Oil Sands in Canada

The idea? A market incentive to curtail waste during Oil Sands extraction

While searching for ways to help our veterans get honourable Post Traumatic Stress coverage care, I noticed an opportunity for Western Canada and Utah to leverage their Oil Sands.  Creating a second market to avoid the boom-and-bust cycle often seen in resource-dependent regions.

“Float Rights” pdf – link here.

The idea is that Alberta, Saskatchewan, Utah and other Oil Sands regions license the right to pre-extract the anticipated intangible value of the physical resource; extracting the rolling anticipated value of Oil Sands as a spot market, in sequenced pre-extraction before “Liquid Right” licensees remove the physical resource.

The effects are interesting:

New Royalties from the one resource

• Float Right Licensee does not necessarily have to be Liquid Right Licensee
• Leaseable by Provinces to Sovereign States, to collateralize other risks
• Leveraging underperforming Liquid Rights assets whenever demand slows
• No need to depend on mining, export or hold-ups in pipeline capacity
• Extraction-less industry when the market fluctuates

A Market Incentive for Zero Waste

• Float Rights can be leveraged for any sort of business
• “100% Capture” Target (100% of extractable liquid and tailings) becomes value-added
• “Zero Waste” Target (100% pollution prevention) becomes value-added

A New Energy Spot Market

• Trading on global oil, insurance, and finance exchanges
• Float Right leverages 10% of resource that is extractable using current technology
• As collateral, could Float Right leverage the other 90% until it is extractable?
• Extraction owners could profitably backstop insurance costs and rent risk coverage

Competing Resource Plays

• Canada (Alberta, Saskatchewan)
• USA (Green River Basin)
• Russia
• Kazakhstan

Dave Huer