January 2015 Edition - Canadian Heavy Oil Association
Transcription
January 2015 Edition - Canadian Heavy Oil Association
JMAONNUTAHRY2 021 03 1 5E DEI DT I TO INO N JOURNAL OF THE CANADIAN HEAVY OIL ASSOCIATION 10 13 07 16 10 COVER STORY FEATURE ARTICLE Content goes here, UPDATE content goes N-SOLV PILOT here, content goesoilhere Project exceeds quality expectations TECHNICAL ARTICLE Content goes here, content goes TECHNICAL ARTICLE here, content goes here Is your bottomhole assembly sagging? IN THE TRENCHES Content here, content goes IN THEgoes PUBLIC INTEREST here, content goes here The way forward on improved oilsands monitoring and regulation CONTENTS DEPARTMENTS TECHNICAL ARTICLE Q&A NEWS Upcoming events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04 Speaker recognition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04 Crude oil differentials update . . . . . . . . . . . . . . . . . . . . . . . 05 CHOA SPONSORS JANUARY 2015 ...................................... BOARD OF DIRECTORS .............................. 18 18 ON THE COVER N-Solv Corporation’s bitumen extraction solvent technology (BEST) pilot has produced over 25,000 barrels of bitumen since start-up in spring 2014. photo: n-solv About the Canadian Heavy Oil Association the mission of the Canadian Heavy oil association is to provide an appropriate technical, educational and social forum for those employed in, or associated with, the heavy oil and oilsands industries. suite 400, 500-5 ave sw Calgary, alberta t2p 3L5 p: 403.269.1755 | f: 403.453.0179 e: office@choa.ab.ca | choa.ab.ca CHOA Editorial Committee EDITOR deborah Jaremko, oilsands review TECHNICAL EDITOR gordon stabb, durando resources Corporation COMMITTEE MEMBERS KC yeung, Brion Energy Corporation adrian dodds, Kaizen Energy inc. Bruce peachey, new paradigm Engineering Ltd. ADVERTISING CONTACT 06 q&A with peter Howard new study for the first time shows real data about oilsands economic impacts across Canada 07 Is your bottomhole assembly sagging? By Brian Mracek, Brion Energy By Melanie Collison, guest writer IN THE PUBLIC INTEREST 10 the way forward new monitoring, regulatory and collaborative programs are reflective of the current mindset in industry By Andrew D. Miall, Department of Earth Sciences, University of Toronto PROJECT UPDATE 16 N-Solv pilot a conversation with Joseph Kuhach, CEo, n-solv Corporation By Deborah Jaremko, CHOA Journal editor MESSAGE FROM THE PRESIDENT An engineer’s work is never done! Whether it is finding ways to increase production in times of high prices or focusing on ways to decrease the cost of production during times of low prices, there is a constant need for innovation and continuous improvement in the heavy oil industry. Of course, this is why the CHOA came to be: to bring to the forefront new approaches for delivering the triple bottom line. With this in mind, in 2014 we re-launched our fall conference, making it bigger and better than ever before—and were very pleased to exceed expectations, including in our attendance targets! To give you a complete synopsis of the event, I am very pleased to turn the pen over to CHOA volunteer extraordinaire and the board member responsible for CHOA professional programs, Rodger Bernar. Rodger: The Canadian Heavy Oil Conference (CHOC) was a year in the making and took the hard work and dedication of many volunteers and staff. Our vision was to make this the annual go-to conference for heavy oil industry stakeholders throughout North America. It was our intention that, through presentations of diverse perspectives, conference attendees would gather a better understanding of the business and investment. We had a buffet of topics to dine on from project execution, aboriginal concerns, investors, market access, diluent reduction and steam generation to thermal well improvements and new geological insights. Above all, we wanted to provide plenty of opportunities to network and talk about the ideas generated, because that’s how work gets done. By all accounts, our first year was an all-round success, hosting more than 600 attendees. We had a lot of great feedback and will be focusing on building these constructive suggestions into next year’s conference, which will start planning in January. We are looking for more volunteers with the aim of extending the conference to two full days, adding another track and increasing attendance to over 1,000. We will be looking for your continued support and feedback—tell us how we can best serve your information and networking experience so you get value spending your time at “the CHOC.” Look forward to hearing from you soon—and see you at CHOC October 2015! Rodger Bernar, CHOA director and Gail Powley, CHOA president nick drinkwater, Junewarren-nickle's Energy group p: 403.516.3484 e: ndrinkwater@junewarren-nickles.com the Journal of the Canadian Heavy oil association is published by Junewarren-nickle’s Energy group. Did you know? You can join the Canadian Heavy Oil Association’s group on LinkedIn for networking and industry-related discussions. Find us here: http://goo.gl/8f5je. Journal of the Canadian Heavy Oil Association 3 NEWS UPCOMING EVENTS JANUARY FEBRUARY 06 TECHNICAL LUNCH - BUSINESS, TRANSPORTATION AND MARKETING 20 EDMONTON DINNER EVENT 22 BEER AND CHAT RESERVOIR AND PRODUCTION Calgary Petroleum Club Faculty Club, University of Alberta 04 TECHNICAL LUNCH FACILITIES AND UPGRADING 05 MARDI GRAS 2015! Calgary Petroleum Club Commonwealth Bar & Stage, Calgary 19 BEER AND CHAT - ENVIRONMENT 24 EDMONTON DINNER EVENT Calgary Petroleum Club Faculty Club, University of Alberta Calgary Petroleum Club THANK YOU TO OUR EVENT SPEAKERS DATE EVENT SPEAKERS PRESENTATION Oct. 6 TECHNICAL LUNCH - BUSINESS, TRANSPORTATION AND MARKETING Oliver Youzwishen, TransCanada Corporation TransCanada’s Energy East Pipeline project Oct. 28 EDMONTON DINNER EVENT Neil Camarta, Field Upgrading Ltd. My six billion dollar education Gerry Belyk, Bryce Jablonski, Rodger Bernar, Trent Kaiser, Don Murray, Basil El Borno Heavy Oil 101 workshop Barclay Cuthbert, US Oil Sands; Fred Wasden, Shell Canada; Derik Ehresman, Harris Corporation Project updates Ezra Levant, author and broadcaster Keynote Robert Skinner, School of Public Policy, University of Calgary Keynote Albert Mansour Innovative Steam Technologies; Chris Popoff, Terrestrial Energy Inc.; David Pernitsky, Suncor Energy Treatment and steam generation Corrina Bryson, Nexen Energy; Don Hennessey, Logan Completion Systems; Dan McCormack, PetroJet Canada; Mark Rosenbaum, Stroud International Thermal operations Jackie Forrest, ARC Financial; Jared Wynveen, McDaniel & Associates; Deborah Yedlin, Calgary Herald Market commentary Phil Fontaine, First Nations leader Keynote Joe Gasca, Fractal Systems; John Howard Gordon, Ceramatec; Kevin Lee, Twin Hill Resources; Lazarus Saidakovsky, Envirotech Green Partial upgrading Maurice Batallas, Berado Shaw; Trent Pehlke, Suncor Energy; Barbara Wingate, Shell Canada Well delivery and recovery process Cody Battershill, Canada Action; Robb Campre, Fort McKay Industrial; Chris Reynolds, Stantec Community development and engagement Ryan Chase, Excelsior Engineering; Mark Doig, Propak Systems; Ken James, Oak Point Energy Project execution Duncan Findlay, Grizzly Oil Sands; David Tam, CGG Veritas; Peter Vermeulen, Brion Energy Geology Steve Fekete, IHS; Randy