Explorers and Producers Association of Canada

EXPLORER
Winter 2015 Issue
Canadian crude exports: riding the rails
Cover photo by Gibson Energy 2014
Winter 2015
In this Issue
2
Canada’s pipelines on wheels
6
EPAC President’s Report to Member
Companies
The Explorer Magazine is published by The
Explorers and Producers Association of Canada
9
Office address
Suite 1060, 717 - 7 Ave. S.W.
Calgary, Alberta T2P 0Z3
Enform Launches Executive Safety
Leadership Course
10
AER Delivering Results from Changes to
Applications Process
Phone: 403-269-3454
Fax: 403-269-3636
12
2014 Investor Showcase
President
Gary Leach
17
Office Manager
Dana Robertson
Will you have the needed labour supply
for your next investment cycle?
20
EPAC companies number 42 among “Top
100” Operators in Canada
For more information about EPAC please visit
www.explorersandproducers.ca
EPAC Board of Governors
Dan Brown
Surge Energy Inc.
Doug Kay
Intrepid Resources Ltd.
Jim Screaton
Corval Energy Ltd.
Steve Fagan
Mosaic Energy Ltd.
Jonathan Lexier
Lanark Energy Management Ltd.
John W. Ferguson
RMP Energy Inc.
Ken McCagherty
WestBrick Energy Ltd.
EPAC Vice Chair
Neil Smith
Crescent Point Energy Corp.
EPAC Past Chair
George Fink
Bonterra Energy Corp.
Paul Gagnon
Joli Fou Petroleums Ltd.
Douglas Hittel
Mancal Energy Inc.
EPAC Chair
Kel Johnston
Lakeview Energy Inc.
Brad Thiessen
Tundra Oil & Gas Partnership
Brian McLachlan
Yoho Resources Inc.
Aidan Walsh
Baccalieu Energy Inc.
Stan Odut
Sifton Petroleum Inc.
Paul Wanklyn
Cequence Energy Ltd.
Jim Riddell
Paramount Resources Ltd.
David Wolf
Stone Petroleums Ltd.
EPAC Treasurer
Bruce Robertson
Raging River Exploration Inc.
2
E
xports of crude oil from Canada have been
mix. But the biggest impact, and most intriguing
growing rapidly in the last few years despite
for the long term re-orientation of North American
the best efforts of Hollywood celebrities and
energy delivery systems has come through the rapid
homegrown opponents to block new pipeline projects. growth in crude oil being hauled by rail.
Peter Tertzakian, Chief Energy Economist at ARC
According to a recent study by the Canadian
Financial (an EPAC associate member company)
Association of Petroleum Producers, although
has drawn attention to the striking fact that the rate
pipelines are acknowledged as the most
of export growth from Canada is
“…the rate of export
efficient way to transport liquids from
actually accelerating, now climbing
growth from Canada is point A to B, rail transportation offers
by more than 200,000 barrels each
crude oil shippers several advantages.
actually accelerating,
year. According to the US Energy
now climbing by more These advantages include the speed with
Information Agency, exports to the
US exceed 3 million barrels per day;
than 200,000 bbls/day which rail loading/unloading terminals
can be constructed and the much lower
up 35% from the fourth quarter of
each year”
capital costs compared to pipelines. Other
2013.
advantages include the optionality and
Of course some of this has been achieved through
flexibility for shippers to deliver product directly to
increasing throughput capacity along Enbridge’s and
refinery destinations not served by pipelines, product
TransCanada’s existing networks. Even Mississippi
integrity is preserved (i.e. volumes are not blended),
river barges have been added to the transportation
for bitumen shippers diluent costs are reduced/
3
Canada’s pipelines on wheels: the amazing growth in
railcar capacity eases transportation woes for oil exporters.
Photo by Gibson Energy 2014
“…rail loading
capacity in Canada will
approach 1.5 million
bbls/day by 2016”
eliminated and finally, rail
offers scalability of service
for shippers from small
groups of cars to entire unit
train service.
Industry has reacted to
this market opportunity with a rapid build out of
rail loading facilities in the Prairie provinces. CAPP
estimates that rail loading capacity in Canada will
approach 1.5 million bbls/day by 2016 at which time
volumes being shipped by rail should have increased
from 300,000 bbls/day to nearly 800,000 bbls/day
(which ironically is about the same as the unbuilt
KXL line).
railways in North America pass through the middle
of densely populated cities and towns. It’s not clear if
costs to retrofit older cars while coping with a backlog
of new car deliveries will slow down the pace of rail
Figure
4.5 but
Western
Uploading
Capacity
expansion
at thisCanada
point most
observers
expect vs.
