CIPMA Connection

May | 2019

MESSAGE FROM THE PRESIDENT JENNIFER STEWART

UPCOMING EVENTS THE WESTERN MEMBERS DINNER | CIPMA GOLF CHALLENGE

NEWS UPDATES

FULL MEMBERS

ASSOCIATE MEMBERS

CONNECTION CONTENTS

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| MESSAGE FROM THE PRESIDENT

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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 We are at a time when now, more than ever, the petroleum sector is under a microscope. With the increased attention from the government and expectations from consumers, how we navigate the next 5 to 10 years will drastically impact the future of the sector.

With the seemingly endless and multi-faceted regulatory environment we are facing, it is critical for CIPMA to be quick on our feet and ensure that we are at the table with government early and often, helping to shape the future of the industry. We must maintain our position and increase our ability to be strong advocates for the sector as it undergoes increased oversight and regulatory review.

It is all the more vital to be a part of the CIPMA coalition and have your voice heard.

We appreciate your membership and continue to ensure that we represent the sector. If you have any issues, concerns or questions, don’t hesitate to reach out.

Sincerely,

Jennifer Stewart President and CEO Canadian Independent Petroleum Marketers Association Canadian Independent Petroleum Marketers Association | Connection 2019 |

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Canadian Independent Petroleum Marketers Association | Connection 2019 |

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UPCOMING EVENTS CIPMA CONNECTION | 2019 EVENTS

THE WESTERN MEMBERS DINNER June 5, 2019 | Calgary, Alberta

Contact Rita Molinari for more details

CIPMA GOLF CHALLENGE September 12, 2019 Save the Date!

Canadian Independent Petroleum Marketers Association | Connection 2019 |

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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.

2019 | 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 RISKS BUILDING AS GLOBAL ENERGY INVESTMENT INSUFFICIENT FOR FUTURE DEMAND: IEA The International Energy Agency (IEA) is warning that investors are not putting enough money into the energy that will fuel the world’s economy in the future.

THE DRILLDOWN: BP SIGNS CLIMATE RESOLUTION BUT DECLINES TO MATCH SHELL After two groups demanded action on climate change at BP’s annual shareholder meeting, the company declined to match the example set by Royal Dutch Shell Corp. and include emissions from the oil it sells in its climate targets but accepted a resolution from Climate Action 100+.

LOW-SPEED ELECTRIC VEHICLES COULD AFFECT CHINESE DEMAND FOR GASOLINE AND DISRUPT OIL PRICES WORLDWIDE, SAYS EXPERT Low-speed electric vehicles could reduce China’s demand for gasoline and, in turn, impact global oil prices, according to a new issue brief by an expert in the Center for Energy Studies at Rice University’s Baker Institute for Public Policy.

GERMANY REVIVES UNDERGROUND CARBON CAPTURE PLAN IN SIGN OF CLIMATE STRUGGLE German Chancellor Angela Merkel’s government is reviving the idea of storing carbon-dioxide emissions underground as the nation struggles to achieve its climate targets.

Canadian Independent Petroleum Marketers Association | Connection 2019 |

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UNITED STATES OREGON CAP-AND-TRADE PROPOSAL SPURS DEBATE AMONG GAS, POWER INTERESTS Oregon lawmakers have sparked tensions between the retail natural gas and electricity sectors over a proposal to launch a cap-and-trade program, House Bill (HB) 2020, which currently favors power over gas customers.

PROPOSED U.S. PLANT TO PULL CO2 FROM THIN AIR, USE IT TO PUMP OIL A U.S. oil producer is teaming up with a company working to grab planet-warming carbon dioxide (CO2) straight from the air in a bid to extract more oil from the ground in a greener way, the companies said on [May 21].

COUNTY APPROVES HAUL AGREEMENT FOR KEYSTONE XL PIPELINE The Pennington County Commission approved a haul route agreement [May 21] governing TC Energy’s use of county roads during the construction of the company’s proposed Keystone XL crude-oil pipeline.

NATIONAL ENERGY INDUSTRY NEEDS NATIONAL STRATEGY THAT INCLUDES PIPELINES AND CARBON TAX, REPORT ARGUES Canada’s oil and gas industry has the potential to compete successfully in global markets in the coming decades — but only if business and government leaders come up with a coherent national energy policy, according to a report released [May 22].

TRUCK DRIVERS DON’T THINK EVS ARE UP TO HEAVY HAULING Ory Parks has travelled the continent, driving heavy trucks for 47 years. The resident of Odessa, Sask., has put 1.7 million kilometres on his latest truck – a diesel-powered 2006 Kenworth W900 – hauling loads of up to 18,000 kilograms mostly across the Prairie provinces of Canada. And there is one thing he knows for certain. He will never buy an EV truck.

ARCHITECT OF PARIS AGREEMENT SAYS WE NEED TO ‘GO EXPONENTIAL’ TO BEAT CLIMATE CRISIS Governments that fail to provide responses to the global climate crisis are doing so “at their own peril,” former United Nations climate chief Christiana Figueres said during a visit to Toronto.

CANADIAN RETAILERS POST BIGGEST GAIN IN 10 MONTHS ON GAS SALES Retail sales in Canada posted the biggest gain in 10 months in March, as the nation’s consumers emerge from a months-long spending slump.

