April | 2020
MESSAGE FROM THE PRESIDENT JENNIFER STEWART
ADVOCACY CORNER NEWS UPDATES
FULL MEMBERS
ASSOCIATE MEMBERS
CONNECTION CONTENTS
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| PRESIDENTS CORNER
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| UPCOMING EVENTS
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| ADVOCACY CORNER
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| NEWS UPDATES
MISSION CIPMA’s mission is to ensure the sustainability and growth of a healthy and viable independent fuel marketing and distribution sector at both the wholesale and retail levels in Canada. Our specific goals include: Ensuring that independent fuel marketers thrive and have the opportunity to earn a fair and reasonable return that is proportionate to their business risk and capital investment, and ensuring that Canadian consumers and independent fuel marketers have access to a competitively priced and readily available supply of fuel products in all regions of the country.
MESSAGE FROM THE PRESIDENT JENNIFER STEWART | PRESIDENT & CEO
Dear CIPMA Members and Associate Members, As we move into the second month of the Coronavirus pandemic, I hope you, your families and loved ones are doing well and remain healthy. I know that this is a tough time for business. Gasoline volumes have dropped nearly 60 per cent since Canadians stay home to flatten the curve and there is a lot of uncertainty about when ‘business as usual’ will return, if ever. As an association, we have been working harder than ever before to make sure your voice is represented with all levels of government, and where needed, advocate for relief measures. As noted in our message to Members last week, these activities are spanning coast-to-coast-to-coast, and myself and our entire team are here to support. If you have a concern or issue that currently isn’t being reviewed or pursued, please contact me. We are in this together, and we will do all that we can to help the sector during these difficult times. Stay well, Sincerely,
Jennifer Stewart President and CEO Canadian Independent Petroleum Marketers Association
CIPMA - COVID-19 Updates
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UPCOMING EVENTS CIPMA CONNECTION | 2020 EVENTS
CIPMA 2020 GOLF CHALLENGE
September 17, 2020
Glen Abbey Golf Club in Oakville
CANADIAN FUEL MARKETING CONFERENCE April 19 – 21, 2021 Fairmont The Queen Elizabeth Hotel, Montreal
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ADVOCACY CORNER
a call with Ian Jarvis, COO of the commission earlier this week. The BC government will be doing a consultation with the industry, which is currently on hold. CIPMA will keep Members apprised of all relevant updates and will be participating in the consultation on behalf of our members.
The Advocacy Corner will be featured in the newsletter on a bi-monthly basis. We will continue to monitor and track all policy related issues that matter to you, our Members, in the lead up to and post the federal election.
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CIPMA has engaged the Alberta Minister of Finance to defer provincial gasoline tax remittances, similar to what has been announced in BC / Ontario to inject some cash liquidity for businesses. CIPMA has several requests into other provincial finance ministers where this relief mechanism has not been announced and we will be actively pursuing this relief measure.
Our team is working hard to ensure our sector is represented in these difficult times.
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CIPMA has engaged all provinces to confirm that gasoline / convenience stores are deemed an essential service. CIPMA has also engaged Minister Blair’s office to ensure should the Federal Emergencies Act be introduced, that gasoline stores be deemed essential.
As things are moving quickly, we will be sending regular email advocacy updates to Members. Here’s a snapshot of issues we’re working on: •
CIPMA sent a letter to the British Columbia Utilities Commission (BCUC) requesting information on the Fuel Price Transparency Act. Jennifer Stewart had
• CIPMA has engaged Natural Resources Canada / Environment and Climate Change Canada to request that all regulatory measures / initiatives be put on hold for the time being. We have just learned that the government will delay the
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publication of the proposed Clean Fuel Standard regulations for the liquids class in Canada Gazette, Part I. They now plan to publish proposed regulations for the liquids class in fall 2020, with final regulations in late 2021 and coming into forced in mid-2022. Regulations for the gaseous and solids classes will follow about one year later.
integration of renewable fuels for a fixed period.
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Jennifer Stewart had a meeting with the Federal Government regarding a three-month deferral of the Federal Excise Tax. This was in conjunction with CFA. We continue to engage with government and CRA on this file.