Rail Movements
thousand barrels per day
1,600
1,400
Capacity
1,200
1,000
Rail Movements
800
600
400
200
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2103
0
Q1 2013
The tragic rail derailment and explosion which killed
nearly 50 people in Quebec has prompted tougher
standards for tank car designs and the rail industry is
under pressure from groups concerned about the fact
Western Canada Uploading Capacity vs. Rail Movements, 2014 CAPP
Crude Oil Forecast, Markets & Transportation, Jun 2014.
4
Rail Loading Terminals in Western Canada
Proposed
Major Expansion
Existing
Athabasca
Deposit
Fort
McMurray
Falher
Reno
Peace River
Deposit
Oil sands Deposits and Oil Plays
Cheecham
Sexsmith
Whitecourt
Cardium
Cold Lake
Deposit
Strathcona County
Edmonton
Lloydminster
Lashburn
Wainwright
Wa
x2 Unity
Kerrobert
Rimbey Hardisty
Tilley
Torquay
Regina
Cromer
Stoughton
Estevan
Woodnorth
Bakken
Wilmar
Dollard Shaunavon
NorthgateBakken-Three Forks
Bromhead
Lower
Shaunavon
un
Rail Loading Terminals in Western Canada, 2014 CAPP Crude Oil Forecast,
Markets & Transportation.
the North American rail and energy transportation
network to take this in stride.
In the United States several major rail lines have told
the investment community that crude oil promises to
fill the revenue gap left as coal tonnages decline. Well
over 1 million bbls/day are currently being hauled
by rail in the US. Canada’s two major railways have
staked a big part of their future growth on hauling
crude oil. Calgary headquartered Canadian Pacific
recently forecast that its annual revenue by 2018
will increase from $6.6 billion to $10 billion and are
counting on crude oil shipments for one third of that
revenue growth with growing volumes of heavy oil
from Alberta vaulting past current reliance on lighter
crudes from Saskatchewan and North Dakota. CP says
it plans to move about 200,000 carloads of crude in
2015, up from 120,000 in 2014. Canadian National
Railway has a similar forecast for growth and recently
stated its railcar numbers could hit 300,000 per year
within two years.
However, one cloud on the horizon for ambitious
growth plans may be ongoing weakness in global
crude prices and the related compression of price
differentials between Canadian crude prices
international benchmarks such as Brent or WTI.
Goldman Sachs, often known for their bullish
forecasts on pricing have recently revised their 2015
No Pipeline or Pipeline Capacity
Flexible Rail Options
Pipeline (at capacity)
$3/barrel
Pipeline (doesn’t exist) & Barge
No Cost Available
HARDISTY, AB
Rail - Manifest
$10-$14/barrel
Rail - Manifest
$16-$20/barrel
Rail - Unit Train
$8-$11/barrel
Rail - Unit Train
$13-$16/barrel
Pipeline (at capacity) & Barge
$5-$6/barrel
Rail - Manifest
$16-$20/barrel
Rail - Unit Train
$13-$16/barrel
Pipeline
$7-$11/barrel
Rail - Manifest
$17-$21/barrel
Rail - Unit Train
$14-$17/barrel
Railing Crude on Unit trains From Hardisty is
Sustabinable and Attractive, Gibson Energy Inc.,
2014-09-GEI Investor Presentation, September 2014.
5
outlook to suggest WTI prices in the range of $75 can
be expected to prevail in 2015.
has had to endure. We are battle hardened here in
Canada…”
RBN Energy
“…The upstream industry, along
LLC of Houston
with the railways and rail car
recently observed,
loading facility operators seem
Bakken producers
willing to bet that, current crude
in North Dakota
price issues
today “typically
get better netbacks notwithstanding,
by sending their
railcars will be
crude to the
a permanent
Cushing hub or
feature of North
the Gulf Coast by
America’s
pipeline rather
energy supply
than the East or
infrastructure.”
West coast by
rail”. The pipeline
option has reemerged, at least for North Dakota’s
1 million barrel/day supply, due to
new pipe capacity that has reduced
congestion and price differentials
between the Cushing hub in
Oklahoma and the Gulf Coast.
