CIPMA Connection - October 2018

October | 2018

MESSAGE FROM THE PRESIDENT JENNIFER STEWART

UPCOMING EVENTS SIGMA 60TH ANNIVERSARY ANNUAL CONFERENCE 2019 CANADIAN FUEL MARKETING CONFERENCE

NEWS UPDATES

FULL MEMBERS

ASSOCIATE MEMBERS

CONNECTION CONTENTS

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| MESSAGE FROM THE PRESIDENT

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| 7-ELEVEN LAUNCHES PROGRAM TO OFFSET TAILPIPE EMISSIONS | Press Release - October 2018

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| UPCOMING EVENTS

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| ADVOCACY UPDATES

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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 It is with great pleasure that I share this October edition of our Connection Magazine.

I want to extend big thanks to all of our Members in the East who joined the CIPMA Board of Directors in Halifax for the Eastern Members Networking & Dinner, which took place earlier in the month. It was a pleasure to have Mayor Savage join our ranks as our distinguished guest for the event, reminiscing on his own time spent working in the petroleum sector.

On the advocacy front, our provincial and federal efforts are continuing full steam ahead. The latest quarterly edition of the advocacy update will soon be available in the Members-only portal of the website, offering more details on the latest achievements and endeavors underway.

As always, if there is an issue that arises that you wish to bring to our attention, please feel free to reach out at any time.

On behalf of the Board of Directors and the team at CIPMA, I want to thank you for your continued membership and participation in the association. We are committed to continuing to work hard on your and the sector’s behalf, to get your voice heard.

Jennifer Stewart President and CEO Canadian Independent Petroleum Marketers Association Canadian Independent Petroleum Marketers Association | Connection 2018 |

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MARK YOUR CALENDARS CIPMA is the proud host of the

Canadian Fuel Marketing Conference The next conference will take place in Toronto

April 8 – 10, 2019 at the Marriott Downtown-Eaton Centre

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

Canadian Independent Petroleum Marketers Association | Connection 2018 |

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7-ELEVEN LAUNCHES PROGRAM TO OFFSET TAILPIPE EMISSIONS: VANCOUVER CHOSEN TO PILOT THE GREEN PROGRAM PRESS RELEASE | OCTOBER 2018

With a goal of planting 20,000 trees across Canada by October 2019 with Tree Canada, 7-Eleven, Inc. has launched an emissions offset program called RENEW. Customers can offset their tailpipe emissions simply by purchasing fuel.

There is no other program like it in Canada and it is only available at the sixty-one 7-Eleven fueling stations in the lower mainland.

For every litre of fuel purchased as a part of the 7-Eleven RENEW program, an investment will be made in reforestation, green-scape projects, wildlife protection and/or renewable energy projects designed to help offset tailpipe emissions. Depending on the amount contributed, tailpipe emissions may be offset by up to 30 percent.

Furthermore, 7-Eleven’s RENEW program is working with Tree Canada to participate in volunteer projects and to plant trees.

“It’s important to us, as leaders in the industry, to find ways to support our communities, to give back, and to make a difference,” said Nick Angelo, Sr., Director of Operations for 7-Eleven Canada, which is based in Surrey. “This program offers customers an opportunity to make an impact and help their local communities.”

“The RENEW program plants trees locally,” stated Laura Cottle of Tree Canada. “Trees reduce the effects of climate change, they clean our air, they provide habitat to sustain biodiversity, and they help us live longer, healthier lives. We thank 7-Eleven for their commitment to a greener Canada.”

Canadian Independent Petroleum Marketers Association | Connection 2018 |

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“What is really great about this program is that customers don’t have to do anything different,” added Angelo. “They just fill up their tanks and we’ll do what it takes to offset some of the carbon emissions. We’ll invest the funds, not only in planting trees, but also in some of the great approved programs such as solar, wind and recovery of landfill gases.

This is an important initiative and we hope that many of our customers will support it by participating in the RENEW program.”

To locate a 7-Eleven store offering the RENEW program near you, visit: www.7-elevenrenew.ca About 7-Eleven 7-Eleven, Inc. is the premier name and largest chain in the convenienceretailing industry. Its Canadian headquarters is in Surrey, British Columbia. 7-Eleven operates, franchises and/or licenses more than 66,000 stores in 17 countries. Known for its iconic brands such as Slurpee, Big Bite and Big Gulp, 7-Eleven has expanded into high-quality salads, side dishes, cut fruit and protein boxes, as well as pizza, chicken wings, and crispy classic chicken. 7-Eleven offers customers industryleading private brand products under the 7-Select brand including healthy options, decadent treats and everyday favorites, at an outstanding value.

Find out more about 7-Eleven Canada at www.7-Eleven.ca, via the 7-Eleven mobile app, or on social media @7ElevenCanada via Facebook, Twitter and Instagram.

