The ERCB has recently closed or refused many oil spacing applications.  In each of October and November, they closed more than in any month in the last two years. 

Some of these closures are in the Pembina Cardium area and others are in the heavy oil area.

The ERCB periodically tightens their approval stance on applications.  This often happens just after regulation changes.  Since this fall saw regulation changes to gas spacing procedures, this could be spurring the massive closures.

The ERCB might say that recent closures are mostly applications that are not competent.  Competent applications use believable justifications for requested well densities.  A trend by oil and gas companies to use their least experienced staff for applications tends to create less competent applications.

The cost of application closure can be high.  If a drilling program relies on prompt approval, an application approval can postpone drilling for 3-4 months.  Seasonal drilling windows might be missed.  Production targets might be missed.  Cashflow might be postponed.

The regulator typically closes applications for either technical reasons or technicalities.  Technicalities include notifying the wrong people, stating the wrong land area description in an application, or submitting a paper application instead of by electronic means.  By technical reasons for closure we mean that the ERCB simply asserts, “We don’t agree that this approval is warranted based on the information available.”

One way to understand detailed reasons for recent closures is to use AppIntel, application intelligence software.  AppIntel can highlight closed applications quickly and give you access to the application attachments. 

In AppIntel, you can register also an area of interest and an application type from the Proximity tab. After you do, the AppIntel server will automatically notify you of new applications and send you a link to them.

Proven’s regulatory applications have a much higher approval rate than the industry average – even for difficult applications.  Proven guarantees regulatory approval.  Because Proven has submitted hundred of applications, we read between the lines and know what the regulator wants.

Only half of what you need to know to have a successful application is in the guides.  Our relationship with regulators ensure your applications take advantage of the latest unwritten policies. 

Proven has identified 34 issues that could cause your application to get stuck at the regulator.  We have 42 strategies to make sure they don’t.

Granger J. Low

With North American crude oil – commonly known on the market as West Texas Intermediate (WTI) – trading at a lower price per barrel than its Brent counterpart, Canadian pipeline corporation Enbridge has proposed and executed several pipeline reversal projects in attempts to move oil to world-wide markets at the Brent pricing.

Its most recent, and arguably most hard-hitting endeavour has been the purchase of, and subsequent flow reversal of the ConocoPhillips share of the Seaway pipeline that runs from the Gulf Coast to the trading hub at Cushing, Oklahoma. This move has effectively allowed Enbridge to purchase crude oil at the lower WTI price, then ship it to world markets through the Gulf Coast at the more lucrative Brent prices.

Brandon Low has worked in various capacities at Proven Reserves since 2000 and is currently the communications editor and administration manager.

Brandon was born and raised in Calgary, but has also lived abroad in Japan and the USA for several years.

Brandon studied Japanese and Communications at Brigham Young University, and though he works in communications, he enjoys keeping up with his Japanese as well. He has worked on Proven’s newsletter and marketing efforts since 2003.

In his spare time, Brandon enjoys spending time with his family, visiting new places, and creating and appreciating art in many forms. He also enjoys video gaming when he has the time. Brandon’s favourite holiday is Christmas, and least favourite holiday is his birthday.

Brandon says his goals are to help increase Proven Reserves’ value for our clients, and help build bridges in the industry. He also hopes to one day become a waterpark connoisseur.