Harvest Operations Corp. is a Canadian oil and natural gas company based in Calgary, Alberta. Unlike many oil and gas trusts, which consist only of production fields, Harvest had both "upstream" (oil and gas wells) and "downstream" (refining and distilling) components. It operated as an open-ended investment trust in Canada, and was one of the equities known as "Canroys" – short for "Canadian royalty trusts." [2][3] In 2009 the Korea National Oil Corporation made a buyout offer for Harvest, which was accepted, with shareholder approval. The trust was delisted from the Toronto Stock Exchange and the New York Stock Exchange in December 2009.[4]
The former Harvest Energy Trust's oil fields are mainly in Alberta, with two in Saskatchewan; it also has assets in northern British Columbia known as the Hay River Field. Oil sand deposits and all natural gas properties were in Alberta. As of the end of 2007, Harvest claimed a production of 61,000 BOE/d (barrels or equivalent per day), and a probable lifespan of existing assets of about ten years, before depletion. It claims a total original oil in place (OOIP) amount of 2 billion barrels (320,000,000m3), and another 1 billion barrels (160,000,000m3) in oil sands. Future plans include drilling approximately 1,000 new oil and gas wells on about 880,000 acres (3,600km2) of land which has previously not been developed for oil and gas production.[5][6]
Harvest Energy Trust was formed in July, 2002. In 2006 it purchased the 115,000bbl/d (18,300m3/d)North Atlantic Refinery in Come By Chance, Newfoundland and Labrador from Vitol Refining Group, B.V., and in so doing became the first Canadian energy trust to own its own refinery.[7] Harvest had 924 employees and a market capitalization of US$3.22 billion at the end of 2007.[8] On 22 December 2009, Harvest closed its Plan of Arrangement with the Korea National Oil Corporation, which offered C$10.00 per unit through its Canadian subsidiary, KNOC Canada Ltd. Unitholders received cash payouts in late December, with non-Canadian holders receiving payouts based on the exchange rate as of the date of closing.[4]
The Harvest Energy Trust paid a high dividend, for example yielding an annual rate of 16.0% in early 2008; it also paid out monthly, a relative rarity for equities listed on the New York Stock Exchange. Its dividend payments were not taxed at the regular dividend rate, but rather at a 15% "Qualified Dividends" rate; this is an additional tax advantage in the United States, and applies to many royalty trusts.[9][10]
Oil sands, tar sands, crude bitumen, or bituminous sands, are a type of unconventional petroleum deposit. Oil sands are either loose sands or partially consolidated sandstone containing a naturally occurring mixture of sand, clay, and water, soaked with bitumen, a dense and extremely viscous form of petroleum.
The Athabasca oil sands, also known as the Athabasca tar sands, are large deposits of bitumen or extremely heavy crude oil that constitute unconventional resources, located in northeastern Alberta, Canada – roughly centred on the boomtown of Fort McMurray. These oil sands, hosted primarily in the McMurray Formation, consist of a mixture of crude bitumen, silica sand, clay minerals, and water. The Athabasca deposit is the largest known reservoir of crude bitumen in the world and the largest of three major oil sands deposits in Alberta, along with the nearby Peace River and Cold Lake deposits.
Husky Energy Inc. is a company engaged in hydrocarbon exploration, headquartered in Calgary, Alberta, Canada. It operates in Western and Atlantic Canada, the United States and the Asia Pacific region, with upstream and downstream business segments. In the 2020 Forbes Global 2000, Husky Energy was ranked as the 1443rd-largest public company in the world.
A royalty trust is a type of corporation, mostly in the United States or Canada, usually involved in oil and gas production or mining. However, unlike most corporations, its profits are not taxed at the corporate level provided a certain high percentage of profits are distributed to shareholders as dividends. The dividends are then taxed as personal income. This system, similar to real estate investment trusts, effectively avoids the double taxation of corporate income.
An income trust is an investment that may hold equities, debt instruments, royalty interests or real properties. It is especially useful for financial requirements of institutional investors such as pension funds, and for investors such as retired individuals seeking yield. The main attraction of income trusts, in addition to certain tax preferences for some investors, is their stated goal of paying out consistent cash flows for investors, which is especially attractive when cash yields on bonds are low. Many investors are attracted by the fact that income trusts are not allowed to make forays into unrelated businesses; if a trust is in the oil and gas business, it cannot buy casinos or motion picture studios.
Petroleum production in Canada is a major industry which is important to the economy of North America. Canada has the third largest oil reserves in the world and is the world's fourth largest oil producer and fourth largest oil exporter. In 2019 it produced an average of 750,000 cubic metres per day (4.7 Mbbl/d) of crude oil and equivalent. Of that amount, 64% was upgraded from unconventional oil sands, and the remainder light crude oil, heavy crude oil and natural-gas condensate. Most of Canadian petroleum production is exported, approximately 600,000 cubic metres per day (3.8 Mbbl/d) in 2019, with 98% of the exports going to the United States. Canada is by far the largest single source of oil imports to the United States, providing 43% of US crude oil imports in 2015.