Meyer, Altex Energy; Cory Neufeld, Inter Pipeline Market access Nov. 3–4 4 CANADIAN HEAVY OIL CONFERENCE Nov. 25 EDMONTON DINNER EVENT Lorraine Royer, Williams Energy Canada Adding value to resources in Alberta Nov. 26 BEER AND CHAT DRILLING AND COMPLETIONS Mirko Zatka, Shell Canada; Vince Boucher, Suncor Energy; William Butler, Tervita; Adrian Campbell, ConocoPhillips Compatibility of wells in thermal projects: What does this mean to operators and what is the potential impact? Dec.1 TECHNICAL LUNCH RESERVOIR AND PRODUCTION Sandeep Solanki, Laricina Energy Germain SAGD project update Journal of the Canadian Heavy Oil Association | JANUARY 2015 NEWS CRUDE OIL DIFFERENTIALS UPDATE FROM FIRSTENERGY CAPITAL CORP. WTI-WCS DIFFERENTIAL $50 $40 $30 $20 $10 $0 JAN-12 JUL-12 JAN-13 JUL. 2014 AVG. $25.27 The much-anticipated OPEC meeting on November 27 resulted in the cartel agreeing to continue its collective quota of 30 mmbbl/d that was established in January 2012. This amounts to a “do nothing” approach by the cartel in the face of crude oil oversupply in a number of regional markets and steadily declining WTI and Brent prices over the past several months. In other words, there is no immediate correction for physical oversupply in the market that will be forthcoming from OPEC. As such, typical market mechanisms via price signals will have to balance out the market for the near term, at a minimum, by stimulating demand and curbing supply growth through lower prices. In full-on bear markets, prices can often take on a life of their own that is divorced from the fundamentals. We expect such a thing will happen again in this cycle that could see fairly low prices persist for a few months. We think a new price low in the lowUS$60s/bbl to upper US$50s/bbl for WTI will JUL-13 JUN. 2014 AVG. $23.25 JAN-14 JUL-14 JAN-15 JUL. 2013 AVG. $14.95 be put in before the end of the year (midUS$60s to low US$60s/bbl for Brent). From there, we think prices will stabilize and begin a gradual recovery back to the US$70/bbl range by the end of the first quarter, 2015. Beyond that, we expect stability for both markers between US$70/bbl and US$80/bbl for the balance of 2015. OPEC’s decision to maintain the current collective quota at 30 mmbbl/d means that there will be no willful production curtailments to deal with physical oversupply in some key markets, such as the Atlantic Basin. This sets the stage for a continuation of strong inventory accumulations in the market, which could persist into the late stages of 2015. More importantly, the key Gulf members of the cartel—Saudi Arabia, Kuwait and the United Arab Emirates—all agreed that a cut was not necessary at this time, knowing that they would have been the member countries to bear most of any production cuts that would have come about in a production curtailment scenario. Worse, the cartel has agreed that it will not meet again until June 5, 2015, suggesting no hurry by these three key members to deal with current weak prices and physical oversupply. If the cartel does not meet again until mid-2015 and, perhaps at that time make a production cut, the effects of such a production cut would not be felt in global oil balances until late in the third or early fourth quarter, 2015. This means that oversupply and relatively low prices will be with us for almost another year at a minimum. A return to US$100/bbl is out of the question for at least two years. Recognizing that market access is currently a very high-priority issue for the heavy oil and oilsands industry, the Journal of the Canadian Heavy Oil Association includes this update on crude oil differentials from FirstEnergy Capital Corp. If you would like to contribute to or comment on our market access coverage, please contact djaremko@junewarren-nickles.com. Journal of the Canadian Heavy Oil Association 5 CHOA PROFILE Q&A PETER HOWARD with CaNADIAN ENERGY RESEARCH INSTITUTE For the first time, a new study shows real data about oilsands economic impacts across Canada By Melanie Collison, guest writer The Canadian Energy Research Institute (CERI) recently released an update to its 2010 study of the oilsands industry’s Canada-wide economic impacts. The study, which includes new layers of data from Statistics Canada, definitively shows that every province and territory shares gross domestic product (GDP) numbers, tax income and employment. Peter Howard is CERI’s president emeritus, having retired in November 2014. He will be replaced as president and chief executive officer by Allan Fogwill. CERI recently released Canadian Economic Impacts of New and Existing Oil Sands Development in Alberta (2014-2038). What’s the main message? A When we put out our last report in 2010, [SAGD] was really in its infancy. We wanted to advance in time and see what’s going on in the industry in terms of economic relations. StatsCan has taken SAGD out of its mining and oil and gas extraction sector, so now our discussion of the impact [of oilsands development] on manufacturing in Ontario is based on real data. The impacts on the other provinces actually double—11 per cent of GDP and employment is felt in provinces outside Alberta. It’s a story centred around Canada as a whole. Our major project for the year has been to do a complete analysis of the hydrocarbon resource sector across Canada and establish the impacts province to province. We plan an all-encompassing report, from [LNG] in B.C. to the Orphan Basin off Newfoundland, that we’ll publish in March. To test our model, we used oilsands growth as the benchmark and decided to publish it as a briefing paper ahead of the rest. We debated the oil price and picked $85/bbl, and suggest this is a lowerbound look at the impact. Q A 6 How will this paper be used? Producers will take these numbers into context. It’s background information for them, so it won’t materially affect their planning. For government, it exposes the value of oilsands to the provinces, with the implication of what could be lost to the Canadian economy. Journal of the Canadian Heavy Oil Association | JANUARY 2015 We can say the same thing—that the impact will be national—about LNG and offshore East Coast production. GDP and tax numbers will be useful. The equalization payment program will probably stay in effect if this all comes to pass, but the numbers might change. Q How would you characterize the outlook for the oilsands? A This report assumes [that] planned pipelines or some combination of pipe and rail will allow these barrels to get to the global market. The production profile is realistic or cautious, with production growing more slowly than pipeline additions. In this briefing paper, as in CERI’s Canadian Oil Sands Supply Costs and Development Projects (2014-2048) report last July, raw bitumen production is forecast to plateau in 2029 and begin to fall off in 2046. I’m bullish on both oil and gas for next year, for sure. We will move an additional 200,000-plus bbls/d by rail. Rail has under construction today 1.3 million bbls/d of loading capacity, expected on stream by 2017. Moving out to the 2017 timeframe, I don’t know whether I’m bullish or just hoping Keystone XL will finally be approved. I think the Energy East Pipeline will be approved and that’s as far as I dare go into the future. Trans Mountain and Northern Gateway—being an engineer I have to believe