2010 Annual Report
MISSION Our mission is to facilitate innovation, collaborative research and technology development, demonstration and deployment for a responsible Canadian hydrocarbon energy industry.
VISION Our vision is to help Canada become a global hydrocarbon energy technology leader.
Contact Us
For further information please contact: PTAC Petroleum Technology Alliance Canada Suite 400, Chevron Plaza, 500 Fifth Avenue SW, Calgary, Alberta, Canada T2P 3L5 MAIN: 403-218-7700 FAX: 403-920-0054 EMAIL: [email protected] WEB SITE: www.ptac.org
PERSONNEL
SOHEIL ASGARPOUR BRENDA BELLAND SUSIE DWYER LORIE FREI MARC GODIN President Manager, Knowledge Centre Innovation and Technology R&D Initiatives Assistant and Technical Advisor (403) 218-7701 (403) 218-7712 Development Web Site (403) 870-5402 [email protected] [email protected] Coordinator Administrator marc.godin@portfi re.com (403) 218-7708 (403) 218-7707 [email protected] [email protected]
ARLENE MERLING TRUDY HIGH BOBBI SINGH LAURA SMITH TANNIS SUCH Director, Operations Administrative and Registration Accountant Controller Manager, Environmental (403) 218-7702 Coordinator (403) 218-7723 (403) 218-7701 Research [email protected] (403) 218-7711 [email protected] [email protected] Initiatives [email protected] (403) 218-7703 [email protected] PETROLEUM TECHNOLOGY ALLIANCE CANADA 2010 ANNUAL REPORT 3
Message from the Board A New Decade – A New Direction
2010 proved to be a turning point for PTAC as we rede ined our role and PTAC Technology Areas set new strategies in motion. Over the past year PTAC has achieved goals in diverse areas of our organization: improving our inances, rebalancing our MANAGE ENVIRONMENTAL IMPACTS project portfolios to address a broad spectrum of needs, leveraging support • Emission Reduction / Eco-ef iciency for ield implementations, and building a measurably more effective and • Energy Ef iciency ef icient organization. In fact, during the course of 2010 we achieved all the • Resource Access • Air major goals of our ive-year plan two years ahead of schedule. PTAC is now • Ecological in a position of sound inancial health and organizational clarity. • Soil and Groundwater • Water • Alternative Energy At the close of 2010, PTAC set new strategies and direction for the organization. • Wellsite Abandonment While the goals and targets of the previous ive-year plan concentrated on internal development, the new plan targets both external and internal IMPROVE OIL AND GAS RECOVERY goals. The overarching goal of the new ive-year plan is to tangibly increase • Conventional Oil and Gas Recovery industry’s capacity for innovation, research, and technology development, • CO2 Enhanced Hydrocarbon Recovery demonstration and deployment (IRD3). This new plan clearly supports • Coalbed Methane/Unconventional Gas PTAC’s Mission and Vision, which both focus on strengthening the Canadian • Oil Sands • Heavy Oil hydrocarbon energy industry. Increasing capacity for IRD3 will directly bene it innovative oil and gas companies, enabling them to resolve speci ic challenges. It will also promote economic prosperity, create employment, IMPROVE VALUE-ADDED PRODUCTS help SMEs to lourish, reduce environmental impacts, and provide tax and • Hydrocarbon Upgrading royalty revenues for the federal and provincial governments. • Re ining • Petrochemicals • Hydrogen The Canadian hydrocarbon energy industry grapples with a unique • Gasi ication combination of factors. Although Canada has the largest hydrocarbon • Pipelines • Integration resources in the world, over 90% of these are unconventional; therefore, • Transportation sustainable development of these resources requires sophisticated technologies. We believe IRD3 is the key to making the Canadian hydrocarbon REDUCE CAPITAL, OPERATING, AND G&A COSTS energy industry more effective and ef icient. Within the framework of • Eco-Ef iciency the international energy industry, it is becoming increasingly important • Energy ef iciency for Canada to reduce costs, increase production, increase recovery, and • Chemical consumption improve safety and environmental performance. Consumers are demanding • Automation • Reduce Operating Cost related to energy consumption that hydrocarbon production have signi icantly less environmental impact • Drilling and Completion and shareholders are insisting on signi icantly higher energy ef iciency. At the same time, industry is trying to recover increasingly challenging deposits while reducing costs. Developing new technologies and promoting PTAC Technical Areas innovation are the only options, and PTAC hopes to address these challenges • e-Business in a meaningful way. • Facility Design • Geosciences • Health and Safety Admittedly, the overarching goal of PTAC’s new ive-year plan is broad and • Instrumentation/Measurement long-term. Therefore, we have rede ined our role and developed three • Operations • Production Engineering speci ic strategies to engage industry and move towards a tangible increase • Reservoir Engineering in capacity for IRD3: understanding the sense of urgency; facilitating • Security innovation; and developing technologies. • Telecommunications
Understanding the sense of urgency encompasses establishing effective communication with stakeholders regarding the need for and value of IRD3. Achieving widespread industry buy-in is the irst step to increasing capacity PETROLEUM TECHNOLOGY ALLIANCE CANADA 2010 ANNUAL REPORT 4
for IRD3. PTAC has begun developing a strong communication To help our new ive-year plan come to fruition, PTAC is plan, and will engage industry and government leaders in embracing a new role and literally putting our money where endorsing, supporting, and helping secure funding for the our mouth is. In December 2010 the PTAC Board of Directors proposed IRD3 program. At the same time, PTAC will aggregate approved a motion that allows the organization to begin funding existing research and relevant technology information. We will projects. PTAC has approximately $700,000 available in 2011 to communicate this information highlighting existing gaps to use as seed money to develop technologies. Securing seed money establish a sense of urgency within industry and promote the is essential to the success of technology development projects as development of breakthrough technology among innovators. The those dollars act as a catalyst for further interest and investment. desired result of these cumulative communication efforts is the PTAC has earned a solid reputation for successful inancial proactive development, demonstration and deployment of new leveraging, such as the one-to-ten inancial leveraging achieved technologies to resolve both current and emerging challenges. on the 2008 Alberta Department of Energy (ADOE) grant. To date, the original grant has seeded additional participation from PTAC has a tradition of successfully facilitating innovation, the 140 organizations and has launched twelve projects to accelerate second strategy of the new ive-year plan. This strategy involves technology development. aligning, coordinating, and taking a holistic and integrated approach to existing and future technology initiatives. This will Looking back at 2010, we are pleased to have come so far and continue under the new plan as we facilitate collaboration among accomplished so much. Achieving the goals set out in our research and development organizations. In addition, we hope ive-year plan ahead of schedule speaks to the dedication and to further enhance the PTAC collaborative model to establish expertise of our many volunteers who have served on PTAC’s a robust process for collaborative technology development. Board of Directors, board committees, and technical steering The development of an up-to-date website portal will expedite committees. It is because of their collective passion for innovation technology transfer, collaboration, and the dissemination of that we ind ourselves embarking on a new ive-year plan with a results. focus on industry-wide communication, enhanced collaboration, and valuable technology development. Our goal of effectively The third strategy, Developing Technologies focuses on increasing industry’s IRD3 capacity is ambitious, but building accelerating the collaborative development and deployment of on PTAC’s successes we are con ident that together we can help a slate of transformative technologies. This includes facilitating Canada become a global hydrocarbon energy technology leader the launch of Collaborative Test Facilities (CTF), and launching through innovation, collaborative research, and technology collaborative research and technology development programs. development, demonstration, and deployment for a responsible Canadian hydrocarbon energy industry. While creating our new ive-year plan, we recognized that a number of government, industry, and academic organizations are actively involved in hydrocarbon innovation. However, improved Soheil Asgarpour, Ph.D., P.Eng. Earle Shirley coordination and communication among these organizations President Chairperson is needed to enable a meaningful increase in the IRD3 capacity of the Canadian hydrocarbon energy industry. Therefore, PTAC has initiated the formation of virtual organizations that will provide a holistic and integrated approach for collaborative technology innovation. The irst virtual organization is focused on sustainable oil sands development and facilitated through PTAC’s Clean Bitumen Technology Action Plan, a consortium of twenty-seven organizations. PTAC is currently in discussion with nine additional research and development organizations to de ine the terms of reference for this virtual organization. PTAC’s intention is to connect these organizations and coordinate their research and development activities. PTAC is also planning to form a similar virtual organization for sustainable development and production of both unconventional gas and conventional oil and gas in 2011. PETROLEUM TECHNOLOGY ALLIANCE CANADA 2010 ANNUAL REPORT 5
Innovative R&D Technology Development
PROJECTS OR NEW PROJECT PHASES LAUNCHED IN 2010 In 2010 PTAC facilitated 38 research and technology development/demonstration projects with consolidated costs equaling $8.9 M.”
