa Brower • Very community orientated
For further information, check us out on-line www.mmbi.ca. Our website hosts galleries of work we have done, as well as an on-line quote request form available 24/7.
2014 OIL & GAS SECTION
PAGE 4
OCTOBER 2014
Check out our great selection of Workwear including Carhartt fire-resistant clothing
HEAD TO TOE
Workwear Step into comfort, quality and durability. Choose from our many leading footwear brands.
Workwear & Western Wear Main Street, STETTLER
742-2984
... and many more
•Smokeless Flares •Utility Flares •FlareTech Ignition Systems
PH: 403-742-2212 Site # 39127, Range Road 19-3, Stettler, AB
2014 OIL & GAS SECTION
OCTOBER 2014
UNITED TANK INSPECTIONS INC
- Transport Canada TDG RecertiƤcation & Repair Facility - A.B.S.A. CertiƤed 3811 - 46 Avenue Stettler, AB
403-742-4747 TRADE-IN
$
Receive a special trade in $50 incentive applicable on the purchase of one of these products: DWT DCD795D2, DWT DCF886D2, DWT DCK286D2
50
TRADE-IN
when you trade in your old cordless tool** with it’s battery, charger and case
20V MAX XR LIION ½” HAMMERDRILL WITH 2 BATTERIES
20-V Max XR Li-ion Brushless ¼” Impact Driver with 2 Batteries
20-V Max XR Li-ion Brushless compact Hammerdrill and Impact Driver Combo Kit
DWT DCD795D2
DWT DCF886D2
DWT DCK286D2
249
99
199
$
99
AFTER TRADE
232
$
99
$
182
99
AFTER TRADE
Transcend Safety Services Ltd. “Our Service, Your Safety” • Breathing Air Trailers • Sales, Service and Rentals on RKI and BW Monitors • Breathing Air Refills 2216/4500 • Breathing Apparatus Testing (Biosystems Posichek 3) • SCBA and SABA Rentals • Fire Extinguisher Sales and Complete Service • H2S Scrubbers • Fit Testing • Safety Courses Box 459 4802 44 Ave Stettler, AB T0C 2L0
Facility Registration Number: 25-0768
$
PAGE 5
339
$
99
$
For more information call
403-742-4216
Fuel Filter Funnels The Mr. Funnel Fuel Filter is a heavy-duty, fast flow, convienient and portable funnel with built-in, patent pending filter. The Mr. Funnel Filter is specially designed to filter out water, dirt and debris from most fuels, including gasoline, diesel, heating oil and kerosene.
28999
AFTER TRADE
Starting from
1699
$ model height diameter flow rate price
F1 6” 3.5” 2.7 gpm $16.99
F3 8.75” 5.5” 3.9 gpm $23.59
F8 10” 8.5” 5.0 gpm $37.79
F15 10” 8.5” 15 gpm $65.99
**Qualifying trade in brands include: DEWALT, Bosch, Milwaukee, Makita, Hilti, Hitatchi, Panasonic and Metabo
Woody’s Automotive
4902 - 43 Avenue 403-742-(NAPA) 6272 Hiway 12, South of Sobeys, on the bend!
PAGE 6
2014 OIL & GAS SECTION
OCTOBER 2014
Custom Production Equipment Packages
P: 403-742-6400
Pressure Vessels
E: info@alliedfab.com
Pipe Fabrication Structural Welding
Stettler, Alberta
F: 888-526-0274
2014 OIL & GAS SECTION
OCTOBER 2014
ignore the weatherman
PAGE 7
JT AUTO BODY
LTD.
For all your paint and auto body repair work
®
Blizzak WS-80 Designed to conquer the cold, snow and ice Better handling on snow & slush Remains pliable in cold temperatures
Maintenance, Repair and Tires. Locally owned and operated
403.742.1559 4809 - 44th Avenue STETTLER oktire.com
Serving the Oil & Gas Sector since 1974 Family Owned & Operated
Phone 403-742-2869 4606 40 St. Stettler jtauto@telus.net
NITSCHKE Vacuum Truck Service Ltd.