About Tree Canada We’re a registered charity proudly dedicated to planting and nurturing trees. For 25 years, we’ve engaged communities, governments, corporations and individuals in the pursuit of a greener and healthier living environment for Canadians. Since 1992, we’ve planted more than 80 million trees, greened more than 600 schoolyards, helped restore places hit by natural disasters and brought together urban forestry experts greening cities all across Canada.

About GreenPrint Founded by a team of loyalty and rewards experts, GreenPrint created the first reduced emissions programs for fuel which is licensed to convenience store chains, energy companies, and corporate fleets – enabling them to sell, or fill up with, more environmentally friendly fuel. Today the company reduces or offsets emissions on almost 500 million gallons annually across hundreds of retail locations and 40,000 corporate and municipal fleets in 12 countries.

Canadian Independent Petroleum Marketers Association | Connection 2018 |

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UPCOMING EVENTS CIPMA CONNECTION | 2018 EVENTS

SIGMA 60TH ANNIVERSARY ANNUAL CONFERENCE November 6 - 8, 2018 | San Francisco, CA Visit SIGMA.org for more details.

2019 CANADIAN FUEL MARKETING CONFERENCE April 8 - 10, 2019 | Toronto, ON Mark your calendars!

Canadian Independent Petroleum Marketers Association | Connection 2018 |

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ADVOCACY UPDATES Government advocacy is the main priority for the CIPMA team, and having a voice on important issues at the municipal, provincial and federal levels of government is one of the key reasons why Members join our organization. CIPMA Members receive quarterly updates on the association’s advocacy efforts, which are also posted on the Members Only section of cipma.org.

Canadian Independent Petroleum Marketers Association | Connection 2018 |

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NEWS UPDATES This section presents a series of media articles of interest to the sector. The headlines included below are taken directly from media sources and are not written by CIPMA or CIPMA team members.

GLOBAL RESEARCH SHOWS OIL AND GAS EXTRACTION IN UK WATERS COULD REACH $426 BILLION BY 2050 As much as £330 billion ($426 billion) could be spent on oil and gas extraction in the North Sea by 2050, according to research published October 24.

ARGENTINA’S YPF TO SPEND BILLIONS TO BOOST OIL AND GAS OUTPUT Argentina’s state-controlled oil company, YPF, will significantly boost oil and gas production, investing between $4 billion and $5 billion per year through 2022, Chief Executive Daniel Gonzalez told Reuters on October 26.

OIL AND GAS MAJORS NEED TO INVEST $20 BILLION YEARLY TO DOMINATE IN RENEWABLES Majors account for a 15 percent share of the global oil and gas market. If those majors want to capture the same market share in renewables, it would require them to collectively invest $200 billion, according to a new report from Wood Mackenzie.

WOOD MACKENZIE WARNS OF OIL AND GAS SUPPLY CRUNCH Oil and gas companies need to increase annual investment by 20 per cent or face a global supply crunch from 2025, a leading consultancy has warned.

Canadian Independent Petroleum Marketers Association | Connection 2018 |

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OIL DIPS AS RUSSIA SIGNALS OUTPUT WILL STAY HIGH Oil prices edged lower on October 29 as Russia signaled output will remain high, but losses were limited ahead of U.S. sanctions on Iranian exports that are expected to reduce supplies when they come into effect in just under a week.

UNITED STATES

U.S. EAST COAST REFINERS CASH IN BY THE TRAINLOAD ON CANADIAN OIL U.S. East Coast oil refiners are ramping up rail deliveries of crude from Western Canada, grabbing stranded barrels that full pipelines have driven to a record discount.

GLOBAL OIL PRICING WORRIES HIT U.S. ENERGY SHARES AS EARNINGS LOOM Worries over global oil pricing and pipeline constraints are hanging over the energy sector as U.S. companies begin to report quarterly results, with many producers’ shares trading lower on the year.

NATIONAL CANADIAN RETAIL GASOLINE PRICES AVERAGE 123.0 CENTS PER LITRE IN OCTOBER As of October 29, the Canadian average retail regular gasoline price was 123.0 cents per litre, up from 118.8 cents per litre in October 2017, while the average retail diesel price hit 133.3 cents per litre, versus 113.7 for the same time last year, according to Kent Group Ltd. For more information and analytics, click here.

TRUDEAU PROMISES REBATES AS OTTAWA MOVES TO LEVY CARBON TAX ON PROVINCES OUTSIDE THE CLIMATE PLAN The federal Liberal government will slap a carbon tax on fuels in provinces and territories with no adequate emissions pricing plans of their own — but will send annual rebates to Canadian families to offset most of the added costs of this climate-change fighting initiative.

HOW CARBON PRICING WILL WORK, PROVINCE

BY PROVINCE The federal government has ordered all provinces and territories to put a price on carbon emissions by 2019 – but some provinces are years ahead of the game.