CANADIAN OILFIELD WOULD PRODUCE MORE IF REGULATED IN U.S., ENCANA CEO SAYS The CEO of Encana Corp. says Western Canada’s Montney oil and gas region would be two to four times more productive if it was in the United States with its more efficient regulatory systems.

BANK OF CANADA GOVERNOR URGED TO INVESTIGATE TAR SANDS CAMPAIGN AND CLIMATE RISK TRADE WAR AGAINST CANADA SAYS FRIENDS OF SCIENCE SOCIETY In response to a May 16, 2019 report in the National Observer, wherein Bank of Canada Governor Steve Poloz expressed fears of a ‘fire sale’ of stranded ‘carbon assets’ and market upheaval in Canada’s oil sector, Friends of Science Society urge the governor to open an investigation into the “Tar Sands Campaign” as a part of a trade war against Canada, and an integral part of creating global ‘climate hysteria’ to serve vested interests in renewables, carbon pricing and global cap and trade.

WESTERN REGION

ALBERTA THRONE SPEECH FOLLOWED BY BILL TO REPEAL PROVINCIAL CARBON TAX The new Alberta government has set its first legislature sitting in motion with a throne speech followed immediately by a bill to repeal the provincial carbon tax.

Canadian Independent Petroleum Marketers Association | Connection 2019 |

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QUEST CCS FACILITY REACHES MAJOR MILESTONE: CAPTURES AND STORES FOUR MILLION TONNES OF CO2 In less than four years, the Quest carbon capture and storage (CCS) facility has captured and safely stored four million tonnes of CO2, ahead of schedule and at a lower cost than anticipated.

HYDROGEN TRUCKS TO GET ROAD-TESTED IN CANADA’S OIL COUNTRY Two tractor-trailers powered by hydrogen electric fuel cells will hit the highways of Alberta in a pilot program to test the viability of doing heavy-hauls over long distances in the western Canadian province.

REGULATOR INVESTIGATING HIGH GAS PRICES IN B.C. HAS POWER TO EXAMINE GOUGING British Columbia’s independent energy regulator will have the power to call oil company representatives as witnesses into an investigation of high gasoline prices in the province.

SMALL NUCLEAR REACTORS COULD MAKE ALBERTA’S OILSANDS CLEANER, INDUSTRY EXPERTS SUGGEST Alberta’s oilsands have been labelled as dirty by environmental activists and some politicians, but the sector might be able to clean up that reputation with help from the nuclear power industry.

ONTARIO / QUÉBEC REGION

CIVIL LIBERTIES GROUP CHALLENGES DOUG FORD’S GAS PUMP PROPAGANDA When the federal carbon tax came into effect in Ontario on April 1, it was a first step towards putting a realistic price on carbon pollution. But populist premier Doug Ford was apoplectic. One of his first acts after winning the election last June was to cancel the previous Liberal government’s cap-and-trade system. So he wasn’t about to sit and watch as Ottawa replaced that system with a tax he calls a “job killer.”

OILPATCH REPS HEAD EAST SEEKING ALLIES AMONG BUSINESS, CIVIC LEADERS Representatives of Canada’s oil and gas industry are headed east this month as the sector looks to rally support among business and municipal leaders.

‘CLIMATE CHANGE WILL COST US MORE’: ONTARIO GREEN PARTY RELEASES RIVAL GAS STATION STICKER Green Party of Ontario Leader Mike Schreiner has unveiled his own version of Premier Doug Ford’s carbon tax sticker.

ONTARIO CHAMBER ASKS GOVERNMENT TO ABANDON GAS PUMP STICKER PLAN Forcing gas station operators to display Ontario government stickers on the federal carbon tax violates their rights and freedoms, the province’s chamber of commerce said as it asked the Progressive Conservatives to reverse their decision.

ATLANTIC REGION

GAS PRICES UP ACROSS NEWFOUNDLAND AND LABRADOR After three weeks of falling prices, a litre of gas is about one cent more expensive as of [May 23] morning.

JOI SCIENTIFIC GAMBLE NECESSARY TO HELP CAP CARBON TAX BILL: NB POWER NB Power has told the province’s energy regulator that the utility’s exposure to carbon pricing forces it to explore new technologies that carry financial risk, including an unproven process to convert seawater into hydrogen energy.

ELECTRIC VEHICLE SALES IN NEW BRUNSWICK WELL BELOW PREDICTED SURGE Only 200 EVs expected on provincial roads this year, 80% fewer than projected.

Canadian Independent Petroleum Marketers Association | Connection 2019 |

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info@nee.ca

1.866.574.5100 www.nee.ca

INDUSTRY LEADERSHIP BULK TERMINAL TO GAS STATIONS ABOVE AND BELOW GROUND TRUCK AND MOBILE REFUELING

GASOLINE

RENEWABLE FUELS

DIESEL & DIESEL EXHAUST FLUID

PROPANE

HEATING OIL

AVIATION FUEL

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ASSOCIATE MEMBER FOR OVER 13 YEARS AND DIAMOND SPONSOR OF CIPMA ANNUAL CONFERENCE

HEATING OIL

Canadian Independent Petroleum Marketers Association | Connection 2019 |

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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