eventually those projects will pass the test and be approved and constructed. Both have to get over significant challenges, not the least of which is social licence. PHOTO: CERI Q TeCHNICAL ARTICLE FLEXED DRILL COLLAR BOTTOMHOLE ASSEMBLY BHA WEAR-BAND SIGNIFICANT DEFLECTION OCCURS HERE SLOPE DOWNHOLE NON-FLEXED DRILL COLLAR BOTTOMHOLE ASSEMBLY BHA SLOPE Is your bottomhole assembly sagging? Figure 3 Lab-tested BHA schematic with flex collar vs. non-flexed collar. Conclusions from testing BHAs: • A flexed drill collar deflects significantly at the first reduced-OD section. • S ag BHA modelLing is unable to resolve this deflection. By Brian Mracek, Brion Energy W ell, if you are a middle-aged adult like most of us, you probably already know the answer to that question. However, if you are referring to the bottomhole assembly (BHA) that is drilling your SAGD wells in northern Alberta, you may not. You may believe it to be an insignificant or at worst a very small correction, but some small changes to your BHA may be making the sag correction incalculable. If that is the case, you may not be taking enough care to accurately determine your well placement. This article discusses how small changes to standard or commonly used BHAs make major differences to the sag of a BHA, what is being overlooked and that some changes can make sag-modelling software erroneous. What’s the big deal? We know that the tool accuracy we are using is +/- 0.12 degrees and we can live with that; however, error in tool accuracy is random and should have a mean of zero (un-biased) while the sag correction addresses a systematic bias or error. Sag is the misalignment of the directional sensors in the BHA with the wellbore direction due to the deflection of the drill collar they are housed in because of gravity (ref. SPE 102088). The big deal is that over the length of an 850metre lateral that we are drilling in the MacKay field in northern Alberta, for typical BHAs the bias due to sag could be in excess of four metres. For a production engineer, this would amount to significant stranded recoverable bitumen. Furthermore, early steam breakthrough from a sloping sub-cool line could greatly affect production rates and again cause stranded bitumen, reducing the overall project economics. Identifying the problem While drilling our second SAGD well pad at MacKay, our geologists became concerned that the geometric measurements (surveys) were not matching the geological model that they had prepared. Knowing that the accuracy of the tools could create an ellipse of uncertainty that could account for some random differences, we were hesitant to jump to any conclusions, but SAGD drilling in Alberta generally Journal of the Canadian Heavy Oil Association 7 technical article MWD vs wireline gyro PROJECTED IN APPROX 50m PROJECTED IN APPROX 250m PROJECTED IN APPROX 5m [WILL PASS THIS WELL AT -1100M MD] 324 320 316 312 TOP OF PAY 308 ACTUAL PRODUCER TD (MWD): 1326.00m MD 204.89m TVD 295.55m ASL AUG 24, 2013 304 300 DRILLED PRODUCER FROM EM SURVEY DATA 296 DRILLED PRODUCER FROM GYRO DATA 292 ACTUAL PRODUCER TD (GYRO) 1319.00m MD 208.38m TVD 292.06m ASL BASE OF PAY 289 AUG 24, 2013 284 0 80 160 240 320 400 provides very tight geological control, with multiple stratigraphic and observation wells in proximity to every pad. Some of our producers were drilled and ranged to within 2.5 metres of observation wells, placed at the toe end of the lateral. This point-topoint measurement contradicted the geometric measurements or surveys. Evaluating the trajec tories after the pad was drilled, it became apparent that all of the surveys seemed to be showing the same bias. As an analogy, the chances of this being random would be like getting struck by lightning—six times in a row. To confirm our fears, a suite of additional wireline gyro surveys was run in all of the producers and one injector well on this pad. While these results (shown in Figure 1) confirmed that something was amiss, the service company’s modelling did not have any answers, leaving us to begin a systematic review to look for the bias. Equipment testing To start investigating systematic bias or compounding total vertical depth (TVD) error, we first tried to eliminate the high-probability causes and tighten our TVD control as much as possible. Our service provider ran a sag-modelling software to check for sag in our BHA and to eliminate potential error. Considerable iterations were run with no apparent bias found. A QC/ QA process was implemented on the directional sensors, both in the field and back in their shop. The process looked for out-of-spec instrumentation and processes for the service provider’s transportation, installation and operation. Rig operations were also verified, including proper hole cleaning, shutting down the pumps for noise, pulling the drill string off bottom to ensure it was in tension and working the torque out prior to the surveys. Machine tolerances of the collars and makeup of the survey probes were checked, including looking for internal sag of the instruments after placement in the collars. Sliding and rotating sections were confirmed and then compared to wireline gyros 8 Figure 1 MWD measurements from drilling vs. wireline gyro performed after liner was run. Journal of the Canadian Heavy Oil Association | JANUARY 2015 480 500 640 720 800 880 960 1040 that were run on every producer. Even tool joint stiffness was considered as a possible source. However, after all of these potential sources were looked at, nothing of a systematic bias was found. BHA field testing Field testing was then initiated to determine if the different BHAs were the problem, and a secondary survey instrument was mounted in an independent collar to test for repeatability of our measurement-while-drilling (MWD) survey tools. A wireline gyro survey was also run in each hole after drilling for confirmation and as another independent source of data. We soon discovered that, as suggested by our geologists, our primary survey instrument—the MWD electromagnetic telemetry (EM) tool at the very front of our BHA—was in disagreement with the geology, the wireline gyro survey and our secondary survey instrument. The smoking gun was when we drilled within 2.5 metres of an observation well that was ranged to, with pointto-point measurements, including using a gamma ray collar locator. This point-to-point measurement was the final confirmation. To find a solution, all data sources were considered, including new data-measuring devices. A gyroscope-while-drilling (GWD90) tool was then added to the BHA in conjunction with the other two survey probes for one well. The GWD90 was designed to operate while drilling real time at up to 90 degrees orientation, beyond the limit of conventional drilling gyroscopes. The well pair was subsequently resurveyed with wireline gyroscopes on two additional occasions, and the vertical position was further evaluated by drilling an “inclining toe-tag” a further 30 metres downward to determine how far off the formation bottom the well actually was. This again confirmed that drilling with the EM MWD tool resulted in a systematic bias but of slightly less magnitude with respect to the pulse MWD (about two metres), possibly due to the BHA changes. (See Figure 2.) 