Reporting Guide – Annual Oil and Gas Extraction Survey 2017

Environment, Energy and Transportation Statistics Division
Energy Section

This guide is designed to assist you as you complete the 2017 Annual Oil and Gas Extraction Survey. If you need more information, please call the Statistics Canada Help Line at the number below.

Help Line: 1-877-604-7828

Your answers are confidential.

Statistics Canada is prohibited by law from releasing any information it collects which could identify any person, business, or organization, unless consent has been given by the respondent or as permitted by the Statistics Act.

Statistics Canada will use information from this survey for statistical purposes.

Table of contents

A – Reporting Instructions

Please report information for the period of January to December, 2017.

Please complete all sections as applicable.

If the information requested is unknown, please provide your best estimate.

B – Definitions

The Conventional Oil and Gas Extraction industry comprises establishments primarily engaged in the exploration for, and/or production of, petroleum or natural gas from wells in which the hydrocarbons will initially flow or can be produced using normal pumping techniques.

The Non-Conventional Extraction activities relates to operations taking place in the geographical areas of Cold Lake, Peace River and Athabasca. The industry comprises establishments primarily engaged in producing crude oil from oil sands and bitumen or from reservoirs in which the hydrocarbons are semisolids and conventional production methods are not possible.

In-situ refers to extraction employing techniques of drilling wells and then injecting steam, combustion or other sources of heat into the reservoir to warm the bitumen so it can be pumped to the surface.

Mining is the production of crude oil from oil sands or from reservoirs in which the hydrocarbons are semisolids, using open-pit mining techniques.

Upgraders convert heavy bitumen into lighter crude oil.

Unconventional natural gas is found in gas hydrates and specific formations including tight gas found in low-permeability rock (ex: sandstone, siltstones and carbonates), shale gas found in fine-grained, organic-rich rock and coalbed methane contained in coal.

C – Revenue and expenses, deductions and net income

Sales: Report the sales or transfer value of produced goods or services before any adjustment or intersegment elimination. Please include royalties and taxes that are imposed at the time of sale. Exclude G.S.T. Amount reported here should equate to Canadian total reported in Volume and Value questions (questions 47 to 56).

All other revenue: Include cash revenue items not reported elsewhere such as dividend receipts, rentals, overhead and processing revenue received as operator and /or owner of facilities. Such processing revenues should be reported gross.

Royalties and similar payments: The total expenditures reported for royalties should equal the sum of royalty expenditures for the non-conventional sector (question 23) plus the sum of royalty expenditures for the conventional sector (questions 30 to 32).

Operating expenditures: Please include cost of materials and supplies used in production, surface lease rentals, lifting costs and all other expenditures which are related to producing operations. Exclude any 'non-cash' charges and royalties. All general and administrative costs related to producing activities and charged to current year operations should also be included here. The total operating expenditures reported should equal the sum of operating expenditures for the nonconventional sector (questions 17 to 22) plus the sum of operating expenditures for the conventional sector (questions 26 to 29)

Salaries, wages and benefits: Include the cost of salaries and wages (including bonuses and commissions, employer contributions to pension, medical, unemployment insurance plans, etc.) paid to your own workforce during the reporting period.

Other operating expenditures: Include only costs associated with non-producing operations and other expense items not reported elsewhere.

Interest expense: Include interest paid on bank loans, bonds, etc.

Federal income tax: Include federal income tax pertaining to the current period and assumed to be currently due.

Provincial income tax: Include provincial income tax pertaining to the current period and assumed to be currently due. The amount reported should include the Saskatchewan Corporate Capital Tax Surcharge if applicable.

Deferred income tax: Include accrued tax obligations reflected as an expense in the income statement, but not payable in the current reporting period.

Exploration and development charged to current operations: Include exploration and development expenses charged to current operations.

