Oil & Gas: Running Oilfield Operations in Alberta

The Alberta oilfields remain among the largest oil reserves in the world. Unlike traditional oil deposits, which feature liquid oil that operators capture in porous rocks, oil sand is a sand formation often embedded with a sticky and thick oil referred to as bitumen. To extract oil, you will need a well-testing company, such as Central Alberta’s,  Sylvan Production Services, to provide you with the expertise, technology, and equipment needed to finish your oilfield operations efficiently and safely. This includes essential services like wellsite testing, well workovers, and well abandonments with reliable pressure vessels or p-tanks.
Industry Trends
Because of the global pandemic, COVID-19, oil demand dropped, negatively affecting Alberta’s economy. However, as the world started recovering from the coronavirus pandemic, the demand for oil significantly increased. As we speak, the demand is now high, and industry employment has also improved. Global demand combined with existing technologies that operators currently use now makes Alberta one of the world’s largest oil & gas producers. Examples of technologies contributing to this include the following:
– Crown lighting: It uses high-lumen LED lighting at the top of drilling rig masts powered by rigs. This equipment replaces about six towers powered by diesel lights.
– Bi-fuel and batteries: This technology combines the advantages of natural gas with the power of batteries. These batteries allow generators to operate at a steady and lower load, with enough power available to meet energy requirements.
– BESS (Battery Energy Storage Systems): If coupled with an on-site generator, BESS can minimize the number of generators you need. For instance, instead of using three, you will use two. Moreover, charging the load of batteries helps to increase the power of the engine, enabling it to run efficiently.
– High-line power: Connecting drilling rigs to grid power helps to minimize truck traffic, noise, and GHG emissions, as you will not require diesel generators.
– Natural gas generators: Replacing diesel generators with natural gas minimizes truck traffic, maintenance, and GHG emissions.
Obtaining Your Right to Produce Oil & Gas
One of the most common ways of obtaining the right to produce oil and gas from freehold land is by leasing at a fee. The CAPEL has created a lease template, a common oil and gas lease form you can use to obtain the right. Like Crown Leases, freehold leases can apply to federal or provincial legislation. However, freehold lease documents contain terms and conditions. So, before execution, negotiating favorable terms is important.
Protecting Albertans & the Environment
Every company must ensure their oilfields comply with approval conditions under the EPEA that promote and support the wise use, enhancement, and protection of the environment, including wildlife, water, wetlands, and soil. To do that, you must carefully monitor and manage the environmental effects and impacts of oilfields. This includes implementing practices such as acid gas injection wells and CCUS (Carbon Capture, Utilization, and Storage) to mitigate emissions. While in the process, you can also talk to companies like, one of Calgary’s top Engineering Firms, Lighthouse Energy Group to help with environmental remediation solutions and programs.
The bottom line is that the pressure to maintain safety and compliance while keeping production up will always be there. Therefore, it is high time we equip ourselves and our team with effective solutions and technology to eliminate the guesswork about where to start and what to do.