Thank you very much.
A third technological advancement I would like to point out today is with regard to wellbore integrity. The wells we are delivering to our customers today are thousands of meters below the surface of the earth, under layers of solid rock.
Like every other aspect of our industry, Canadian service companies that cement the wells are highly regulated to standards that are unquestionably world-leading. I am aware of at least two types of cement simulators used for pre-job planning. The software used closely simulates the events of a cementing job and, in particular, can calculate anticipated pumping pressures, pressures at the bottom or zone of interest, and casing burst and collapse pressure.
Simulators include sophisticated animation features that show the cementing job from beginning to end. The simulator works so well that on a recent deep intermediate cement job performed by one of our member companies, the actual recorded surface pump pressures seen on the job were almost identical to those predicted by the simulation.
There is a significant effort on the part of all PSAC members across the 17 subsectors they represent to adapt and implement the latest technology when it meets economic, competitive, and customer requirements. The technology being applied today has made significant advances not only for the protection of the environment but also for safe and efficient extraction of natural resources. The wells being drilled today are predominantly horizontal. PSAC has forecast that 70% of the 11,400 wells to be drilled in 2013 will be horizontal, and they are reaching unprecedented lengths.
Wells are taking longer to drill and are becoming far more complex. New technology is extending the typical season, because we are constructing permanent roads and locations that allow for activity well into the traditional breakup periods, the time when equipment moves out of field because ground conditions must either thaw or freeze up.
When heavy equipment is on location longer, it saves wear and tear on roads and local infrastructure, allowing for longer working periods, which boils down to steady work, consistent crews, employment security, and income security for the multitude of businesses reliant on oil and gas activity throughout the year, such as hotels, restaurants, and grocery stores. It is PSAC member companies that are established in communities throughout Canada—predominantly in the west—that contribute to local economies by way of school and sports team sponsorships, local businesses, and the improved quality of life.
Thank you very much.