Industry Code: 06300
This industry covers all "upstream" oil field activities of employers which generate revenue from the production and sale of crude oil and/or natural gas. This includes both the small independent producer and major integrated oil and gas companies.
Operation Details:
Oil and gas companies direct/control/evaluate/supervise oil and gas exploration and development however, they subcontract the actual field operations prior to the production stage (i.e. seismic, drilling). In effect, they are general contractors for this phase of the industry.
Often, smaller oil and gas companies are involved in a joint venture situation advancing capital for exploration on a speculative basis. Generally one of the partners will assume the role of operator to coordinate exploration and if oil is found, handle oil recovery or sales functions. All field activities required by the operator may be contracted out however the revenue is from the sale of oil and gas or the sale of oil and gas properties. Such operators are classified in this industry.
Oil or gas marketing firms, companies which are not producers but purchase product from other producers and resell, are considered part of this industry. They take title to the product and generate revenue from the sale of crude oil or natural gas.
Large oil companies may become involved in all aspects of oil exploration, processing and sale. Smaller companies may become involved only in the production and/or sale. Other companies may become involved in oil exploration purely on a speculative basis. All such employers are covered under this industry.
Oil and gas companies will employ "head office" staff to include engineers, administration, marketing, etc. Field staff will include supervisors, production and process engineers and production operators.
The operation of upstream production/processing facilities is covered under this classification when conducted by the oil and gas producer. Upstream production facilities include:
- oil/gas wells, well head equipment
- gathering systems tied into field processing facilities
- battery sites/compressor stations
- separators, dehydrators and treaters
- natural gas/sulfur processing plants
- heavy oil projects including steam generation
- other enhanced recovery methods
Gas processing plants are normally located in the vicinity of the producing fields, and are tied directly into gas wells through a network of gathering systems. This is considered to be an upstream production activity by the industry and is a common activity of major producers. Gas plants incorporate process technology, similar to refineries and petrochemical plants, for the purpose of removing impurities such as sulfur and water prior to transmission to market.
All employers in this industry are members of Energy Safety Canada (ESC). Safety associations represent the interests of employers and promote workplace safety through education and other initiatives. Improved workplace safety can result in fewer claims and help lower premiums. A portion of premiums collected is allocated to the association to support these initiatives.
Underwriting Considerations:
Businesses which operate Oilfield Waste Management Facilities for custom separating, treating, transfer and disposal of hydrocarbons, oil and water emulsions are classified in Industry 36502 – Oilfield and Industrial Hazardous Waste Mgmt.
Employers in this industry often rely on contract supervisors or consultants to monitor the activities of subcontractors. Supervisors engaged to monitor seismic and drilling operations are included in this classification. Oil and gas companies, if owning and operating seismic equipment, drilling or service rigs would require an additional industry.
Oil and gas companies are continually undertaking projects to construct production facilities. Supervisors engaged on contract to oversee construction projects are classified in industry 51506, Quality Control Services.
Seismic Data Brokers purchase geophysical data from oil companies for the purpose of resale. These operations are to be classified (by application) under industry 86901, Business Services. Such brokers which are also engaged in gathering data on a speculative basis by subcontracting seismic services will have their entire operations classified in industry 09200.
Oil and Gas companies in particular have shown recent trends to contractual hiring practices rather than placing workers on payroll. Individuals which are eligible for accounts only by virtue of incorporation, will be classified in this industry when their services are exclusive to oil and gas companies and traditionally have been occupations within this industry.
Industry Custom Pricing: Modified Experience Rating
This industry has chosen to participate in Industry Custom Pricing effective January 1, 2011. For employers participating in the Experience Rating Plan for Large Employers, the following experience rating features will be used in determining their premium rate:
-Maximum discount or surcharge of 60%
-Participation rate of 1% for every $4000 in premiums
-Maximum participation of 100%
-Maximum experience used of 100%
Premium Rate History:
Activities:
Gas and Oil Lease Owners (Office Staff)
Gas and Oil Well Producers, Explorers, Developers
Supervision Services, Oil and Gas - Drilling
Supervision Services, Oil and Gas - Seismic
Natural Gas Processing Plants
Oil and Gas Wells Exploration, Upstream Operations
Oil and Gas Marketing
Processing Plants, Natural Gas
Rate Group History:
A review of the oil industry in 1991 resulted in the consolidation of all upstream activities of oil exploration and development companies being placed in this single rate group. These changes were made effective January 1, 1992.