MANAGE ENVIRONMENTAL IMPACTS • Application of Different Measures of Bioavailability to TEREE Support the Derivation of Risk-based (Tiers 2 or 3) • Resource Emissions Management Technology Action Plan AUPRF Remedial Benchmarks for PHC-Contaminated Sites (REMTAP) • Development of a Novel Method to Detect and Locate • Development of Assessment and Remediation • Air Fuel Ratio Controller for Low Horsepower Engines Fugitive Emissions Approaches for Salt Releases to Peatlands in Western • PT Brands MG22D Diesel Fuel Additive Encana Testing • Improved Flare Source Parameters for CALPUFF and Canada Results AERMOD Dispersion Models • Strategies for Evaluating the Effectiveness of • Photolytic Degradation of BTEX from the Oil and Gas Sector Reclamation Successes on Native Landscapes, Including IMPROVED OIL AND GAS RECOVERY • Identifying all Sources of Benzene at UOG the Mixed Grass Prairies, the Northern Fescue Natural • Flue Gas Steam Stimulation Sites/Facilities Region, Foothills Fescue Natural Regions, the Aspen Park • Shallow Gas Well De-watering Pump Consortium Phase • Evaluation of GHG Emissions from Crude Oil and land Natural One Condensate Storage Tanks • Evaluating the Ecological Risk of Oil and Gas • Clean Bitumen Technology Action Plan • Improved Emissions Factors for Particulate Matter (PM) Development on Ferruginous Hawks From Flares • Plant Species at Risk Responses to Shallow Gas CO ENHANCED HYDROCARBON RECOVERY • Evaluating the Ecotoxicity of PHC F3 in Peat Soils vs. 2 Development • Alberta CO Purity Project (ACPP) Mineral Soils 2 • Removing the Wellsite Footprint - Phase II: Wetland • Characterization of the Saturated Conductivity - SAR- EC Reclamation and Extended Monitoring of Upland Phase SMALL AND MEDIUM ENTERPRISE PROGRAM Relationship in Subsoils • Evaluating the Ecological Risk of Energy Sector • Unleashing SME Innovation in the Hydrocarbon Industry • Assessment of the Environmental Signi icance of Vapour Development on Burrowing Owls in Native Prairie Habitat. Initiative Emissions During Ex Situ Remediation Activities Final Year Proposal • Weathered PHC F2 and the Eco-Contact • Grizzly Bear Response to Oil and Gas Development and Pathway - Phase II - The Effect of Soil Texture OTHER: Activities in Alberta • Nodal Analysis Project • SST Program Re inement • The Role of Predation in Woodland Caribou Population • Innovation Voucher Program • Petroleum Hydrocarbon Tier 2 Guideline Calculation Declines in Northeastern Alberta PTAC facilitated four projects under the auspices of the Alberta Software • Risks to Groundwater from Oil and Gas Drilling and Innovates – Technology Futures Innovation Voucher Program • A Rapid Bioassay for Predicting Toxicity of Completion PHC-Contaminated Soil • Water Well Testing Prior to Drilling • Test Methodology and Toxicity Study for Boron Steering Committees and Sub-Committees
In 2010, PTAC facilitated the following Steering Committees and Sub-Committees
• Airfuel Ratio Controllers for Low Horsepower Engines • Clean Bitumen Technology Action Plan (CBTAP) In Situ MANAGE ENVIRONMENTAL IMPACTS Project Committee Steering Committee • Air Research Planning Committee • MG22D Diesel Fuel Additive Project Committee • CBTAP Mining Steering Committee • Soil and Groundwater Research Committee • Resource Emissions Management Technology Action Plan • CBTAP Strategic Planning Committee o Boron Working Group (REMTAP) Committee • CBTAP Technical Advisory Committee • Ecological Research Planning Committee • CBTAP Breakthrough and Innovation Committee • Water Innovation Planning Committee • CBTAP Knowledge and Innovation Management Committee • Alternative Energy Solutions Committee IMPROVE OIL AND GAS RECOVERY • CO Enhanced Hydrocarbon Recovery Steering Committee • CBTAP Workshop Committee • Technology for Emission Reduction and Eco-ef iciency 2 • CBTAP In Situ Recovery (TEREE) • Hot Water Vapour Process • CBTAP Production Enhancement and Automation • Wellsite Abandonment Project Committee • Shallow Gas Well De-watering Pump Consortium • CBTAP Surface Bitumen Recovery • Alberta CO Purity Project (ACPP) Committee • Ultra Lightweight Proppant (ULWP) Project 2 • CBTAP Upgrading and Gasi ication
2010 Volunteer Recognition Awards
PTAC’s many successes can be traced directly back to our dedicated volunteers. In 2010, we continued with our volunteer recognition program. At large events throughout the year PTAC held several formal awards ceremonies, presenting individual and corporate awards to outstanding volunteers in recognition of their valuable contributions and dedicated service. The recognition program included individual letters of appreciation thanking all 280 volunteers for their service.
PTAC CORPORATE CITIZENSHIP AWARD Ian Potter, Alberta Innovates – Technology TECHNOLOGY FOR EMISSION ConocoPhillips Canada Futures REDUCTION AND ECO-EFFICIENCY (TEREE) COMMITTEE AWARD PTAC LIFETIME ACHIEVEMENT AWARD AIR RESEARCH PLANNING COMMITTEE Paul Slobodnik, ConocoPhillips Canada Mike Ekelund, Alberta Department of Energy AWARD Lisa Solomchuk, Shell Canada CO COMMITTEE AWARD PTAC VOLUNTEER OF THE YEAR 2 Rob Craig, ICO N Chris Lehecka, ConocoPhillips Canada SOIL AND GROUNDWATER RESEARCH 2 Mark Johnstone, Suncor Energy Inc. COMMITTEE AWARD UNCONVENTIONAL GAS COMMITTEE Gordon Dinwoodie, Alberta Environment AWARD PTAC DISTINGUISHED SERVICE AWARD Rob Galant, Nexen Inc. Chuck Szmurlo, Enbridge Inc. WATER INNOVATION PLANNING Randy Rudolph, Millennium EMS Solutions Ltd. COMMITTEE AWARD VISCOUS OIL COMMITTEE AWARD Christopher Holly, Alberta Department of Marc Dubord, Cenovus Energy Larry Frederick, Nexen Inc. Energy PETROLEUM TECHNOLOGY ALLIANCE CANADA 2010 ANNUAL REPORT 6
Key Accomplishments
Three and half years ago PTAC developed an ambitious ive- capture, transport, and enhanced oil recovery. Currently over year-plan with the goal of meeting the following targets by forty organizations including industry, government, and NGO year-end 2012: improve inancial health, increase the number stakeholders are participating in this study. PTAC’s Alternative of projects in speci ic focus areas, launch projects focusing on Energy Solutions Committee has been working since 2007 ield implementation, and build a more effective and ef icient investigating potential alternatives to natural gas for bitumen organization. In 2010 PTAC achieved and exceeded all the goals production, and completed phase I and II of this study in of their ive- year plan two years ahead of schedule. 2008 and 2009, respectively. In 2010, the committee solicited proposals from nuclear power plant owners and operators to PTAC’s inancial health has improved steadily since 2007; not only supply Sample Term Sheets for supplying Combined Heat and have they set aside suf icient inancial reserves for “rainy days”, Power (CHP). PTAC received a number of proposals and has but PTAC has also accrued a sizeable surplus that has enabled met for further discussions with several nuclear power plant the organization to move forward in exciting new directions. In producers and nuclear technology providers. This project is December 2010, the PTAC Board of Directors passed a motion expected to continue into 2011. Building upon their work in allowing PTAC to fund projects. 2009, PTAC continued to facilitate the ERCB and CAPP’s joint Long Term Security of Abandoned Wells Committee in 2010. At PTAC has implemented a much more balanced approach to the committee’s behest, focused research and experimentation technology development. Historically, PTAC projects were on dump bailing operations is being conducted at Southern heavily weighted towards the environmental management Alberta Institute of Technology (SAIT) to assess the current portfolio. Over the past three years PTAC has signi icantly dump bailing practices. This study is of particular importance increased the number of projects in additional focus areas while as both ield and laboratory indings would constitute a proven slowly growing the number of environmental projects. This has technical foundation for accepted well abandonment practices. resulted in a strong line-up of diverse projects that are in-step with industry demand for sustainable hydrocarbon development. Field implementation has become a priority for PTAC projects, and many of those launched in 2010 include a ield-pilot component. In 2010, PTAC continued to facilitate The Alberta Upstream Field pilot demonstration is one of the most challenging aspects Petroleum Research Fund (AUPRF), which provides funding for of development, as inventors and SMEs must secure both a peer-reviewed environmental research studies. PTAC facilitated test site and funding. The costs and risks of this are often too two water projects, ten soil projects, six air projects, and seven high to proceed. However, PTAC has successfully implemented ecological projects for a grand total of twenty- ive new studies a strategy of collaboration and formation of consortia that collectively awarded $1.6 million in AUPRF funding. Successful simultaneously addresses the needs of the inventors and the leveraging of this funding resulted in these projects having a total needs of industry producers. For example, the Shallow Gas Well cost over $5.1 million. In addition, the Technology for Emission De-watering Pump Consortium started in 2010 to bring together Reduction and Eco-Ef iciency (TEREE) Steering Committee the collective knowledge of several major players to develop an developed several new project ideas and launched the Air economic dewatering pump for shallow gas. Fuel Ratio Controller for Low Horsepower Engines project to determine the operational and functional bene its of using low In addition to its many projects, PTAC also formed two networks: horsepower engines in the ield. PTAC also launched the PT The Clean Bitumen Technology Action Plan (CBTAP), and the Brands MG22D Diesel Fuel Additive Encana Testing Results Resources Emission Technology Action Plan (REMTAP). The project, which examines the effectiveness of the diesel fuel purpose of these networks is to bring together experienced additive on emissions reduction. people and creative ideas to develop projects that address speci ic issues. The networks take a systematic approach to Balancing a strong environmental portfolio, PTAC also launched develop breakthrough technologies that will materially improve several projects in other technology areas. PTAC’s CO2 EHR industry performance in the areas of reducing costs, reducing
