Significant Pricing Changes

During 2018 we made several changes to our pricing strategy to better accommodate any and all sizes and types of companies and to make EnerLink more affordable for new subscribers. A few significant changes that may be of particular interest are:

  • Introductory pricing is now much lower than before.
  • Renewal pricing is now based on use. Production is now relevant only to determine a starting price for producers and their price cap. This makes EnerLink affordable even for companies with significant production yet few "third party issues".
  • Only a fraction of oil sands and other unconventional production is now included in our formulas.
  • Natural gas is now converted at 10:1 rather than 6:1.

Fundamental Principles

We believe we offer attractive pricing for all of industry: all sizes and types of non producers; startups; and producers from the smallest to the largest, with all types of land holdings and production profiles. Below are a few fundamental principles about our licences and pricing. For further information, a price quote or to inquire about subscribing, please send us an email at info@enerlink.ca.

  • EnerLink licences are issued for one year. They are renewed annually only upon mutual agreement, so subscribers are never locked in.
  • Every year, in good times and in bad, almost all of our subscribers renew, indicating a very high degree of satisfaction with our service and pricing.
  • All licences permit unlimited company wide use.
  • We have two pricing schemes. One applies to non producers and the other to producers (including startups).

Non Producers

EnerLink was initially designed with oil and gas producers in mind. Before long, non producers such as midstream companies, energy marketers, pipeline companies, utilities, oilfield service providers, law firms, seismic brokers, land agents, data providers and government departments heard about EnerLink and started to subscribe. Non producers have become a significant part of our subscriber base.

New licences for non producers are issued at one of four initial prices for the first year: $1,200, $2,400, $3,600 or $4,800, depending on the size of the new subscriber and the anticipated amount of use. After the first year, renewal pricing is based on use of EnerLink over the months prior to renewal. There are 15 price levels, ranging from $1,500 to $15,600 per year.

Producers and Startups

For the first year, pricing for producers and startups is based on production in BOE/d (10:1), with a maximum price of $9,800. For oil sands and other types of unconventional plays involving large tracts of homogeneously owned lands, it is our usual practice to include only a fraction of the production in our calculation. The formula we use for the first year is $1,200 plus 30 per BOE/d to a maximum price of $9,800. After the first year, renewal pricing is based on EnerLink use during the months prior to renewal, subject to a price cap. The graphs below illustrate this.

EnerLink has over 3,200 registered users. Some use EnerLink only every few days or weeks while others use it for hours at a time virtually every single day. Individual use varies from fewer than 100 to well over 10,000 hits per year. The huge variation makes it impossible to apply a single meaningful price across the board for each user. Instead we track use and assign each user to one of the eight categories we have developed. They range from "dabblers" (currently 18% of our users, where there is no charge) to "extreme" (there are fewer than 10 of these among our 3,200 users, and the charge for them is $10,000 - a bargain considering how much EnerLink leverages their productivity). Two strategies exist to massage the pricing. First, there is a price cap that benefits subscribers who use EnerLink aggressively. Second, large price increases or decreases are smoothed out over the years, to prevent large price changes.

Subscribers are never really "at risk" with our pricing, because use is measured and disclosed prior to renewals, and renewals only occur if a subscriber agrees to the proposed price. We are happy to discuss more details about our methodology upon request.