Are You Ready to Retire? - ESAA · Are You Ready to Retire? Darcy Cuthill, Director Asset...
Transcript of Are You Ready to Retire? - ESAA · Are You Ready to Retire? Darcy Cuthill, Director Asset...
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Are You Ready
to Retire?
Darcy Cuthill, Director Asset Retirement and Compliance Solutions
RemTECH
October 19, 2012
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William Heron
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Dingman II
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William Heron
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Agenda
1. The issue of age
2. The risk to social license
3. Innovation at the end
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1997
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2010
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Liabilities
Assets
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Liabilities
Assets
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22
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25% 25%
75% 75% 93%
7%
EXPLORATION
DRILLING & COMPLETION
PRIMARY PRODUCTION
SECONDARY RECOVERY
DECOMMISSIONING & ABANDONMENT
REMEDIATION & RECLAMATION
SUSPENSION
ENHANCED RECOVERY
AS
SE
T R
ET
IR
EM
EN
T
AS
SE
T D
EV
EL
OP
ME
NT
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Directive 079
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190,000 wells producing
67,000 inactive wells
5,000 wells abandoned each year
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Inactive Wells in 2012
67,408 Grande Prairie
High Level
Red Earth
Fort McMurray
Slave Lake
Edson
Edmonton
Red Deer
Calgary
Medicine Hat
Provost
Cold Lake
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Inactive Wells in 2015
78,075 Grande Prairie
High Level
Red Earth
Fort McMurray
Slave Lake
Edson
Edmonton
Red Deer
Calgary
Medicine Hat
Provost
Cold Lake
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Inactive Wells in 2020
94,860 Grande Prairie
High Level
Red Earth
Fort McMurray
Slave Lake
Edson
Edmonton
Red Deer
Calgary
Medicine Hat
Provost
Cold Lake
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Inactive Wells in 2025
115,253 Grande Prairie
High Level
Red Earth
Fort McMurray
Slave Lake
Edson
Edmonton
Red Deer
Calgary
Medicine Hat
Provost
Cold Lake
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0
20,000
40,000
60,000
80,000
100,000
120,000
1990 1995 2000 2005 2010 2015 2020
Wells Abandoned (Cased & Open Hole)
Wells Drilled
Inactive Wells
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We need safe, cost-
effective and efficient
management of the entire
end-of-life process for
wells, pipelines and
facilities that restores the
land to a natural state,
meeting or exceeding
regulatory standards.
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OPERATIONS
COMPLETION GROUP
JV GROUP
PIPELINE GROUP
FACILITIES GROUP
SURFACE LAND GROUP
ENVIRONMENTAL GROUP
REGULATORY COMPLIANCE GROUP
ENGINEERING GROUP
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Well Pipeline Facility Soil
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Case Study in Asset Retirement Goal: To safely and cost-effectively decommission and demolish client’s Gas Plant in Central Alberta
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Starting Point
40
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Scope of Work
HazMat Assessment (Golder) Final Plant Decommissioning Monitoring Well Abandonment Pipeline Isolation and Removal NORM Testing Plant Demolition Piling Removal Waste Disposal Project Close-Out Best Practices / Learning Loop
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Outcome
Project completed with no LTIs, 40% under budget and on schedule
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Key to Success : Project Management
DESIGN
PLAN
EXECUTE
LEARN
DESIGN: Scope of work, project definition,
risk review, HSE and ERP planning, contracting, technology, people and
equipment requirements
PLAN: Detailed project planning, logistics, budgeting, scheduling, project controls, risk mitigation, JSAs and work procedures, roles and accountabilities
LEARN: Lessons learned, feedback loop,
best practices, documentation
EXECUTE: Onsite project delivery, communication, risk management, reporting, daily HSE leadership, community engagement
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Old Way
Strengthen balance sheet
Reduce Total Cost of Retirement
Shorten time to certification
Maintain Social License to Operate
New Way
Manage risk and work safe
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CATEGORY BENEFITS
Project Management
Efficiency: • Accounting: consolidated invoicing, less 3rd party mark-up, lower admin
costs • Reporting: transparent and auditable documentation
Project Efficiency Cost management: • Mob/Demob and project cycle time • Seasonal access • Integrated workforce planning
Project Size Economies of Scale: • Macro area planning • Lower unit costs for services • Comprehensive waste management (fluids, solids, sludge, recyclables)
Project Schedule Streamlining: • Line locates, crossing agreements, road use, etc. • Clear communication between phases • Permits for life of the project
Regulatory Compliance
Sustainability: • Single-source tracking, reporting and audit trail • Streamline communications with all stakeholders
Scorecard Accountability: • KPIs, continuous improvement, consistent staffing, people ‘living the
project’ • Health, safety and environmental performance, community relations
Insurance Protection: • Against damages • Against environmental liability • Against risk
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Private & Confidential 48
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Thank You