Technical Steering Committee launched the Alberta CO2 Purity environmental impacts, and increasing recovery. The action Project in May 2010. This collaborative study seeks to determine plans start with identi ication of challenges, which leads to an a balancing point for purity requirements and cost effectiveness internal and external search to identify technology solutions. This as it pertains to all stages of the CO2 value chain including in turn results in the formation of multi-stakeholder consortia PETROLEUM TECHNOLOGY ALLIANCE CANADA 2010 ANNUAL REPORT 7
in the areas of applied research, engineering studies, ield pilot management each year. In 2010, over 400 participants, 59 projects, and commercialization of technologies. The networks speakers, and a number of poster session participants attended serve as a place to share the inventory of technologies, prioritize these events to share information on current regulatory issues technology projects for further work, and disseminate results. facing industry, to disseminate results of progress on research and technologies, and to discuss upcoming issues in each of these Twenty-six organizations including eleven oil sands producers, areas. In May, PTAC collaborated with Oxand Canada to facilitate government organizations, service and supply companies, a hands-on workshop on Risk Management for CO2 where research providers, and academia have joined the CBTAP. In participants used practical examples and case studies to explore 2010, the CBTAP developed and published its vision, mission risk management in a Carbon Capture and Storage context. In and strategic plan. Three major workshops and a number of November 2010, PTAC held two separate ‘Towards Clean Energy committee meetings were held as vehicles for completing the Production’ events that were both well attended and generated gap analysis and developing an inventory of technologies. At much positive feedback. year end, a comprehensive work plan was prepared to outline 2011 activities. PTAC facilitated the 2010 Global Petroleum Conference, which ran over the course of three days and focused on addressing In September, PTAC held a workshop to launch the REMTAP. “game-changers” that contribute to the boom and bust cycle, This newly-formed network is comprised of industry leaders potentially changing the way business is done and how industry Cenovus Energy, ConocoPhillips Canada, Devon Energy, Encana functions. The conference aimed to put into perspective the Natural Gas, and Nexen Inc., and New Paradigm Engineering. The challenges that face the economy, environment, recovery, supply initial workshop addressed challenges and opportunities for and demand, and regulation, exploring how technology can energy ef iciency, emissions measurement and reduction, best help address these challenges. Conference sponsors included practices and management with due consideration to resource Halliburton, Kade Technologies Inc, SNC-Lavalin, ConocoPhillips, conservation, environmental protection, regulatory compliance Aveva, Total Exploration and Production, IBM, HIS, and Solarc. and cost management. This network has begun the irst steps in The conference had a very strong and dynamic program and addressing the ubiquitous issue of air emissions through studies, welcomed nearly 300 participants. research, technology development, and demonstration projects that will bene it a wide range of participants and stakeholders. Since establishing their ive-year plan, PTAC has become a measurably more effective and ef icient organization overall. Furthering communication and collaboration among industry, General and administrative costs have decreased by 30% government, academia, and SMEs, PTAC hosted a full complement while activities have increased signi icantly. The organization of 2010 events including forums to disseminate information, is accomplishing more with less, and ensuring alignment with workshops to facilitate meaningful discussion on pertinent industry goals in all the projects and events they pursue. This topics, and technology information sessions to introduce new responsible management has helped PTAC to weather recent technologies and new opportunities to the industry. As part economic changes and emerge at the end of 2010 ready to seize of facilitating AUPRF, PTAC facilitates four Environmental new opportunities and meet new challenges. Management events in the areas of soils, water, air, and resource PETROLEUM TECHNOLOGY ALLIANCE CANADA 2010 ANNUAL REPORT 8
2011 Outlook
2011 is the embarkation point for PTAC’s new ive-year plan. in GHG emissions, water usage, and land impact compared to Focused on external development, the aim of the new plan is to alternative EOR approaches for these formations. The successful tangibly increase industry’s capacity for innovation, research, commercialization of a new heavy oil EOR technology could and technology development, demonstration and deployment open the door for adapting the same technology to cold- (IRD3). PTAC has divided their activities into three speci ic produced oil sands. The technology can be deployed in a number strategies to move towards this goal: understanding the sense of of con igurations and optimizations. This is a key ield pilot urgency; facilitating innovation; and developing technologies. In project representing the irst ield evaluation of HWVI, which is 2011, PTAC will continue to maintain the programs and aspects a potential low energy and low cost thermal stimulation and gas of the organization that have been carefully cultivated over the drive follow-up recovery process for Cold Heavy Oil Production past few years, building upon these accomplishments as they with Sand CHOPS reservoirs. pursue new goals and meet new challenges. Project work in 2011 will promote the ‘developing technologies’ and ‘facilitation The Shallow Gas De-Watering project is an exciting Joint Industry innovation’ strategies while PTAC’s events and targeted efforts to Project to develop a suitable solution to lift water for shallow engage all research and development organizations operating in gas. This project is expected to receive $750K in funding from oil and gas in a holistic and integrated approach to IRD3 will help Western Economic Diversi ication (WED), $250K from Alberta achieve the goals of the ‘understanding the sense of urgency’ and Energy, and $75K from PTAC in their irst funding venture. In ‘facilitating innovation’ strategies. addition, Cenovus Energy Inc., Encana Corporation, and Enerplus Corporation are each expected to provide $200K in cash as well The ‘developing technologies’ strategy focuses on accelerating as their expertise, along with picking up the ield test costs. the collaborative development and deployment of a slate of Water loading is the primary cause of production restriction and transformative technologies, while ‘facilitating innovation’ reserve loss in shallow gas wells across North America. Reliable involves aligning, coordinating, and taking a holistic and pumping technology capable of removing water at an economic integrated approach to existing and future technology initiatives. price point does not currently exist. The creation of a Joint These two strategies permeate all of PTAC’s planned project Industry Consortium to investigate and test de-watering pumps/ work for 2011. PTAC will continue to increase the number of processes for shallow gas wells is expected to develop in 2011 projects managed in the areas of “Reducing Costs”, “Improving and 2012. PTAC anticipates receiving more than ifteen proposals Oil and Gas Recovery”, and “Improving Value-Added Products”. from manufacturers whose technologies will be screened by a To maintain the recently-established portfolio balance, PTAC steering committee. About ten will then be selected for bench plans to signi icantly increase 2011 activities in these technology testing at the Centre for Frontier Engineering Research (C-FER) areas. The Hot Water Vapour Project, Ultra Lightweight Technologies. The four most-promising technologies will be Proppant, Shallow Gas Dewatering Pump consortium, Air Fuel selected for ield demonstrations. Ratio Controller for Low Horsepower Engines, and PT Brand Diesel Fuel Additive are all examples of PTAC projects in these The Ultra Lightweight Proppant Project will measure the areas which will be well underway in 2011. Three of these 2011 performance of a new fracturing technique: the Grand Canyon projects include multi-million-dollar ield-pilot demonstrations: process optimized for deeper, hotter oil and gas wells. The project Hot Water Vapour Injection, Shallow Gas De-Watering, and will evaluate this technology and will provide western Canadian the Ultra Lightweight Proppant project. In emphasizing the producers with a better understanding of the production bene its, importance of ield pilot testing, PTAC will continue to close the environmental bene its, and overall value of this application. gap between pure research and commercialization, furthering Operators generally require hard data and case studies before industry capacity for IRD3. adopting a technology, and this project will generate a credible data set and an explanatory report. Funding agreements have The Hot Water Vapour Injection (HWVI) is a low-energy, low- already been made with several leading producers, with others cost thermal stimulation process for Cold Heavy Oil Production expressing interest in participation. with Sand (CHOPS) reservoirs aimed at reducing greenhouse gas (GHG) intensity while improving recovery from conventional PTAC intends these high-pro ile ield pilot demonstrations will and non-conventional resources. GHG emissions are a major enhance capacity for IRD3 by securing sites and funding for challenge for Enhanced Oil Recovery (EOR) which often requires inventors who otherwise would have no chance of commercializing increased energy consumption. HWVI will result in reductions their technology, and helping industry identify previously PETROLEUM TECHNOLOGY ALLIANCE CANADA 2010 ANNUAL REPORT 9