Canadian shippers may have fewer
options than US crude producers
given our national difficulty in
getting pipeline infrastructure
built in a timely manner, but the
economics for transportation by
either pipe or rail don’t work if oil
prices sink too far.
The upstream industry, along with the railways and
rail car loading facility operators seem willing to bet
that, current crude price issues notwithstanding,
railcars will be a permanent feature of North
America’s energy supply infrastructure. 
We are encouraged by the
demonstrated resilience of the
Canadian oil industry. As ARC
Financial’s Peter Tertzakian recently
noted: “On top of massive price
discounts, our industry had to adapt
to a strong Canadian dollar between
2009-13; regulatory tightening and
an endless barrage of public criticism
that no other producing nation
6
EPAC President’s Report to Member Companies
in the last four years. Alberta has a
(courtesy Oilweek). We have noticed
very ambitious agenda, with a lot of
that the number of EPAC members
unfinished business, affecting the oil
in these rankings has been moving
and gas industry, as you’ll see below.
up the last several years which
reflects the changing
“We have strongly urged We have strongly
demographics of the
urged the government
upstream sector. We
the government to deliver to deliver on
also have a couple of
on royalty stability …and royalty stability
articles contributed
we believe this message as the foundation
by our colleagues at
for everything else
Enform, the Upstream has been heard and
and we believe
Safety Association
embraced by the Prentice this message has
and the Petroleum
government”.
been heard and
HR Council (which
embraced by the
is now housed within
Prentice
government.
New land use
Enform). We hope these articles
guidelines in the Lower Athabasca,
hope you enjoy reading our
provide some insight into the roles
South Saskatchewan and North
Winter 2015 Explorer magazine.
performed by these organizations on
Saskatchewan planning districts
behalf of our industry in connection
In this edition we take a look
all remain works in various stages
with continuous improvement in safe
at the recent rapid growth in rail
of progress with several more
work conditions for our employees
car takeaway capacity for crude oil
planning districts covering the rest
and identifying potential labour
shipments out of Canada. The growth shortages and solutions.
of the province still to come in the
in capacity has been impressive and
next couple of years. Aboriginal
looks to exceed the
consultation policy still awaits
Your Association continues
forecast demand for “Premier Prentice to work hard to advance our
finalization of the proposed levy and
railcars. Elsewhere,
consultation funding distribution
perspectives to politicians,
is
quite
familiar
we know that many
rules. Caribou range planning, to meet
bureaucrats and regulators
with EPAC and
members have
federal Environment expectations,
across Western Canada and
endured a lot of
while not sterilizing tens of billions
Ottawa. While we can’t control
our slice of
changes over at
of dollars of resource value is near
oil and gas prices or roller
the upstream
the Alberta Energy
completion and new, tougher
coaster capital markets, we are
industry”
Regulator the last
standards for CO2 emissions for
tackling a number of other
year or two, so we
Alberta large emitters have been
issues for our members which
asked the AER to contribute an article are summarized below.
deferred yet again as Ottawa and
which highlights some of the project
Alberta play chess with the US over
Alberta
review and approval process changes
pipelines.
In Alberta we are embarking on the
they have been telling EPAC about.
We are expecting to participate in a
Jim Prentice political era. Premier
The AER expects these streamline
dialog with the government, as well as
Prentice is quite familiar with EPAC
process changes will deliver cost
our colleagues at CAPP and CAPL on
and
our
slice
of
the
upstream
industry
savings to industry in the tens of
some tenure continuation proposals
millions of dollars annually once fully and, on his first full day on the job
for resource plays in the province. As
after
being
sworn
in,
we
were
invited
implemented.
well, ideas for addressing long term
to a lengthy meeting with him and
Take a look at our item listing the
well abandonment and reclamation
his new Energy Minister, Frank
EPAC members positioned among
Oberle. Mr. Oberle is the fifth Alberta costs will be on the table in the next
the “Top 100” operators in Canada
year.
Energy Minister we have dealt with
I
7
preserve and enhance the flow
British Columbia
through share regime. We expect to
Efforts to move ahead some ideas
be submitting to the National Energy
on crude oil drilling incentives have
Board in Q1 2015 our comments
run into a government focused on
in support of the
LNG taxation and
Kinder Morgan
related issues. We’ll
“We expect to be
see if we can make
submitting to the National pipeline to the West
Coast and also seek
progress on this item
Energy Board in Q1 2015 status to participate
in 2015. Caribou
in the NEB process
range protection will our comments in support
reviewing the Energy
be on the agenda in
of the Kinder Morgan
East pipeline project
early 2015 along with pipeline … and also seek
to the Atlantic
the OGC’s mandate
status
to
participate
in
the
Coast.
to launch “Area
NEB
process
reviewing
the
Based Analysis” and
Thanks to our
incorporate these ideas Energy East pipeline …”.
volunteers
into project reviews.
