The 2007 Alberta Royalty Review was an independent panel, chaired by William M. Hunter, established by the government of Alberta to review the level of resource royalties collected by the provincial government from petroleum and natural gas companies.
116-491: In their final report entitled "Our Fair Share" released on September 18, 2007, the panel concluded that Albertans, who own their natural resources, were not receiving their "fair share" from energy development. Royalty rates and formulas had "not kept pace with changes in the resource base and world energy markets." As a result of the review new regulations came into effect under the Alberta Mines and Minerals Act including
232-495: A plane table in 1551, but it is thought that the instrument was in use earlier as his description is of a developed instrument. Gunter's chain was introduced in 1620 by English mathematician Edmund Gunter . It enabled plots of land to be accurately surveyed and plotted for legal and commercial purposes. Leonard Digges described a theodolite that measured horizontal angles in his book A geometric practice named Pantometria (1571). Joshua Habermel ( Erasmus Habermehl ) created
348-445: A GPS on large scale surveys makes them popular for major infrastructure or data gathering projects. One-person robotic-guided total stations allow surveyors to measure without extra workers to aim the telescope or record data. A fast but expensive way to measure large areas is with a helicopter, using a GPS to record the location of the helicopter and a laser scanner to measure the ground. To increase precision, surveyors place beacons on
464-530: A barrel on July 8, 2008, to $ 32 a barrel later in 2008 resulting in "the cancellation of many energy projects" in Alberta. By 2015 several of these oil projects had not resumed. In spite of this, Alberta collected $ 2 billion in oil sands royalties in the post-2009 period with the new rate of 20% compared to $ 1.5 billion from 2004 to 2009 with the old rate of 15%. In areas surveyed and homesteaded early in Alberta's history all sub-soil resource rights belong to
580-542: A barrel. Later in 2008 the price of oil plummeted to $ 32 a barrel resulting in "the cancellation of many energy projects" in Alberta. By 2015 several of these oil projects had not resumed. In 2009/2010 the Alberta government collected $ 6.1 billion in royalties representing a drop of $ 3 billion. According to a 2015 University of Alberta 's Parkland Institute report by Jim Roy, who was a senior advisor for Royalty Policy for Alberta Energy from 1985 to 1993, from 2010 to 2015 Alberta collected $ 13.5 billion less in royalty than in
696-477: A fixed base station and a second roving antenna. The position of the roving antenna can be tracked. The theodolite , total station and RTK GPS survey remain the primary methods in use. Remote sensing and satellite imagery continue to improve and become cheaper, allowing more commonplace use. Prominent new technologies include three-dimensional (3D) scanning and lidar -based topographical surveys. UAV technology along with photogrammetric image processing
812-423: A great step forward in the instrument's accuracy. William Gascoigne invented an instrument that used a telescope with an installed crosshair as a target device, in 1640. James Watt developed an optical meter for the measuring of distance in 1771; it measured the parallactic angle from which the distance to a point could be deduced. Dutch mathematician Willebrord Snellius (a.k.a. Snel van Royen) introduced
928-502: A height above sea level. As the surveying profession grew it created Cartesian coordinate systems to simplify the mathematics for surveys over small parts of the Earth. The simplest coordinate systems assume that the Earth is flat and measure from an arbitrary point, known as a 'datum' (singular form of data). The coordinate system allows easy calculation of the distances and direction between objects over small areas. Large areas distort due to
1044-433: A known size. It was sometimes used before to the invention of EDM where rough ground made chain measurement impractical. Historically, horizontal angles were measured by using a compass to provide a magnetic bearing or azimuth. Later, more precise scribed discs improved angular resolution. Mounting telescopes with reticles atop the disc allowed more precise sighting (see theodolite ). Levels and calibrated circles allowed
1160-434: A loop pattern or link between two prior reference marks so the surveyor can check their measurements. Many surveys do not calculate positions on the surface of the Earth, but instead, measure the relative positions of objects. However, often the surveyed items need to be compared to outside data, such as boundary lines or previous survey's objects. The oldest way of describing a position is via latitude and longitude, and often
1276-404: A loss position for tax and royalty purposes for many years. Defining a loss position becomes increasingly complex when vertically-integrated multi-national energy companies are involved. Suncor claims their realized losses were legitimate and that Canada Revenue Agency (CRA) is unfairly claiming "$ 1.2-billion" in taxes which is jeopardizing their operations. "Bitumen Valuation Methodology (BVM)
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#17327839227541392-618: A multi frequency phase shift of light waves to find a distance. These instruments eliminated the need for days or weeks of chain measurement by measuring between points kilometers apart in one go. Advances in electronics allowed miniaturization of EDM. In the 1970s the first instruments combining angle and distance measurement appeared, becoming known as total stations . Manufacturers added more equipment by degrees, bringing improvements in accuracy and speed of measurement. Major advances include tilt compensators, data recorders and on-board calculation programs. The first satellite positioning system
1508-411: A plan or map, and the points at the ends of the offset lines could be joined to show the feature. Traversing is a common method of surveying smaller areas. The surveyor starts from an old reference mark or known position and places a network of reference marks covering the survey area. They then measure bearings and distances between the reference marks, and to the target features. Most traverses form
1624-406: A point inside a triangle using the angles cast between the vertices at the unknown point. These could be measured more accurately than bearings of the vertices, which depended on a compass. His work established the idea of surveying a primary network of control points, and locating subsidiary points inside the primary network later. Between 1733 and 1740, Jacques Cassini and his son César undertook