untapped technological solutions to speci ic challenges. Bridging infrastructure that could be built or made more widely available the gap between basic research and commercialized technology for collaborative technology demonstration. The CTF concept is is not simple – it is a multi-step process fraught with challenges. likely to encompass a number of separate facilities to support However, by promoting innovation and collaboration through projects such as information warehouses, water technology 2011 projects, PTAC hopes to re ine these steps into a seamless development, environmental research, improvements process from basic research to commercialization of technology in instrumentation and equipment, and transformative as the future unfolds. technologies for surface and in-situ bitumen. Finally, during 2011, CBTAP plans to host three workshops and continue efforts Project development in the area of ‘Manage Environmental aimed at increasing R&D and innovation funding. In 2011 PTAC Impacts’ will continue in 2011 under the auspices of AUPRF, the will launch a project, under CBTAP, to examine and evaluate
CO2 EHR Steering Committee, TEREE, PTAC’s SME initiative, and innovations in the application of electricity in oil sands. the newly formed CBTAP and REMTAP Networks. In 2011, PTAC is expected to facilitate twenty-eight environmental management REMTAP will complete its task of developing an inventory of projects under AUPRF, with over $2M invested from industry technologies in the summer of 2011, and will seek to develop leveraging signi icant additional funding resulting in projects and implement these technologies in autumn 2011 and beyond. with total costs equaling more than $7.8M. The Alberta CO2 Purity Project will continue throughout 2011 under the sound As PTAC implements their strategies to achieve an increased direction of the project steering committee which was formed capacity for IRD3, the organization will continue to proactively under the PTAC CO2 EHR Committee and is coordinated with the assess long-term industry needs and identify challenges,
Integrated CO2 Network (ICO2N). PTAC’s wellsite abandonment encourage industry and government to support R&D, provide project, launched in 2009 will continue to address cement dump innovative technical and technology solutions, and effectively bailing in cased-hole wellsites. During 2011, this project will disseminate existing and emerging technologies through the complete a series of experiments with a recognized laboratory CBTAP and REMTAP networks. and wellbore testing facility to evaluate and optimize the physical characteristics of the cement commonly used as a permanent In 2011 PTAC will continue implementation of the twelve existing well abandonment plug (contained within casing). The project projects born out of the Alberta Department of Energy grant. is expected to conclude in 2011 and the indings will be released This grant of $1.5 M was awarded to PTAC in 2008 to provide the immediately for public access. Under TEREE two projects will foundation and structure to promote additional industry support be completed in 2011. The Low Horsepower Engines Project and focus for projects, and help leverage funding from industry is projected to conclude in the Fall of 2011. PTAC intends to and other organizations. So far over $1.3 million of this grant has develop this project into a Phase II, which will involve third party been allocated to fourteen projects launched by PTAC for a total veri ication of data and subsequent reporting. Findings will be cost of $12 million. Over 140 organizations have participated in made available twelve months after completion. The PT Brands these projects providing signi icant leveraging of both inancial Diesel Fuel Additive Encana Testing Results will be completed in resources and industry expertis March 2011, and indings of this study will also be made available twelve months after completion. With the continued support of National Research Council of Canada – Industrial Research Assistance Program (NRC-IRAP), In 2011, CBTAP activities will be guided by the Action Plan PTAC will offer its services in 2011 to assist Canadian SMEs in the approved by the Steering Committee at the end of 2010. The hydrocarbon industry. SMEs continue to play an integral role in Surface Bitumen, In Situ Bitumen and Upgrading Committees increasing industry capacity for IRD3, but they require assistance have started reviewing and evaluating technology solutions that to identify current industry needs and provide technology can be investigated and demonstrated through collaborative solutions to meet those needs. Building on their successful projects. Speci ic areas of interest include next generation deployment in 2010, PTAC will once again provide information technologies, recovery with a smaller environmental footprint to help SMEs move their technologies to market. In 2011, PTAC and lower costs, improved energy ef iciency, and upgrading will host the ‘Oil and Gas Fundamentals for SMEs’ seminars/ methods deployable closer to production sites and/or offering webinars to help educate SMEs and improve their knowledge cost and environmental advantages. Fostering collaboration, of industry. PTAC will also host the irst SME Showcase of illing gaps, and improving overall effectiveness of the innovation Technologies Forum. This highly informative event will present system remain key goals of CBTAP that will be advanced through insights into new and emerging technologies and processes the Collaborative Test Facilities (CTF) and the virtual forum for developed by Canadian entrepreneurs that address innovative technology organizations. The purpose of the CTF is to identify oil, gas, and oilsands applications for exploration, production, PETROLEUM TECHNOLOGY ALLIANCE CANADA 2010 ANNUAL REPORT 10
and environmental protection. The goal of this showcase will be political climate of the day. Other PTAC events anticipated for to increase market share within the hydrocarbon industry for 2011 include an Annual Spring Water Forum, the 2011 Towards successful SMEs. Clean Energy Production Conference Series in the autumn, and a series of environmental portfolio events to share the results of To implement the strategies set out in the new ive-year plan, AUPRF research. PTAC is planning several 2011 events to communicate to industry the importance of IRD3 and increase awareness of PTAC’s outlook for 2011 communicates a irm belief that the the sense of urgency in developing technologies for sustainable future of the Canadian hydrocarbon energy industry depends hydrocarbon development. PTAC will host the Global Petroleum on an expanded capacity for IRD3. Through their 2011 projects, Conference in conjunction with GO EXPO in 2011, a conference programs, and events PTAC will develop the three strategies to featuring three concurrent sessions addressing such topics as Oil move towards this goal: understanding the sense of urgency;
Sands, Operations, CO2 Management, Unconventional Resources, facilitating innovation; and developing technologies. PTAC is at Increased Recovery, Business Strategies, and Health and Safety. its core a gathering of volunteers representing all aspects of the The conference will aim to feature sixty speakers over the course Canadian hydrocarbon energy industry, and working together of two and a half days to bring the latest updates on conventional the organization continue to facilitate innovation, collaborative and unconventional resources. The conference will focus on research, and technology development, demonstration, and reducing overall costs and minimizing the environmental deployment for a responsible Canadian hydrocarbon energy footprint using innovative technology solutions. The highlight of industry. the conference is expected once again to be the Plenary Panel Discussion where dignitaries from around the globe gather to publicly discuss current challenges speci ic to the economic and
Member Services
PTAC offers a variety of services to its members, and provides opportunities to bene it the Canadian hydrocarbon energy industry. For more information on the many bene its of PTAC membership please visit our website at: www.ptac.org.