In closing let me
express our gratitude to our Board
Saskatchewan and Manitoba
members and other volunteers at
Consultation with the government
member companies who donate
on proposed changes to the Surface
their time and expertise to assist our
Rights Acquisition legislation has
been concluded in Q4 2014. We’ll
have to see whether the government
paid attention to some of the strong
representations made by EPAC and
CAPP and member companies to
avoid damaging the investment
reputation enjoyed by the province.
We recently completed a review of
changes to Manitoba’s Environment
Act; our recommendations were
intended to minimize the implications
for the vast majority of oil and gas
projects in the province. In both
provinces we foresee that municipal
government related issues will likely
top the agenda.
Federal
Ottawa is implementing its disclosure
rules on tax and royalty payments
to all levels of government in 2015.
EPAC submitted its recommendations
to House of Commons Standing
Committee on Finance re the 2015
Budget Consultation process to
efforts to promote the interests of our
association and
our industry to politicians and
regulators.
We hope to see you at the 2015 EPAC
Awards! Go to www.epacawards.ca to
purchase tickets and learn more. 
Gary Leach, President
The Explorers and Producers
Association of Canada
9
Enform Launches Executive Safety Leadership Course by Samantha Peck
in creating a safety culture are those at
the top,” says Justin Degagne, program
manager, Health & Safety Training
at Enform. “Senior management and
Board members (of companies) need
to live this safety culture every day in
order to affect change.”
Cameron MacGillivray, President and
CEO of ENFORM
C
First identified by EPAC membership
in 2013 as a much-needed program, a
formal suggestion was made through
Enform’s Issues Proposal initiative.
The goal of the course is to provide
executives and senior management
with the necessary understanding,
resources, and tools they may need
to demonstrate their commitment
to frontline staff in developing a
strong safety culture throughout their
organization.
orporate leadership is critical
in instilling a safety culture
throughout organizations.
The Executive Safety Leadership
“As executives, influencers and key
Course, to be launched in the first
decision makers in the industry, we
quarter of 2015, has been developed
must all be committed to working
in the form of a video with supporting
together on this.” says Cameron
resources and has been created
MacGillivray, president and CEO
with executive-level staff of small to
of Enform. “Major events like the
mid-sized organizations in mind.
BP Horizon incident emphasize
Developed by safety industry experts,
the importance of
it provides a high-level
the mind of senior
“corporate safety
overview of information
management and
necessary for senior
outcomes
improve
that relationship to
management to identify
safety.”
when senior leadership
and fill gaps related to
recognizes
the
value
As one of a number
their understanding and
of initiatives to foster and ensures the health
enforcement of a safety
a safety culture,
and safety programs
culture within their
Enform is launching
designed and working.” organization.
the first online
“Many of the Executive
training program
Safety Leadership
directed specifically at senior managers
participants
do
not have a safety
and corporate leaders to provide them
background per se – they are involved
with resources and information to
with business or operations, or,
better support their health and safety
they are board members,” says
managers as well as staff.
Degagne, who led development of
“The people with the biggest influence the course. “But it is information
that they need to know. Some of the
larger companies offer this kind of
program internally but a lot of smaller
companies don’t have the internal
resources.”
In its Issues Proposal, EPAC
encouraged the creation of the
Executive Safety Leadership Course,
instilling that “corporate safety
outcomes improve when senior
leadership recognizes the value and
ensures the health and safety programs
designed and working.”
This unique, webinar-style course is
offered through my.enform.ca. The
Webinar learning tool allows users to
view, pause and return to the course at
a later date, as well as save articles of
particular interest. Topics discussed in
the course include:
ƒƒ Roles and responsibilities of
executives in implementing a safety
culture,
ƒƒ Impacts of an effective safety culture,
ƒƒ How executives can play a role in
mitigating legal risks,
ƒƒ Process safety, and
ƒƒ Benefits of implementing and
enforcing a safety culture.
“At the end of the day, we just want
everyone to be safe,” notes Degagne.