1740-462: A premium to Brent before 2011, but since the shale oil boom in the 2010s it has been traded at a discount against Brent crude oil. Both the volatility of the WTI/Brent premium/discount, as well as its reversal from premium to discount in 2011, are studied and monitored by market participants as indicators for the functioning of WTI and Brent Crude as oil price benchmarks. In February 2011, WTI
1856-478: A profession. They established the basic measurements under which the Roman Empire was divided, such as a tax register of conquered lands (300 AD). Roman surveyors were known as Gromatici . In medieval Europe, beating the bounds maintained the boundaries of a village or parish. This was the practice of gathering a group of residents and walking around the parish or village to establish a communal memory of
1972-559: A project's gross revenues until the project's investment costs are paid in full at which point rates increased to 25 per cent of net revenue. These policy changes and higher oil prices after 2003 had the desired effect of accelerating the development of the oil sands industry. "A revised Alberta Royalty Regime was implemented on January 1, 2009 through which each oil sands project pays a gross revenue royalty rate of 1%. The Oil and Gas Fiscal Regimes described how royalty payments were calculated: After an oil sands royalty project reaches payout,
2088-428: A reflector or prism to return the light pulses used for distance measurements. They are fully robotic, and can even e-mail point data to a remote computer and connect to satellite positioning systems , such as Global Positioning System . Real Time Kinematic GPS systems have significantly increased the speed of surveying, and they are now horizontally accurate to within 1 cm ± 1 ppm in real-time, while vertically it
2204-474: A relatively higher price for those contracts to get the same underlying spot price exposure as their previous expiring contract. These roll costs could be viewed as compensation, purchased virtual storage, or an indirect subsidy for storage owners to provide the service of storing crude on behalf of financial investors. In the WTI context, storage owners would include most participants in the physical WTI market. Beyond
2320-652: A royalty. In 1930, the Natural Resources Transfer Act , shifted control of natural resources in Alberta from the federal government to the provincial government. In 1931 the Alberta government set the royalty rate at five per cent on oil and gas, creating a rift with the oil industry. In 1971, soon after winning a majority government for the Progressive Conservatives in 1971, then-premier Peter Lougheed moved to increase Alberta's share of royalties creating hostilities with
2436-476: A star is determined, the bearing can be transferred to a reference point on Earth. The point can then be used as a base for further observations. Survey-accurate astronomic positions were difficult to observe and calculate and so tended to be a base off which many other measurements were made. Since the advent of the GPS system, astronomic observations are rare as GPS allows adequate positions to be determined over most of
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#17327839227542552-515: A study in September 2007, in which they ranked Alberta's 2007 fiscal regime for oil sands as 11th most favourable out of 100 jurisdictions globally. If all of the recommendations of the report [were] implemented, the report indicated "that the oil sand terms would still rank 44 out of 100 countries in terms of attractiveness." In 2007 the proposed 64% government take remained well below the average government take of 74% calculated by Wood Mackenzie for
2668-459: A substantial contributor to the WTI premium over Brent crude. Premiums/discounts between WTI and Brent crude also reflects declining crude oil production priced under Brent crude prices. As crude production declines from depletion in Brent crude associated North Sea oilfields ( Brent , Forties , Oseberg , Ekofisk , and Troll ; also referred to as BFOET), a higher proportion of that oil production
2784-495: A theodolite with a compass and tripod in 1576. Johnathon Sission was the first to incorporate a telescope on a theodolite in 1725. In the 18th century, modern techniques and instruments for surveying began to be used. Jesse Ramsden introduced the first precision theodolite in 1787. It was an instrument for measuring angles in the horizontal and vertical planes. He created his great theodolite using an accurate dividing engine of his own design. Ramsden's theodolite represented
2900-593: A time component. Before EDM (Electronic Distance Measurement) laser devices, distances were measured using a variety of means. In pre-colonial America Natives would use the "bow shot" as a distance reference ("as far as an arrow can slung out of a bow", or "flights of a Cherokee long bow"). Europeans used chains with links of a known length such as a Gunter's chain , or measuring tapes made of steel or invar . To measure horizontal distances, these chains or tapes were pulled taut to reduce sagging and slack. The distance had to be adjusted for heat expansion. Attempts to hold
3016-525: A variety of spot prices split into various categories set by the price controls. After the price decontrol, WTI graded crude oil traded under spot prices centered around spot prices at Cushing, Oklahoma, Midland, Texas, and Houston, Texas (specifically at the Magellan East Houston "MEH" Terminal). Oil price collapses during 1985-1986 significantly reduced local oil production around Cushing, and linked Gulf Coast imported crude oil supplies into
3132-443: Is a method to determine for royalty purposes a value for bitumen produced in oil sands projects and either upgraded on-site or sold or transferred to affiliates. The BVM ensures that Alberta receives market value for its bitumen production, taken in cash or bitumen royalty-in-kind, through the royalty formula. Western Canadian Select (WCS), a grade or blend of Alberta bitumens, diluents (a product such as naphtha or condensate which
3248-474: Is a staple of contemporary land surveying. Typically, much if not all of the drafting and some of the designing for plans and plats of the surveyed property is done by the surveyor, and nearly everyone working in the area of drafting today (2021) utilizes CAD software and hardware both on PC, and more and more in newer generation data collectors in the field as well. Other computer platforms and tools commonly used today by surveyors are offered online by
3364-399: Is a term used when referring to moving the level to take an elevation shot from a different location. To "turn" the level, one must first take a reading and record the elevation of the point the rod is located on. While the rod is being kept in exactly the same location, the level is moved to a new location where the rod is still visible. A reading is taken from the new location of the level and
