International Standardization Workshop

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• International Standardization Workshop
• Doha, Qatar
• 3 April 2006

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• Participation of the Americas in International
  Standardization EffortandThe Role of
  International Industry, Regional and National
  Organizationsand Need for Standards
• International Standardization Workshop
• Doha, Qatar -- 3 April 2006
• By Gregory Lever
• On Assignment as
• Business Leader, Operations Business Unit
• National Energy Board

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Overview of Oil Gas Industry The Americas

• Number of Countries
• North America 3
• Central America 7
• Caribbean 13
• South America 13

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Proven Reserves and Production Americas
OIL

• North America
• Proven Reserves
• 60 billion barrels
• Production 2004
• 14 million bpd
• Does not include oil sands

South Central America Proven Reserves 100
billion barrels Production 2004 6.8 million bpd
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Proven Reserves and Production Americas
GAS
North America Proven Reserves 7.32 trillion
cubic metres Production 2004 762.8 billion cubic
metres
South America Central America Proven
Reserves 7.10 trillion cubic metres Production
2004 129.1 billion cubic metres
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Ratio of Reserves/Production
OIL
GAS
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Largest Crude Oil Reserves in the World
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Oil Sands Projects in Three Deposits

• Oil sands production now exceeds one million
  barrels per day
• 29 billion built from 1996-2003
• Close to 38 billion in new oil sands projects
  expected in 2004-2015

Athabasca (Mining) Syncrude Suncor
Canadian Natural Albian ExxonMobil SynEnCo
UTS Athabasca (In-situ) Deer Creek/Enerplus
Opti/Nexen PetroCanada Devon Japan Can. Oil
Sands EnCana ConocoPhillips Husky Canadian
Natural Suncor
Cold Lake (In-situ) Imperial Oil
Devon EnCana Murphy Canadian Natural
Bonavista Husky BlackRock Baytex
Peace River (In-situ) Shell BlackRock
Note Does not include all projects
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Standardization Needs in Oil Gas Industry

• Why do we need to work on standards for the Oil
  Gas Industry?
• It is our industry
• Good standards are an asset not a liability
• Provide assurance to the public wrt safety,
  health, quality, and environmental performance
• Achieve technical and commercial balance
• fit for purpose
• Remove technical requirements from regulations

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Standardization Needs in Oil Gas Industry

• Why do we need to work on standards for the Oil
  Gas Industry? (cont)
• Benefits from best practices and continuous
  improvement initiatives
• Permits networking/transfer of knowledge
• Delocalization of procurement and investment
• Permits the use of common standards
• Establishes a common technology base
• Reduces cost and delivery times

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Standardization Needs in Oil Gas Industry

• What type of standards do we need to work on?
• Standards for the provision of services,
  materials, equipment, electrical and structures
  for
• Exploration and production, refinery and
  distribution
• Measurement
• Procurement and commodity
• Quality, security and environment outcomes
• Design and guidance

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Standardization Needs in Oil Gas Industry

• What type of standards do we need to work on?
  (cont)
• Potential new work items include standards for
• Hot tapping
• Marine soil investigations
• Ladders and railing for Oil Gas facilities
• Pedestal cranes
• LNG an international standard
• Materials selection and pipeline overpressure

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Standardization Needs in Oil Gas Industry

• What type of standards do we need to work on?
  (cont)
• Potential new work items include standards for
• Protective coatings and insulation
• Safety relief valves
• Occupational safety
• Equipment preservation

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The Role of Standards Organizations

• What are standards?
• Documents that describe essential characteristics
  of products, services or systems
• What is standardization?
• Process of bringing a variety of interests
  together to develop a standard

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The Role of Standards Organizations

• Who needs standards?
• The world needs standards
• The oil and gas industry needs standards
• We need standards
• The public needs standards

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Benefit of Standards and Standardization

• Who Benefits?
• Consumers (Health and Safety)
• Business (Trade, Economy)
• Governments (Alternative to Regulations)

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Companies Benefit from Standards

• Cost reduction increased business efficiency
• Enhanced technical integrity
• Common technology base
• Support legislation

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The World Standards Cooperation (WSC)

• The leading international standardization
  organizations collaborate to meet the challenges
  of converging technologies
• ISO Multi-discipline and cross sector
• IEC For electrotechnology
• ITU For telecommunications

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Why ISO TC 67?

• International oil and gas industry can benefit
  from global standards used locally world wide
• Prepares standards required by oil and gas
  industry
• Publishes standards that enable companies to
  minimize their specifications
• Greatest benefit to industry derives from common
  standards on materials, equipment, and offshore
  structures

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International Standards Participation of the
Americas
Participation in ISO TC 67

• Argentina P
• Brazil P
• Canada P
• Columbia O
• Ecuador O

• Mexico P
• Trinidad/Tobago O
• USA P
• Venezuela P
• Cuba O

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Participation in ISO TC 67 SCs WG

• Argentina
• Brazil
• Canada
• Mexico
• United States
• Venezuela

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Participation in OGP

• Latin America
• ARPEL
• Brazil
• Petrobras
• Canada
• Petro-Canada
• Mexico
• PEMEX

• USA
• Amerada
• Anandarko
• ChevronTexaco
• ConocoPhilips
• ExxonMobil
• Occidental
• API
• Venezuela
• PDVSA

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Participants in OGP SC

• Brazil Petrobras
• Canada Petro-Canada
• USA Chevron Texaco ConocoPhilips
  ExxonMobil API MMS (JIP)

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Regional Cooperative Standards Bodies
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Regional Standards Bodies

• ACCSQ (ASEAN Consultative Committee for Standards
  and Quality)
• AIDMO (Arab Industrial Development and Mining
  Organization)
• ARSO (African Regional Organization for
  Standardization)
• COPANT (Pan-American Standards Commission)
• EASC (Euro-Asian Council for Standardization,
  Metrology and Certification)
• PASC (Pacific Area Standards Congress)

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Pan American Standards Commission(COPANT)

• Promotes harmonization of International Standards
  by member countries
• Maintains close ties with ISO, IEC ITU
• Encourages and supports participation in
  international standardization activities
• Support facilitation of Global Trade
• Support improvement of quality, safety, security,
  environmental and consumer protection
• Supports global dissemination of technologies and
  best practices
• Develops regional COPANT standards

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Active Members of COPANT
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National Standards Organization (SCC, ANSI, etc.)

• Role
• Encourages and enables the widespread use of
  voluntary standards in the county
• Oversees the National Standards System
• Purpose
• To enhance competitiveness
• Promote social and economic well being in global
  economy

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National Standards Organization (SCC, ANSI, etc.)

• Accreditation
• Verifies that organizations have the people,
  expertise and equipment to do the job
• Standards development organizations
• Conformity assessment bodies

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National Standards Organization (SCC, ANSI, etc.)

• Standards Development (SDO)
• Problem is identified
• Look for solution internationally
• Secure resources and establish committee
• Committee develops the standard
• Public review

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Why Standards Work

• Standards work because they are
• Based on expert knowledge
• Financially and technically feasible
• Widely accepted
• Compatible with international standards

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Vision

• One accreditation
• accepted everywhere
• One set of standards
• accepted everywhere
• One test, registration/certification
• accepted everywhere

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How Canada Participates in ISO
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Challenges Ahead

• Develop and adopt international standards
• Encourage all regional organizations, national
  standards bodies, and industry organizations to
  adopt and use ISO standards where ISO standards
  exist
• Encourage participation of more countries on
  international standards working groups and
  technical committees