Facilitating PTAC staff and contracted subject experts provided support to SMEs to help them make signi icant advances in moving their technology forward in a value-added manner and adapting Projects their technologies to better meet speci ic industry needs. PTAC PTAC facilitated 38 new research and development projects or provided in-depth advice to SMEs to guide them on marketing new project phases during the course of 2010. The total costs of their technologies, and facilitated technology information these projects was $8.9 M. PTAC provides industry with a neutral sessions for eight PTAC SME members. PTAC subject experts forum to work in collaboration, leveraging collective experience and staff facilitated meetings with SMEs to provide technology and expertise to identify opportunities, challenges, and potential advice, help identify funding and to collaborate with other SMEs solutions that require research or technology development. or organizations to move their technology projects forward. These discussions can lead to joint-industry projects where PTAC provided opportunities for over 70 SMEs to present PTAC, as a neutral facilitator, assists with soliciting proposals their research and technologies at PTAC conferences, forums, and launching projects through a fair and balanced process. information sessions and technical steering committee meetings PTAC also identi ies existing research and development to raise in 2010. industry awareness and minimize duplication. PTAC hosted two seminars geared towards SMEs, a spring session Small and Medium-sized Enterprises (SME) Program on Conventional EOR needs and an autumn session on Heavy Oil With the support of NRC-IRAP, PTAC continued to provide Futures. Over 180 participants took advantage of these seminars. support to SMEs to help unleash SME innovations to bene it the SMEs were extremely interested in learning about technology hydrocarbon industry. needs and prospects to develop or tweak their technologies to help address industry challenges. In addition, these seminar/ webinars provided excellent networking opportunities for SMEs. PETROLEUM TECHNOLOGY ALLIANCE CANADA 2010 ANNUAL REPORT 11
Approved Service Provider for Alberta Innovates – Global Petroleum Conference held in conjunction with the Global Technology Futures Innovation Voucher Program Petroleum Show in June. In 2010, PTAC continued to provide services under the Alberta Innovates– Technology Futures Innovation Vouchers Program. PTAC forums focus on broader needs or technical areas. These Innovation vouchers help small technology and knowledge- events are comprised of presentations detailing new technologies, driven businesses in Alberta accelerate the process of getting case studies, and the objectives and results of current research, their ideas and products to market. The goal of the innovation as well as providing opportunities for questions and answers. vouchers program is to enhance the ability of small businesses The goal of PTAC forums is to bring together the most up to date operating in Alberta to be successful in the marketplace. In 2010, information from across the industry into an enriching learning PTAC staff and technical advisors worked with thirteen SMEs, experience. helping to determine the feasibility and viability of proposed projects and reviewing applications. PTAC workshops provide opportunities for participants to work collaboratively in focused groups to clearly de ine research and development issues, identify potential solutions, and select the Networking best approach to move forward. Industry members are provided an opportunity to share their needs, and R&D providers are Technology Information Sessions given an opportunity to hear about issues irsthand. Solutions In 2010, PTAC facilitated eleven Technology Information are formed by leveraging the collective expertise and ideas of Sessions (TIS) attended by nearly 300 participants. As a service all participants, while protecting proprietary interests. PTAC to members, PTAC facilitates TISs for interested companies, hosts the workshops and is pleased to provide the necessary providing bene its to both the presenting company and all those facilitation, administrative support, and coordination to launch in attendance. The company presenting is provided a forum to projects once identi ied. solicit interest, feedback, participation or potential funding for new research and development projects; ind industry partners to complete proposed research or technology development such Informing as ield tests or pilot sites; report on ield test or pilot results; provide information on technology-related services; and market The PTAC Knowledge Centre provides public access to non- new technology to the Canadian oil and gas industry. Those in proprietary technical information on commercially available attendance have the opportunity to be exposed to these new oil-and-gas-related technologies pertinent to the hydrocarbon projects and ideas through a targeted, facilitated presentation. energy industry. The Knowledge Centre offers access to core energy and premier technical databases to meet the educational, informational, and technical needs of the user community. The Engaging Knowledge Centre Manager provides services to SMEs, technical steering committees, project performers, researchers, and Forums and Workshops others to help identify technologies and research needs, avoid PTAC hosted six forums and ive workshops in 2011 that attracted duplicate research, and monitor industry trends. Knowledge over 800 participants. These targeted events provide industry Centre Services for PTAC members include literature searches, members with an opportunity to gather with others to share search alerts, advice on technical document and journal article ideas, opinions, and learning on a speci ic technical subject. In retrieval, and contact information for subject experts in industry, addition, nearly three hundred participants took part in the 2011 government, and academia. PTAC members are invited to provide PETROLEUM TECHNOLOGY ALLIANCE CANADA 2010 ANNUAL REPORT 12
non-proprietary technical information on their technologies to through the process of soliciting proposals and launching new PTAC for display in the Knowledge Centre. Relevant materials are projects, and promote involvement by informing appropriate accepted on an ongoing basis. colleagues of Technical Steering Committee activities.
Collaborating Communicating
Technical Steering Committees Member Communications PTAC facilitated twenty-seven Technical Steering Committees and PTAC is committed to ensuring effective communication with one sub-committee during the course of 2010. PTAC Technical members. The PTAC website provides members with access Steering Committees consist of PTAC members representing to the most up-to-date information on PTAC projects, events, various industry sectors, governments, and non-governmental and activities as well as an extensive archive. Our bi-weekly associations. These technical steering committees help to newsletter, e-talk, delivers all the latest information on upcoming identify opportunities for collaborative research and technology events and opportunities directly to members and interested development, raise awareness of existing research and stakeholders through email. technology through planning events, ind solutions to challenges
Board of Directors (as at December 31, 2010)
Earle Shirley, Chairperson Michael Gatens Ian J. Potter Executive Manager, Board Projects Chief Executive Of icer Chief Operating Of icer Energy Resources Conservation Board Unconventional Gas Resources Canada Alberta Innovates - Technology Futures
Soheil Asgarpour, President, PTAC Fred Hutchings Ken Putt, Petroleum Technology Alliance Canada Vice President and General Manager of Independent Director Acquisitions Randy Cormier ShawCor, Ltd. Randy Rudolph General Manager, Research and Principal Development Eddy Isaacs Millennium EMS Solutions Ltd. Nexen, Inc. Chief Operating Of icer Alberta Innovates – Energy and Dave Rushford Dr. Marc D’Iorio, Director General Environment Solutions Senior VP and COO Energy Sector/Of ice of Energy Quicksilver Resources Canada Inc. Research and Development Mark Johnstone Natural Resources Canada Director, Technology and Strategy Chuck J. Szmurlo Suncor Energy Inc. Vice President of Alternative and Mike Ekelund Emerging Technologies Assistant Deputy Minister, Energy Chris Lehecka Enbridge Inc. Future and Strategic Relations Divison Heavy Oil Technical Project Manager Alberta Department of Energy ConocoPhillips Company Murray Todd President and CEO Alex Ferguson Wayne Patton Todd Resources Commissioner, Chief Executive Of icer Sr. Advisor, BC Oil and Gas Commission Carbon Management Canada Inc. University of Calgary PETROLEUM TECHNOLOGY ALLIANCE CANADA 2010 ANNUAL REPORT 13