3480-411: Is added to increase the ability of the oil to flow through a pipeline) and conventional heavy oils, developed by Alberta producers and stored and valued at Hardisty, AB was determined to be the best reference crude price in the development of a BVM." By the end of 2001 the price of oil was as low as $ 20 a barrel. By July 8, 2008 the price of oil steadily increased until it reached an all-time high of $ 145
3596-400: Is also appearing. The main surveying instruments in use around the world are the theodolite , measuring tape , total station , 3D scanners , GPS / GNSS , level and rod . Most instruments screw onto a tripod when in use. Tape measures are often used for measurement of smaller distances. 3D scanners and various forms of aerial imagery are also used. The theodolite is an instrument for
Alberta Royalty Review - Misplaced Pages Continue
3712-405: Is also known as Texas light sweet . Oil produced from any location can be considered WTI if the oil meets the required qualifications. Spot and futures prices of WTI are used as a benchmark in oil pricing . This grade is described as light crude oil because of its low density and sweet because of its low sulfur content. The price of WTI is often included in news reports on oil prices, alongside
3828-412: Is an alternate method of determining the position of objects, and was often used to measure imprecise features such as riverbanks. The surveyor would mark and measure two known positions on the ground roughly parallel to the feature, and mark out a baseline between them. At regular intervals, a distance was measured at right angles from the first line to the feature. The measurements could then be plotted on
3944-467: Is an extreme case of contango . Assess WTI prices were affected, and the WTI spot price dropped to -$ 36.98 on April 20. At the same time, Mars crude oil produced in the US Gulf Coast (USGC) settled at -$ 26.63, and Middle East exporters who uses ASCI (of which Mars is a component) as the selling price benchmark had to settle for negative prices that day. Historically, WTI has generally traded at
4060-505: Is because divergent conditions further away from the base reduce accuracy. Surveying instruments have characteristics that make them suitable for certain uses. Theodolites and levels are often used by constructors rather than surveyors in first world countries. The constructor can perform simple survey tasks using a relatively cheap instrument. Total stations are workhorses for many professional surveyors because they are versatile and reliable in all conditions. The productivity improvements from
4176-557: Is consumed by local European refiners, and both a lesser proportion and a lesser absolute amount of that oil production can be exported to the US. During periods when WTI trades at a premium to Brent crude, declining Brent crude production pushes up that premium as traders cannot source supplies to sell into the US for a profit. As well, participants in the Brent crude market compensates for declining North Sea production by associating additional oilfields and different quality crude production into
4292-585: Is currently about half of that to within 2 cm ± 2 ppm. GPS surveying differs from other GPS uses in the equipment and methods used. Static GPS uses two receivers placed in position for a considerable length of time. The long span of time lets the receiver compare measurements as the satellites orbit. The changes as the satellites orbit also provide the measurement network with well conditioned geometry. This produces an accurate baseline that can be over 20 km long. RTK surveying uses one static antenna and one roving antenna. The static antenna tracks changes in
4408-474: Is funded through oil and gas revenues. Bitumen royalties represent about half of that total." In 2009/10 royalties from the oil sands amounted to $ 1.008 billion (Budget 2009 cited in Energy Alberta 2009. In order to accelerate development of the oil sands, the federal and provincial governments more closely aligned taxation of the oil sands with other surface mining resulting in "charging one per cent of
4524-813: Is in Payne County, Oklahoma , United States . Starting in 2003, an influx of traders from outside of the oil industry begun to participate in oil futures and other commodities futures markets. These market participants, which includes hedge funds, pension funds, insurance companies, and retail investors, were motivated by the increasing acceptance of oil futures contracts and related derivatives as financial assets. Demand from these investors and general financial innovation created inexpensive access to financial instruments related to oil futures contracts, such as options, index funds, and exchange-traded funds. As part of wave of investor interest, WTI crude oil futures prices (as well as Brent Crude oil prices) are included in both
4640-623: Is the benchmark crude for Albertan oil. In a letter addressed to the Alberta Finance Minister in September 2007, the Chairman of the 2007 Alberta Royalty Review Bill Hunter, claimed "Albertans do not receive their fair share from energy development and they have not, in fact, been receiving their fair share for some time." The panel's report not only recommended increased royal rates for all three major resources (conventional oil, natural gas, and oilsands) but also insisted that
4756-406: Is the technique, profession, art, and science of determining the terrestrial two-dimensional or three-dimensional positions of points and the distances and angles between them. These points are usually on the surface of the Earth, and they are often used to establish maps and boundaries for ownership , locations, such as the designated positions of structural components for construction or
Alberta Royalty Review - Misplaced Pages Continue
4872-512: Is typically reported as WTI, while eligible spot transactions at Midland, Texas, and Houston, Texas (at the MEH Terminal) are reported as WTI Midland, and WTI Houston respectively. The development of WTI spot and futures markets led crude oil producers around the world to use assessed WTI prices as a benchmark in oil pricing . For example, in 2008, Saudi Arabia, Kuwait, Iraq, Colombia, and Ecuador based their crude oil selling prices on either
4988-432: Is with an altimeter using air pressure to find the height. When more precise measurements are needed, means like precise levels (also known as differential leveling) are used. When precise leveling, a series of measurements between two points are taken using an instrument and a measuring rod. Differences in height between the measurements are added and subtracted in a series to get the net difference in elevation between
5104-670: The Alberta Liberals and Alberta New Democrats , criticizing the government for failing to get Alberta's "fair share" and, in effect, subsidizing oil companies at the expense of the public purse. They failed to make any gains against the Conservatives during the Alberta provincial general election of 2008 , however, despite a record low turnout caused primarily by traditional Tory supporters staying home. The highly respected global energy consultancy Wood Mackenzie released
