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)