VOLUNTEERS
MANAGE ENVIRONMENTAL IMPACTS •Kim Mercier, Encana Natural Gas •Elisabeth Sabo, Environment Canada •Bruce Peachey, New Paradigm Engineering Ltd. •Phil Scalia, Suncor Inc. Technology for Emission Reduction and •Al Rasmussen, Nexen Inc. •Rick Scroggins, Environment Canada Eco-Efϐiciency (TEREE) Steering •Brian Ross, Nexen Inc. •Leanne Siebert, Imperial Oil Limited Committee •Graham Schmidt, Encana Natural Gas •Shawn Willetts, ConocoPhillips Canada •Mark Bohm, Suncor Inc. •Jerry Shaw, Devon Canada Corporation •Michelle Wright, Cenovus Energy Inc. •Pierre-Yves Caux, Environment Canada •Dennis Schmitt, Encana Natural Gas •Michelle Young, Imperial Oil Limited •Norman Chen, Husky Energy Inc. •Paul Slobodnik, ConocoPhillips Canada Ltd. •Alex Dickson, CETAC West Boron Technical Working Group •Doris Weiss, Devon Canada Corporation •Angela Driscoll, ARC Resources Ltd. •Asfaw Bekele, Imperial Oil Limited •Joe Dusseault, Cenovus Energy Inc. Air Research Planning Committee •Scott Cantwell, Maxxam Analytics •Geoff Frazer, Devon Canada Corporation •Lori Adamache, Alberta Environment •Tim Chidlaw, MWH Canada Inc. •John Harvey, Encana Natural Gas •Henry Ewa, Energy Resources Conservation Board •Bob Corbet, Access Analtyical Laboratory Inc. •Jackson Hegland, ARC Resources Ltd. •Randall Daniels, Encana Corporation •Gordon Dinwoodie, Alberta Environment •Eddy Isaacs, Alberta Innovates – Energy and •Randy Dobko, Alberta Environment •Curtis Eickhoff, Maxxam Analytics Environment Solutions (government co-chair) •Glyn Fox, BC Oil and Gas Commission •Roy Kanten, Shell Canada Resources Ltd. •John Drinkwater, BP Canada Energy Company •Shirley Graham, AGAT Laboratories Ltd •Ibrahim Karidio, Alberta Environment •Wayne Hillier, Husky Energy Inc. •Karin Guiguer, Franz Environmental Inc. •Andy Kneubuhler, Total Exploration and •Michael Layer, Natural Resources Canada (NRCan) •Susan Halla, Energy Resources Conservation Board Production Ltd. •Nathan Maycher, ConocoPhillips Canada •Michael Harrass, Borax •Milos Krnjaja, BP Canada Energy Company •Russell Morrison, Encana Corporation •Phil Heaton, Maxxam Analytics •Howard Loseth, Saskatchewan Industry and •Rosanna Ng, Talisman Energy Inc. •Greg Huber, Equilibrium Environment Inc. Resources (industry co-chair) •Darlene Lintott, Exova •Jeremy Moorhouse, Pembina Institute for •Krista Phillips, Canadian Association of Petroleum •Anthony Kna la, Equilibrium Environment Inc. Appropriate Development Producers (CAPP) •Pat Payne, Alberta Environment •Angelo Mangatal, Natural Resources Canada •Brian Ross, Nexen Inc. •Bill Pelech, Alberta Environment •Kim Mercier, Encana Natural Gas •Nicole Sagan, AltaGas Services Ltd. •Roger Saint Fort, Mount Royal University •Richard Nelson, Alberta Innovates – Energy and •Lisa Solomchuk, Shell Canada Resources Ltd. •Darlene Stokes, Talisman Energy Inc. Environment Solutions (industry co-chair) •Michelle Wright, Cenovus Energy Inc. •Bruce Peachey, New Paradigm Engineering Ltd. Soil and Groundwater Research Airfuel Ratio Controllers for Low Horsepower •Ron Quick, Sustainable Ventures Inc. Committee Engines Project Committee •Al Rasmussen, Nexen Inc. •Paul Bacchus, Environment Canada •Joe Dusseault, Cenovus Energy Inc. •Brian Ross, Nexen Inc. •Boris Barkovic, The City of Calgary •Sean Hiebert, ConocoPhillips Canada •Graham Schmidt, Encana Natural Gas •Asfaw Bekele, Imperial Oil Limited •Milos Krnjaja, BP Canada Energy Company •Jerry Shaw, Devon Canada Corporation •Shaunna Cartwright, Energy Resources •Paul Slobodnik, ConocoPhillips Canada •Dennis Schmitt, Encana Natural Gas Conservation Board •Paul Slobodnik, ConocoPhillips Canada Ltd. MG22D Diesel Fuel Additive Project •Gordon Dinwoodie, Alberta Environment •Al Smandych, Energy Resources Conservation Board Committee (government co-chair) •Jim Spangelo, Energy Resources Conservation Board •Mark Bohm, Suncor Inc. •Linda Elder, Government of British Columbia •Surindar Singh, Alberta Innovates – Energy and •Joe Dusseault, Cenovus Energy Inc. •Susan Halla, Energy Resources Conservation Board Environment Solutions •David Ellgen, Nickel LLC •Steve Kullman, Husky Energy Inc.(industry chair) •Lynn Sveinson, Climate Change Central •James R. Riddle, PT Brands •Stuart Lunn, Imperial Oil Limited •Doris Weiss, Devon Canada Corporation •William Rouse, Bluewave Energy Ltd. •Chris Meloche, Husky Energy Inc. •Dennis Schmitt, Encana Natural Gas Resource Emissions Management •Mike Morden, Suncor Inc. Technology Action Plan (REMTAP) •Ole Mrklas, ConocoPhillips Canada •Joe Dusseault, Cenovus Energy Inc. •Pat Payne, Energy Resources Conservation Board •Geoff Frazer, Devon Canada Corporation •Juliska Princz, Environment Canada •John Harvey, Encana Natural Gas •Angela Putz, Natural Resources Canada (NRCan) PETROLEUM TECHNOLOGY ALLIANCE CANADA 2010 ANNUAL REPORT 14
Ecological Research Planning Committee •John Drennan, Trident Exploration •Blaine Hawkins, Alberta Innovates – Technology •Steve Eberhardt, Athabasca Oil Sands Corp. •Jill Garcia, Canadian Association of Petroleum Futures •Carol Engstrom, Husky Energy Inc. Producers (CAPP) •Larry Hegan, Natural Resources Canada (NRCan) •Bruce Green ield, Energy Resources •Jack Halliday, ConocoPhillips Canada Ltd. •Chris Holly, Alberta Department of Energy Conservation Board •Brent Harrison, Encana Natural Gas •Eddy Isaacs, Alberta Innovates – Energy and •Scott Johnston, Husky Energy Inc. •Brad Herald, Canadian Association of Petroleum Environment Solutions •Adam Judd, Nexen Inc. Producers (CAPP) •Stephen Kaufman, Suncor Inc. •Sandra Marken, ConocoPhillips Canada •Brent Hughes, Nexen Inc. •James Kenny, Cimmaron Engineering •Kathryn Milne, Nexen Inc. •Don Jones, Apache Corp. •David Lamont, ConocoPhillips Canada Ltd. •Ted Nason, Sustainable Resource Development •Orest Kotelko, Canadian Natural Resources Ltd. •Frank Lin, Husky Energy Inc. •Terry Osko, Alberta-Paci ic Forest Industries, Inc. •Ercun Larsen, Cenovus Energy Inc. •Sandra Locke, Alberta Department of Energy •Gary Sargent, Canadian Association of Petroleum •Anita Lewis, Energy Resources Conservation Board •Herb Longworth, Energy Resources Conservation Producers (CAPP) •Warren Lloyd, Encana Natural Gas Board •Amit Saxena, Devon Canada Corporation •John Lucic, Nexen Inc. •Richard Luhning, Enbridge Pipelines Inc. (industry chair) •Clint Nerbas, BP Canada Energy Company •Jim Maguire, Enerplus •Mark Sherrington, Shell Canada Resources Ltd. •Stewart Neuman, Calmena Energy Services •Christine Malaka, ATCO Energy Solutions •Scott Wagner, Nexen Inc. •Eugene Ng, Shell Canada Resources Ltd. •Anna Maslowski, Alberta Department of Energy •Tracy Young, Encana Corporation •Julian Mamo, Penn West Exploration. •Colin Muir, Pengrowth Management Ltd. •Sean Meehan, Penn West Exploration. •Dave Peet, Devon Canada Corporation Water Innovation Planning Committee •Tara Payment, Canadian Association of Petroleum •Frank Perrino, ATCO Midstream •Brenda Austin, Energy Resources Conservation Producers (CAPP) •Farid Remtulla, Enhance Energy Board •Erin Peachey, Canadian Association of Petroleum •Bill Reynen, Natural Resources Canada (NRCan) •Gail Buchanan, Syncrude Canada Ltd. Producers (CAPP) •Surindar Singh, Alberta Innovates – Energy and •Carrie Dickinson, Energy Resources Conservation •Chris Perkons, Cenovus Energy Inc. Environment Solutions Board •Jim Quehl, Devon Canada Corporation •Sit Song, Cenovus Energy Inc. •James Douglas, ConocoPhillips Canada •David Samuelson, Energy Resources •Michael St. James, Praxair Canada Inc. •Sarah Fulton, Penn West Petroleum Ltd. Conservation Board •Barry Station, ATCO Energy Solutions •Lisa Graul, Nexen Inc. •Danny Scott, Encana Natural Gas •Charles Szmurlo, Enbridge Pipelines Inc. •Scott Hillier, ConocoPhillips Canada •Ken Shewan, Frontier Ltd. •Femi Talabi, Penn West Exploration.