5220-583: The Bloomberg Commodity Index and the S&;P GSCI commodity index, which are benchmark indices widely followed in financial markets by traders and institutional investors . Its weighting in these commodity indices give LME Nickel prices non-trivial influence on returns on a wide range of investment funds and portfolios . For financial investors without oil storage, purchasing the shortest maturity futures contract and then rolling to
5336-713: The Great Pyramid of Giza , built c. 2700 BC , affirm the Egyptians' command of surveying. The groma instrument may have originated in Mesopotamia (early 1st millennium BC). The prehistoric monument at Stonehenge ( c. 2500 BC ) was set out by prehistoric surveyors using peg and rope geometry. The mathematician Liu Hui described ways of measuring distant objects in his work Haidao Suanjing or The Sea Island Mathematical Manual , published in 263 AD. The Romans recognized land surveying as
5452-509: The Principal Triangulation of Britain . The first Ramsden theodolite was built for this survey. The survey was finally completed in 1853. The Great Trigonometric Survey of India began in 1801. The Indian survey had an enormous scientific impact. It was responsible for one of the first accurate measurements of a section of an arc of longitude, and for measurements of the geodesic anomaly. It named and mapped Mount Everest and
5568-621: The Torrens system in South Australia in 1858. Torrens intended to simplify land transactions and provide reliable titles via a centralized register of land. The Torrens system was adopted in several other nations of the English-speaking world. Surveying became increasingly important with the arrival of railroads in the 1800s. Surveying was necessary so that railroads could plan technologically and financially viable routes. At
5684-799: The U.S. Federal Government and other governments' survey agencies, such as the National Geodetic Survey and the CORS network, to get automated corrections and conversions for collected GPS data, and the data coordinate systems themselves. Surveyors determine the position of objects by measuring angles and distances. The factors that can affect the accuracy of their observations are also measured. They then use this data to create vectors, bearings, coordinates, elevations, areas, volumes, plans and maps. Measurements are often split into horizontal and vertical components to simplify calculation. GPS and astronomic measurements also need measurement of
5800-602: The 2010 Census). However, it is the site of the Cushing Oil Field , which was discovered in 1912, and dominated U.S. oil production for several years. The area became a "vital transhipment point with many intersecting pipelines, storage facilities, and easy access to refiners and suppliers," infrastructure which remained after the Cushing field had declined in importance. Crude oil flows "inbound to Cushing from all directions and outbound through dozens of pipelines". It
5916-668: The Alberta Government) as "light sweet oil traded and delivered at Cushing, Oklahoma" (with WTI Midland and WTI Houston crude oil defined similarly for Midland, Texas, and Houston, Texas respectively). Historically, local trade between oilfield production and refineries around Midland, Texas, and Cushing, Oklahoma , could be said to define WTI oil, but as local production declined, pipelines into those areas began to deliver crude oil of other grades, produced and blended elsewhere, which were also accepted as WTI. The WTI futures contract formalized this relationship by specifying that
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#17327839227546032-530: The Corridor was "the only urban region in Canada to rival U.S. metropolitan areas in terms of both productivity and standard of living." The Conservatives partially implemented the panel's recommendations. This coincided with a fall in oil prices during the financial crisis of 2007–2008 . Oil and gas companies, especially smaller companies, complained that this hurt their bottom line, and threatened to move out of
6148-632: The Cushing region and the WTI market. The growth of the WTI spot market came in tandem with the growth of the WTI futures market. The volatility of WTI spot prices lead to the development of WTI futures contracts, while the adoption of the WTI futures contracts as hedging tools by producers and refiners worldwide lead to the worldwide adoption of assessed physical WTI spot prices as benchmark prices for crude. Price Reporting Agencies (PRAs), such as Platts and Argus Media , compiled assessment prices of WTI based on prices of spot transactions starting in 1981. Eligible spot transaction prices at Cushing, Oklahoma,
6264-576: The Earth's curvature. North is often defined as true north at the datum. West Texas Intermediate West Texas Intermediate ( WTI ) is a grade or mix of crude oil ; the term is also used to refer to the spot price, the futures price, or assessed price for that oil. In colloquial usage, WTI usually refers to the WTI Crude Oil futures contract traded on the New York Mercantile Exchange (NYMEX) . The WTI oil grade
6380-792: The Gulf and East Coast, where it received Brent prices. Brent continued to trade $ 10–20 higher than WTI for two years, until June 2013. To the extent that price difference between WTI and Brent crude entice traders to ship WTI to North Sea refineries or ship Brent to US Gulf Cost refineries, the premium/discount between WTI and Brent crude must reflect oil tanker freight costs. Oil tanker freight cost rates could be highly volatile, due to circular dependence on fuel oil prices and ultimately crude prices, to demand for oil tankers to serve non-USGC non-North-Sea trade routes (especially to China), and to demand for using oil tankers as floating storage for crude oil. From 2000 to 2009, oil tanker freight rates represented
6496-586: The NYMEX WTI futures contract characterization is a requirement for WTI crude oil delivery to the contract. WTI crude oil will typically satisfy the WTI futures contract requirements and be close to the Platts and Argus assessed values at the time. The US governmental decontrol of oil prices on January 28, 1981, marked the beginning of the physical WTI Crude Oil spot market. Under the previous US Emergency Petroleum Allocation Act of 1973, WTI crude oil traded under
6612-574: The Petroleum Royalty Regulation, 2009, and the Natural Gas Royalty Regulation, 2009. The government of Alberta expected to collect approximately $ 2 billion annually with new royalty formulas implemented in 2009. Instead of an increase in royalties on oil and gas, Alberta collected $ 13.5 billion less from 2009 to 2014 with the new formula. There was a flaw in the 2009 New Well Royalty Rate formula which