1120 1200 1280 1360 Addition of toe tags and hole wash confirmation Toe tagging was added on all wells and then evaluated for additional confirmation. The average TVD difference between EM and the mapped geology determined from the toe-tags was 4.36 metres. A further field test was conducted to evaluate if the error could be associated with hole wash or an increasing wellbore diameter due to hole erosion. In this test, a pulse MWD and EM MWD were run as before, followed by duplicating the measurements while pulling out of the hole. The results showed consistency between both surveys in and out, but not between the two probes, indicating that hole wash was not a contributing factor to the EM MWD bias. Field trials The BHA for wells on the next pad was configured to test if the pulse MWD tool could provide accurate surveys if positioned in front of the EM MWD tool. This test looked surprisingly close to the gyro wireline survey. As well, a two-metre-long dummy flange was placed between the EWR tool and the EM MWD tool because it was hypothesized that interference could be a cause of survey errors, but no difference was noticed. Another well was drilled with the EM tool first in front of the pulse tool, then, after pulling out of the hole and the survey tool positions were swapped, resurveying the well all the way back to TD. After a wireline gyro was run, the EM surveys showed the same bias both times while the original pulse survey was in agreement with the wireline gyro; however, the second pulse survey had some smaller amount of bias. Several wells were then drilled with the pulse MWD tool as the survey tool, with an EM tool behind it, although this slowed down drilling due to increased survey times, vertical survey depths (as confirmed by wireline gyro) were within half a metre of the expected values. Finally, dual bulk resistivity tools were run in front of both survey tools to look for confirmation of results. TECHNICAL ARTICLE sAgD survey ConFirMATion TesT 191 Figure 2 MuLtipLE survEys during driLLing vs. duaL wirELinE gyro pErforMEd aftEr LinEr was run. TRUE VERTICAL DEPTH, TVD (m) 192 193 194 195 EM PULSE 196 GYRO 1 TIED TO EM GYRO 2 TIED TO EM GWD90 TIED TO PULSE AT 720mMD 197 0 550 750 950 1150 MEASURED DEPTH, MD (mKB) 1350 lATerAl, rAW surveys AnD sAg CorreCTeD 205 Figure 4 Mwd MEasurEMEnts froM driLLing vs. rECordEd ModE survEys in a sLiCK BHa, tHEn sag CorrECtEd. 206 207 TRUE VERTICAL DEPTH (2m/in) 208 209 210 211 212 RECORDED SURVEYS PULSE 213 214 GYRO 1 TIED TO EM 215 216 217 260 325 390 455 520 585 650 715 780 845 910 VERTICAL SECTION AT 314.76” (65 m/in) The only disagreement between the survey instruments after these runs was when the bulk resistivity formation evaluation logging tool was used in conjunction with electromagnetic telemetry. With the survey bias narrowed to this particular BHA combination, lab testing of this BHA was instigated to better understand why the systematic error was being acquired. lAb tEStINg The representative BHA was assembled in the lab on a flat surface with different orientations and then checked for repeatability. The results of these tests showed survey inclinations that were off between .15 and .25 of a degree, consistently reading higher than the known inclinations. These results would equate to a 2.5–3.5-metre bias over a lateral length of 850 metres. In particular, the deflection near the first upset of the flex collar that housed the survey probes was abnormal and accounted for the majority of the change. A similar change in deflection was not observed in the second survey probe that was housed in a slick or stiff collar. It was felt that the slick collar was providing more uniform and less deflection, which also allowed for better sagmodelling corrections (Figure 3). VERIfICAtION IN tHE fIElD After our lab testing, we could now move back into the field for confirmation and verification. For the next set of wells, the flex drill collar carriers 975 1040 1105 1170 were replaced with slick drill collars to give us that stiffer and more consistent sagging BHA. Over the next 10 wells, the primary and secondary survey instruments showed impressive agreement, including agreement with the wireline gyros and toe tags (Figure 4). The results from the last 10 wells are reflected in Figure 4; a minor sag of .1 degrees over the 850-metre lateral, which amounted to a TVD difference of 1.5 metres. After correction for the sag, which could be calculated in the stiff assembly, this variance was down to less than .05 degrees with many wells having a TVD variance of less than .15 metres. CONCluSION MWD systematic bias is now believed to be caused by sag in the flex collars in combination with the standoff bands on the resistivity tool. As designed, the wear band measurements can vary significantly with the usage on the band. Furthermore, modelling of flex collars in this BHA can provide incorrect deflection results and therefore inaccurate inclination surveys. Utilizing stiffer or slick assemblies provides actual results that closely agree with the theoretical values from the modelling software by providing a more constant stiffness over the length of the BHA particularly where the survey instrument is placed. BHA modelling software can allow many characteristics of BHAs to be predicted and corrected, but it must be noted that more complex 1235 1300 BHAs may not be modelled accurately including the stiffness of the connections that make up the BHA. Operator expectations of survey accuracy must recognize the limits of this modelling software and adjust their well profiles accordingly from all sources of data. ACKNOWlEDgEmENtS The author would like to thank all of the technical staff at Brion Energy for their support and contributions, in particular in figure preparation, data management and for allowing the distribution of this information in public benchmarking meetings, conferences and papers. Additionally several service companies provided expertise and understanding of the complex nature of this problem including empirical testing in a lab environment and technical support. REfERENCES Studer, R., and L. Macresy. Improved BHA Sag Correction and Uncertainty Evaluation Brings Value to Wellbore Placement, SPE 102088. Sept. 2006. Comments? If you would like to respond to the opinions expressed in this article, we’d be glad to publish your thoughts for our other readers. Please contact djaremko@junewarren-nickles.com. Journal of the Canadian Heavy Oil Association 9 IN THE PUBLIC INTEREST 10 Journal of the Canadian Heavy Oil Association | JANUARY 2015 IN THE PUBLIC INTEREST The way forward New monitoring, regulatory and collaborative programs are reflective of the current mindset in industry and regulators towards more conscientious environmental stewardship of the oilsands By andrew d. Miall, department of Earth sciences, university of toronto ILLUSTRATION: PAIGE PENNIFOLD T he environmental management of Alberta’s oilsands entered a new phase in late summer 2010 when a convergence of events and public concerns about air and water pollution led both the Government of Alberta and the federal government to appoint expert panels to examine the state of the environment in northern Alberta, how it was currently being managed, and what might be done to improve public oversight and confidence. I had the honour to serve on both the federal advisory panel and the Alberta Environmental