WASHINGTON TO DECIDE ON FIRST-OF-ITS-KIND U.S. CARBON FEE

FEDS EARMARK $1.5 BILLION TO HELP SMALL BUSINESSES WITH CARBON PRICING

Voters in Washington state will go to the polls Nov. 6 to decide whether or not they want to impose a first-of-its-kind “fee” on carbon emissions.

The federal government expects to spend nearly $1.5 billion helping small and medium-sized businesses adapt to carbon pricing over the next five years – but it will not exempt them from the new carbon tax regime

TRUMP MOVES TO ALLOW MORE ETHANOL IN GAS WITH E15 AVAILABLE YEAR-ROUND

PARKLAND FUEL TO BUY 75% STAKE IN CARIBBEAN FUEL MARKETER SOL INVESTMENTS FOR $1.57 BILLION

After months of false starts, President Donald Trump will tell Iowans on October 9 during a campaign rally in Council Bluffs that he’s opening the door to year-round access to gasoline with higher ethanol blends.

Parkland Fuel Corp, a Canada-based marketer of petroleum products, said on October 10 it would buy a 75 per cent stake in privately held SOL Investments Ltd and its units for $1.57 billion.

Canadian Independent Petroleum Marketers Association | Connection 2018 |

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LNG CANADA IS ONLY THE TIP OF THE MEGAPROJECT ICEBERG The launch of a massive liquefied natural gas (LNG) export project in Canada has finally fired the starting gun on a wave of plan approvals around the world, needed to avoid a supply crunch after 2020.

CRUDE-BY-RAIL SEES MASSIVE INCREASE SINCE TRANS MOUNTAIN WAS PITCHED IN 2012 With many new pipeline projects stalled and existing ones running at capacity, oilpatch producers are turning increasingly to rail to transport their product — resulting in an eight-fold spike in the volume of oil travelling on Canada’s railways since 2012.

ONTARIO / QUÉBEC REGION SASKATCHEWAN, ONTARIO PREMIERS SAY FIGHT AGAINST ‘NASTY, NASTY’ CARBON TAX GROWING ACROSS CANADA The premiers of Saskatchewan and Ontario welcomed another province into their anti-carbon-tax tent on Thursday and said the fight against Ottawa’s plan to put a price on pollution is gaining momentum.

CONSERVATIVES CITE ENERGY EAST AS A MEANS TO AVOID SAUDI OIL The Conservative Party of Canada is citing a dependence on foreign oil from countries such as Saudi Arabia as an argument to revive the Energy East pipeline project, which was conceived as a means of exporting oil.

MEALS ON WHEELS: HUNGRY SQUIRRELS GO NUTS OVER THIS MAN’S HONDA

WESTERN REGION

ALBERTA LAUNCHES METHANE EMISSIONS REDUCTION PROGRAM FOR SMALL, MEDIUM OIL AND GAS PRODUCERS The Government of Alberta says that a new program will make it easier for small and medium oil and gas companies to reduce methane emissions.

KENNEY AND SCHEER VOW TO FIGHT ‘LIES’ OF OIL AND GAS OPPONENTS Jason Kenney, the leader of the United Conservative Party of Alberta, says if he were elected premier, he would fund legal action to support energy development and put the weight of the government behind targeting opponents.

5 WAYS ALBERTA CAN IMPROVE OIL AND GAS COMPETITIVENESS: CAPP The Canadian Association of Petroleum Producers (CAPP) says the Government of Alberta still isn’t doing enough to strengthen the competitiveness of the province’s oil and gas.

‘I’m paranoid about this,’ says Ottawa man after rodents gnaw biodegradable parts on his eco-friendly car.

ATLANTIC REGION OIL AND GAS INDUSTRY PREDICTED TO BRING $100-BILLION TO NEW BRUNSWICK BY 2045 The province’s oil and gas industry has released an independent economic impact report that shows the potential of the industry. The report, prepared by David Campbell of Jupia Consultants of New Brunswick, shows the industry will bring over $100 billion dollars in taxes and royalties to the provincial government by 2045, not to mention jobs, income and consumer spending.

GOVERNMENT LAUNCHES VIRTUAL DATA ROOM FOR OIL AND GAS INDUSTRY On October 29, the Newfoundland and Labrador Government launched a virtual data room to provide information on the province’s prospectivity to offshore oil and gas explorers.

‘MAJOR INCIDENT’ DISRUPTS OPERATIONS AT NEW BRUNSWICK REFINERY Irving Oil Ltd. is resuming turnaround work following a “major incident” on Oct. 8 at its 300,000-b/d St. John refinery in the eastern Canadian province of New Brunswick.

Canadian Independent Petroleum Marketers Association | Connection 2018 |

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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