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Understanding Oil Production Accounting and Pipeline Operations Study Guide

This guide explains the essential processes in oil production accounting, including how pipeline capacity is managed through nominations and apportionment, the role of Lease Automatic Custody Transfer (LACT) units, battery production accounting methods, shipper invoicing, and common causes of errors and penalties. It is designed for individuals seeking to understand the complexities of oil measurement, allocation, and financial settlement in the energy industry.

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Crown Oil Royalty Delivery and Reporting

Crown Oil Royalty Delivery and Reporting Procedures

Details the processes, roles, and reporting requirements for delivering and accounting for Crown oil royalty volumes in Alberta, including APMC responsibilities and reconciliation.

  • Alberta Petroleum Marketing Commission
  • Crown oil royalty calculation
  • In kind royalty delivery
  • Battery operator reporting
  • Shipper's Balance reports
  • Petrinex reporting
  • Royalty reconciliation

Transportation Allowances and Royalty Reporting

Petroleum Transportation Allowance and Claims

Covers the procedures for reporting, calculating, and auditing transportation allowance claims for oil production delivered via truck or flow line.

  • Transportation allowance calculation
  • Petrinex TAOC screen
  • Trucking rates
  • Crown royalty volume splits
  • Reimbursement claims

Crown Royalty Reporting and Pipeline Split Process

Instructional material on preparing Crown royalty volume splits, forecasting crude oil production, and understanding information transmission in the pipeline split process.

  • Crown royalty splits
  • Transportation allowances
  • Crude oil production forecasting
  • Pipeline split process
  • Petrinex reporting
  • Form A and Form B adjustments

Oil Production Accounting and Pipeline Capacity Management

Procedures for managing pipeline capacity nominations, calculating battery sales, and allocating oil volumes among producers, shippers, and royalty owners.

  • Pipeline capacity nominations
  • Apportioning capacity
  • Battery production accounting
  • Pipeline split calculations
  • Volume available for sale
  • Taking oil in kind
  • Working interest ownership
  • Crown royalty
  • Basic Sediment and Water (BS&W)
  • Inventory management

Oil Quality Price Adjustment and Equalization

Calculations regarding quality price adjustments for oil based on density and sulphur content within pipeline and battery systems.

  • Quality price adjustment
  • Oil density
  • Sulphur content
  • Stream differential
  • Battery operator equalization
  • Pipeline operator equalization
  • Density penalty
  • Sulphur penalty

Crude Oil Marketing, Reporting, and Allocation

The Crude Oil Marketing Sales Cycle

An overview of the crude oil marketing sales cycle, including forecasting, documentation, and payment processes within the industry.

  • Crude oil marketing
  • Crude oil forecasting
  • Form A and Form C documentation
  • Notices of Shipment
  • Petroleum production accounting
  • Pipeline capacity utilization
  • Inventory management
  • Allocation of crude oil sales
  • Shipper's balance
  • Payment for crude oil sales

Oil Production Reporting and Petrinex Submission

Instruction on gathering, calculating, and submitting volumetric and pipeline split volumes to Petrinex for oil production.

  • Petrinex pipeline split reporting
  • Pipeline split imbalance
  • Working interest owners
  • Shipper and purchaser distinction
  • Oil pipeline delivery statements
  • Oil split errors

APMC Volume Reconciliation and Penalty Calculation

Covers the reconciliation of APMC volumes, reasons for under or over deliveries, and the calculation of penalties in oil and gas operations.

  • APMC volume reconciliation
  • Under and over deliveries
  • Crown royalty interest setup
  • Penalty calculation
  • Oil split letter preparation

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