Preliminary Estimate for 2020 and Intentions for 2021
Integrated Business Statistics Program (IBSP)
This guide is designed to assist you as you complete the Annual Exploration, Development and Capital Expenditures Survey Petroleum and Natural Gas Industry Preliminary Estimate for 2020 and Intentions for 2021.
If you need more information, please call the Statistics Canada Help Line at the number below.
Help Line: 1-833-977-8287 (1-833-97STATS)
Table of contents
Reporting period information
Definitions
Reporting period information
For the purpose of this survey, please report information for your 12 month fiscal period for which the final day occurs on or between April 1, 2020 – March 31, 2021.
- May 1, 2019 – April 30, 2020
- June 1, 2019 – May 31, 2020
- July 1, 2019 – June 30, 2020
- August 1, 2019 – July 31, 2020
- September 1, 2019 – August 31, 2020
- October 1, 2019 – September 30, 2020
- November 1, 2019 – October 31, 2020
- December 1, 2019 – November 30, 2020
- January 1, 2020 – December 31, 2020
- February 1, 2020 – January 31, 2021
- March 1, 2020 – February 28, 2021
- April 1, 2020 – March 31, 2021
Here are other examples of fiscal periods that fall within the required dates:
- September 18, 2019 to September 15, 2020 (e.g., floating year-end)
- June 1, 2020 to December 31, 2020 (e.g., a newly opened business)
Definitions
- When there are partnerships and joint venture activities or projects, report the expenditures reflecting this corporation's net interest in such projects or ventures.
- Report all dollar amounts in thousands of Canadian dollars ('000).
- Do not include sales tax. Percentages should be rounded to whole numbers.
- When precise figures are not available, please provide your best estimates.
If there are no capital expenditures, please enter '0'.
What are Capital Expenditures?
Capital Expenditures are the gross expenditures on fixed assets for use in the operations of your organization or for lease or rent to others. Gross expenditures are expenditures before deducting proceeds from disposals, and credits (capital grants, donations, government assistance and investment tax credits).
Include:
- Cost of all new buildings, engineering, machinery and equipment which normally have a life of more than one year and are charged to fixed asset accounts
- Modifications, acquisitions and major renovations
- Capital costs such as feasibility studies, architectural, legal, installation and engineering fees
- Subsidies received and used for capital expenditures
- Capitalized interest charges on loans with which capital projects are financed
- Work done by own labour force
- Additions to capital work in progress.
Exclude:
- transfers from capital work in progress (construction-in-progress) to fixed assets accounts
- assets associated with the acquisition of companies property developed for sale and machinery or equipment acquired for sale (inventory).
1. Oil and gas rights acquisition and retention costs (exclude inter-company sales or transfers):
Include acquisition costs and fees for oil and gas rights (include bonuses, legal fees and filing fees), and oil and gas retention costs
2. Exploration and evaluation, capitalized or expensed (e.g., seismic, exploration drilling):
These expenditures include geological, geophysical and seismic expenses, exploration drilling, and other costs incurred during the reporting period in order to determine whether oil or gas reserves exist and can be exploited commercially. Report gross expenditures, before deducting any incentive grants, incurred for oil and gas activities on a contracted basis and/or by your own employees. Exclude the cost of land acquired from other oil and gas companies.
3. Building construction (e.g., process building, office building, camp, storage building, and maintenance garage):
Include capital expenditures on buildings such as office buildings, camps, warehouses, maintenance garages, workshops, and laboratories. Fixtures, facilities and equipment that are integral parts of the building are included.
4. Other construction assets (e.g., development drilling and completions, processing facilities, natural gas plants, upgraders):
Include all infrastructure, other than buildings, such as the cost of well pads, extraction and processing infrastructure and plants, upgrading units, transportation infrastructure, water and sewage infrastructure, tailings, pipelines and wellhead production facilities (pumpjacks, separators, etc). Include all preconstruction planning and design costs such as development drilling, regulatory approvals, environmental assessments, engineering and consulting fees and any materials supplied to construction contractors for installation, as well as site clearance and preparation. Equipment which is installed as an integral or built-in feature of a fixed structure (e.g. casings, tanks, steam generators, pumps, electrical apparatus, separators, flow lines, etc.) should be reported with the construction asset; however, when the equipment is replaced within an existing structure, the replacement cost should be reported in machinery and equipment (sustaining capital).
5. Machinery and equipment purchases (e.g., trucks, shovels, computers, etc.):
Include transportation equipment for people and materials, computers, software, communication equipment, and processing equipment not included in the above categories.
Research and Development
Research and experimental development (R&D) comprise creative and systematic work undertaken in order to increase the stock of knowledge – including knowledge of humankind, culture and society – and to devise new applications of available knowledge.
For an activity to be an R&D activity, it must satisfy five core criteria:
- To be aimed at new findings (novel);
- To be based on original, not obvious, concepts and hypothesis (creative);
- To be uncertain about the final outcome (uncertainty);
- To be planned and budgeted (systematic);
- To lead to results to could be possibly reproduced (transferable/ or reproducible).
The term R&D covers three types of activity: basic research, applied research and experimental development. Basic research is experimental or theoretical work undertaken primarily to acquire new knowledge of the underlying foundations of phenomena and observable facts, without any particular application or use in view. Applied research is original investigation undertaken in order to acquire new knowledge. It is, however, directed primarily towards a specific, practical aim or objective. Experimental development is systematic work, drawing on knowledge gained from research and practical experience and producing additional knowledge, which is directed to producing new products or processes or to improving existing products or processes.