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By Alan J. Macfadyen; G. Campbell Watkins
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Additional resources for Petropolitics: Petroleum Development, Markets and Regulations, Alberta as an Illustrative History
First, shippers (crude oil producers and/or refiners) may build the pipelines themselves, thereby precluding the possibility of paying high prices to a third party. Second, pipelines have frequently been subject to legal restrictions giving common carrier and/or rate regulated status. Common carrier status means that all potential users have access to facilities, so that a group of oil companies who build a line cannot deny access to other users. If access to the pipeline is entirely open, markets may develop in which buyers who contract ‘space’ on the pipeline can trade their space allotments; such active trading can help to keep pipeline tariffs more competitive.
B. means ‘free on board’, before shipment costs. f. means ‘cost, insurance, freight’, that is, after shipment costs. is to divide the exploratory effort between the different products; for example, the proportion of total discoveries that are oil, or the percentage of total successful well metres drilled that was in oil discoveries, might be used. The important point is that there is no correct way to combine outputs or separate inputs in a joint product process. Any attempt to do so leads to economic fictions.
High pressure crude with considerable gas content is subject to a multistage separation process. , in Alberta, for crude oil, the Edmonton terminals of the Enbridge and the Kinder Morgan pipelines. Enbridge began as the Interprovincial pipeline, moving oil eastward from Alberta; Kinder Morgan began as Trans Mountain, subsequently Terasen, moving oil westward). As mentioned above, bitumen mined from the oil sands is separated from the sand, clay, and water; up to now it has then been substantially upgraded in Alberta to yield a synthetic crude oil (SCO), as has a portion (7% in 2012, ERCB, Reserves Report, ST-98, 2013, p.
Petropolitics: Petroleum Development, Markets and Regulations, Alberta as an Illustrative History by Alan J. Macfadyen; G. Campbell Watkins