Bob Nicolay was the chief commissioner at the City of Medicine Hat, and since has been a partner in Oakpoint Energy, an oilfield process firm.
He spoke with the Medicine Hat News about technological innovation, the human costs of change and how to prosper in changing times.
MHN: What does the end of this energy slump look like for the Alberta oilpatch and utilities?
BN: It certainly is a different landscape right now. An adage that I use is that we tend to evolve through curiosity, but we innovate through necessity.
In the energy sector today in Canada and North America, we are in the midst of necessity. This is not something that is a passing aberration... it’s fundamental change in lifeline industries for domestic economies.
Innovation is more critical than we’ve seen in a long, long time. There is a real business problem that needs to be addressed.
There are three factors in my estimation: Cost, environmental attributes and reliability.
Not one dominates the other. The low-cost solution that isn’t reliable doesn’t work. The reliable solution that violates the environment doesn’t work.
We need to optimize those three variables in the delivery of energy.
We have a Saudi Oil minister telling North American oil CEOs ‘learn how to cut costs or get out of the business’. That’s a stark message, but it’s true.
MHN : When you’re talking about cutting costs, aren’t you talking about cutting wages and jobs in the oil patch that people depend on?
BN: The necessity right now is causing us to look at cost reductions. If they are done on the backs of people, then it’s not sustainable, and it’s not a good solution.
One example: Oakpoint is developing portable (thermal oilsands extraction) units capable of going in with much less environmental intrusion, much less capital, and then move out. There won’t be thousand-man construction camps in environmentally sensitive areas while they build megaprojects. But it means that manufacturing, fabrication, assembly, and transportation industries can flourish.
The responsible innovators need to always create solutions that are sustainable over time. They can’t be done at a social cost.
MHN : Technology and manufacturing is a watchword in economic development, but is that realistic goal outside of major centres?
BN : The electrical generation work that I’m doing now, it is micro generation and the chances are that the initial applications will be in smaller centres rather than large organizations.
MHN: What is the threat to a utility company from micro generation, considering people can produce their own energy?
BN: Large corporations are typically not where the innovation occurs, while a small startup company rejects the status quo.
When a good solution gets presented, if the utility ignores it and it really does solve cost, reliability and environment questions, then it’s a better solution.
That business will find a way and utility will lose customers. Once a robust valid technical solution is developed, then it’s in the best interest of the utility to integrate it into their suite of products.
with
Bob Nicolay
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