This industry covers all "upstream" oil field activities of employers which generate revenue from the production and sale of crude oil and/or natural gas. This includes both the small independent producer and major integrated oil and gas companies.
Premium Rate History:
Activities:
Gas and Oil Lease Owners (Office Staff)
Gas and Oil Well Producers, Explorers, Developers
Supervision Services, Oil and Gas - Drilling
Supervision Services, Oil and Gas - Seismic
Natural Gas Processing Plants
Oil and Gas Wells Exploration, Upstream Operations
Oil and Gas Marketing
Processing Plants, Natural Gas
Operation Details:
Oil and gas companies direct/control/evaluate/supervise oil and gas exploration and development however, they subcontract the actual field operations prior to the production stage (i.e. seismic, drilling). In effect, they are general contractors for this phase of the industry.
Often, smaller oil and gas companies are involved in a joint venture situation advancing capital for exploration on a speculative basis. Generally one of the partners will assume the role of operator to coordinate exploration and if oil is found, handle oil recovery or sales functions. All field activities required by the operator may be contracted out however the revenue is from the sale of oil and gas or the sale of oil and gas properties. Such operators are classified in this industry.
Oil or gas marketing firms, companies which are not producers but purchase product from other producers and resell, are considered part of this industry. They take title to the product and generate revenue from the sale of crude oil or natural gas.
Large oil companies may become involved in all aspects of oil exploration, processing and sale. Smaller companies may become involved only in the production and/or sale. Other companies may become involved in oil exploration purely on a speculative basis. All such employers are covered under this industry.
Oil and gas companies will employ "head office" staff to include engineers, administration, marketing, etc. Field staff will include supervisors, production and process engineers and production operators.
The operation of upstream production/processing facilities is covered under this classification when conducted by the oil and gas producer. Upstream production facilities include:
- oil/gas wells, well head equipment
- gathering systems tied into field processing facilities
- battery sites/compressor stations
- separators, dehydrators and treaters
- natural gas/sulfur processing plants
- heavy oil projects including steam generation
- other enhanced recovery methods
Gas processing plants are normally located in the vicinity of the producing fields, and are tied directly into gas wells through a network of gathering systems. This is considered to be an upstream production activity by the industry and is a common activity of major producers. Gas plants incorporate process technology, similar to refineries and petrochemical plants, for the purpose of removing impurities such as sulfur and water prior to transmission to market.
All employers in this industry are members of Energy Safety Canada (ESC). Safety associations represent the interests of employers and promote workplace safety through education and other initiatives. Improved workplace safety can result in fewer claims and help lower premiums. A portion of premiums collected is allocated to the association to support these initiatives.
Underwriting Considerations:
Businesses which operate Oilfield Waste Management Facilities for custom separating, treating, transfer and disposal of hydrocarbons, oil and water emulsions are classified in Industry 36502 – Oilfield and Industrial Hazardous Waste Mgmt.
Employers in this industry often rely on contract supervisors or consultants to monitor the activities of subcontractors. Supervisors engaged to monitor seismic and drilling operations are included in this classification. Oil and gas companies, if owning and operating seismic equipment, drilling or service rigs would require an additional industry.
Oil and gas companies are continually undertaking projects to construct production facilities. Supervisors engaged on contract to oversee construction projects are classified in industry 51506, Quality Control Services.
Seismic Data Brokers purchase geophysical data from oil companies for the purpose of resale. These operations are to be classified (by application) under industry 86901, Business Services. Such brokers which are also engaged in gathering data on a speculative basis by subcontracting seismic services will have their entire operations classified in industry 09200.
Oil and Gas companies in particular have shown recent trends to contractual hiring practices rather than placing workers on payroll. Individuals which are eligible for accounts only by virtue of incorporation, will be classified in this industry when their services are exclusive to oil and gas companies and traditionally have been occupations within this industry.
Industry Custom Pricing: Modified Experience Rating
This industry has chosen to participate in Industry Custom Pricing effective January 1, 2011. For employers participating in the Experience Rating Plan for Large Employers, the following experience rating features will be used in determining their premium rate:
-Maximum discount or surcharge of 60%
-Participation rate of 1% for every $4000 in premiums
-Maximum participation of 100%
-Maximum experience used of 100%
Rate Group History:
A review of the oil industry in 1991 resulted in the consolidation of all upstream activities of oil exploration and development companies being placed in this single rate group. These changes were made effective January 1, 1992.