6728-714: The Platts WTI Mnth 1 index or the Platts WTI Mnth 2 index (the assessed prices of transactions with delivery in the next deliverable month or the second deliverable month). Subsequently, Saudi Arabia, Kuwait, and Iraq started using the Argus Sour Crude Index (ASCI) as their price index in 2009, but the ASCI index itself is priced in relation to WTI futures with a differential, which imply those countries still effectively benchmark their crude oil selling prices to WTI. The volatility of crude oil prices after
6844-557: The Suncor oilsands. Ralph Klein lowered royalties during the early 1990s to spur investment in the oil sands that faced an uncertain future with the low price of oil at that time. In 1997 the Alberta government set a "generic royalty formula for oil sands projects" using the "1% and 25% formula." In 2001 the oil and gas industry represented 23 percent of Alberta's GDP. In 2006, a year before becoming Premier of Alberta, Ed Stelmach announced his commitment to reviewing royalty rates for
6960-582: The US oil price decontrol led to the development of the NYMEX WTI Light Sweet Crude Oil futures contract in 1983. The NYMEX Crude Oil contract trades under the symbol CL on the New York Mercantile Exchange, now part of Chicago Mercantile Exchange . The contract is for 1,000 US barrels, or 42,000 US gallons, of WTI crude oil, the minimum tick size of the contract is $ 0.01 per barrel ($ 10 for contract), and
7076-438: The basis for dividing the western territories into sections to allow the sale of land. The PLSS divided states into township grids which were further divided into sections and fractions of sections. Napoleon Bonaparte founded continental Europe 's first cadastre in 1808. This gathered data on the number of parcels of land, their value, land usage, and names. This system soon spread around Europe. Robert Torrens introduced
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#17327839227547192-457: The bearing from every vertex in a figure, a surveyor can measure around the figure. The final observation will be between the two points first observed, except with a 180° difference. This is called a close . If the first and last bearings are different, this shows the error in the survey, called the angular misclose . The surveyor can use this information to prove that the work meets the expected standards. The simplest method for measuring height
7308-468: The beginning of the century, surveyors had improved the older chains and ropes, but they still faced the problem of accurate measurement of long distances. Trevor Lloyd Wadley developed the Tellurometer during the 1950s. It measures long distances using two microwave transmitter/receivers. During the late 1950s Geodimeter introduced electronic distance measurement (EDM) equipment. EDM units use
7424-528: The boundaries. Young boys were included to ensure the memory lasted as long as possible. In England, William the Conqueror commissioned the Domesday Book in 1086. It recorded the names of all the land owners, the area of land they owned, the quality of the land, and specific information of the area's content and inhabitants. It did not include maps showing exact locations. Abel Foullon described
7540-515: The contract price is quoted in US dollars. Monthly contracts are available for the current year, the following 10 calendar years, and 2 additional months. For example, from the perspective of any day in June before the last trade date for the June 2020 contracts, contracts for June 2020, July 2020, August 2020, ... December 2030, January 2031, and February 2031 are available for trading. The maximum number of contracts would be 134 contracts, which occurs at
7656-507: The crude oil market is also associated with lower price volatility. WTI futures contracts are tied to physical deliveries into the physical spot WTI market, so WTI futures contract prices should converge to physical spot WTI market conditions and prices. But since deliveries made to settle an expiring WTI futures contract are also physical spot WTI transactions that can be included into PRA assessed prices, abnormal futures contract transactions could drive WTI spot prices and assessed prices. This
7772-400: The definition of Brent crude, which affects the quality differential between Brent and WTI crude oils. Forties and Oseberg crude oil was added in 2002, Ekofisk crude oil was added in 2007, and Troll crude oil was added in 2018 to Brent crude oil pricing basket. Moreover, the different grades in the "Brent basket" are priced different. For example, Ekofisk, Oseberg, and Troll crude oil grades have
7888-523: The deliverable asset for the contract could be a blend of crude oil, as long as it was of acceptable lightness and sweetness. Crude oil lightness is characterized by oil gravity , and crude oil sweetness by sulfur content. Measurements of lightness and sweetness of WTI changes depending on the particular light and sweet oil traded at Cushing at the time of the measurement, and even the particular measurement methodology. The Platts and Argus API and sulfur measurements are descriptions of WTI as assessed, while
8004-517: The developer has recovered all the allowed costs of the project, including a return allowance on those costs equal to the Government of Canada long-term bond rate ["LTBR"]. In order to encourage growth and prosperity and due to the extremely high cost of exploration, research and development, oil sands and mining operations pay no corporate, federal, provincial taxes or government royalties other than personal income taxes as companies often remain in
8120-405: The development of the human environment since the beginning of recorded history . It is used in the planning and execution of most forms of construction . It is also used in transportation, communications, mapping, and the definition of legal boundaries for land ownership. It is an important tool for research in many other scientific disciplines. The International Federation of Surveyors defines
8236-562: The early days of surveying, this was the primary method of determining accurate positions of objects for topographic maps of large areas. A surveyor first needs to know the horizontal distance between two of the objects, known as the baseline . Then the heights, distances and angular position of other objects can be derived, as long as they are visible from one of the original objects. High-accuracy transits or theodolites were used, and angle measurements were repeated for increased accuracy. See also Triangulation in three dimensions . Offsetting
8352-459: The expiry of a December contract when contracts for a new calendar year and two months are made available for trading. Cushing, Oklahoma is a major trading hub for crude oil and has been the delivery point for crude contracts and therefore the price settlement point for West Texas Intermediate on the New York Mercantile Exchange for over three decades. The town of Cushing, Oklahoma is a small, remote place with only 7,826 inhabitants (according to