“It is our hope that this course will
provide senior and executive-level
management with the tools they need
to learn more about a topic they may
not already be familiar with, or allow
them to glean an understanding of
fostering a safety culture.” 
10
AER Delivering Results from Changes to Applications Process
track overall performance nor formal
published timelines were in place
for approving applications. Process
inconsistencies created a tremendous
backlog and serious headaches
for both applicants and AER staff.
In some cases, these delays were
caused by poor-quality applications,
which required the AER to spend
considerable time sorting through
errors and incomplete data.
Rob Wadsworth, VP Authorizations, AER
R
egulating one of the
world’s largest oil and gas
resources is an enormous
responsibility. With the busy winter
drilling season fast approaching in
Alberta, applications are pouring in
from across industry. This time of
year, it’s not surprising to see over
500 new applications per month, so
you can imagine the time, effort, and
resources it takes to process them.
But thanks in part to the cooperation
of operators, the Alberta Energy
Regulator (AER) is making
tremendous strides in managing the
steady stream of requests.
Since our launch in June 2013, we
have been on a dedicated journey to
review our entire application process.
The plan is to maximize efficiency—
eliminating duplication and wasted
resources—and process new requests
as quickly as possible.
Until recently, neither a system to
We implemented the first series of
process changes on September 15,
2014. Our new timelines range from
five business days for temporary field
authorizations to 90 business days for
more complex applications.
The initial results of these changes
are already better than expected. For
example, the average decision in a
standard enhanced approval process,
or EAP, took about 30 days; today
This past July, we announced
that number has dropped to 17 days.
shorter processing times and
Major projects that normally took
consistent timeframes for our
60 days to review have been decided
industry stakeholders for all *Public
in 8 days. And our decisions are
Lands Act (PLA) applications. The
now keeping pace with incoming
announcement was part of the AER’s applications. Between September 15
commitment
and October 15, 2014,
“With
a
new
approach,
to post
we registered 1243 PLA
timelines
focused industry partners, applications, and made
for most
1199 PLA decisions.
and an accountable
application
regulator, our application
Creating certainty and
processes,
process is well on its way predictability for timelines
something
is crucial. Not only does
completely new to being more efficient,
it benefit individual
effective, timely, and
for Alberta’s
transparent. Regardless of companies, it also keeps
energy
the public informed and
regulator. At
the workload ahead, the
up to date on current
that time, Jim AER is confident that it will
activities across the
Ellis, the AER’s
meet the higher demand
province. By March 2015,
president
and expectations. “
when the full list of newly
and chief
designed timelines is
executive, said,
released, we anticipate application
“As part of our strategic plan, we’ve
turnaround will have improved by a
committed to becoming a more
modest 25 per cent; the intent is that
efficient regulator. This is the first
all target deadlines will be met well in
step in a phased approach that
advance, so average processing times
will result in the AER sharing our
will drop considerably.
timelines and being accountable for
meeting those timelines.”
Only two issues remain: applications
11
waiting to go through process
changes (approximately 900
applications received between July 1,
2014 and September 15, 2014), and
300 legacy applications (applications
that have been on hold within the
system for years and likely no longer
required). We will address both
problems through a comprehensive
review no later than November 30,
2014.
There are still many low-quality
applications to look over. But these
will no longer trigger a delay in the
process—if applications do not meet
requirements, they will be closed
immediately, allowing our staff to
move on to those applications that do
meet AER requirements.
With a new approach, focused
industry partners, and an accountable
regulator, our application process
is well on its way to being more
efficient, effective, timely, and
transparent. Regardless of the
workload ahead, the AER is confident
that it will meet the higher demand
and expectations.
Updates and information relating to
applications will be available soon on
the AER website (www.aer.ca).
*The PLA regulates about 60 per cent
of public land in Alberta, which is
where most of the province’s economic
activity—oil and gas development and
forestry—occurs. On November 30,
2013, the AER assumed responsibility
for issuing, amending, maintaining,
and inspecting all public land use
authorizations and dispositions for
energy resource activities, including gas,
oil, coal, and oil sands development.
About the Alberta Energy Regulator
The AER ensures the safe, efficient,
orderly, and environmentally
responsible development of
hydrocarbon resources over their
entire life cycle. This includes
allocating and conserving water
resources, managing public lands,
and protecting the environment while
providing economic benefits for all
Albertans. The AER has a vision to
become a best-in-class regulator—
one that is protective, effective,
efficient, and credible. 
