Look Out 2012, It’s Going to be Quite a Year

By: Petroleum Services Association of Canada (PSAC)

The balmy weather that kicked off the year was the first sign that 2012 is sure to be an interesting year! While I welcome spring-like weather to some degree during the winter months, the deep freeze that quickly followed was a welcome thing ensuring that equipment will get into field and activity levels will ramp up. For 2012, PSAC tabled a modest increase drilling forecast of 15,100 wells (rig released) last November, and revised the yearly forecast to 13,350 wells in January. Our conservative outlook reflects two key trends for industry: capacity issues and complexity issues.

Issues related to capacity include a shortage of specialized equipment and, most importantly, an increasing shortage in much needed human resources. Labour issues continue to be at the forefront for PSAC, and the Association is holding meetings with government officials at both the provincial and federal levels to discuss viable solutions to help PSAC Members compete for the skilled labour they require.

As for the complexity issues, PSAC’s forecast is conservative in light of the trending towards deeper and more complex wells. The drilling technology and techniques that have evolved over decades in Canada are helping to further access legacy plays and open up new plays once thought impossible to produce economically. The innovation of Canada’s services sector is a significant story which needs to be well communicated in the years ahead because of the increasing need for our industry to showcase that the way in which it operates is leading the way to the safest and most responsible resource development story the world over. For PSAC, this is an easy and promising story to be told.

In the year ahead, PSAC is certain that the spotlight will continue to shine on our industry and interest from investors in the sector will continue to grow. PSAC has been provided with an opportunity to present in Beijing at the China International Petroleum & Petrochemical Technology and Equipment Exhibition (CIPPE), which will go a long way in further developing the Alberta / Asia relationship and will provide the opportunity to further highlight the great things PSAC members do on a daily basis to drive innovation and increase productivity.

As the technology develops and the Canadian industry continues to expand its reach both within domestic borders and in foreign markets, it will be imperative that Canada’s expertise continues to grow alongside our industry’s leadership in areas such as health and safety. While our safety record readily demonstrates the strides that have been made in the health and safety record of the industry, new regulatory and policy frameworks will require that PSAC is at the table helping officials to understand the unique nuances of the services sector. PSAC is working hard to help policy makers streamline regulations across key regions to keep the industry competitive, while at the same time strengthen the responsible and sustainable development of Canada’s energy resources.

There is work to be done and PSAC will continue to work alongside our industry peers and in collaboration with government and other key stakeholders to continue to map the future of the industry. This will be done with a view to supporting the development of a Canadian energy strategy that will unlock the potential of this industry and encourage investment in new sources of energy that will be in increasing demand in future years.

Through continued involvement in initiatives such as Alberta’s Regulatory Enhancement Project (REP), PSAC will look to help government establish effectively regulations that borrow from the best practices of other provinces and jurisdictions, whilst achieving policy outcomes that respond to all sectors of the industry.

PSAC is optimistic about the year ahead and looks forward to continuing to work on behalf of its members, advocating for their interests and delivering tools, knowledge and resources they need to be successful and leaders in their sector.

We are very excited about our 2012 line up of events; PSAC’s Annual Spring Conference will take place April 17 and 18, 2012 in red deer once again, and we have organized a great array of seminars focusing on transportation, human capital management and personal development. On April 16, 2012 PSAC will be holding a risk Management seminar designed to help attendees navigate the maze of responsibility for compliance with occupational health and safety legislation, with an emphasis on prime contractor responsibility and who is the prime contractor. Also, PSAC will be hosting a seminar on how to help companies deal with all the ins and outs of sending workers overseas. More information on PSAC events can be found at www.psac.ca/events.

The year ahead is also promising because of the leadership and expertise that PSAC is able to access. PSAC’s 20112012 Board of Directors welcomes several new board members that will add to the impressive representation of the diversity of the services sector at the board level.

PSAC’s Board provides a wealth of experience and insight, both in terms of the years spent in the sector as well as the multitude of foreign countries where directors have worked. Each director will provide tremendous value and strategic direction helping to grow PSAC’s membership which will further strengthen PSAC’s ability to champion the services sector’s interests with key stakeholders.

All in all, 2012 is sure to be an exciting year!