Presentation on theme: "Doing Business in the Oil Sands Industry"— Presentation transcript:
1Doing Business in the Oil Sands Industry Presented by:Clark GrueFounder and President, Rainmaker GBD
2Getting ready to supply to the oil sands industry What is our unique value proposition?Market space: is there room for us here?Where do we fit in the supply chain?Who are the right buyers?Is my company ready?
3Who Are We?Founded in Alberta in 2007, Rainmaker is a recognized leader instrategic business development in the energy industry.We work closely with our clients to develop comprehensive market entry strategies, enhance their market exposure and expand their reach internationally.Our team of professionals has assisted hundreds of companies as they explore new markets around the world. Understanding the nuances of each market has beenkey to our success to date.
4Western Canada Market Challenges Access to markets for end productShortages of professional talent (PM’s, Engineers, etc.) – work share becoming the norm (people and costs)Qualified trades personnel – becoming increasingly scarceWestern module fabrication facilities will reach capacity – industry exploring alternative solutions (China, India, US, other regions of Canada, etc.)Material and equipment costs rising – industry looking for additional suppliers (offshore and locally)
5Industry Evolution As the industry evolves so does the supply chain From highly engineered to modularizationFrom insulated to collaborationFrom silos to open innovationFrom local to internationalFrom impossible to probableFrom dirty to green?
6Where are the opportunities in Western Canada? EVERYWHEREFind ThemListenLearnPresentationGrowing midstream and downstream- depending on how you group it- northwest upgrades $capital cost estimate 5.7 bill 700mm spent (2012)- field treating- new technology- rail infrastructure- pipelines....Keystone, energy east, diligent pipelines- production of NGL's- forecasts 600 m3 per day out to 2035-LNG facilities on the west coast, and facilities on the receiving end....names of equipmentOilsands production- Tulio -2.3p/d(2015) to 5.2 p/d (2030)Majority is thermal not miningConventional oil production 1.4 p/d consistent to 2030NGL's- declining - forecasts 600 m3 per day out to 2035
7Path to success Information Maps, projects, owners, technologies, supply chain, transportation, production, environment, etcRelationshipsOwner project leads, Engineering leads, Executives, Field leads, Associations, Government officials, etcTrustThe industry operates on trust; positively and negativelySuccessDefine success before you begin and use the above factors to arrive at success
8Strategic Business Plan Execute Plan Supply/Value Chain Executives Strategy development & who you need to know.Market IntelligenceData TestTweak StrategyStrategic Business PlanExecute PlanSupply/Value ChainExecutivesR&D GroupsEPCM’sAssociations etc…Patrica Nelson – Alberta 661,848 km2
9Supply Chain Breakdown PROJECT OWNERS: EXPLORATION AND PRODUCTION COMPANIESConventional Unconventional- Exploration - Mining- Drilling - In-situ- Processing - Shale GasPRIMARY SUPPLIERS: CAPITAL PROJECTS- Engineering Firms- Construction Companies- Fabricators- Financing/public marketsPRIMARY SUPPLIERS: OPERATIONS- Oilfield Service Companies- Project management- Maintenance
10Tiers of Suppliers Tier 1: Direct Tier 2: Indirect Tier 3: Other Supports activities for exploration and extraction – engineering & construction – professional, scientific and technical services. Reliant on capacity of the fabrication/manufacturing sector.Power generators, boilers, heat exchangers, metal tanks, steel pipes and tubes, mining and field equipment, pump and compressor manufacturing. Directly support Tier 1 Suppliers. Construction, transportation, downhole etc.Transportation engineering and engine turbine, power transmission and communication cable manufacturing etc. Encompasses machine shops, warehousing and storage and truck transportation.
11Key PlayersConcerned with strategic purchasing to drive positive returnsSet rules of engagement (ROE) with suppliersDevelops the specifics of each project (meeting challenges)Defines the ultimate needs and challenges of operations
13Supplier pre-qualification – General steps 1. RegistrationProvide in-depth information on the supplier2. Company informationOrganizational framework3. Appropriate certificates & qualificationsProof of health, safety and overview of quality assurance4. Compliance with company policiesWork with the buyers to reach their goals5. Current workloadOutline of projects the supplier is currently undertaking6. Review of Company Systems- Site visit to supplier’s facility
15Top 10 secrets to success in this market 10. Learn about the challenges of the resource 9. Understand the climate 8. Respect the expertise in the market 7. Learn to sell to engineers 6. Understand the decision maker hierarchy 5. Build support from influencers 4. Establish a presence/ Be in the market 3. Don’t wait 2. Bring solutions, not just products 1. Build trust by delivering what you promise
17What does this mean?There are lots of opportunities in Alberta but..You need to have a value added solution... Differentiate12 to 24 months before first PO... PatientYou need a local strategy/investment ... Boots on the groundlearn to love and play hockey!... RelationshipsWe have seen, tested or trialed just about everythingYou may see a PO earlier (less then 12months) but it will be much smaller then you wanted.Downtown and field sales... You must have both..It's all about relationships and trust