Birchcliff Energy: Harnessing technology to protect the environment
Birchcliff Energy isn’t your average oil and gas company. They’ve long embraced leading-edge technology to create and maintain a competitive advantage both in the office and in the field.
Through technology, Birchcliff ensures safe and efficient operations, and in turn helps reduce the company’s carbon footprint.
“Tech plays an integral part in the oil and gas industry and is prevalent in every facet of our business,” said Jesse Doenz, Controller and Investor Relations Manager. “Whether it’s measuring production rates at a wellhead, analyzing frac data, or building out financial models and forecasts for strategic planning, tech plays an important part in running our business efficiently on a day-to-day basis.”
Chris Carlsen, President and Chief Operating Officer, Birchcliff Energy
BUILDING CAPACITY WITH TECHNOLOGY
Founded in 2004, Birchcliff has been operating in northwest Alberta for the last 15 years and has steadily built production to approximately 80,000 barrels per day consisting of natural gas, light oil, condensate and natural gas liquids.
Chris Carlsen, President and Chief Operating Officer, has been with Birchcliff since 2008. He has helped the company become more efficient with a smaller carbon footprint, through the use of data analytics and technology. He noted that technology has made huge steps in the Alberta oilfield in the last decade. “The nature of the oil and gas industry drives innovation, we always want to be more efficient, more sustainable, and more profitable – we do this through technology.”
Birchcliff, for example, uses innovative ‘pad drilling’ techniques to drive efficiency and reduce their environmental footprint. Traditionally, each well would have its own pad housing the equipment necessary for drilling and extracting. When a new site was drilled, the entire operation had to shift. That was costly, time-consuming and hard on the environment. Multi-well pads, on the other hand, can house up to 24 wells, which minimizes surface disruption and accelerates the cycle time to bring new wells onstream.
The company has utilized data analytics software Spotfire to help their engineers, technicians and other staff members make data-informed decisions and reduce risk. The software allows the teams to visualize and manipulate data quickly and efficiently. In addition, Birchcliff’s geo-engineered subsurface modeling capabilities allow Birchcliff engineers to optimize how and where to frac to release the most natural gas from the reservoir.
Birchcliff prioritizes data-driven decisions to optimize production with minimal environmental impact.
“We have been dedicated to building data analytics capabilities throughout our organization and to the collection and interpretation of geological and production engineering-oriented information,” said Carlsen. “The more informed we are, the more precise we can be – which leads to the best possible performance out of a given well with the smallest amount of environmental impact.”
“The nature of the oil and gas industry drives innovation, we always want to be more efficient, more sustainable, and more profitable – we do this through technology”
INDUSTRY-LEADING ESG
Birchcliff is one of the lowest greenhouse gas (GHG) emitters in the Canadian oil and gas industry, with levels approximately 44 per cent lower than its peer groups, due to its Methane Reduction and Retrofit Compliance Plan, a stringent Fugitive Emissions Management Program and ongoing carbon sequestration activities. To celebrate this achievement, the company created the Low Emissions Intensity Producer program to help identify companies committed to reducing their environmental impact.
Achieving the bare minimum in environmental stewardship metrics doesn’t cut it for Birchcliff.
“As a Canadian producer, regulatory requirements and expectations are significantly higher than in other parts of the world, even in comparison to countries such as the United States,” said Doenz.
“In order to comply with these regulations and continue to be an industry leader in ESG initiatives, per- well costs and financial performance, we very much have to rely on technology and technological advancements to continue to achieve these goals and further excel in fields such as ESG and ESG reporting.”
Birchcliff Energy gas plant
SUPPORTING CALGARY’S CLEANTECH COMMUNITY
Birchcliff has long supported Calgary’s cleantech ecosystem. “Our goal is to fund and support as much cleantech as possible; using natural gas to replace diesel in our operations will substantially lower emissions,” said Carlsen.
The energy company is a member of the Tight Oil Consortium, a University of Calgary-based research and consulting team that employs university staff and students to better understand reservoir characterization through the analysis of production and geological/geophysical data. They also participate in the SAIT Industry Night, which is an opportunity to showcase the different types of occupations that you can find in the oil and gas industry.
“Industry nights give students the opportunity to interact with our technical team leaders,” said Doenz. “We also meet with any students that would like to stay in contact with us or learn more about the industry as a whole.”
It isn’t only students that receive support and assistance from Birchcliff. The company has been an active participant and investor in the Natural Gas Innovation Fund (NGIF) since 2018.
The NGIF is an investment model focused on cleantech innovation in the natural gas value chain. For every one dollar that NGIF attracts, nine dollars in public and private funding is leveraged. The fund has contributed $15.4 million towards a total of $161 million in total eligible project value. It has also supported 230 cleantech jobs through active projects and will have reduced seven metric tons of CO2 emissions by 2030.
“NGIF is an excellent example of the collaborative nature of Calgarians and the energy sector.”
Jesse Doenz, Controller and Investor Relations Manager, Birchcliff Energy
CALGARY: A VERY BUSINESS-FRIENDLY ENVIRONMENT
Alberta’s unmatched community spirit has resonated for Birchcliff employees and the company.
“People in Alberta have similar entrepreneurial mindsets. People are willing to try new ideas,” says Carlsen.
Both speak about the small town feel of Calgary and the collaborative nature of the industry.
“Calgarians are some of the best people around, we’re a very supporting community that always finds different ways to give back and help support one another. Not to mention it’s exciting to have an industry this large and this central to the daily function of everyone’s lives in your own backyard,” said Doenz.
Birchcliff gives back to the community in a number of ways, large and small.
“Calgarians are some of the best people around, we’re a very supporting community that always finds
different ways to give back and help support one another. Not to mention it’s exciting to have an
industry this large and this central to the daily function of everyone’s lives in your own backyard.”
BIRCHCLIFF: ONE OF ALBERTA'S TOP 75 EMPLOYERS IN 2022
When asked what sets Birchcliff apart from the other intermediate-sized energy producers, both Carlsen and Doenz speak about the culture at Birchcliff. This culture was part of the reason Birchcliff was named as one of Alberta's Top 75 Employers in 2021 by the Canada's Top 100 Employers project. Carlsen and Doenz are quick to praise their people – 150 in the Calgary office and around 70 in the field in northwest Alberta – as a significant driver for their success. Corporate culture is paramount to Birchcliff and a fixture in how they plan and operate their business.
“This is the best company I’ve ever been part of,” says Carlsen. “What separates Birchcliff from other companies is our culture and the feeling that you belong to a close-knit family when you work here. The amazing community involvement and willingness of our people to give back are other reasons I’m extremely proud of our company.”
Birchcliff is a regular supporter of local institutions, investing in more than 100 groups and community organizations, including the Calgary YWCA, Home Front Calgary and Feed the Hungry among many others. Birchcliff has also helped raise over $1.5 million for both the STARS Air Ambulance in the Grande Prairie area and the United Way of Calgary.
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Birchcliff Energy team
WHAT’S NEXT
Birchcliff has big plans for the near future. First, they are working to increase production from approximately 80,000 barrels per day to 90,000 within the next five years. Birchcliff also expects to be debt-free by the end of 2022, at which time it expects to materially increase its base dividend. They will continue to pursue their goal of lowering emissions and protecting the environment; in fact, they plan to invest approximately $1.5 million towards various emissions reduction initiatives in 2022. Additionally, Birchcliff anticipates investing approximately $3.5 million in 2022 on reclamation and abandonment activities.
Are you ready to make moves in Calgary’s tech scene, working with forward-thinking companies like Birchcliff Energy? Head to our Live Tech Love Life careers page and see what opportunities might be out there for you.