• CIPMA had a meeting with the Quebec Government regarding its proposed renewable fuel regulations. The proposal that the government will be putting forward is below. CIPMA will be engaging Members and creating a response to government. Blending can be done in premium gasoline and CI value will be considered:
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CIPMA has engaged all Provincial Regulators in the Atlantic provinces to request an increase in the margin to provide some temporary financial relief for retailers in regulated markets.
1) Gasoline requirements of ethanol content: 10% ethanol in 2021 12% ethanol in 2025 14% ethanol in 2028 15% ethanol in 2030
• We will continue to create several graphics that can be used on your social media channels thanking frontline workers at retail / convenience outlets.
2) Requirements in diesel fuel 1% renewable fuel in 2021 2% renewable fuel in 2023 3% renewable fuel in 2025 4% renewable fuel in 2027
3) Exclusions Allow a transition period for certain regions that do not have blending installations ready. Exclude remote regions of Quebec as Norddu-Québec, Côte-Nord, Gaspésie, Îles-de-la Madeleine and Île d'Anticosti.
4) Reduction of greenhouse gases (GHG) associated with renewable fuels (carbon intensity [CI] and life cycle analysis [LCA]) Integrate environmental standards (GHG reductions with IC or/and adding sustainability criteria).
• Jennifer Stewart has a meeting with the Minister of Labour next week.
W W W . C I P M A . O R G W W W . C I P M A . O R G
• Michael Ervin of Kent Group, is putting together an analysis of how much of the retail / downstream sector CIPMA represents. We will be translating this analysis into an infographic and will share it with government during our meetings.
5) Co-treatment of biocrude for the production of renewable fuels Allow biocrude as an input in the refining process. A renewable fuel yield should be associated with biocrude refining.
6) Credit and exchange mechanism Add a way to exchange credits between subject parties and / or products (petrol / diesel fuel) as well as generate credits by integrating renewable fuel into non-subject petroleum products (eg: in heating oil).
7) Compliance period and record keeping Mandatory register of integrated volumes as well as an annual reporting of the average
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NEWS UPDATES Please note that all orange text in the following section is hyperlinked. If viewing electronically, you can click to read full articles.
GLOBAL
GREEN ENERGY COULD DRIVE COVID-19 RECOVERY WITH $100TN BOOST Renewable energy could power an economic recovery from COVID-19 by spurring global GDP gains of almost $100 trillion (£80 trillion) between now and 2050, according to a report. ALBERTA TO STAY COURSE AS OPEC, ALLIES REACH DEAL TO CUT OIL OUTPUT The OPEC and allies led by Russia have agreed to cut oil output by a record amount – representing around 10 per cent of global supply – to stabilize prices as the COVID-19 pandemic has decimated demand for oil. After four days of marathon talks, the group, known as OPEC+, agreed to reduce output by 9.7 million barrels a day for May and June. COVID-19 IS KILLING OIL AND GAS BUT THE VIRUS COULD ALSO POISON RENEWABLES Given the economic downturn — 7 million jobs lost in March alone — the demand for oil and gas will remain weak. That will cause prices to fall even further, perhaps as low as $20 per barrel. But the dip will be relatively short-lived. And while oil prices are expected to climb again, green energy’s future is now in limbo. With gasoline prices so low, the pressure is off to invest in alternative fuels. Canadian Independent Petroleum Marketers Association | Connection 2020 |
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UNITED STATES ENBRIDGE SUBMITS APPLICATION TO PROCEED BUILDING TUNNEL FOR PIPELINE UNDER MACKINAC STRAITS Enbridge is seeking state and federal permits to build an oil pipeline beneath the waterway linking Lakes Huron and Michigan. Enbridge wants to drill a tunnel in bedrock beneath the Straits of Mackinac to replace an underwater segment of its Line 5 pipe. It carries 23 million gallons of oil daily between Superior, Wisconsin and Sarnia, Ontario. TC ENERGY ENLISTS ALBERTA TO HELP BUILD US$8-BILLION KEYSTONE XL PROJECT A final investment decision clearing the way for construction of the long-delayed Keystone XL Pipeline was greeted with relief by an Alberta oil patch where production has grown faster than pipeline capacity. The decision by TC Energy Corp. to go ahead with the US$8-billion project was widely anticipated after it cleared major U.S. regulatory hurdles earlier this year and began site preparation work in Montana, South Dakota, and Nebraska.