Monitoring Panel (AEMP). At the time of the panel studies in 2010-11, the monitoring of surface water and air conditions in the Lower Athabasca region was being managed primarily by three multi-stakeholder agencies: the Regional Aquatic Monitoring Program (RAMP), the Wood Buffalo Environmental Association (WBEA, the air quality organization) and the Cumulative Environmental Monitoring Association (CEMA). Of particular concern was RAMP, whose work had been evaluated and criticized several times. Concerns regarding RAMP centred on the inconsistent quality of field sampling and analytical work and the lack of scientific peer review and transparency of the agency. WBEA was characterized by a better calibre of scientific management and had showed considerable initiative in responding to local concerns regarding air quality issues. At this time there were also major public concerns about the lack of responsiveness from agencies such as RAMP and CEMA to the concerns of First Nations residents of the area. The occurrence of some rare cancers in residents of Fort Chipewyan and the recovery of fish with tumours from the Athabasca River had raised particular concerns related to community health. In late 2010, an independent study by the Royal Society of Canada (RSC) on the impacts of oilsands development on health and the environment concluded that the evidence pointing to the oilsands as the cause of these problems was inadequate. The RSC called for more field studies and improved integrated monitoring. Final reports by the two government panels were delivered in December 2010 and late June 2011, respectively. In short, both panels concluded that the status of environmental monitoring—particularly water monitoring—in the Lower Athabasca region was very inadequate, and they recommended the establishment of an independent monitoring agency to bring the level of oversight to world-class standards. It was concluded that the federal and provincial governments needed to find ways to work much more closely together, that acknowledgement of the concerns of the First Nations residents of the area was lacking, and that neither level of government was carrying out the level of work on air, water and groundwater monitoring that was deemed necessary. The good news now is that the federal government and the Government of Alberta have both—albeit slowly—responded to public concerns and panel recommendations. The level of field monitoring has improved substantially, a provisional federal-provincial agreement is in place to manage monitoring, and funding and management structures are being constructed to provide the necessary framework for this improved oversight. The federal and provincial governments jointly responded to the panel reports with the establishment of a new Joint Canada-Alberta Implementation Plan for Oil Sands Monitoring (JOSM), announced in February 2012. Journal of the Canadian Heavy Oil Association 11 IN THE PUBLIC INTEREST This included a plan to increase the level of regular air, water and terrestrial monitoring carried out by the two governments and to critically assess and integrate existing efforts (e.g. WBEA, RAMP, CEMA) to meet JOSM monitoring and assessment objectives as deemed scientifically necessary. This resulted in more sampling sites with planned increased geographic coverage. THE NEW JOINT OIL SANDS MONITORING PROGRAM HAS INCREASED MONITORING EFFORTS BY ADDING: FROM NEW WATER SITES 21 TO UP TO 11 43 FROM NEW AIR SITES 21 TO UP TO 32 The JOSM includes an information portal where monitoring results are posted. Data sets and brief analytical commentary are available. This answers a concern that air and water quality data were not being shared with the public, although the highly technical nature of the data means that interpretations by qualified scientists are still required. The work of environmental scientists within the corporate sector and the academic world has continued to improve and has undoubtedly been made easier by the greater accessibility of raw data. The most important panel recommendation—that an independent agency be established—has now also been implemented. As a first step, the Alberta Environmental Monitoring Management Board was established in October 2012. The work of this board led to the founding of the Alberta Environmental Monitoring, Evaluation and Reporting Agency (AEMERA) in May 2014. AEMERA was designed to answer a key observation of the advisory panels: that the Alberta government lacked the capacity to carry out environmental monitoring. Management plans were being formulated by the government—for example, the Lower Athabasca Regional Plan was announced in August 2012—but the technical capacity to implement, monitor and manage this program was not in place. This is why the establishment of AEMERA has been so important. AEMERA assumes responsibility for provincial monitoring programs and networks, including: water quantity data collection (lakes and rivers); water quality monitoring (lakes and rivers); meteorological monitoring (precipitation, temperature, wind speed); air quality monitoring (by airsheds); monitoring of soil acidification; and biodiversity monitoring (by the Alberta Biodiversity Monitoring Initiative). The following overarching principles apply. Alberta regulation now directs that AEMERA collect fees and disburse all funding; and Further clarifies the need for monitoring, planning, evaluation and reporting to be done 12 Journal of the Canadian Heavy Oil Association | JANUARY 2015 37 35 TO OVER72 FROM 22 NEW BIODIVERSITY/ WILDLIFE CONTAMINANTS SITES 3 TO OVER 25 FROM • collectively; • according to common principles, standards and protocols; and • to achieve an overarching, statistically robust design for governments to meet their legislated mandates. As of the time of writing, the board of directors and a chief executive officer are in place, with a chief scientist and science advisory board still to be appointed and technical staff to be hired. For the time being, Environment Canada is carrying the main load of the field monitoring program, and the first phase of the joint program will continue until September 2015. In addition to an increase in field sites relative to 2010-11, the JOSM has been undertaking a complete re-evaluation of the design of the field monitoring program, upgrading analytical procedures, standardizing measurement and reporting protocols, etc. What will happen beyond this time remains to be negotiated. INCORpORAtINg tRADItIONAl ECOlOgICAl KNOWlEDgE One of the most serious concerns about industry activity in the Lower Athabasca region has been that of accommodating First Nations concerns. Representatives of First Nations have been appointed to the various organizations managing the environment, but often have expressed frustration at being bypassed or ignored. The new board of AEMERA includes Mike Beaver, elder of the Bigstone Cree Nation and former regional chief for the Assembly of Nations representing Alberta First Nations. AEMERA has also committed to the inclusion of Traditional Ecological Knowledge (TEK) into its system through a TEK advisory panel. AEMERA documents assert that the TEK advisory panel will play an essential role in its monitoring, evaluation and reporting, which will promote mutual respect between the domains of TEK and conventional science. It was the