Amortization and depreciation expense: The systematic charge-off to expense of costs for depreciable assets that had been initially capitalized or deferred. Write-downs of depreciable assets resulting from impairments should be included in this category. However, write-offs arising from unusual dispositions and gains/losses on sales of assets should be reported under "Write-offs and amortization of deferred charges" and "Other non-cash items" respectively.

Depletion: Include the current depletion charges for costs subject to such deduction. Write-offs resulting from the application of ceiling tests should be reported under "Write-offs and amortization of deferred charges". Gains and losses on disposal of properties should be reported under "Other non-cash items".

Write-offs and amortization of deferred charges: Adjustments may be made for non-operating items which the company ordinarily eliminates from its reported "Internal cash flow".

Other non-cash expenses and deductions: Include non-cash items not reported elsewhere such as unrealized losses on currency transactions, non-controlling shareholders' interest in earnings of consolidated subsidiaries, and the equity portion of losses of unconsolidated affiliates. This item should be reduced by such non-cash revenue items as unrealized currency gains, non-controlling shareholders' interest in losses of consolidated subsidiaries, and equity in earnings of unconsolidated affiliates.

Number of employees: Provide the number of employees associated with salary, wages and benefits costs.

D – Balance sheet

Total current assets: Includes such items as cash, marketable securities, accounts receivable, inventories, etc.

Net capital assets: Includes land not held for the purpose of re-sale, amortizable assets such as buildings, machinery and equipment, etc.

Other assets: Include all assets not reported as either current or capital assets.

Current liabilities: Includes such items as current portion of long-term debt, accounts payable, notes payable, etc.

Long term debt: Includes all debt with a maturity of greater than one year.

Other liabilities: Include all liabilities not reported as either a current liability or long-term debt.

Equity: Includes common shares, preferred shares, retained earnings and all other equity.

E – Capital expenditures for crude oil in-situ, mining, upgraders or natural gas production

Note: Regarding partnerships and joint venture activities or projects, report the expenditures reflecting your company's net interest in such oil sands projects or ventures.

Oil rights acquisitions and retention costs:

  • In-situ: Expenditures associated with land and lease acquisition relating to oil rights, fees and retention.
  • Mining: Expenditures associated with the purchase of land and lease from others.
    Note: for in-situ and mining please include all fees associated with using land agents.
  • Upgraders: Include items such as boilers, compressors, motors, pumps and any other items that may be termed manufacturing or mining equipment as opposed to a fixed installation such as a building.
  • Natural gas production: Value of residential structures and related infrastructure within a company town-site.

Drilling and pre-mining expenditures: Drilling expenditures include core hole and delineation drilling. Include the cost of casing and other materials and equipment left in place, core analysis, logging, road building, and other directly related services. Pre-mining costs include overburden removal and other pre-production expenditures.

Cost of capitalized overhead: Report the cost of capitalized overhead not allocated above. These overhead charges should exclude any amounts to be reported under Operating cost by provincial jurisdiction – conventional sector and Upstream expenditures by provincial jurisdiction – conventional sector.

Research and any other expenditures: Include all research costs associated with non-conventional oil and/or natural gas, such as: laboratory work, consultants' fees, performance evaluations, and experimental pilot plants (including any capitalized operating costs). Other costs include items such as drainage systems, roadways, tankages, anti-pollution equipment and fixed installations not including machinery and equipment (question 16).

F – Operating expenditures for crude oil in situ, mining, upgraders or natural gas production

Field, well or plant expenditures for crude oil: Include all direct operating expenses and any other expenses directly related to the mining, stimulation, processing, upgrading and delivery of the product, and cost of purchased fuel and electricity.

Tax expenditures: Include taxes to federal, provincial and municipal governments, but exclude royalties, income taxes, and taxes that are part of the list price of purchases.

Fuel and purchased electricity: Include costs for fuel and electricity for all sites.

Water handling and disposal: Include all costs pertaining to water handling and disposal.

