A banner year in southern Alberta : shallow gas, CBM drive service houses to record years

The effect of increased oil and gas activity on the service and supply industry in Alberta was evaluated. The service and supply industry is benefiting from booms in shallow gas drilling and coalbed methane exploration. Big Country Energy Services is a pipeline installation company that now has over 40 on-going projects with crews ranging in size from 10 to 70 personnel. A shortage of skilled labour has affected the company's ability to meet demand. Manufacturing companies such as Production Control Services, a self-contained parts manufacturer that specializes in plunger lift service and optimizing and servicing gas wells, is also seeing an increase in business, particularly due to recent activity in the coalbed methane sector. The company services both new and existing wells in the region. Managers at Ronco Oilfield Hauling Ltd., who work with many junior companies, believe that this season will be one of the most successful of all time. It was suggested that an increase in energy demand from countries like China will keep the demand for North American oil high. However, trends have indicated a reduction in exploration in Alberta, while new exploration activity appears to be increasing in northern Canada. Officials at Ronco have predicted that in 10 to 15 years most new oil activity will be in the northern regions as well as in northeastern British Columbia. It was also noted that soaring fuel costs have had an impact on the service and supply industry, particularly in businesses responsible for collecting and disposing of drilling fluids from rigs. Companies specializing in gas well optimization in low-pressure situations have also benefited from increased activity. However, issues concerning under-qualified workers and personnel shortages have affected a wide variety of businesses in the industry. 3 figs