• Vacuum Trucks • Steam Trucks • Combo Units • Water Trucks
• Vac & Wagons • Hydrovac • Gamma-Jet • Portable Toilet Rentals
Box 1377, Stettler, AB T0C 2L0
* 24 Hour Service * DRIVERS AND SWAMPERS
NEEDED
Competitive wage & full beneÄts Please email resume to:
Tel:
403-742-2125 Fax: 403-742-1075
Nitschkevactrucks@yahoo.ca
2014 OIL & GAS SECTION
PAGE 8
OCTOBER 2014
Helping You - From Start To Finish • Compressors • Skidsteers • Trailers • Light Towers • Sales & Rentals of Construction Equipment
• Heaters • Jack Hammers • Compaction Equipment • Hilti Products • We service Frost Fighter heaters
• Excavators • Aerial Lift Equipment
y Deliver le Availab
If we don't have it we will get it for you!
4222 - 44 Ave., Stettler
403-742-8999 Phone: 403-742-4868 Fax: 403-742-4858
4810 - 45 Street, Lacombe, AB 4701C - 41 Street, Stettler, AB Mailing Address: Box 248, Stettler, AB T0C 2L0
www.huntinspection.com
M•A•C•H•I•N•E I•N•C • Lathework
• Boring
• Milling
• In House Welding
• Drilling
• CNC Turning Centre
• Grinding Products • CNC Milling Centre
Fully equipped machine shop for all your needs serving the Oil & Gas, Agriculture, Heavy Construction & Automotive Industries with 60 years combined experience.
403-742-8822 Res: 403-742-6185 Cell: 403-740-9209 Box 668
Stettler, AB
T0C 2L0
2014 OIL & GAS SECTION
OCTOBER 2014
Oil glut in the market is beyond Opec’s control The supply side glut in the oil market combined with the decline in global demand makes it difficult for oil producers to effectively exercise any control over oil prices, according Seth Kleinman, Citi Energy Analyst. Even in the context of recent serious geopolitical issues that could potentially cause supply disruptions and high oil prices, the world is witnessing a decline in oil prices. Brent has traded since early July within the range of $95 to $110. It is hovering around $98 to $100 a barrel on the London-based ICE Futures Europe exchange. On the supply side a lot of excess stocks combined with new sources of production such as US shale oil, massive gas substitution are depressing the oil prices. Kleinman said the medium term outlook for oil demand is not encouraging as the emerging market demand growth, particularly from China is on a decline.
The long held belief that emerging markets are perennial sources of oil demand is fast changing partly because of the changes in economic growth dynamics and partly because of massive energy substitution of natural gas — often obtained through the hydraulic fracturing of shale rock for oil, and fuel-efficiency mandates in many key countries.
PAGE 9
ALLIANCE BRANCH:
BOUNTY
102 Main Street, Alliance Alberta Phone: 780-879-2371 Fax: 780-879-2394
STETTLER BRANCH: 4201- 49th Ave., Stettler Alberta Phone: 402-742-0200 Fax: 403-742-5415
ONSITE INC.
OILFIELD • INDUSTRIAL • SAFETY Locally owned and operated in both our locations, we strive to not only to supply you with products but, our knowledge, Experience, and Determination to help our customers better service their industries. Bounty Onsite Inc. is a diverse and service oriented team that has proven abilities to provide customers with superior service setting us apart from the competition.
Bounty Onsite Inc. your local One Stop Shop
Proctor Picker Service Ltd.
www.bountyonsite.com
Oilfield, Construction, SECOR Certification Complyworks-IsNetworld
• • • • Brent Proctor – Owner/Operator Box 1976, Camrose AB
28 Ton Picker/Winch Combo Trailer Spreader Bar Manbasket proctorpicker@hotmail.com proctorpicker.com
2014 OIL & GAS SECTION
PAGE 10
CASALTA OILFIELD SERVICES LTD.
OCTOBER 2014
CORONATION INDUSTRIAL SALES & RENTALS Box 690 4706 Victoria Ave., Coronation, AB T0C 1C0
Steven Wiart
Owner/Operator
Bus: (403) 578-4567 Fax: (403) 578-4566 Toll-free: 1-866-778-4567
Box 202, Castor, AB T0C 0X0
403-742-9538
Quality collision repair and professional service
4109 - 48 Ave., Stettler We’re big enough to handle it and small enough to care!
