Lloydminster 鈥� JPD Enterprises is doing something that hasn鈥檛 been very common since the oil downturn hit, namely adding new iron to its fleet, in addition to opening a new location. In Lloydminster, JPD started renting shop space six months ago.
鈥淲e鈥檙e just moving into Lloydminster. We鈥檙e expanding out of Elk Point,鈥� said Pat Demers, who is partners with John Charlton in the operation.
The company runs continuous rod transfer units, or CRTs.
鈥淲e鈥檝e got five CRTs and five of the welders, one rod rig and one rod rig being built,鈥� Demers said on Sept. 12 at the Lloydminster Heavy Oil Show.
鈥淲e only built one welder and one CRT in the last three years,鈥� he said. They built a standalone continuous rod rig last year, which has been in service for one year.
Their working area covers all of Alberta and Saskatchewan. 鈥淭he truck鈥檚 got wheels. We鈥檒l go where the customer wants us,鈥� he said.
They鈥檝e been as far north as north of Peace River, and south to Turner Valley. To the east, they鈥檝e going to the Battlefords.
JPD has a total of 15 employees, now. That鈥檚 going to change soon. 鈥淲e are growing,鈥� Demers said. 鈥淲e will need four for the new rod rig. We鈥檙e looking for two employees in Lloydminster, and one in Elk Point.鈥�
The new rig will be going to Bonnyville.
JPD鈥檚 big advantage is its multipocket reels, a patented design of their own making. It allows them to carry different sized of rod if needed.
鈥淭he reel and method of rod repair is our patent,鈥� Demers said. He noted it鈥檚 a lot safer than the old way, hand-bombing rod. 鈥淲e don鈥檛 do any of that. That鈥檚 what iron鈥檚 for.鈥�
鈥淲e just fell into it. We鈥檝e been doing this since August 2009. We got the patent in April 2012.鈥�
When they first got into continuous rod, they had flushbys and grippers. 鈥淢y business partner said we should come up with a multipocket reel and carry two different sizes of rod, and we鈥檒l go work with our flushby gripper and fix rod all day,鈥� Demers said.
鈥淚 said, 鈥楪ood idea.鈥�
鈥淪o we built the first reel, and we did two jobs,鈥� he said. They quickly realized they could do this work without a lot of ancillary equipment.
鈥淵ou鈥檝e got to be able to tuck away your ends,鈥� he said. First they used a come-along, but that took forever. Then they used a winch from a quad, but now they use a hydraulic winch to pull in the rod ends.
鈥淓veryone would love to do what we鈥檙e doing, but they鈥檙e just not allowed to,鈥� he said.
Their patent will expire in April 2032, so that gives JPD a long time to take advantage of their innovation.
Asked how things have been going, Demers said, 鈥淲e鈥檙e holding our own. We haven鈥檛 seen any big decreases since the crash, except for rates, of course.鈥�
Rates were cut 鈥渓ots鈥� during the crash. They took three rounds of cuts, and a fourth year extending the third round of cuts.
However, he noted, 鈥淲e never lost money.鈥�
They laid off their pressure trucks and flushby. 鈥淲e shut them down, because the rates were so cheap. It鈥檚 ridiculous how cheap the rates are. We still have the iron, and we鈥檙e trying to sell it,鈥� he said.
There were no layoffs on the rod side. The rod work is actually expanding.
Asked about the slow decline of cold heavy oil production with sand (CHOPS), he responded, 鈥淏ecause of our specialty, we鈥檒l be okay.鈥�
A big part of that is their operations mean less equipment on the lease.聽聽