•Bob Kutzak, Nexen Inc •Tyler Simpson, Devon Canada Corporation •Kali Taylor, Integrated CO2 Network •Ludmila Makarov, Husky Energy Inc. •Harold Slater, Penn West Exploration. •Steven Thomas, Energy Resources Conservation •Paul Martin, ConocoPhillips Canada •John Slofstra, Talisman Energy Inc. Board •Kathryn Milne, Nexen Inc. •Jeff Willick, Canadian Natural Resources Ltd. •Kurt Ulrich, BP Canada Energy Company •Keith Minnich, Talisman Energy Inc. •Nevin Wolf, Talisman Energy Inc. •Brian Watt, Husky Energy Inc. •Richard Nelson, Alberta Environment •Alberta CO Purity Project (ACPP) Committee Hot Water Vapour Process Project •Sarah Ng, Devon Canada Corporation 2 PTAC recognizes the contributions of the members of Steering Committee •Naomi Parker, Encana Corporation this Committee. However, to preserve •Mouloud Belharche, Devon Canada Corporation •Ron Quick, Sustainable Ventures Inc. conϔidentiality, the individual members are not listed. •Ken Brown, Petroleum Technology Research Centre •Jennifer Saldana, Husky Energy Inc. (PTRC) •Kevin Sonnenberg, EPCOR IMPROVED OIL AND GAS RECOVERY •James Callbeck, Husky Energy Inc. •Greg Shyba, Telus World of Science Calgary CO E.H.R. Steering Committee •Ian Freeland, Devon Canada Corporation •Rudy Tamayo, Husky Energy Inc. 2 •Garth Ayres, Interpipeline Fund •Luis Romualdez, Devon Canada Corporation •Prasad Valupadas, Alberta Environment •Stefan Bachu, Alberta Innovates – Technology •Monica Varga, NRC IRAP Shallow Gas Well De-watering Pump Futures •Keith Watson, SDTC Consortium Steering Committee •Don Bradshaw, Alberta Department of Energy •Stephen Yeung, Alberta Environment •Francisco Alhanati, C-FER Technologies •Ian Bryden, Penn West Exploration. •Tim Doerksen, Enerplus Corporation Wellsite Abandonment Project Committee •Heather Campbell, ARC Resources Ltd. •Ken Lowe, Cenovus Energy Inc. •Ken Anderson, Shell Canada Resources Ltd. •Gary Cook, Capital Power •Kelly Piers, C-FER Technologies •David Baker, Cenovus Energy Inc. •Robert Craig, Integrated CO Network 2 •Dave Sask, Encana Corporation •Richard Bean, Apache Corp. •Kelly Edwards, Barrick Energy Inc •Francisco Trevisan, C-FER Technologies •Lane Becker, Laricina Energy Ltd. •Christeen Finzel, Alberta Environment PETROLEUM TECHNOLOGY ALLIANCE CANADA 2010 ANNUAL REPORT 15
•Cindy Wolfe, Cenovus Energy Inc. Committee •Jack Suggett, Athabasca Oil Sands Corp. •Paul Clark, Vision Gain Consulting •Cameron Todd, Connacher Oil and Gas Limited Ultra Lightweight Proppant (ULWP) •Victor del Valle, ConocoPhillips Company •KC Yeung, Husky Energy Inc. Project Steering Committee •Christopher Holly, Alberta Department of Energy •David Braun, Shell Canada Resources Ltd. CBTAP Production Enhancement and •Jerry Keller, Alberta Environment •Bob Everett, PennWest Exploration Automation •Steve Larter, Carbon Management Canada •Rob Fulton, Canyon Technical Services Ltd. •John Belgrave, Belgrave Oil and Gas Corp. •Stephen Moran, University of Alberta – Oil Sands •Chris Gat ield, 3M Canada – Oil and Gas Division •Arne Donovan, INO West Research and Information Network (OSRIN) •Greg Heffel, PennWest Exploration •Brad Gaulin, Scenarios to Strategy Inc. •Wayne Patton, University of Calgary •Steven Kelly, Husky Energy Inc. •Alan Peats, BP Canada Energy Company •George Rhodey, Rhodey and Associates Inc. •Dave Lui, Murphy Oil Corporation •Bernie Philip, ARC Resources Ltd. •Vincent Saubestre, Total Exploration and •Doug McMillan, Canyon Technical Services Ltd. •Amiri Saeid, Wave Control Systems Ltd. Production Ltd. •Monty Malik, 3M Canada – Oil and Gas Division •Monica Varga, NRC-IRAP •Scott Smith, Cenovus Energy Inc. •Garnet Olson, Canyon Technical Services Ltd. •Vicki Zhao, Wave Control Systems Ltd. •Harrie Vredenburg, University of Calgary •Sanjay Vitthal, Shell Canada Resources Ltd. CBTAP Surface Bitumen Recovery •Adam Welty, Canyon Technical Services Ltd. CBTAP Knowledge and Innovation •Alan Fair, Syncrude Canada Ltd. •Brad Wilson, Murphy Oil Corporation Management Committee •Mark Johnstone, Suncor Energy Inc. •Alex Bolton, Epicentre Consulting Clean Bitumen Technology Action Plan (CBTAP) •Glen Rovang, Syncrude Canada Ltd. •Brad Gaulin, Scenarios to Stragy Inc. In Situ Steering Committee •Mark Schaffer, Total Exploration and Production Ltd. •Doug James, Energy Futures Network •Randy Cormier, Nexen Inc. •Bernie LeSage, ETX Systems Inc. CBTAP Upgrading and Gasiϐication •Subodh Gupta, Cenovus Energy Inc. •Matthew McCulloch, Pembina Institute for •Ken Brown, Petroleum Technology Research Centre •Brian Harschnitz, JACOS - Japan Canada Oil Sands Appropriate Development (PTRC) Limited •Ron Quick, Sustainable Ventures Inc. •Wayne Brown, ETX Systems Inc. •Heather Herring, Total Exploration and Production •George Rhodey, Rhodey and Associates Inc. •Paul Clark, Vision Gain Consulting Ltd. •Victor del Valle, ConocoPhillips Company •Christopher Holly, Alberta Department of Energy CBTAP Workshop Committee •Craig Fairbridge, Natural Resources Canada (NRCan) (Government Co-Chair) •Rodger Bernar, Quadrise Canada Corporation •Subodh Gupta, Cenovus Energy Inc. •Mark Johnstone, Suncor Energy Inc. •Martyn Griggs, Canadian Association of Petroleum •Brian Harschnitz, JACOS -Japan Canada Oil Sands •David Layzell, University of Calgary – ISEEE Producers (CAPP) Limited •Chris Lehecka, ConocoPhillips Canada •Tom Keelan, Energy Resources Conservation Board •Mark Johnstone, Suncor Energy Inc. (Industry Co-Chair) •Bernie LeSage, ETX Systems •Tom Keelan, Energy Resources Conservation Board •Howard Loseth, Saskatchewan Ministry of Energy •Les Little, Alberta Innovates - Energy and •Bernie LeSage, ETX Systems Inc. and Resources Environment Solutions •Ted Little, Natural Resources Canada (NRCan) •Pete Sametz, Connacher Oil and Gas Limited •Matt McCulloch, Pembina Institute •Richard McFarlane, Alberta Innovates - Technology •Vincent Saubestre, Total Exploration and •Preston McEachern, Alberta Environment Futures Production Ltd. •George Rhodey, Rhodey and Associates •Tony Nakamura, JACOS -Japan Canada Oil Sands •Song Sit, Cenovus Energy Inc. •Vincent Saubestre, Total Exploration and Limited •Jack Suggett, Athabasca Oil Sands Corp. Production Ltd. •Parviz Rahimi, Natural Resources Canada (NRCan) •Cameron Todd, Connacher Oil and Gas Limited •Jack Suggett, Athabasca Oil Sands Corp. •George Rhodey, Rhodey and Associates Inc. •KC Yeung, Husky Energy Inc. •Monica Varga, NRC-IRAP •Pete Sametz, Connacher Oil and Gas Limited •Mark Weber, Independent CBTAP Mining Steering Committee •Song Sit, Cenovus Energy Inc. •KC Yeung, Husky Energy •Ken Brown, Petroleum Technology Research Centre •Scott Smith, Cenovus Energy Inc. (PTRC) CBTAP In Situ Recovery •Jack Suggett, Athabasca Oil Sands Corp. •Alan Fair, Syncrude Canada Ltd. •Lukemon Adetunji, Total Exploration and •Nestor Zerpa, Nexen Inc. •Christopher Holly, Alberta Department of Energy Production Ltd. (Government Co-Chair) •Ken Brown, Petroleum Technology Research Centre •Mark Johnstone, Suncor Energy Inc. (PTRC) (Industry Co-Chair) •Randy Cormier, Nexen Inc. •Stephen Moran, University of Alberta – Oil Sands •Victor del Valle, ConocoPhillips Company Research and Information Network (OSRIN) •Larry Frederick, Nexen Inc. •Subodh Gupta, Cenovus Energy Inc. CBTAP Strategic Planning Committee •Heather Herring, Total Exploration and Production •Shannon Flint, Alberta Environment Ltd. •Tom Keelan, Energy Resources Conservation Board •Mark Johnstone, Suncor Energy Inc. •Matt McCullough, Pembina Institute for •Tom Keelan, Energy Resources Conservation Board Appropriate Development •Les Little, Alberta Innovates – Energy and •George Rhodey, Rhodey and Associates Environment Solutions •Mark Weber, Independent •Tony Nakamura, JACOS -Japan Canada Oil Sands CBTAP Technical Advisory Committee Limited (Subcommittees to be formed as technology •Pete Sametz, Connacher Oil and Gas Limited projects are developed) •Song Sit, Cenovus Energy Inc. •K.C. Yeung, Husky Energy Inc. (Chair) •Scott Smith, Cenovus Energy Inc. •Kevin Sonnenberg, EPCOR CBTAP Breakthrough and Innovation PETROLEUM TECHNOLOGY ALLIANCE CANADA 2010 ANNUAL REPORT 16
Independent Auditor’s Report
To the Board of Directors of PTAC Petroleum Technology Alliance Canada as at December 31, 2010, the Technology Alliance Canada: results of its operations, and its cash lows for the year then ended in accordance with Canadian generally accepted Report on the ϐinancial statements accounting principles. We have audited the accompanying inancial statements of PTAC Petroleum Technology Alliance Canada, which comprise the Thompson Penner & Lo LLP statement of inancial position as at December 31, 2010, and the Certi ied General Accountants statements of operations, changes in net assets and cash April 12, 2011 lows for the year then ended and a summary of signi icant Calgary, Alberta, Canada accounting policies and other explanatory information. Management’s responsibility for ϐinancial statements Management is responsible for the preparation and fair presentation of these inancial statements in accordance with PTAC PETROLEUM TECHNOLOGY ALLIANCE CANADA Canadian generally accepted accounting principles, and for such STATEMENT OF FINANCIAL POSITION internal control as management determines is necessary to As at December 31, 2010 enable the preparation of inancial statements that are free from material misstatement, whether due to fraud or error. ASSETS 2010 2009 Auditor’s responsibility Our responsibility is to express an opinion on these inancial Current statements based on our audit. We conducted our audit in Cash and cash equivalents $ 4,576,178 3,048,346 accordance with Canadian generally accepted auditing Accounts Receivable and standards. Those standards require that we comply with ethical accrued receivables 1,348,697 568,200 requirements and plan and perform the audit to obtain Prepaid expenses 57,757 84,476 reasonable assurance about whether the inancial statements 5,982,632 3,737,022 are free from material misstatement.