12
2014 Investor Showcase
O
n Wednesday June 11th, 2014 EPAC hosted its Oil & Gas Investor Showcase. A key event on Calgary’s business
calendar, the Investor Showcase allows hundreds of investors, along with media, analysts and other industry
executives, to hear the CEOs of Canada’s most dynamic junior and mid-cap oil and gas producers make
presentations on their company’s growth plans. This year we were pleased to have Mr. Bruce Edgelow Vice President,
Energy Group of ATB Financial introduce Mr. Joseph Schachter President of Schachter Asset Management as our
keynote speaker, who spoke on “Energy Outlooks”. 
We would like to thank our sponsors for making this event possible:
Presenting Sponsor Session Sponsors Toronto Stock
Exchange
Registration Sponsor Refreshment Break Sponsors Bourse de
Toronto
Supporting Sponsors Media Sponsors TSX Venture
Exchange
Bourse de
Croissance TSX
1
3
5
7
2
1. Standing Room only for the opening remarks
2. Mr. Bruce Edgelow of ATB Financial introduces
our keynote speaker
3. Mr. Joseph Schachter presents his outlook to a
full audience
4. Long Run Exploration Ltd. presents in the
Ballroom
5. “One on one” conversations between
presentations
6. Discussions and refreshments in the break room
7. Delphi Energy Corp. presents in the Lecture
Theater
8. “Mix and mingle” between sessions
4
6
8
Photos by Charles Hope Photography.
14
15
17
Will you have the needed labour supply for your next investment cycle?
cost of production for our member
companies,” says Gary Leach, President
of the Explorers and Producers
Association of Canada (EPAC). “The
work of the Council in identifying
future expectations for labour demands
and worker shortages provides
important data for producers who are
planning ahead for future investment
cycles.”
Carla Campbell-Ott is the Executive
Director of the Petroleum Human
Resources Council (a division of Enform
Canada).
T
he oil and gas industry is facing a
perfect storm of circumstances.
The Petroleum Human
Resources Council released a report on
the workforce outlook for Canada’s oil
and gas industry over the next decade.
The news isn’t great.
Canada is facing significant challenges
in the availability of skills and talent to
meet the workforce needs of our oil and
gas industry. An aging workforce, rapid
technological innovation and increased
competition for talent and growth are
all to blame for future labour and skill
shortages.
The goal of the Petroleum HR Council,
a division of Enform, is to help industry
develop a sustainable, skilled and
productive oil and gas workforce.
For over 12 years, the Council has
been providing expert knowledge on
petroleum labour market trends and
strategic HR solutions. The Council
collaborates with industry to advocate
for awareness and seek solutions to
workforce issues.
The resources provided by the Council
helps industry anticipate evolving
needs and act as a catalyst for change.
Through the provision of credible
and comprehensive resources, such
as labour market information (LMI),
occupational information, human
resource tools and the Careers in
Oil and Gas website, the Council
is the central information resource
for workforce development and
labour market issues in the Canadian
petroleum industry.
Where will your future talent come from
in a tight labour market?
The Council’s research looked at a
low growth and an expansion scenario
for the oil and gas industry. The low
growth scenario assumes slight increases
within the North American demand for
Canada’s oil and natural gas while the
expansion scenario suggests that some
market diversification to international
markets will occur over the projection
period. Only the rate of workforce
growth differs between the scenarios.
The research predicts that Canada’s
oil and gas industry will need to hire
for between 125,000 and 150,000 job
openings over the next 10 years. And
those numbers reflect sustaining current
commitments, in addition to the
prospective LNG operations expected to
be operational by 2023.
How can industry work together to
develop a sustainable workforce?
Skill shortages are a risk to the
industry’s sustainability. Canada’s oil
and gas industry is projected to face
more job openings due to age-related
attrition than due to industry activity
growth (or expansion).
“Competition for experienced workers
is expected to be fierce,” says Carla
Campbell-Ott, the Executive Director of
the Council.
Over the next decade, the industry is
projected to lose approximately 45,000
baby-boomer workers to retirement,
from a base workforce of about
200,000. At the same time, workforce
competition means that non-retirement
turnover, estimated at three per cent
annually, would translate to more than
60,000 job openings in the next 10 years.