403-742-3555 www.brennanautobody.com
OCTOBER 2014
2014 OIL & GAS SECTION
PAGE 11
Centrica Energy
A real sense of community Thank you for letting us be a part of yours CENTRICA ENERGY CANADA QUICK FACTS
600+ five
operating hubs
people
Proven and probable reserves
1,500+
billion cubic feet equivalent
OPERATING INFRASTRUCTURE
1.4m
acres of undeveloped land
A large seismic database
6,760 65,000
Producing over
operating wells
boe/d
If your transport needs are “outside the box”, or you just want extreme reliability, you may want to try us and see what makes us different.
ss – Jen Expre small performing ery day. miracles – ev
Direct Energy Marketing Limited’s upstream gas business is now operating under the trade name “Centrica Energy”.
www.centricaenergy.com/canada
2014 OIL & GAS SECTION
PAGE 12
OCTOBER 2014
7007A - 50 Ave., Hwy. 12 West STETTLER STETTLER AGENCY
1-866-742-2647
Cardlock & Convenience Store
Tornado Combustion Technologies Inc.
Alberta’s Largest Cardlock Network 24 hours a day ~ 365 days a year HOURS: Monday to Friday - 6 a.m. - 7 p.m.; Saturday - 8 a.m. - 5 p.m.
A strong and growing design/ manufacturing company providing combustion related products including arrestors, are stacks, thermal oxidizers and custom designed equipment.
The ancient art of combustion manipulated by innovative minds. - Flare Systems - Incinerators - Enclosed Burners - Pilots & Ignitors - Arrestors
403-244-3333
info@tornadotech.com
On Site Services
Oilfield, Agriculture, Consumer, Commercial Bulk Fuel Sales & Delivery Chevron & Shell Lubricants & Propane
Now offering ~ 7 Islands Delia 101 Railway Ave 403-364-3922
Reinbold Petroleum is pleased to serve you at our added locations:
Hanna 605-1st Ave West 403-854-4370
REINBOLD PETROLEUM LTD.
2014 OIL & GAS SECTION
OCTOBER 2014
More refineries in action in Asia and Middle East The world will need to deal with an excess volume in the supply of refined oil products as new Asian and Middle East refineries increase oil processing, the International Energy Agency (IEA) said in its latest monthly report. According to the report, the agency expects 9.5 million barrels per day (bpd) of new crude distillation capacity, representing more than a 10 percent of global demand, to come on stream in 20132018, substantially more than the forecast increase in crude production capacity and global demand growth. “While Europe’s economic woes are taking a toll on demand, there are mounting signs that China’s oil use, like its economy, may have shifted to a lower gear. Slower growth in demand than in runs could lead to product stock builds,” the IEA said. The agency said changes would be already felt from the third quarter of 2013 as global refinery runs
may rise by more than 2 million bpd on the back of increased processing by China, Saudi Arabia and Venezuela. This spike in crude runs would exceed forecast product demand growth of 1.7 million bpd, the IEA said. It also added global crude supply could struggle to keep up with refining demand because of seasonal maintenance to North Sea production, Sudan’s struggle to resume production, the annual hurricane season in the U.S. Gulf and risks to Middle Eastern output due to the Syrian civil war. Shorter-than-expected crude supply and large refining volumes would undermine refining margins. “While that would normally prompt refiners to drop their throughputs, market participants may not be equally receptive to such price signals. New refining capacity would likely be the last to cut back on runs if refining economics turned south,” the IEA report said.
K-OSS KLEANING
Drycleaning of: Coveralls, Gloves, Oilfield Clothing, etc. Minor mending included with cleaning • Drycleaning - 3 business days • Washing - 1 business day * We sell coveralls, gloves and FR Oilfield clothing * Regular Pick-up & Drop off routes in your area 4707 - 50 Street, Stettler
403-742-0080
PAGE 13
2014 OIL & GAS SECTION
PAGE 14
• Group Benefits • Private Health Service Plans • Health Care Spending Accounts Our oil and gas industry supports more than 550,000 jobs across Canada. We want to help ensure that those employees have adequate health care coverage.