8468-544: The first prototype satellites of the Global Positioning System (GPS) in 1978. GPS used a larger constellation of satellites and improved signal transmission, thus improving accuracy. Early GPS observations required several hours of observations by a static receiver to reach survey accuracy requirements. Later improvements to both satellites and receivers allowed for Real Time Kinematic (RTK) surveying. RTK surveys provide high-accuracy measurements by using
8584-502: The first time ever, the reduction in trading shut down the Trade at Settlement (TAS) mechanism of the May 2020 WTI contract 30 minutes before the end of trading due to a lack of buyers. The TAS shutdown signaled to market participants that all remaining open May 2020 WTI contracts that have to be sold, either outright or for the purposes of rolling to the June 2020 contract, to the open market in
8700-467: The first triangulation of France. They included a re-surveying of the meridian arc , leading to the publication in 1745 of the first map of France constructed on rigorous principles. By this time triangulation methods were well established for local map-making. It was only towards the end of the 18th century that detailed triangulation network surveys mapped whole countries. In 1784, a team from General William Roy 's Ordnance Survey of Great Britain began
8816-515: The function of surveying as follows: A surveyor is a professional person with the academic qualifications and technical expertise to conduct one, or more, of the following activities; Surveying has occurred since humans built the first large structures. In ancient Egypt , a rope stretcher would use simple geometry to re-establish boundaries after the annual floods of the Nile River . The almost perfect squareness and north–south orientation of
8932-452: The government had failed to collect royalties already owed. The recommended rate increase amounted to a 20% increase or an extra $ 2 billion per year. Some supporters of the oil industry responded to the 2007 Review with concerns that Calgary would become the "Caracas on the Bow" in the province of "Albertastan." In 2007 the political response was highly polarized, with the parties of the left,
9048-748: The ground (about 20 km (12 mi) apart). This method reaches precisions between 5–40 cm (depending on flight height). Surveyors use ancillary equipment such as tripods and instrument stands; staves and beacons used for sighting purposes; PPE ; vegetation clearing equipment; digging implements for finding survey markers buried over time; hammers for placements of markers in various surfaces and structures; and portable radios for communication over long lines of sight. Land surveyors, construction professionals, geomatics engineers and civil engineers using total station , GPS , 3D scanners, and other collector data use land surveying software to increase efficiency, accuracy, and productivity. Land Surveying Software
9164-509: The ground to large beacons that can be seen from long distances. The surveyors can set up their instruments in this position and measure to nearby objects. Sometimes a tall, distinctive feature such as a steeple or radio aerial has its position calculated as a reference point that angles can be measured against. Triangulation is a method of horizontal location favoured in the days before EDM and GPS measurement. It can determine distances, elevations and directions between distant objects. Since
9280-400: The height difference is used to find the new elevation of the level gun, which is why this method is referred to as differential levelling . This is repeated until the series of measurements is completed. The level must be horizontal to get a valid measurement. Because of this, if the horizontal crosshair of the instrument is lower than the base of the rod, the surveyor will not be able to sight
9396-671: The land owner, but in the areas surveyed later or in the massive crown land areas of the northern half of the province where the current productive oil fields are located, the Crown , represented by the provincial government, owns all sub-soil resources. Unlike many other oil-producing jurisdictions such as Saudi Arabia or Norway, Alberta does not have a National Oil Company that owns and exploits all petroleum resources. Instead privately owned oil companies of various sizes, from inside and outside Canada are encouraged to drill for oil and gas or mine oil sands on Crown land, and in exchange pay
9512-470: The maximum rate for conventional oil from 50% to 40% of revenues and cutting the maximum rate for natural gas from 50% to 36%. The large decrease in royalty starting in 2009 was mostly due to the way the gas formula automatically adjusted to the falling price for natural gas. The government introduced a "new well" incentive that capped royalty to a maximum of 5% during the first year of production. However, this incentive had no actual effect on gas royalty because
9628-464: The measurement of angles. It uses two separate circles , protractors or alidades to measure angles in the horizontal and the vertical plane. A telescope mounted on trunnions is aligned vertically with the target object. The whole upper section rotates for horizontal alignment. The vertical circle measures the angle that the telescope makes against the vertical, known as the zenith angle. The horizontal circle uses an upper and lower plate. When beginning
9744-409: The measurement of vertical angles. Verniers allowed measurement to a fraction of a degree, such as with a turn-of-the-century transit . The plane table provided a graphical method of recording and measuring angles, which reduced the amount of mathematics required. In 1829 Francis Ronalds invented a reflecting instrument for recording angles graphically by modifying the octant . By observing
9860-424: The measuring instrument level would also be made. When measuring up a slope, the surveyor might have to "break" (break chain) the measurement- use an increment less than the total length of the chain. Perambulators , or measuring wheels, were used to measure longer distances but not to a high level of accuracy. Tacheometry is the science of measuring distances by measuring the angle between two ends of an object with
9976-411: The modern systematic use of triangulation . In 1615 he surveyed the distance from Alkmaar to Breda , approximately 72 miles (116 km). He underestimated this distance by 3.5%. The survey was a chain of quadrangles containing 33 triangles in all. Snell showed how planar formulae could be corrected to allow for the curvature of the Earth . He also showed how to resect , or calculate, the position of
