New Inventions - Oil and Gas Funding
Research and development investment by oil companies such as yours, can result in new or improved methodologies in the recovery of Oil and Gas and may be eligible for oil and gas funding. The advancements pursued may cover the spectrum from completely new processes to adapting applications to a different formation type. The guidelines for the extent of project eligibility along that spectrum vary substantially, for example the extent of cost inclusion if a pilot plant or field pilot are involved. For SR&ED funding, there is no requirement for a patent for the oil and gas research; as long as the criteria are met and the technological challenges could not be met from knowledge available in the public domain, or solved using routine practices in oil and gas engineering. The interpretation of the SR&ED guidelines in this industry is fraught with potential misinterpretation, but TSGI knowledgably steers through the maze.

Research and Development in the Oil and Gas Industry
The SR&ED tax credit definition specifically excludes the activities of “prospecting, exploring or drilling for, or producing, minerals, petroleum, or natural gas” and “commercial production of a new or improved material device, or product”. However, if your company’s oil and gas engineering has distinguished oil and gas research and development activity that qualifies from that which does not, SR&ED funding can be accessible for qualifying activity. TSGI may be able to assist with that segregation process, and can also assist you with developing tracking processes for future claims. Oil and gas research is an expensive proposition and often requires testing in a field environment, sometimes out of necessity, with potential or existing customers, requiring careful segregation of activity necessary for the oil and gas research from regular commercial or exploration activity.

Oil and Gas Engineering
On the positive side of the ledger, “engineering” activity (along with other support activity) commensurate with the needs and in support of technological advancement that is embodied in a new oil and gas engineering process development is specifically included as a qualifying activity in the definition of SR&ED. Oil and Gas companies in Alberta and elsewhere in Canada may have significant such supporting activity for new inventions or improvements to oil and gas processes.

TSGI Experience
TSGI, located in Calgary, Alberta, Canada currently has clients in, and has filed numerous SR&ED claims in the field of, research and development in the oil and gas industry.