opinion of several members of AEMP that employing First Nations observers to monitor the health of animals and plants in their traditional hunting areas could provide a very useful supplement to the measurement of air and water pollution being undertaken by the JOSM scientists. The employment of First Nations youth as observers could provide an excellent opportunity for the training of interested individuals in the methods of field-based observational science. ILLUSTRATIONS: PAIGE PENNIFOLD 22 NEW BIODIVERSITY HABITAT SITES IN THE PUBLIC INTEREST THE LEVEL OF FIELD MONITORING HAS IMPROVED SUBSTANTIALLY, A PROVISIONAL FEDERALPROVINCIAL AGREEMENT IS IN PLACE TO MANAGE MONITORING, AND FUNDING AND MANAGEMENT STRUCTURES ARE BEING CONSTRUCTED TO PROVIDE THE NECESSARY FRAMEWORK FOR THIS IMPROVED OVERSIGHT. CuRRENt ENVIRONmENtAl CONCERNS So what are the current concerns regarding the environmental management of the oilsands? In September 2013, Geoscience Canada published a special set of papers dealing with this issue. Kevin Percy, chief scientist of the WBEA, reported as follows with regard to air quality: “In 2012, ambient air concentrations of sulphur dioxide (SO2), nitrogen dioxide (NO2), and ammonia (NH3) did not exceed the Alberta Ambient Air Quality Objectives (AAAQO). There was one exceedance of the AAAQO for ground-level ozone (O3), and 62 exceedances for fine particulate matter with aerodynamic diameter ≤ 2.5 microns (PM2.5), most associated with controlled biomass burning or forest fires. There were 170 exceedances of the 1-hour hydrogen sulphide (H2S) or total reduced sulphur (TRS) AAAQO odour threshold. Exceedances have decreased since 2009, yet odours remain a concern in some communities. Based on the Air Quality Health Index (AQHI), the risk from ambient air quality to human health was calculated to be low 96 to 98 per cent of the time depending upon monitoring location, moderate 1 to 3.4 per cent, high less than 0.4 per cent, and very high less than 0.2 per cent of the year. In a highly regulated setting like the [Alberta oilsands], it is critical for stakeholders to quantify the spatial influences of emission source types for explaining any consequential environmental effects. Source apportionment successfully matched source chemical fingerprints with those measured in terrestrial lichens throughout the region. Forensic receptor modeling showed source types contributing to elemental concentrations in the lichens included: combustion processes (~23 percent); tailings sand (~19 percent); haul roads and limestone (~15 percent); oilsand and processed materials (~15 percent); and a general anthropogenic urban source (~15 percent). Re-suspended fugitive dust from operations, tailings dikes, quarrying, on-road transportation, and land clearing was found to contribute enrichment to a much greater degree than the hitherto assumed combustion source type.” David Schindler, professor of ecology in the Department of Biological Sciences at the University of Alberta, summarized concerns about water quality issues in a companion article: “Adequate data are available to show that mercury, other trace metals, and polycyclic aromatic compounds are being added by industry to the river system and its watershed, although the relative contributions of industrial development and natural sources remain in question. Recent improvements in water monitoring by Environment Canada show promise of resolving the controversies, although independent governance for Canada’s and Alberta’s water monitoring programs in the lower Athabasca River will be necessary to rebuild public confidence in the data and their interpretation by government and industry.” It is to be hoped that the establishment of AEMERA and the functioning of the JOSM will answer these problems. My own article in the publication addressed groundwater issues: “Increasing efficiencies in processing technologies have reduced water use substantially, and currently at least 75 percent of the water used in most operations is recycled water. Much concern has been expressed regarding contamination of surface waters by seepage from tailings ponds, but hydrogeological studies indicate that this is not happening; that seepage capture design is effective. Oilsands mining and in situ project licensing and operation regulations include Environmental Impact Assessments that mandate considerable hydrogeological measurement and monitoring work. However, little of this is independently evaluated for accuracy or synthesized and interpreted for the public. Recent changes in Alberta environmental regulation, including the establishment of the Alberta Environmental Monitoring Management Board (in October 2012) are expected to bring new transparency to environmental management of oilsands operations.” According to the JOSM, its results up to spring 2013 “are showing evidence that substances of concern released during oilsands development are present in air and water. Levels are highest close to mining sites and upgraders [and] decrease with distance. Generally, observed levels do not exceed guidelines and are not cause for concern.” Earlier work by the RSC had concluded that the air quality in the vicinity of Fort McMurray was comparable to that of industrial areas in major cities, although transient odours in communities such as Fort McKay are an ongoing problem. futuRE CONCERNS It would appear that the public attention paid to air and water quality issues caused by oilsands activity has resulted in a significant improvement in monitoring and oversight by responsible authorities. Industry itself, through the formation of Canada’s Oil Sands Innovation Alliance (COSIA), has taken its own major initiative to improve environmental practices and performance in a cooperative and coordinated manner. The founding of AEMERA and the JOSM and the development of the appropriate relationships between these programs and the new Alberta Energy Regulator with regard to such issues as compliance monitoring provide hope that an appropriate level of environmental management can be achieved for the immediate future. However, concerns remain about long-term issues. Habitat disruption and the consequent decline or loss of plant and animal species is a major concern. This is caused not just by the development of open-pit mines, but also by the forest clearance required for in situ projects, roads, seismic surveys, processing plants and all other infrastructure and human activity in general. Journal of the Canadian Heavy Oil Association 13 IN THE PUBLIC INTEREST The Alberta Biodiversity Monitoring Initiative has developed techniques for systematically evaluating the health of some 2,000 species across the province. The program commenced in 2003 and provides regular reports for scientists, landowners and resource managers. An index—termed the Intactness Index—is calculated for each monitoring station and each species and ranges from 100 per cent for undisturbed environments to zero per cent for mine sites. In ABMI’s 2014 update, the program reports that of 425 species in the oilsands region the Biodiversity Intactness Index is, on average, 88 per cent. BIODIVERSITY INTACTNESS IN THE OILSANDS 80 % 88 % FOR NATIVE BIRDS 91 % 90 % FOR WINTER-ACTIVE MAMMALS FOR NATIVE VASCULAR PLANTS 91 % FOR ARMOURED MITES FOR MOSSES & LIVERWORTS SOURCE: ALBERTA BIODIVERSITY