10092-474: The need by financial investors in oil, oil storage is also valuable because it provides insurance against supply disruptions or unexpected increases in demand. Refiners who wish to avoid carrying real physical oil inventories can purchase futures contracts as virtual storage as an alternative. Oil producers wishing to maintain real physical oil inventories similarly could lower the cost of those inventories through selling futures contracts. Index fund participation in
10208-425: The next contract priory to expiry offered the closest approximation to investing in physical oil prices. However, financial markets are much larger than oil markets, and investor flows began to dominate oil producers' hedging needs and moved the oil futures market into contango , where futures prices are greater than spot prices. Contango imposes a roll cost on investors who must roll futures contracts, as they must pay
10324-558: The next three fiscal years (2014/15 to 2016/17) and an increase in the annual share of bitumen and crude oil royalties to over 17 per cent of government revenues." In 2012–2013 $ 3.56 billion in royalties were collected from the oil sands. Royalty rates on oil in Alberta are based on the price of West Texas Intermediate , the benchmark in oil pricing in North America and the underlying commodity of New York Mercantile Exchange 's oil futures contracts . Western Canadian Select
10440-491: The next twenty minutes. The speed at which the contracts had to be sold, and the closeness of that time to contract expiry meant that large physical oil traders, who could have transported and stored oil elsewhere given a low enough price, could not buy contracts due to operational, risk management, and position limit constraints. Any remaining traders who were willing to buy contracts gained enormous market power and pushed prices downwards into negative territory . This situation
10556-454: The oil industry. At that time the price of oil was rising globally as the influence of the newly formed Organization of Petroleum Exporting Countries increased. In 1986 when the price of oil bottomed at US$ 10 a barrel, Don Getty , who was premier from 1985 to 1992, responded by providing the oil industry with $ 250 million in incentives and royalty cuts. By the end of 1986 Alberta had granted another nine-month cut from 12% to 1% in royalties at
10672-489: The oil sands as well as for conventional oil and natural gas. As Premier in 2007 he tasked then-Minister of Finance Lyle Oberg to lead the Alberta Royalty Review process. By 2007 The oil and gas industry represented 19 percent of the province's GDP. In 2006-7 the oil sands royalty revenue was $ 2.411 billion. In 2007/08 it rose to $ 2.913 billion and it continued to rise in 2008/09 to $ 2.973 billion. Following
10788-624: The other Himalayan peaks. Surveying became a professional occupation in high demand at the turn of the 19th century with the onset of the Industrial Revolution . The profession developed more accurate instruments to aid its work. Industrial infrastructure projects used surveyors to lay out canals , roads and rail. In the US, the Land Ordinance of 1785 created the Public Land Survey System . It formed
10904-549: The other countries in the study (this take included government equity participations in many countries). The Wood Mackenzie study confirms the findings of the Panel in this regard." In September 2007, TD Bank Financial Group Chief economist, Don Drummond and Derek Burelton claimed Alberta's economy would continue to thrive. The TD report expected Alberta's response to the ARR to be "the next major event," TD economists suggested that many of
11020-420: The previous five years. Instead of getting the expected $ 2 billion per year increase, Alberta saw a $ 3 billion per year decrease. The decrease was composed of a $ 5 billion per year decrease in gas royalty partially offset by increases in oil royalty and oil sands royalty. The total value of hydrocarbon production was about the same during each five-year period. Surveying Surveying or land surveying
11136-695: The previous five years. Instead of getting the expected $ 2 billion per year increase, Alberta saw a $ 3 billion per year decrease. The decrease was composed of a $ 5 billion per year decrease in gas royalty partially offset by increases in oil royalty and oil sands royalty. The total value of hydrocarbon production was about the same during each five-year period. From October 2009 to 2013/14 bitumen and crude oil royalties "averaged $ 6.2 billion and contributed just under 16 per cent to government revenues on an annual basis." The Alberta government predicted in its 2014/15 fiscal-year budget that there would be "an annual average of $ 8.0 billion in bitumen and crude oil royalties over
11252-557: The price of Brent crude from the North Sea . Other important oil markers include the Dubai crude , Oman crude, Urals oil , and the OPEC reference basket . WTI is lighter and sweeter, containing less sulfur than Brent, and considerably lighter and sweeter than Dubai or Oman. Unlike Brent Crude , WTI crude oil is not from any specific oil fields. Rather, WTI is described (for example by
11368-514: The price reaches $ 120/bbl. For royalty purposes, net revenue equals project revenue less allowed costs. When the price of oil per barrel is less than or equal to $ 55/bbl indexed against West Texas Intermediate (WTI) (Oil and Gas Fiscal Regimes 2011:30) (Indexed to the Canadian dollar price of WTI) to a maximum of 9%). When the price of oil per barrel is less than or equal to $ 120/ bbl indexed against WTI "payout." Payout refers "the first time when
11484-488: The price-sensitive formula has set a negative royalty rate each month since being introduced. For almost all wells, the royalty formula defaults to the minimum royalty rate of 5%. Those on the right criticized the government for raising royalties and damaging profits in Alberta's most important industry, which they likened the "killing The Goose That Laid the Golden Eggs ". Junior oil companies were instrumental in funding
11600-480: The province or shut down. In 2008 the global price of oil plummeted from $ 145 /barrel to $ 32/barrel and many energy projects left the province or were shut down in Alberta. Some never resumed. Alberta collected $ 2 billion in oil sands royalties in the post-2009 period with the new rate of 20%. The Alberta government announced on March 11, 2010, that royalty rates effective in January 2011, would be rolled back cutting
11716-482: The review Panel's recommendations made economic sense. TD Economics had designated the Calgary-Edmonton Corridor as Canada's western economic tiger in 2003. From 1993 to 2003, Calgary-Edmonton Corridor "registered explosive real economic growth and population increases, surpassing rates chalked up in the majority of North American urban centres." By 2003 oil and gas royalty revenues were surging and
