Data quality, concepts and methodology: Definitions

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Production and expenditures

Gross new production: All new production as measured at the first well head metering point.

Net new production: "Gross new production" after the deduction of flared field production. It is the production that is available for further processing, sale, storage and field uses.

Production net withdrawals: "Net new production" plus reproduction from field storage, less the amount of gas or oil that is reinjected into field pools or storage.

Marketable production: The production of gas, oil, propane, butanes, ethane and pentanes which are produced and available for market; in other words, the production of natural gas products produced by gas processing plants after processing and reprocessing plant uses, losses and shrinkage, the sales of natural gas from dry gas fields after field use, losses, reinjection or the production for sale of crude oil after field use and losses, reinjection but before inventory changes.

Crude oil: A mixture mainly of pentanes and heavier hydrocarbons that may be contaminated with sulphur compounds, that is recovered or is recoverable at a well from an underground reservoir and that is liquid at the conditions under which its volume is measured or estimated. It includes all other hydrocarbon mixtures so recovered or recoverable except raw gas or condensate.

Conventional crude oil: Crude oil recoverable from a well using standard production methods.

Heavy crude oil: Oil with high viscosity, recoverable only to a very limited extent by using standard production methods.

Synthetic crude oil: A mixture of mainly pentanes and heavier hydrocarbons that may contain sulphur compounds, that is derived from crude bitumen and that is liquid at the conditions under which its volume is measured or estimated, and includes all other hydrocarbon mixtures so derived.

Crude bitumen: A naturally occurring viscous mixture, mainly of hydrocarbons heavier than pentane, that may contain sulphur compounds and that, in its naturally occurring viscous state, will not flow to a well.

Condensate: A mixture of mainly pentanes and heavier hydrocarbons that may be contaminated with sulphur compounds, that is recoverable at a well from an underground reservoir and that is gaseous in its virgin reservoir state but is liquid at the conditions under which its volume is measured or estimated.

Pentanes plus: A mixture of mainly pentanes and heavier hydrocarbons which ordinarily may contain some butanes and which is obtained from the processing of raw gas, condensate or crude oil.

In-Situ recovery: Refers to recovery methods applicable in heavy oil and oil sands formations without the removal of conglomerates from the location.

Oil sands: Deposits of sands and clays (excluding oil shales) heavily impregnated with semi-solid or solid bitumen, also known as tar sands. Athabasca, Peace River, Wabasca, Cold Lake and Buffalo Head Hills are the main Canadian resource areas.

Natural gas: A mix of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in a gaseous phase or in solution with crude oil at reservoir conditions.

Natural gas liquids (NGL): That portion of reservoir gas which is liquefied at the surface in lease separators, field facilities, or gas processing plants. Includes ethane, propane, butanes and pentanes.

Propane: In addition to its normal scientific meaning, a mixture mainly of propane which ordinarily may contain some ethane or butanes.

Butanes: In addition to its normal scientific meaning, a mixture mainly of butanes which ordinarily may contain some propane or pentanes plus.

Ethane: In addition to its normal scientific meaning, a mixture mainly of ethane which ordinarily may contain some methane or propane.

Upstream segment: Activities and operations related to the search for, development, production, extraction and recovery of crude oil, natural gas, natural gas liquids and sulphur, as well as the production of synthetic oil.

Downstream segment: Includes refining and marketing, transportation and petrochemical operations.

Geological and geophysical (G&G) expenses: Costs associated with the undertaking of geological and geophysical studies, including salaries and supplies for geologists and geophysical crews as well as outlays for equipment and rights of access.

Exploration costs: Costs associated with the search for oil or natural gas deposits, including all lease fees and land acquisition costs, geological and geophysical expenditures, and exploratory drilling costs whether capitalized or expensed. Exploratory drilling is generally defined as the drilling of a well outside a proven area, or within a proven area but in a previously untested zone, to determine whether oil or gas reserves exist. Also included are costs of dry wells, casing and other materials and equipment abandoned in place.

Production expenditures: All spending related to the production of crude oil and natural gas, including expenditures on natural gas processing plants.

Gas utilities

Total marketable gas: Receipt of gas from fields, processing or reprocessing plants after re-injection, field uses, processing plant or reprocessingplant shrinkage, plant use losses have been deducted.

Imports: Receipts of gas, by pipeline, into Canada.

Other receipts: Includes liquified petroleum gases for peak shaving and receipts from non-reporting companies.

Exports: Export of gas, by pipeline, to the United States.

Direct sales: Represents direct, non-utility delivery for consumption.

Drilling completions

New field wildcat: A new field wildcat is a test located on a structural feature or other type of trap which has not previously produced oil or gas. In regions where local geological conditions have little or no control over accumulations, these tests are generally at least three kilometres from the nearest productive area. Distance, however, is not the determining factor. Of greater importance is the degree of risk assumed by the operator, and his intention to test a structure or statigraphic condition not previously proved productive.

