indian oil production/sales statistics · 2012-06-08 · indian oil for 2008 ‐2011 • 267 total...
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Indian Oil Production/Sales Statistics
Indian Oil Negotiated Rulemaking Committee
Presented by: John Barder, May 1, 2012
1
Office of Natural Resources Revenue www.onrr.gov
U.S. Department of the Interior
Stewardship Accountability Revenue Management
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2
www.onrr.gov
Stewardship Accountability Revenue Management
Breakdown of Oil Production/Sales in the United States for 2011
1,490,115,448
384,960,780
97,721,813
20,807,959
2011 Annual Oil Production
Fee
Fed Offshore
Fed Onshore
Indian
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www.onrr.gov
Stewardship Accountability Revenue Management
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
2008 2009 2010 2011
358,005
425,199
260,996
384,961
108,842 109,169 112,12597,722
9,689 10,262 14,308 20,808
Thou
sand
s of B
bls
Annual Oil Production
Fed Offshore Fed Onshore Indian
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www.onrr.gov
Stewardship Accountability Revenue Management
Percent of Total Indian Oil Production for CY 2008
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
1.51%0.37% 1.69% 3.10% 2.77%
0.00%
36.05%
9.02%
0.02%
26.68%
0.71%
18.08%
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www.onrr.gov
Stewardship Accountability Revenue Management
Percent of Total Indian Oil Production for CY 2009
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
1.51%0.33%
9.81%
2.68% 2.51%0.00%
34.02%
9.43%
0.02%
21.59%
0.84%
17.25%
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www.onrr.gov
Stewardship Accountability Revenue Management
Percent of Total Indian Oil Production for CY 2010
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
1.07%0.23%
26.91%
1.85% 1.70%0.00%
25.74%
6.63%
0.08%
22.23%
0.52%
13.04%
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www.onrr.gov
Stewardship Accountability Revenue Management
Percent of Total Indian Oil Production for CY 2011
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
50.00%
0.72% 0.15%
45.75%
1.12% 1.27%0.00%
18.57%
4.10%
0.31%
19.49%
0.26%
8.25%
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www.onrr.gov
Stewardship Accountability Revenue Management
0.000%
0.200%
0.400%
0.600%
0.800%
1.000%
1.200%
1.400%
20082009
20102011
0.330%
0.220%
0.540%
1.210%
Transportation Costs as a % of Indian Royalty Value
Note: The above figures do not include transportation factors. Transportation factors are not reported on MMS‐2014 as a transportation allowance.
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www.onrr.gov
Stewardship Accountability Revenue Management
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
20082009
20102011
1.36%2.58%
8.63%
16.96%
NARM % of Sales Value
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www.onrr.gov
Stewardship Accountability Revenue Management
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
20082009
20102011
34.65%
30.81%
23.87%
16.86%
Indian RIK as a % of Total IndianSales Value
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www.onrr.gov
Stewardship Accountability Revenue Management
Companies Reporting Royalty on Indian Oil for 2008 ‐ 2011
• 267 total unique Indian oil royalty payors from 2008 – 2011.• Blackfeet Reservation – 13 total payors with 6 of the payors paying over 90% of the royalty. In
addition, one payor pays approximately 50% of the royalty.• Crow Reservation – 3 total payors with one payor paying of 95% of the royalty.• Fort Berthold – 30 total payors with six payors paying over 70% of the royalty.• Fort Peck – 17 total payors with five payors paying over 73% of the royalty.• Jicarilla Apache Reservation – 19 total payors with seven paying over 90% of the royalty.• Michigan area – one payor pays 100% of the royalty.• *Navajo Reservation – 38 total payors with one payor paying over 83% of the royalty.• Oklahoma – 144 total payors with 14 payors paying over 76% of the royalty.• Turtle Mountain Reservation – 7 total payors with two payors paying over 76% of the royalty.• Uintah & Ouray Reservation – 21 total payors with four payors paying over 80% of the royalty.• Ute Mtn Ute Reservation – 17 total payors with six payors paying over 91% of the royalty.
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Crude Oil Marketing& Transportation
Presented by: Dan RiemerMay 1, 2012
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Overview
• The Petroleum Supply Chain
• Where Oil is Found
• How Oil is Transported
• Where Oil is Refined
• How Market Price is Determined
• How Market Price Translates to Realized Price
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Crude Oil: Quick Facts
Crude oil is a naturally occurring liquid found in rock formations in the Earth.
Fact 1: Crude oil must be found and extracted, or produced.
Fact 2: Crude oil must be stabilized for transportation.
Fact 3: Crude oil must be refined into usable products.
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The Petroleum Supply Chain
Exploration& Production
Transportation
Marketing
Distribution
Refining
Note: Independent Producers, Merchant Refiners and Integrated Energy Companies; Upstream/Downstream.
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Bakken / Sanish / Three Forks
Wolfcamp / Spraberry / Avalon / Bone Spring
Eagle Ford
Granite Wash / Cleveland Sand / Colony Wash / Mississippian Lime
Peace River / Cardium
MonterreyNiobrara / Wattenburg
CORPUS CHRISTI
Where Oil is Found: North American Crude Oil Resource Plays
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How Oil Is Transported
Exploration& Production
Transportation
Marketing
Distribution
Refining
Production Refining
Truck
Terminal Facility
Barge
Pipeline
Off lease Gathering
Accumulation Point
Pipeline
Tanker
Transportation
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Where Oil is Refined: Major Canadian and US Crude Oil Pipelines and Refineries
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How Market Price is DeterminedHow Market Price is Determined
SUPPLY DEMAND
INVENTORY
PRICES
PERCEPTION OF SCARCITY DEMAND FOR INVENTORY
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Realized Price Formula
Realized Price = Benchmark Price+/‐ Market Adjustment+/‐ Location Adjustment+/‐ Quality Adjustment
Where:
a) Realized Price is market price at facility measurement point (FMP)b) Benchmark Price is West Texas Intermediate (WTI), or NYMEXc) Market Adjustment is grade differential (Bakken, Wyoming Asphalt, Wyoming
Sweet, West Texas Sour, Uinta Wax, etc.)d) Location Adjustment is transportation cost (actual or normalized)e) Quality Adjustment is actual gravity and sulfur premiums & discounts