Operating overhead: Include all remaining general and administrative expenses related to upstream operations, including any corporate allocation to this segment. (These overhead charges should exclude any reported under Capitalized overhead, question 15).

G – Royalties – non-conventional sector

Include all provincial royalties payable to provincial governments based on production.

Include all freehold royalties payable to mineral rights owner based on production.

H – Capital expenditures by asset type

Construction: Construction structures should be classified to an asset according to its principle use unless it is a multi-purpose structure where we would like you to separate the components. The cost of any machinery and equipment which is an integral or built-in feature (i.e. elevators, heating equipment, sprinkler systems, environmental controls, intercom system etc.) should be reported as part of that structure as well as landscaping, associated parking lots, etc.

Machinery and equipment: Include items such as boilers, compressors, motors, pumps and any other items that may be termed manufacturing or mining equipment as opposed to a fixed installation such as a building.

I – Operating cost by provincial jurisdiction – conventional sector

Operating costs include all direct operating expenses such as wages and salaries, materials and supplies, fuel and power, well conditioning costs, municipal taxes, other direct operating expenses, maintenance and repairs expensed and contract services. Also include the non-capitalized cost of purchased injection materials used in enhanced recovery projects.

Field, well and gathering operations for oil and gas: Include primary, secondary, and tertiary recovery and pressure maintenance facilities, gathering systems and other well site facilities, surface lease rentals, and cost of purchased fuel and electricity.

Natural gas processing plants: Include expenses associated with field processing plants as well as reprocessing activities, recycling projects, and cost of purchased fuel and electricity.

Taxes: Include taxes to federal, provincial and municipal governments, but exclude royalties, income taxes, and taxes that are part of the list price of purchases

Overhead: Include all remaining general and administrative expenses related to upstream operations, including any corporate allocation to this segment. (These overhead charges should exclude any reported under upstream expenditures by provincial jurisdiction.)

Federal crown royalties: Amounts paid to the federal government, but excluding Indian lands royalties.

Provincial royalties and taxes: Amounts paid during the reporting period for royalty or royalty-like levies. In Alberta, include the "freehold mineral tax" together with the standard crown royalties on conventional oil and gas production. In Saskatchewan, include the standard crown royalties on oil and gas production plus the "freehold production tax". In Manitoba, include the standard crown royalties and "freehold taxes" collected by the Manitoba government.

Non-Crown royalties and similar payments: Indian lands royalties: are amounts paid to Indian bands, either directly or indirectly, based on the level of production.

Freehold royalties: are royalties that have been paid to parties, other than the Crown, who own the mineral interest to the property.

Overriding royalties: are payments (normally free of all costs of development and operation) arising from an economic interest in a property.

J – Upstream exploration expenditures by provincial jurisdiction – conventional sector

Oil and gas rights acquisition and retention: Acquisition and retention costs and fees for oil and gas rights (include bonuses, legal fees and filing fees; exclude inter-company sales or transfers).

Land and leases purchased from other petroleum companies: Purchases from companies that are engaged primarily in petroleum activities.

Note: for questions 33 and 34 please include all fees associated with using land agents.

Geological and geophysical services: Include such activities as seismic crew expenses, both company owned and contract. Include camp, bulldozing and dirt work, flying crews in and out, seismograph, velocity survey, gravity meter, magnetometer, core drilling, photo geological digital processing, magnetic playback and bottom hole contributions and environmental impact studies and other similar pre-exploration expenditures. All seismic or geological and geophysical expenditures (including stratigraphic tests) should be reported here, whether such activity is deemed exploration or development by the company.

Exploration drilling: Drilling outside a proven area or within a proven area but to a previously untested horizon, in order to determine whether oil or gas reserves exist rather than to develop proven reserves discovered by previous drilling. Include costs of dry wells, casing and other materials and equipment abandoned in place, productive wells, including capped wells, and wells still in progress at year-end. Include, also, costs incurred in fighting blow-outs, runaways, and in replacing damaged equipment.