NATIONAL CHINA’S LONG-TERM NEED FOR LNG STILL HUGE; SHORT-TERM DEMAND UNCERTAIN DUE TO COVID-19 The “30,000-foot-view,” in business parlance, describes getting to a high enough level to see the big picture. It’s also an apt phrase — both literally and figuratively — for describing the long-term need for Canadian LNG to displace the use of highercarbon producing coal for power generation. OIL SANDS’ ‘UNTOUCHABLE’ DIVIDENDS FACE SOME RISK, TD SAYS Canadian oilsands companies’ dividends aren’t fully immune to the dismal energy environment, and cuts could occur if commodity prices don’t improve, according to TD Securities. CANADA'S EMISSIONS COUNT JUMPED 15 MILLION TONNES IN 2018, REPORT SHOWS A surge in emissions from road traffic, manufacturing, home heating, and fossil-fuel production in 2018 almost entirely erased any progress this country had made cutting greenhouse gas emissions since 2005, the federal government reported April 15.
TRUCK DRIVERS ARE BEING DENIED BASIC NECESSITIES AS THEY DELIVER ESSENTIALS IN THIS PANDEMIC Across Canada, truck drivers and couriers are being barred from restrooms while they deliver essential goods, including medical equipment and fresh produce. Drivers say their services are welcomed by businesses, but their basic human needs, including the need to relieve themselves, aren’t being accommodated because of fears they’ll spread COVID-19. ENBRIDGE RUNNING MAINLINE WITH UNUSED SPACE AS CANADA OIL CUTS DEEPEN Enbridge Inc. is running North America’s biggest oil pipeline network, the Mainline, with unused capacity as Canadian producers cut output because of the spread of the coronavirus and low prices, a senior executive said on April 6. SHOCKPROOFING CANADA: WHY THE KEYSTONE PIPELINE IS JUST THE START OF MAKING US ENERGY SELF-SUFFICIENT Two weeks before TC Energy Corp. and Alberta Premier Jason Kenney announced the $7.5-billion deal to begin construction on the long-delayed Keystone XL pipeline, crews were entering quarantine at work camps along the Canada /United States border to ensure everyone was healthy in preparation for a get-to-work order. IMPERIAL OIL CUTTING SPENDING PLANS FOR 2020 BY $1 BILLION AMID COVID-19 PANDEMIC Imperial Oil Ltd. is reducing its spending for this year by $1-billion, including a $500-million cut to its capital spending plan as it deals with the COVID-19 pandemic and crash in oil prices. AS COVID-19 SPREADS, HOW SAFE IS IT TO PUMP GAS RIGHT NOW? If you really need gas, don’t let viral rumours keep you from filling up. Touching a gas pump likely isn’t any riskier right now than touching door handles, bank machines, or anything else that gets touched by a lot of other people. OTTAWA’S PLAN FOR OIL AND GAS HELPS IN THIS CRISIS – BUT A NEW ENERGY FUTURE MUST BE THE BIGGER GOAL Opinion piece by Kevin Krausert is the president and chief executive officer of Beaver Drilling, co-founder of the Avatar Program, and the drilling rig executive chair of the Canadian Association of Oilwell Drilling Contractors. Canadian Independent Petroleum Marketers Association | Connection 2020 |
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WESTERN REGION WESTERN CANADA: OTTAWA PLEDGES $2.4-BILLION TO HELP OIL AND GAS WORKERS HIT BY LOW PRICES, PANDEMIC The Alberta government and the industry have been ramping up pressure to act, as oil and gas companies continued to be hammered by the combined effects of a global price war that drove down prices and the COVID-19 pandemic, which has dried up demand. Finally, the government came forward with a $2.4-billion package yesterday that is aimed primarily at helping laid-off oil and gas workers. 9 ADDITIONAL COVID-19 CASES CONFIRMED AT KEARL LAKE OIL SANDS FACILITY Twelve people linked to Imperial Oil’s Kearl Lake oil sands facility have now tested positive for COVID-19 on April 16, an increase of three since the day before. ALBERTA OIL PRODUCERS SAY MORE NEEDS TO BE DONE TO STABILIZE INDUSTRY The energy sector — hit hard by the dramatic drop in world oil prices —says the OPEC production cut deal isn’t enough to ensure Alberta’s patch stays healthy. Provincial affairs reporter Tom Vernon explains. ATHABASCA SUSPENDS CANADIAN OIL-SANDS OPERATION ON LOW PRICES Athabasca Oil Corp. fully suspended its Hangingstone oil sands operation to combat low oil prices and uncertainty surrounding coronavirus. The move comes shortly after Athabasca said in March it would curtail production at Hangingstone by about 50 per cent to maximize corporate funds flow and liquidity.