“Labour shortages are looming on the
horizon and will impact all the pinch
points in the industry, driving up the
Figure 1. Oil and Gas Industry’s Total Hiring Outlook to 2022. From the Council’s report
“The Decade Ahead: Labour Market Outlook to 2022 for Canada’s Oil and Gas Industry”
18
19
bureaucratic setting found in junior and
“We’re in a high-cost location to do
intermediate companies,” says Leach.
business and we get some of the lowest
prices in the world for our oil and
EPAC members are
natural gas, which
encouraged to bring
“Our member companies
forces us to be
ideas and issues to
relentlessly focused are ideal environments for
the attention of the
on cost control,”
workers
to
develop
their
Council through
adds Leach.
careers. Managers are adept their association to
ensure the Council is
As the demand
at
spotting
and
supporting
providing them with
for skilled workers
grows, it is clear
young, talented people in their the information needed
that the Canadian
teams. If an individual shows to plan for the future.
oil and gas industry
promise, is hardworking and “We are always
needs a steady
influx of talented,
has the skill
capable people who
set that’s
are choosing the oil
and gas industry as needed, they
a career to ensure
can excel...”
it is able to stay
competitive in the
world market.
To help with the increasing need
for skilled labour, the Council is
working to identify additional labour
pools such as experienced workers
with transferable skills from other
industries.
“As we map out career pathing
for prospective workers, we are
identifying how skilled talent from
outside the industry can transfer their
skills to become successful in the oil
and gas industry. As we communicate
these findings, employers become
more aware of how they can tap into
these supply pools,” says CampbellOtt.
What role can EPAC members play?
“Our member companies are ideal
environments for workers to develop
their careers. Managers are adept
at spotting and supporting young,
talented people in their teams. If
an individual shows promise, is
hardworking and has the skill set
that’s needed, they can excel in
the fast-paced, diverse and less-
looking for ways to provide more
value. Whether you need more
information on trends, occupational
changes (i.e. the impact of technology),
skill requirements, labour supply
opportunities, etc. – we want to hear
from you so that we can provide the
data you need as you plan for your next
investment cycle,” says Campbell-Ott. 
The Council’s report “The Decade Ahead:
Labour Market Outlook to 2022 for Canada’s
Oil and Gas Industry”, is available online at
www.careersinoilandgas.com/labour-marketinformation/reports/.
20
EPAC companies number 42 among “Top 100” Operators in Canada
O
ilweek magazine’s July 2014 edition unveiled
their list of the “Top 100” operators in Canada
measured by oil and gas production in 2013. This
year Forty-Two EPAC member companies cracked the
“Top 100”.
We are proud to have so many of our members in the
“Top 100”:
Company
Anderson Energy Ltd.
Arcan Resources Ltd.
Artek Exploration Ltd.
Baytex Energy Corp.
Bellatrix Exploration Ltd.
Birchcliff Energy Ltd.
Bonterra energy Corp.
Cardinal Energy Ltd.
Cequence Energy Ltd.
Crescent Point Energy Corp.
Crew Energy Inc.
DeeThree Exploration Ltd.
Delphi Energy Corp.
Exall Energy Corporation
Freehold Royalties Ltd.
Kelt Exploration Ltd.
Legacy Oil & Gas Inc.
LGX Oil & Gas Inc.
Long Run Exploration Ltd.
Longview Oil Corp.
Marquee Energy Ltd.
Painted Pony Petroleum Ltd.
Palliser Oil & Gas Corporation
Paramount Resources Ltd.
Pengrowth Energy Corporation
Peyto Exploration & Development Corp.
Pine Cliff Energy Ltd.
Quattro Exploration and Production Ltd.
Questfire Energy Corp.
Raging River Exploration Inc.
RMP Energy Inc.
Rock Energy Inc.
Sabre Energy Ltd.
Santonia Energy Inc.
Rank
77
72
73
22
33
30
46
92
49
12
29
58
56
95
52
70
38
97
31
63
87
54
84
35
15
21
66
96
75
64
59
76
61
68
Company
Shoreline Energy Corp.
Storm Resources Ltd.
Surge Energy Inc.
Traverse Energy Ltd.
Trilogy Energy Corp.
Twin Butte Energy Ltd.
Yangarra Resources Ltd.
Yoho Resources Inc.
Rank
91
74
48
100
28
41
88
85
Since the list was compiled several more new EPAC
members would have made the list including: Centrica
Energy, Enerplus Resources and Jupiter Resources. 
For more information
on becoming a member
please contact Dana
Robertson at 403.269.3454
or view our website at
explorersandproducers.ca