MONITORING INITIATIVE 14 Journal of the Canadian Heavy Oil Association | JANUARY 2015 sector to keep companies and governments focused on the continuation and completion of the necessary environmental programs. As noted by fellow AEMP panel member Ron Wallace, all the necessary components of a management program were in place in the 1990s in the form of the Northern River Basins Study. Unfortunately, for various reasons this successful, cooperative and integrated basin management approach— which explicitly recognized the inclusion of TEK in program design and implementation—was allowed to devolve into poorly coordinated multistakeholder monitoring and governance structures. Current indicators are that this will not be allowed to happen again. Deployment of the JOSM by the federal and Alberta governments and the establishment of AEMERA and COSIA are reflective of the current mindset in industry and regulators towards more conscientious environmental stewardship and retention of social licence in hydrocarbon extraction from oilsands. ACKNOWlEDgmENtS I thank my former colleagues on the federal advisory panel and on AEMP for the stimulating discussions that formed the basis for our joint recommendations. I would particularly like to thank Ron Wallace, David Schindler and Kevin Percy for their contributions to the special issue of Geoscience Canada. Fred Wrona read an earlier draft of this paper and made many useful comments. Andrew Miall completed his Ph.D. at the University of Ottawa in 1969 and spent three years in Calgary’s oilpatch before joining the Geological Survey of Canada to work on regional Arctic Island studies. In 1979, he took a position as professor of geology at the University of Toronto and has been there for 35 years; he currently holds the Gordon Stollery Chair in Basin Analysis and Petroleum Geology. He became a Fellow of the Royal Society of Canada in 1995. In 2012, Andrew was inducted as an Honorary Member of the Canadian Society of Petroleum Geologists and in 2014 was awarded the Pettijohn Medal by the Society for Sedimentary Geology and the Logan Medal by the Geological Association of Canada for distinguished achievement in earth science. ILLUSTRATIONS: PAIGE PENNIFOLD The report stated that “Woodland Caribou has the highest public profile of all the species at risk; there are seven caribou populations whose ranges overlap with the [oilsands region]. The abundance of Woodland Caribou declined in five of the ranges between 1991 and 2011.” These values are likely to decrease as development proceeds, and some steps might need to be taken to limit or space out development in the interest of the long-term ecological health of the oilsands region. Open-pit mines generate significant land disturbance. Restoration of the boreal forest is to be carried out wherever possible, and the long-term plan also includes the creation of artificial water bodies called end-pit lakes. According to Schindler, “These consist of leaving a company’s final mine pit only partially refilled with overburden, instead allowing it to be left partially filled with tailings, over which a 5 meter layer of clean river water is then placed as a ‘cap.’ It is believed that bacteria will eventually detoxify the pollutants in the tailings, that there will be little or no mixing of tailings with overlying water, and that by the time water levels rise high enough to discharge into the Athabasca River, outflow water from these ‘lakes’ will meet provincial water quality guidelines.” Schindler expressed skepticism about the viability of this plan, pointing out that there will be release of gases from decomposition of the contaminants and that these will necessarily escape into the atmosphere. There are also concerns about the possible contamination of groundwater over the long term and questions about the possible impact of the buried pollutants on soils, plants and animal life. It is expected that 100 years might be required for completion of the restoration process. The problem is that there is no experience to draw on with regard to these very long-term issues. The large-scale disposal of process-affected water in deep saline groundwater systems is also a possible concern over the long term. Could such waters displace existing water bodies, causing saline groundwater or the process-affected water itself to seep gradually to the surface, contaminating these surface waters? In the future, as the era of exploitation of the oilsands draws to a close, as revenues decrease while environmental costs continue, much will depend on the willingness and ability of citizens, the public sector and the private putting YOUR project on A SOLID FOOTING ( Almita designs, manufactures, and installs unique foundation solutions for oil & gas, power transmission & distribution, and industrial & commercial construction. 1.800.363.4868 expanded capacity + capability Experience the @GeminiCorpCAN Gemini Corporation almita.com Engineering Fabrication Facility Construction Land, Environmental & Regulatory Reclamation & Remediation Sustaining Projects Design-Build advantage www.geminicorp.ca Journal of the Canadian Heavy Oil Association 15 PROJECT UPDATE Location Dover lease Owner N-Solv Corporation—a venture of Hatch, Enbridge and Nenniger Inc., with funding from Sustainable Technology Development Canada and the Climate Change and Emissions Management Corporation N-Solv pilot A conversation with Joseph Kuhach, chief executive officer, N-Solv Corporation PRODUCTION Over 25,000 barrels since start-up in spring 2014 By Deborah Jaremko, CHOA Journal editor We’re very pleased with what we’re seeing. We’ve had a safe operation throughout the life of the project, [and] we’re seeing validation of the lab work and the experiments that were done in the past. We’ve now produced over 25,000 barrels of oil, and I would say we’ve considerably de-risked the project for going to the commercial stage. What would you say are some of the key lessons that have been learned? 16 Journal of the Canadian Heavy Oil Association | JANUARY 2015 The technology looks very promising when you look at the lab data, but when you take anything to the field there is always the question of whether it is going to work when you actually put it into a non-ideal environment. So validating all of the learnings that were developed during the pre-pilot phase is really the key thing that we’ve learned to this point. We’ve been able to successfully start up with no water involved, and I think that is a first in the industry. We’ve demonstrated that we can operate the facility with essentially no upsets and no interruptions; it is a very robust process. I think some of the surprises that we’ve seen have actually been to the positive side. For example, the level of upgrading that we are seeing in our product oil is a bit better than what we had anticipated. What would you say are stakeholder benefits of this project? There are huge benefits I think when you move toward solvents and away from SAGD. First, the technology uses no water to exploit the resource, unlike SAGD. If you look at a SAGD plot plan and the equipment required, you have a huge amount of space PHOTOs: N-Solv How would you describe recent performance at the N-Solv pilot? Project update that is necessary because of all of the water handling, cleaning up the water and creating