K – Upstream development expenditures by provincial jurisdiction– conventional sector

Development drilling: Drilling within the proven area of an oil or gas reservoir to the depth of a stratigraphic horizon known to be productive for the purpose of extracting oil or gas reserves. This will cover costs of dry wells, including casing and other materials and equipment abandoned in place; productive wells, including capped well; and wells still in progress at year end. Include, also, costs incurred in fighting blow-outs, runaways, and in replacing damaged equipment. Exclude costs associated with service wells.

Note: There should be no development expenditures until a development plan has been approved.

Proven purchased reserves: Purchases from those companies that are engaged primarily in petroleum activities.

L – Upstream production expenditures by provincial jurisdiction– conventional sector

Production facilities: Include tangible well and lease equipment comprising casing, tubing, wellheads, pumps, flowlines, separators, treaters, dehydrators. Include gathering pipelines, lease and centralized tank batteries and associated facilities prior to delivery to trunk pipelines terminals, and other production facilities. Include, also, costs associated with intangibles such as pre-production studies costs, and those expenditures that you consider to be pre-development.

Non-production facilities: Include automotive, airplane, communication, office and miscellaneous equipment not otherwise provided.

Enhanced recovery projects: Include only expenditures on facilities in tertiary projects involving steam injection, miscible flooding, etc. Include service wells, both tangible and intangible, including the costs of drilling and equipping injection wells and also the cost of capitalized injection fuel (miscible fluid) costs, but exclude non-recoverable injection fluids charged to current operations.

Natural gas processing plants: Report only the capitalized amounts of the plants, including structures, measuring, regulating and related equipment.

Drilling rigs and supply boats: Report expenditures including progress payments for the purchase of new and imported used and new drilling rigs (on and offshore) and supply boats.

M – Upstream overhead expenditures by provincial jurisdiction– conventional sector

Allocate capitalized upstream overhead to the categories indicated. These overhead charges should exclude any reported under Operating cost by provincial jurisdiction – conventional sector.

N – Sales of crude oil, volume and value by provincial jurisdiction

Note: Exclude oil and gas purchased for resale, refining, fractionating or further processing, but include value and volume of royalty portion of production.

Conventional crude oil and condensate: Includes field production of conventional light and heavy crude oil and condensate that is subject to old or new oil royalty rate.

Synthetic crude oil: Synthetic crude oil obtained by the upgrading of crude bitumen or by the modification of coal or other materials should be reported here.

Crude bitumen: Crude bitumen, in its naturally occurring viscous state, will not flow to a well.

O – Sales of natural gas and other products, volume and value by provincial jurisdiction

Marketable natural gas: Report here the volume of natural gas production equal to gross new production from natural reservoirs, less injected and stored, processing shrinkage, plus or minus statistical adjustment, less field disposition and uses, field flared and waste, gathering system disposition and uses, reprocessing flared and reprocessing fuel, and other disposition and uses.

NGL's and LPG's from field operations: Includes production derived from natural gas at the field processing plants. Report production measured after solvent flood or other 'own-uses'.

NGL's and LPG's from processing plants: Includes production derived from natural gas at reprocessing/straddle plants.

Pentanes plus from field operations: Includes production derived from natural gas at the field processing plants. Do not include field condensates recovered at the wellhead, which should be reported with conventional crude oil.

Pentanes plus from processing plants: Includes production derived from natural gas at reprocessing/straddle plants.

Sulfur: Please report total production whether it was sold or charged to inventory (measured in thousands of metric tonnes).

P – Metric Conversion Factors

To convert from million cubic feet to million cubic metres
Million cubic feet Million cubic metres Divide by
(106 cf) – gas (106 m3) 35.315
To convert from thousand barrels to thousands cubic metres
Thousand barrels Thousands cubic metres Divide by
(103 Bbls) – oil (103 m3) 6.29
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