The Ministry of Energy is a Cabinet-level agency of the government of the Canadian province of Alberta responsible for coordinating policy relating to the development of mineral and energy resources. It is also responsible for assessing and collecting non-renewable resource (NRR) royalties, freehold mineral taxes, rentals, and bonuses. The Alberta Petroleum Marketing Commission, which is fully integrated with the Department of Energy within the ministry, and fully funded by the Crown, accepts delivery of the Crown's royalty share of conventional crude oil and sells it at the current market value. The current ministry was formed in 1986, but ministries with other names dealing with energy resources go back to the Ministry of Lands and Mines in 1930.
Sherritt International is a Canadian resource company, based in Toronto, Ontario. Sherritt is a world leader in the mining and refining of nickel and cobalt – metals essential for the growing adoption of electric vehicles. Its Technologies Group creates innovative, proprietary solutions for oil and mining companies around the world to improve environmental performance and increase economic value. Sherritt is also the largest independent energy producer in Cuba. Sherritt’s common shares are listed on the Toronto Stock Exchange under the symbol “S”.
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. 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 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 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 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%.
Korea National Oil Corporation (KNOC) is the national oil and gas company of South Korea and one of the most important industrial companies in the country. The company has operated and continues to operate oil and gas fields in Vietnam, Peru, Indonesia, Nigeria, Yemen, Kazakhstan, Russia, Canada, Venezuela and South Korea.
The Shell Scotford Upgrader is an oilsand upgrader, a facility which processes crude bitumen from oil sands into a wide range of synthetic crude oils. The upgrader is owned by Athabasca Oil Sands Project (AOSP), a joint venture of Shell Canada Energy (60%), Marathon Oil Sands L.P. (20%) and Chevron Canada Limited (20%). The facility is located in the industrial development of Scotford, just to the northeast of Fort Saskatchewan, Alberta in the Edmonton Capital Region.
The Permian Basin Royalty Trust is a United States oil and natural gas royalty trust based in Dallas, Texas. With a market capitalization of US $790,000,000, and an average daily trading volume of about 186,000 shares at the end of 2007, it was one of the largest royalty trusts in the United States. Its source of revenue is oil and gas pumped from the geologic formation for which it is named, the Permian Basin in west Texas, as well as a few locations in other parts of the state.
Pengrowth Energy Corporation was a Canadian oil and natural gas company based in Calgary, Alberta. Established in 1988 by Calgary entrepreneur James S Kinnear, it was one of the largest of the Canadian royalty trusts ("Canroys"), with a market capitalization of US$4.12 billion at the end of 2007. Its assets were approximately evenly distributed between oil and natural gas.
The BP Prudhoe Bay Royalty Trust is a United States oil and natural gas royalty trust based in New York, New York. With a market capitalization of US$155 million in early 2020, and an average trading volume of 322,000 shares, BP Prudhoe Bay Royalty Trust is the largest conventional oil and gas trust in the United States. Its assets are in the huge Prudhoe Bay Oil Field, the largest oil field in North America, and at the end of 2006 the Trust claimed to have proved reserves of 85.1 million barrels of crude oil. As of the end of 2018 the Trust claimed to have proved reserves of 15.77 million barrels of crude oil.
Obsidian Energy Ltd. is a mid-sized Canadian oil and natural gas production company based in Calgary, Alberta.
ARC Resources Ltd. (ARC) is a Canadian energy company with operations focused in the Montney resource play in Alberta and northeast British Columbia. The company has been operating since 1996. ARC pays a quarterly dividend to shareholders and its common shares trade on the Toronto Stock Exchange under the symbol ARX.
Although there are numerous oil companies operating in Canada, as of 2009, the majority of production, refining and marketing was done by fewer than 20 of them. According to the 2013 edition of Forbes Global 2000, canoils.com and any other list that emphasizes market capitalization and revenue when sizing up companies, as of March 31, 2014 these are the largest Canada-based oil and gas companies.
Western Canadian Select (WCS) is a heavy sour blend of crude oil that is one of North America's largest heavy crude oil streams and, historically, its cheapest. It was established in December 2004 as a new heavy oil stream by EnCana (now Cenovus), Canadian Natural Resources, Petro-Canada (now Suncor) and Talisman Energy (now Repsol Oil & Gas Canada). It is composed mostly of bitumen blended with sweet synthetic and condensate diluents and 21 existing streams of both conventional and unconventional Alberta heavy crude oils at the large Husky Midstream General Partnership terminal in Hardisty, Alberta. Western Canadian Select—the benchmark for heavy, acidic (TAN <1.1) crudes—is one of many petroleum products from the Western Canadian Sedimentary Basin oil sands. Calgary-based Husky Energy, now a subsidiary of Cenovus, had joined the initial four founders in 2015.
According to the United States Energy Information Administration (EIA), Pakistan may have over 9 billion barrels (1.4×109 cubic metres) of petroleum oil and 105 trillion cubic feet (3.0 trillion cubic metres) in natural gas (including shale gas) reserves.
The Sturgeon Refinery also NWR Sturgeon Refinery is an 80,000 bbl/d (13,000 m3/d) crude oil upgrader—built and operated by North West Redwater Partnership (NWRP) in a public private partnership with the Alberta provincial government. It is located in Sturgeon County northeast of Edmonton, Alberta, in Alberta's Industrial Heartland. Premier Jason Kenney announced on July 6, 2021, that the province of Alberta had acquired NWRP's equity stake, representing 50% of the $10-billion project, with the other 50% owned by Canadian Natural Resources.
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