the steam and injecting it and that whole recycle loop that isn’t part of our equation at all; N-Solv is just a gas plant. We have a much lower cost of entry from a capital standpoint, and that takes a lot of risk out of performance as well. One of the big challenges in the industry right now is this continuous upward pressure on pricing regardless of what oil prices seem to be doing. Whether they are flat or even declining, that upward pressure on costs just isn’t going away. With a process like ours, we can really dial down the requirement to get into a project on the upfront side. From an operating standpoint, it is very efficient. We’re going from 200–220 degrees Celsius SAGD-type of operation to 40–60 degrees Celsius so you don’t have that energy requirement and therefore we have a dramatic reduction in greenhouse gases. You don’t need as much diluent because the oil comes out of the ground upgraded, [which reduces] diluent consumption and effectively frees up pipeline capacity. We’re leaving all of the nasties behind in the reservoir and the refiners no longer have to deal with that, so the product becomes a lot more valuable and transportation is a lot easier. There are lots of bells that are rung with this technology. Overall it is just a more environmentally friendly process. With all of the focus on social licence in the industry, when you look broadly from a global standpoint, the oilsands is “dirty oil,” and I think this technology really provides an opportunity to change that view. Essentially you’re creating a clean oil, a clean way to produce the oil—no water consumption, smaller footprint, much lower greenhouse gas emissions and a lower carbon product. What environmental achievements have been made at this project? We plan to continue to operate the pilot for a period of time. We’ve got a number of partners Can you talk about solvent recovery? The process is very forgiving economically. The operating costs are so low we can actually afford to lose more solvent than we think we’re going to end up with. We’ve tried to be very conservative and say 20 per cent is what we’re going to leave behind. I think we’re on the path to see that, but frankly it doesn’t matter if it is 20 or more. It’s obviously reservoir-dependent—it depends on a number of things—but if we take what we’d call a typical reservoir in the oilsands, we’re quite economic, and I’m talking 15–20 per cent rate of returns down at $40/bbl. One of the benefits of this technology is being robust economically down at those low oil prices. It can really remove the oilsands from being that marginal barrel. If you can remove that from the equation you can create a lot more stability in the industry, and that would be good for everybody. What are the future development plans? that we have signed up and we’re pleased with advances in discussions that we are making towards commercialization with them. We’re also looking to commercialize through other avenues and new potential partners and investors. We think we’ve answered enough questions that we’re ready to go to a commercial project. One of the nice things about this technology is you can go commercial at small scales, like 5,000 bbls/d so we’re in the process of looking for JV partners to advance that as well as potentially licensing with the right arrangement. [Within] three to five years, I would expect us to have a plant up and running and producing commercial levels. What makes N-Solv unique? It’s a unique process in that it is a low-pressure process and consumes no water. I think it is fair to say that our operating pressure is lower than anything that has been done. The AER has had a big focus on shallow SAGD projects; there is a lot of scrutiny around those and [the AER is] really putting the clamps down because there are a lot of concerns. Because we are such a low-pressure operation, caprock containment isn’t really a concern. I think in total we have the ability to really enable stability in the oilsands in an econom ical and environmentally friendly way. That is something that we really haven’t seen with SAGD or with any of the incremental improvements around SAGD to this point. Journal of the Canadian Heavy Oil Association 17 THANK YOU 2014 CHOA SPONSORS DIAMOND SPONSORS GOLD SPONSORS ANNUAL CORPORATE SPONSORSHIP Sponsoring the Canadian Heavy Oil Association (CHOA) provides a significant opportunity to support a multidisciplinary, volunteerbased, not-for-profit association focused on heavy oil and oilsands projects and development. The association has a current 2015 membership exceeding 2,000 professionals employed in heavy oil exploration and production, service and supply, government and consulting. Corporate sponsors reach the CHOA membership through: • Recognition as a Corporate Sponsor at CHOA technical events including Technical Luncheons and Beer & Chat functions in Calgary and Edmonton. • Recognition as a Corporate Sponsor at the Annual General Meeting. • Logo placement and recognition on the CHOA website, including a “hotlink” to sponsor website. • Logo placement and acknowledgement in the CHOA Journal. • Recognition at the annual sponsor appreciation event. For more information or to express interest, please contact jhone@choa.ab.ca. CHOA BOARD OF DIRECTORS 2014-16 SILVER SPONSORS Past President Kym Fawcett Enerplus Corporation 403-693-5054 Secretary Bruce Gray Access Pipeline Inc. 403-691-5791 Director Scott Rempel Wood Group Mustang 403-537-8811 President Gail Powley Willowglen Systems 780-465-1530 Director Rodger Bernar Husky Energy Inc. 403-750-4958 Vice-President Stephen Arseniuk Laricina Energy Ltd. 403-718-8821 Director Simon Davies Canadian Natural Resources Limited 403-386-5198 Director Bill Whitelaw JuneWarren-Nickle’s Energy Group 403-209-3500 Treasurer Pushkar Rao TG Engineering Inc. 403-290-5415 Director Nancy Wu Government of Alberta 780-643-1660 Director Martin McDonald SAIT Polytechnic 403-210-4596 BRONZE SPONSORS DISCLAIMER: The purpose of the Journal of the CHOA is to publicize the association’s activities and provide an appropriate technical, educational and social forum for those employed in or associated with the heavy oil and oilsands industries. Association publications shall contain no judgmental remarks or opinions as to the technical competence, personal character or motivations of any individual, company or group. Further, technical remarks, opinions and conclusions expressed in articles published in the Journal of the CHOA are those of the author and are not officially endorsed by the CHOA unless otherwise noted. Material contained in the Journal of the CHOA is intended for informational use only. 18 Journal of the Canadian Heavy Oil Association | JANUARY 2015 FOUR STRONG ALBERTA COMPANIES UNDER ONE GLOBAL BRAND IMV Projects, Wood Group PSN (Western Canada) and Mustang Engineering (Canada) merged to form Wood Group Mustang in Calgary last fall and this year welcomed Sunstone Projects to the mix. With a combined Canadian presence of nearly 900 people and an 8,000 person-strong workforce around the world, Wood Group Mustang offers local project execution efficiency with a global reach. We are Wood Group Mustang, an engineering, procurement, construction and project management (EPCM) company serving the energy industry. Learn more at wgmustang.ca People Oriented…Project Driven™