An audit involves performing procedures to obtain audit Property and equipment 32,101 48,066 evidence about the amounts and disclosures in the inancial $ 6,014,733 $ 3,785,088 statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the inancial statements, whether due to fraud or error. In making those risk assessments, the auditor LIABILITIES considers internal control relevant to the entity’s preparation Current and fair presentation of the inancial statements in order to Accounts payable and accrued liabilities $ 310,190 $ 345,763 design audit procedures that are appropriate in the Goods and services tax payable 62,933 13,516 circumstances, but not for the purpose of expressing an opinion Deferred membership revenue 385,140 400,621 on the effectiveness of the entity’s internal control. An audit also Deferred contributions 3,312,687 1,580,614 includes evaluating the appropriateness of accounting policies 4,070,950 2,340,514 used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the inancial statements. NET ASSETS We believe that the audit evidence we have obtained is suf icient and appropriate to provide a basis for our audit Invested in property and equipment 32,101 48,066 opinion. Unrestricted 1,400,000 1,396,508 Opinion Internally restriced 511,682 - In our opinion, the inancial statements present fairly, in all 1,943,783 1,444,574 material respects, the inancial position of PTAC Petroleum $ 6,014,733 $ 3,785,088 PETROLEUM TECHNOLOGY ALLIANCE CANADA 2010 ANNUAL REPORT 17
Measurement and Accountability
Membership Revenue by Category PTAC PETROLEUM TECHNOLOGY ALLIANCE CANADA STATEMENT OF OPERATIONS PTAC’s 2010 membership was comprised of 165 active members, For the Year Ended December 31, 2010 grossing $578,486.00 revenue at year-end 2010. PTAC provides a variety of services and bene its to our members, including
REVENUE 2010 2009 collaborative research and technology development, project facilitation services, event coordination, event registration Project and service revenue $ 1,068,956 $ 1,005,879 discounts, access to the knowledge centre, opportunities to serve Membership revenue 578,486 583,356 on technical steering committees, and a complimentary Event revenue 319,810 211,126 bi-weekly newsletter. Rental income 193,455 182,912
Canadian Association of PRODUCERS $ 324,764
Petroleum Producers (CAPP) 98,981 100,000 SERVICE & SUPPLY COMPANIES 150,556 Interest income 22,408 15,014 INDIVIDUALS 1,815 Miscellaneous income 1,608 6,161 GOVERNMENT 37,933 $ 2,283,704 $ 2,104,448 TRANSPORTERS 23,310
LEARNING 13,975
EXPENSES RESEARCH PROVIDERS 21,293
Salaries and bene its $ 766,451 $ 908,464 MIDSTREAM PROCESSORS 4,840 Direct project and service costs 465,327 351,918 Rent 342,792 334,814 Direct event costs 77,070 48,841 Of ice and equipment leases 31,210 32,353 Marketing 28,344 20,116 Amortization 23,126 23,503 Consulting and professional fees 13,928 6,266 Training 10,360 13,826 Printing and publications 8,634 8,187 Computer and website 7,858 8,865 Insurance 5,306 5,433 Project Expenditure Bank charges and credit card discounts 4,089 4,195 PTAC has facilitated 323 projects and project phases with costs 1,784,495 1,766,781 equaling $151.8M. Of those, PTAC facilitated thirty -eight research Excess of revenue over expenses $ 499,209 $ 337,667 and technology development/demonstration projects with total costs equaling $8.9M in 2010
PTAC MEMBERS 174 members as of March 31, 2011
PRODUCERS (29) GOVERNMENT (5) • Clearstone Engineering Ltd. • Maxxam Analytics • ComplyWorks Ltd. • McCarthy Tetrault LLP – • ARC Resources Ltd. • Alberta Finance and • Computer Modelling Group Technology Group • Athabasca Oil Sands Corp. Enterprise Ltd. • Meridian Environmental Inc. • Barrick Energy • Alberta Innovates – Energy • Cybera • Millenium EMS Solutions Ltd. • BP Canada Energy Company and Environment Solutions • Daily Oil Bulletin • MWH Canada Inc. • Cenovus Energy Inc. • British Columbia Oil and Gas • Delacom Detection Systems, • New Paradigm Engineering • Chevron Canada Ltd. Commission LLC Ltd. • Connacher Oil and Gas • Canada Revenue Agency • Deloitte - Research and • Newco Tank Corp Limited • Saskatchewan Ministry of Development, Tax • N-Solv Corporation • ConocoPhillips Canada Energy and Resources • Delta C Technologies Inc. • Oasis Emission Consultants • Devon Canada Corporation • Digital Time Capture Inc. • Encana Corporation INDIVIDUALS (8) • E3P Technologies Inc. • Oilflow Solutions Inc. • EnerMark Inc. • Blair, Jim • EBA Engineering Consultants • Oxand Canada Inc. • Husky Energy Inc. • Gaulin, Bradford - Research Department • Paradigm Shift Technologies • IFP Technologies (Canada) • Hoopfer, Dwayne • Econotherm Canada • Pason Systems Inc. Inc. • Kearsey, John • Enefen Energy Efficiency • Portfire Associates • Imperial Oil Limited • Lloyd, Eric Engineering Ltd. • Praxair Canada Inc. • Japan Canada Oil Sands • Putt, Ken • Enviro Vault Canada Ltd. • PressSol Ltd. Limited (JACOS) • Rhodey, George • Envirosoft Products Inc. • Process Ecology Inc • Laricina Energy Ltd. • Todd, Murray • Envirotech Engineering • ProTechnics • Murphy Oil Corporation • Epcor • PT Brands LLC • Nexen Inc. Transport, Midstream • Epic Consulting Services Ltd. • Q’Max Solutions Inc. • Pengrowth Energy (2) • ETX Systems Inc. • Quadrise Canada Fuel System Corporation • Expro Group Canada Inc. Inc. • Penn West Exploration. • Enbridge Pipelines Inc. • Extreme Telematics Corp. • REM Technology Inc. • Quicksilver Resources • Keyera Energy Ltd. • Fekete Associates Inc. • Remediation Consulting Canada Inc. • Ferus Inc. Group Inc. • Shell Canada Resources Ltd. Learning(3) • Fractal Systems Inc. • RJ Oil Sands Inc. • Suncor Inc. – Resources • SAIT • Gas Liquids Engineering Ltd. • RWDI Air Group • University of Alberta • Gchem Environmental • Schlumberger of Canada • Syncrude Canada Ltd. • University of Calgary • Genalta Power Inc. • Seal Well Inc. • Synodon Inc. • geoLOGIC systems Ltd. • ShawCor Ltd. • Talisman Energy Inc. SERVICE AND SUPPLY • GEOSEIS Inc. • Siemens Product Lifecycle • Total Exploration and COMPANIES (116) • GHG Solutions Corp. Management Software (CA) Production Ltd. • 3M Canada - Oil and Gas • GreenPath Energy Ltd. Ltd. • Unconventional Gas Division • Ground Effects • Sky Hunter Exploration Ltd. Resources Canada Operating • Advanced Measurements Inc. Environmental • SNC Lavalin - Studies and Inc. - Oil and Gas Division • GuildOne, Inc. Developmental Projects • Vermilion Resources Inc. • AGAR Canada Corporation • Gushor Inc. • Sproule Associates Limited • Hatch Energy • Stantec Consulting Ltd. Research Providers • AGAT Laboratories Ltd. - • HiFi Engineering Inc. • Sustainable Ventures Inc. (11) Hydrocarbon Division • Alberta-Pacific Forest • Horizontal Well Testing Ltd. • Systemware Innovation • Alberta Innovates – Industries, Inc. Woodlands • HTC Purenergy Corporation Technology Futures Division • Insight Emissions • Technosol Engineering Ltd. • Alberta Sulphur Research • AMEC Earth and Management • Terra Water Systems LP Ltd. Environmental • Jacktek Systems Inc. • Terrapro Group • Chemviro Corp. • Amperage Energy Inc. • JPOM Inc. • Total Combustion Inc. • CIPI – Canadian Institute for • ARCADIS Canada • Katch Kan Limited • Total Oil Sands Recovery Ltd. Photonic Innovations • Artsinteg Incorporated • Kenilworth Combustion Ltd. • Trans Pacific EnviroEnergy • Dew Engineering and • Boreal Laser Inc. • KMPG High Technology Inc. Development ULC • Brine-Add Fluids Ltd. Practice Group • Trican Well Service Ltd. • EI DuPont Canada • C5 Oilfield Services • Lakeside Steel Corporation • Trido Industries Inc. • Natural Resources Canada • Canada Tech Corp • Little Guy Oilfield Rentals • Tundra Boiler and (CANMET) • Canadian Fertilizers Limited Inc. Instrumentation Ltd. • Petroleum Technology • Canyon Technical Services • Lonkar Services Ltd. - • Wave Control Systems Ltd Research Centre (PTRC) Ltd. Technology Department • Younkers Welding • Pure Elements • CH2M Hill Energy and • LxData Inc. • Zirco (1989) Ltd. Environmental Solutions Chemicals • Macleod Dixon (Technology • Saskatchewan Research • Chinook Engineering Ltd. Enterprise Group) Council • Cimarron Engineering • Maple Leaf Environmental • TIPM Laboratory (Perm Inc.) • CJS Coiled Tubing Supply Inc.