ALBERTA’S TOP COURT OVERTURNS OIL SANDS MINE APPROVAL OVER FIRST NATIONS CONCERNS FOR LAND Alberta’s highest court has overturned regulatory approvals for a $440-million oil sands project that would have encroached on land a First Nation considers sacred.
ONTARIO / QUÉBEC REGION REPLACEMENT OIL PIPELINE CROSSING PROJECT MOVING AHEAD IN SARNIA With energy projects deemed essential, work has continued on the replacement of Enbridge’s Line 5 oil pipeline crossing beneath the St. Clair River at Sarnia. The $20-million project began earlier this year to drill a new crossing deeper in the riverbed than the existing one. SUDBURY AREA ROADSIDE RESTAURANT SERVING FREE MEALS TO TRUCK DRIVERS, FIRST RESPONDERS McDougall Energy offers free beverages, snacks and meals at company's retail, gas locations.
ATLANTIC REGION IRVING OIL TO PRODUCE HAND SANITIZER DURING CORONAVIRUS PANDEMIC Irving Oil announced that it will retool its blending and packaging facility in Saint John, N.B. to add hand sanitizer to the production line. LAYOFF NUMBERS UNCERTAIN IN NORTH ATLANTIC REFINERY SHUTDOWN In a statement on March 31, North Atlantic Refinery Ltd. said it is shutting down to standby mode, but what that means in terms of layoffs remains unclear.
KENNEY ANNOUNCES $1.5B INVESTMENT IN KEYSTONE XL PIPELINE
NOVA SCOTIA’S GOLDBORO LNG DELAYED ON COVID-19 FALLOUT
Alberta Premier Jason Kenney announces a $1.5-billion equity investment in the Keystone XL pipeline for this year.
The Covid-19 virus pandemic has inflicted delay on a planned LNG export project on Canada’s Atlantic Coast, Goldboro LNG, project sponsor Pieridae Energy Ltd. said April 16.
UNIFOR RECOMMENDS MEMBERSHIP REJECT COOP REFINERY'S 'BEST AND FINAL OFFER' The Co-op Refinery Complex has made a new offer to their locked-out Unifor members and has applied to force a vote on the proposal. The union's leadership is recommending its membership reject the offer.
DESPITE OPEC OIL PRODUCTION CUT, N.L. HAS NOT BEEN ASKED TO CURB PRODUCTION, BALL SAYS Newfoundland and Labrador Premier Dwight Ball says there is no plan to slow oil production at this time, even though the world's largest key oil cartel is cutting production. Canadian Independent Petroleum Marketers Association | Connection 2020 |
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BVD PETROLEUM OFFERS SUPPORT TO LOCAL FOUNDATION BVD Petroleum has donated $100,000 to the William Osler Health System Foundation in support of their Health Care Heroes campaign. The CIPMA member’s donation will help the Peel Region foundation raise funds for health care workers and urgent equipment needs during the COVID-19 pandemic.
The Coronavirus pandemic may have challenged us in many ways but it is also building a greater sense of community. Let us know what you are doing to give back to your community during these difficult times.
Send your story to Jennifer Stewart at jstewart@cipma.org We look forward to hearing from you!
We recently released our
2019 ANNUAL REPORT If you haven’t received your copy, please feel free to contact Jennifer Stewart directly at jstewart@cipma.org
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We want to share the successes of our members. If you want to feature your company’s recent achievements, updates, or simply want to be featured, please reach out to Jennifer Stewart at jstewart@cipma.org
Jennifer Stewart, President and CEO jstewart@cipma.org | Cell: 613.915.5699
Rita Molinari, CMP, Operations Manager rmolinari@cipma.org | Cell: 416.358.5207
MAILING ADDRESS | 3-1750 The Queensway, Suite 115 - Toronto, ON., M9C 5H5
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