New pool wildcat: A new pool wildcat is a test located to explore for a new pool on a structural feature of other type of trap already producing oil or gas, but outside the known limits of the presently producing area. In some regions where local geological conditions exert an almost negligible control, exploratory holes of this type may be called "near wildcats". Such wells will usually be less than three kilometres from the nearest productive area.

Deeper pool test: A deeper pool test is an exploratory hole located within the productive area of a pool, or pools, already partly or wholly developed. It is drilled below the deepest productive pool in order to explore for deeper unknown prospects. All metres drilled are assigned to the exploratory category. This practise was adopted commencing with the 1979 data. Previously, metres drilled were split between the exploratory and development category.

Shallower pool test: A shallower pool test is an exploratory test drilled in search of a new productive reservoir, unknown but possibly suspected from data secured from other wells, and shallower than known productive pools. This test is located within the productive area of a pool or pools previously developed.

Outposts: An outpost is a test located and drilled with the expectation of extending for a considerable distance the productive area of a partly developed pool. It is usually two or more locations distant from the nearest productive site.

Development well: A development well is a well drilled within the proved area of an oil or gas reservoir to the depth of a statigraphic horizon known to be productive. If the well is completed for production, it is classified as an oil or gas development well. If the well is no completed for production and is abandoned, it is classified as a dry development hole.

Stratigraphic test: A stratigraphic test is a drilling effort, geologically directed, to obtain information pertaining to a specific geological condition that might lead toward the discovery of an accumulation of hydrocarbons. Such tests are customarily drilled without the intention of being completed for hydrocarbon production. This classification also includes tests identified as score tests and all types of expendable holes related to hydrocarbon exploration.

Service well: A service well is a well drilled or completed for the purpose of supporting production in an existing field. Wells of this class are drilled for the following specific purposes: Gas injection (natural gas, propane, butane), water injection, air injection, steam injection, salt water disposal, water supply for injection, observation, injection for in situ combustion.

Miscellaneous wells: This classification includes storage wells (natural gas, propane, butane), salt brine wells and other wells not classified under categories above.

Project wells: A project well is a well drilled within a designated oil sands area or like deposit for the purpose of producing raw bitumen from the deposit. Such wells may be drilled for pilot, experimental or commercial projects.

Reserves

Established reserves: Those reserves recoverable under current technology and present and anticipated economic conditions, specifically proved by drilling, testing or production, plus that judgement portion of contiguous recoverable reserves that are interpreted to exist, from geological, geophysical or similar information, with reasonable certainty.

Value added

By production activities: Is defined as the value of marketable production less materials and supplies purchased and fuel and electricity consumed in the production of hydrocarbons and sulphur.

Components of value added — Producing activity

Electricity: Data refer to amounts purchased and used, with costs being delivered costs at plant and/or field. Electricity produced by establishments for internal consumption is not included in electricity purchases.

Shipments: The quantity and value of the marketable production that has actually been shipped. The differences between shipments and marketable production are inventory changes which may occur because a company may produce and accumulate or draw down inventories.

Materials and supplies used in producing activities: Data provided in table  6represent quantities at laid down cost to the establishment of materials, supplies, chemicals, explosives and components consumed during the year in producing activities. In the oil and gas industry it is not practical to estimate the amount of materials that are used as fuel, since this amount represents only a small part of the total energy requirements of the industry and company accounting records do not provide this breakdown. For this reason the amount of fuel purchased and used is shown as a component of materials and supplies. The statistics represent only commodity items or physical goods (costs of services or overhead charges such as advertising, insurance and depreciation are not included) whether purchased from others or received as transfers (in the form of materials, components or semi-processed goods) from other establishments of the reporting company. Respondents were requested to report materials and supplies purchased and used. Included are repair and maintenance supplies not chargeable to fixed assets accounts. Also included is the cost of office supplies not chargeable to fixed assets accounts and the cost of such other items of materials and supplies used as food, beverages and supplies for establishment operated cafeterias and lunch counters, first aid medical supplies, laboratory supplies and other general supplies and materials used.

Employment, person-hours, salaries and wages: Employees include salaried management, professional, technical and administrative personnel, plus production, field, plant and related workers, and relate both to producing and non-producing activities.

"Production and related workers" are reported as those receiving pay during the last pay period in the respective month. The numbers are somewhat affected by turnover, in that employment may be overstated when an employee changes employment in the middle of a pay period.

Man-hours of production and related workers in producing activities represent total man-hours paid (total hours at work during the calendar year plus hours not worked but nevertheless paid for, such as paid vacations, sick leave and statutory holidays). In reporting overtime hours, respondents are requested to report only hours actually at work. It should be noted that the division of hours paid into production and related workers payrolls results in average hourly earnings and does not represent hourly wage rates which are collected and published by the Department of Labour.

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