11832-496: The revised Alberta Royalty Regime it fell in 2009/10 to $ 1.008 billion. In that year Alberta's total resource revenue "fell below $ 7 billion...when the world economy was in the grip of recession." In February 2012 the Province of Alberta "expected $ 13.4 billion in revenue from non-renewable resources in 2013–14. By January 2013 the province was anticipating only $ 7.4 billion. "30 per cent of Alberta's approximately $ 40-billion budget
11948-477: The rod and get a reading. The rod can usually be raised up to 25 feet (7.6 m) high, allowing the level to be set much higher than the base of the rod. The primary way of determining one's position on the Earth's surface when no known positions are nearby is by astronomic observations. Observations to the Sun, Moon and stars could all be made using navigational techniques. Once the instrument's position and bearing to
12064-411: The royalty payable to the Crown is equal to the greater of: (a) the gross revenue royalty (1% - 9%) for the period, and (b) the royalty percentage (25% - 40%) of net revenue for the period. Effective January 1, 2009 the royalty percentage of net revenue is also indexed to the Canadian dollar price of WTI. It is 25% when the WTI price is less than or equal to $ 55/bbl, rising linearly to a maximum of 40% when
12180-422: The satellite positions and atmospheric conditions. The surveyor uses the roving antenna to measure the points needed for the survey. The two antennas use a radio link that allows the static antenna to send corrections to the roving antenna. The roving antenna then applies those corrections to the GPS signals it is receiving to calculate its own position. RTK surveying covers smaller distances than static methods. This
12296-678: The surface location of subsurface features, or other purposes required by government or civil law, such as property sales. A professional in land surveying is called a land surveyor . Surveyors work with elements of geodesy , geometry , trigonometry , regression analysis , physics , engineering, metrology , programming languages , and the law. They use equipment, such as total stations , robotic total stations, theodolites , GNSS receivers, retroreflectors , 3D scanners , lidar sensors, radios, inclinometer , handheld tablets, optical and digital levels , subsurface locators, drones, GIS , and surveying software. Surveying has been an element in
12412-423: The surface of the Earth. Few survey positions are derived from the first principles. Instead, most surveys points are measured relative to previously measured points. This forms a reference or control network where each point can be used by a surveyor to determine their own position when beginning a new survey. Survey points are usually marked on the earth's surface by objects ranging from small nails driven into
12528-406: The survey, the surveyor points the instrument in a known direction (bearing), and clamps the lower plate in place. The instrument can then rotate to measure the bearing to other objects. If no bearing is known or direct angle measurement is wanted, the instrument can be set to zero during the initial sight. It will then read the angle between the initial object, the theodolite itself, and the item that
12644-536: The telescope aligns with. The gyrotheodolite is a form of theodolite that uses a gyroscope to orient itself in the absence of reference marks. It is used in underground applications. The total station is a development of the theodolite with an electronic distance measurement device (EDM). A total station can be used for leveling when set to the horizontal plane. Since their introduction, total stations have shifted from optical-mechanical to fully electronic devices. Modern top-of-the-line total stations no longer need
12760-459: The two endpoints. With the Global Positioning System (GPS), elevation can be measured with satellite receivers. Usually, GPS is somewhat less accurate than traditional precise leveling, but may be similar over long distances. When using an optical level, the endpoint may be out of the effective range of the instrument. There may be obstructions or large changes of elevation between the endpoints. In these situations, extra setups are needed. Turning
12876-729: The two prices back to parity. Oil prices at coastal areas of the United States were closer to Brent than to WTI. In June 2012, the Seaway Pipeline , which had been transporting oil from the Gulf Coast to Cushing, reversed its flow direction, to transport WTI-priced crude to the Gulf Coast, where it received Brent prices. The price difference persisted, however, and was large enough that some oil producers in North Dakota put their oil on tanker cars, and shipped it by rail to
12992-507: The upstart Wildrose Party which emerged in the Alberta provincial general election of 2012 as the major challenger to the governing Tories, and became the Official Opposition. The repercussion for royalties was that in 2009/2010, the Alberta government collected $ 6.1 billion in royalties for the oil and gas sector. This was a drop of $ 3 billion. Over the next five years, Alberta collected $ 13.5 billion less in royalty than in
13108-453: Was in effect by May 1, 2011, regarding the royalties on gas which had provided almost 67% of total royalties collected by Alberta prior to 2009. Under the 2009 formula applied to Natural Gas and By-products represented a decrease from the previous fixed rates. With this formula gas royalties declined by approximately $ 5 billion per year and provided only 17% of total royalties. In 2008 the global price of oil plummeted from an all-time high of $ 145
13224-504: Was the US Navy TRANSIT system . The first successful launch took place in 1960. The system's main purpose was to provide position information to Polaris missile submarines. Surveyors found they could use field receivers to determine the location of a point. Sparse satellite cover and large equipment made observations laborious and inaccurate. The main use was establishing benchmarks in remote locations. The US Air Force launched
13340-503: Was the case on April 20, 2020, when WTI futures contract trading drove both assessed WTI and ASCI prices to negative territories. On April 20, 2020, WTI's May contract closed at -$ 37.63/barrel while the June contract closed at positive $ 20.43/barrel. Prices mainly dropped due to the COVID-19 pandemic , which reduced demand, with storage issues and the expiration of the May contract on the following day resulting in reduced trading. For
13456-551: Was trading around $ 85/barrel while Brent was at $ 103/barrel. The reason most cited for this difference was that Cushing had reached capacity due to a surplus of oil in the interior of North America. At the same time, Brent moved up in reaction to civil unrest in Egypt and across the Middle East. Since WTI-priced stockpiles at Cushing could not easily be transported to the Gulf Coast, WTI crude was unable to be arbitraged in bringing
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