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Vol. 10, No. 16 Week of April 17, 2005
Providing coverage of Alaska and northern Canada's oil and gas industry

PETROLEUM DIRECTORY: Keen eye for spotting flaws — before failure

Canspec’s advanced inspection technology puts the company at the forefront of materials testing field, and wins major BP contract

Petroleum Directory Staff

Canspec Group Inc. is a relative newcomer to Alaska, but the company is already looking to expand beyond its initial role helping BP keep its Prudhoe Bay facilities in top shape by testing the pipes, tanks and other components that keep the oil flowing.

“One big contract brought us here,” says Kim Harker, managing director of Alaska operations for Canspec. “There’s other business here in the state. We feel we can bring technological depth that will be a help to industry here. We expect to have more clients, large and small, in the years ahead.”

Already, the company is starting to branch out.

“We have a project with Unocal in Cook Inlet,” Harker told Petroleum News. “We brought in Nelson Perrin, a nondestructive testing specialist recently to develop business outside the BP contract. He’s been going through the hoops since he arrived. We’ve hired and trained some people. We’re just starting down in Kenai.”

In Alaska, oil and gas will be the main focus, according to Harker, but there are other industries where Canspec could help companies in the state, and there’s already a bit of a foothold.

“Our sister companies in Vancouver (Canada) and Seattle have been working in the power and aviation sectors here in Alaska for several years.”

Known in industry

While Canspec isn’t well known to the general public, it’s among the world leaders in the field of materials testing and engineering. The company is part of the Rockwood Group, which also includes Sperry Rail Services and Longview Inspection.

That’s why BP turned to Canspec when Prudhoe Bay managers were looking for an experienced, well-managed supplier of inspection services.

“They were looking for somebody who had a very strong reputation in the business,” Harker says. “We are the largest in this industry in North America. We can bring a lot to the table in terms of personnel, technology and expertise.

“This is our business,” he continues. “We’re not a manpower supply operation. We partner very strongly with the owners. We tend to have very long-term relationships with our clients.”

Canadian roots

Canspec has operated in Canada’s oil fields, as well as other areas of Canadian industry, for decades. The company is used to dealing with work sites in remote locations, tough environments, and harsh winters.

“Our big clients in Canada include Syncrude. We’ve been at Syncrude for at least 20 years,” Harker notes. “We also have longstanding relationships with Canada’s largest pipeline transmission companies such as Enbridge, TransCanada and Duke Energy.”

Outside the oil industry, Canspec has worked extensively in the power generation sector including nuclear plants as well as hydroelectric and thermal power plants.

“We operate in the power generation, pulp and paper, aerospace, mining and the marine industries,” Harker says. “But oil and gas is the largest single percentage of our business.”

Canspec was founded in Canada more than 30 years ago, and continues to be led by the founder, Ken Stankievech. He is currently the president and CEO of the North American NDT and engineering operations.

Major step in Alaska

Prudhoe Bay’s sprawling operations require a company able to support the dynamic requirement for a large highly technical manpower support team and that’s what Canspec had to do when BP invited the company to assist with their inspection requirements at the huge field.

Presently Canspec has more than 100 people working on its North Slope operations, with more than 50 personnel on the job site at any given time.

Harker arrived last August to hire a team and set up the centralized administration functions in Alaska, moving these activities from Edmonton, Canada. This was one of many local commitments by Canspec to invest in the future of Alaska.

Canspec first responded to BP’s call for the Prudhoe Bay challenge in September of 2002, and worked on a month-to-month basis for more than a year, earning the company’s trust. The two companies signed a three-year deal in January of 2004.

Prudhoe Bay challenge

The complex facilities at Prudhoe Bay are a challenge for all the engineers and technicians who strive every day to keep operations working in a harsh environment.

As Harker observes, “the facility was supposed to have a 25-year lifespan, and now we’re looking at 40 more years.”

Inspection methods have improved over that time, and Canspec has led the way with advanced tools and techniques that assist in the detection of corrosion and wear before they become a serious problem.

While Canspec has brought in some expertise from outside Alaska, “the majority of our staff are resident in Alaska,” Harker said. “All of the trainees we have hired — probably about 15 now — are Alaska residents.” To encourage the development of inspectors for the industry, Canspec has sponsored a scholarship in the NDT Technology program at the University of Alaska Anchorage, as part of its commitment to Alaska industry.

Advanced technologies

Canspec has the technology and expertise to test materials on site at the North Slope, using digital radiography, as well as normal X-ray and ultrasonic tools that can identify potential flaws. This process is called “nondestructive testing,” since it provides important test results while not destroying the original part being tested.

“We are leaders in the use of digital radiography throughout our industry. It has all kinds of advantages in terms of costs and higher quality images —in addition you can create digital images for historical archiving and for instantaneous reporting purposes,” Harker said.

“This is an example of Canspec’s ability to invest in the latest technology to provide the highest quality solutions for our clients,” he said. In addition to these tools, which can cost hundreds of thousands of dollars, Canspec has invested heavily in very expensive automated ultrasonic scanning equipment for corrosion monitoring. Another of Canspec’s strengths is the depth of professional engineering provided by the company, which includes corrosion, welding, chemical and metallurgical engineering services for all industries.

The company has a very specialized group of more than 60 engineers located throughout the organization. Several have specialized doctorates in advanced areas of materials engineering and testing. The company is presently recruiting from the local universities and other areas of the world to hire full-time corrosion specialists for Alaska.

The company has developed some of its own specialized tools for corrosion assessments, including an advanced laser technique used for external corrosion evaluations and measurements.

Broad expertise

In addition to testing a customer’s existing equipment on site, Canspec can help clients choose the right components before construction begins.

“We can help develop the right specifications and help our clients choose the right materials for a project, whether it’s a piece of pipe, storage tank, high pressure boilers, a bridge girder, or whatever. We can test it to make sure the product meets the current codes and regulator’s specifications,” Harker said.

Beyond that, Canspec can send its people out sleuthing if something does fail.

“We do a lot of forensic work to determine the cause of failures, whether explosions, fires, corrosion, cracking, or other reasons.

“We do inspections for heavy industry, on theme park rides, ski lifts, aircraft, and a wide range of equipment. Our job is to ensure that it can be operated safely and is fit for the purpose for which it was designed and built.”

In the end, it’s seasoned workers that make the job go well, Harker said.

“There are a number of specialized technologies— and a lot of experience — involved in this work.”



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