Benefit From Our Experience 25 Years Industry Experience
Custom fit your benefit plan to meet your unique needs as an Oil and Gas Contractor or Service Company. Please call us for more information on our Private Health Service Plans and Unique Packages for Contractors and Groups of all sizes.
info@gilbertfinancial.net Toll Free 1-888-898-1010 4937 50 Street Stettler www.gilbertbenefitconsulting.com
s ’ l u Pa • Oilfield & Residential
ROAD MAINTENANCE LTD.
• Road Building, Blading & Snow Removal
Darren LaRose Tel: 403-742-6116
Cell: 403-742-9704
prmltd@hotmail.com
OCTOBER 2014
Canada’s oil sands production could come under threat Recent declines in the oil price in global markets could potentially jeopardize oil production in Alberta’s oil sands. After U.S. oil tumbled to its lowest prices in nearly two years early this month, a sudden slump in prices this winter would be particularly unwelcome. At around $79 per barrel, the absolute price in Canada is getting nearer the break-even cost for major new developments. As important to the Canadian industry is world demand. “The recent slowdown in demand growth” according to the IEA “is nothing short of remarkable.” The EU economy has yet to recover from the slump to bring about an increased demand while in China, demand has been capped by both economic and environmental concerns. China is reported have reduced both oil and coal imports and increased LNG imports and use of renewable energy. According to Platts Energy Prices, demand for oil in China fell to 9.61 million bpd in July, which is a drop of 2.1 per cent from a year ago and China is now exporting surplus refined product. With the several hoped for pipeline projects still undecided, any exports of oil from northern Alberta could become even costlier with added transportation expenses as the winter sets in. Given the increased oil and gas production in the US thanks to the utilization of shale technology, the closest export market for Canadian oil is likely to become much tighter in the weeks and moths ahead.
2014 OIL & GAS SECTION
OCTOBER 2014
PAGE 15
OUR
FOR
TIRE SALE
GET MORE OF WHAT YOU WANT.
FIRE EXTINGUISHER SALES & RECHARGE
Buy four selected Goodyear tires for the price of three for your car, minivan, pickup or SUV from September 15- October 18, 2014. See in-store for details.
4608 - 44 Ave. Stettler, AB T0C 2L0 Ph: 403-742-3481 *Buy four selected Goodyear tires for the price of three from September 15- October 18, 2014. See in-store for complete details. Not valid for Goodyear National Accounts or Fountain Tire Elite Accounts. Inventory may vary by location. All applicable taxes (ie: GST, PST, HST and tire taxes) are extra ®™Trademarks of AIRMILES International Trading B.V. Used under license by LoyaltyOne Inc, and Goodyear Canada Inc. Fountain Tire is licensed by AMVIC in Alberta.
PT
arcels rucking
Oilfield Service
CONTACT SAFETY SERVICE LTD. RENTAL, SALES AND SERVICE: • Monitors • Breathing Apparatus – SCBA H2S TRAILERS AND SUPERVISORS
Phone: 403-742-2781 Toll Free: 1-800-267-6518 Fax: 403-742-2760 info@parcelstrucking.com PO Box 760 Stettler, AB T0C 2L0
Pressure Trucks Fresh Water
CERTIFIED SAFETY TRAINING: • H2S Alive • First Aid FIT TRAINING • Quantifit
Crude Oil & Water Hauling Sour Sealed Trucks Methanol, Glycols, Chemicals
WWW.PARCELSTRUCKING.COM
STETTLER, AB 4037422035 DRUMHELLER, AB 4038237771
2014 OIL & GAS SECTION
PAGE 16
OCTOBER 2014
Central Alberta Co-op Ltd.
Gas Bar
4821 - 62 St., Stettler 403-742-1466
Cardlock
4609 - 41 St., Stettler 403-742-0011
Gas Bar & Cardlock
9 Crowfoot Crossing, Castor 403-882-7907
CENTRAL ALBERTA CO-OP Members earned 5.9% on Petroleum purchases and 8.5% on Oil & Grease.
GAS BAR LOCATIONS - Red Deer - Innisfail - Lacombe
- Spruce View - Stettler - Castor
www.centralab.coop
FARM FUEL LOCATIONS - Stettler - Innisfail - Lacombe - Elnora - Spruce View