August | 2019
MESSAGE FROM THE PRESIDENT JENNIFER STEWART
UPCOMING EVENTS
CIPMA GOLF CHALLENGE | EASTERN-BASED MEMBERS: NETWORKING DINNER
ADVOCACY CORNER NEWS UPDATES MEMBER 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 CORNER
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| NEWS UPDATES
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| MEMBER 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 August coming to a close brings with it a reminder that the change of season is almost upon us. This year especially brings potential considerable change for our sector, including the upcoming election on October 21. CIPMA has been busy analyzing Canada’s political landscape over the past month and will continue to keep close tabs on the ballot box issues and priorities that impact our sector for the upcoming federal election. This month, I am pleased to introduce a new “Advocacy Corner” to this magazine. This bi-monthly feature will provide you with the updates on the various electoral platforms on issues that affect the viability of our industry. On a lighter note, I look forward to connecting with many of you at the annual Golf Challenge, coming up on September 12th at the Glen Abbey Golf Club. Registration is still open for those of you who haven’t yet registered. Planning is also in the works for our Eastern Members Networking Dinner, which will be held in Halifax on October 9th. Stay tuned for more details! As always, please do not hesitate to reach out on any concerns or issues that you may wish to review. Sincerely,
Jennifer Stewart President and CEO Canadian Independent Petroleum Marketers Association
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CLIMATE ACTION INCENTIVE FUND (CAIF) Small-and medium-sized enterprises project stream ECCC has launched its new CAIF program, funded from the proceeds of the federal carbon pollution pricing system. Programming will be available in Saskatchewan, Manitoba, Ontario, and New Brunswick, where provinces have not committed to their own carbon pollution pricing systems. Small and medium-sized businesses in these provinces will be eligible to receive funding of up to 25 percent of the cost of projects that will make their businesses more productive and competitive as they reduce energy use, save money, and cut greenhouse gas pollution. A wide range of projects are eligible, including building retrofits, improved industrial processes, fuel switching, and the production of renewable energy for the use of applicants. The CAIF consists of three funding streams to support projects and measures undertaken by small- and medium-sized enterprises (SMEs), municipalities, universities, schools, hospitals (“MUSH sector”), and not-for-profit organizations.
Applications are being accepted for 90 days starting July 17, 2019, or until funding exhausted. LEARN MORE
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UPCOMING EVENTS CIPMA CONNECTION | 2019 EVENTS
CIPMA GOLF CHALLENGE September 12, 2019 Register here.
EASTERN-BASED MEMBERS: NETWORKING DINNER Halifax, Nova Scotia | Wednesday, October 9, 2019 Contact Rita Molinari for details.
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take “action on climate change”. With a policy move seemingly at odds with the party’s core platform, we can expect the Liberals to counter critics by promoting their price on pollution (aka. the Carbon Tax) and ongoing consultations on the Clean Fuel Standard, as evidence of their vested commitment to their enviro-economic policy. It is also certain that the Liberals will continue to prioritize zero emission vehicles as they continue to offer goodies to manufacturers and consumers alike through ongoing credit creation incentives and EV rebates. Conservative Party: While a group of vocal provincial and territorial Premiers continue to bring the jurisdictional fight against the Carbon Tax to the Supreme court, Andrew Scheer has been quite clear in his position: under a Conservative government, the Carbon Tax will be scrapped entirely. We can also expect the Liberals’ efforts on the Clean Fuel Standard to go the way of the dodo if Andrew Scheer finds himself to be the next Prime Minister. Calling it an additional ‘secret fuel tax’ that will be too costly for Canadian consumers, the Conservative Party will instead focus on the development of new green technology by requiring companies that emit more than 40,000 tonnes per year to invest in green development projects. The finer details of the Conservative climate plan however are still unknown.
ADVOCACY CORNER 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.
PIPELINES, EV, CARBON TAX, OH MY! WHERE THE FEDERAL POLITICAL PARTIES STAND ON THE ENERGY SECTOR By: Michelle Coates With the next federal election peeking through the horizon, you can be sure political parties of all stripes are readying their talking points to duke it out over a host of issues – including the environment, which will put a microscope on the energy sector; the oil and gas industry in particular. Throughout the pre-campaign period, the main political parties vying for national support have begun to communicate their positions. All signs suggest that an evolution to the industry is coming, no matter who’s in power. To make sure you can hit the ground running with the facts you need after the ballots are cast on October 21st, here’s a recap on where the parties stand on the future of the energy sector. Liberal Party: The Liberals find themselves a bit at odds with their own environmental policy post reapproval of the Trans Mountain pipeline. It is perhaps believed to be a politically savvy move for a Liberal government hoping to get back in the good graces of voters in the west. But the reapproval flies in the face of a political brand that quickly pledged to
Ensuring shovels are in the ground quickly for Trans Mountain is certain to be another key priority for a Conservative government looking to get the project built and off the public books. And, don’t be surprised to see the Conservatives roll-back EV rebates, in favour of a free-market approach that avoids shifting consumer buying habits through government subsidies. NDP Party: Following the NDPs defeat by the Green Party in last May’s by-election in BC, the NDP have reasserted their opposition to new oil and gas infrastructure, including pipelines – a proposal we can expect they will continue to make as they attempt to define themselves as more ‘Green’ than the Greens. To show their commitment to fighting climate change, the NDP is promising the creation of 300,000 new jobs in the transition to a green energy economy, offering to provide laid off workers impacted by the transition employment-insurance-based training to re-enter the workforce. To show they mean business, the NDP are expected to maintain the Liberal’s ‘Price on Pollution’ plan with some tweaks including lowering the emission limits from 90 per cent to 70 per cent, making companies pay the Carbon Tax on a larger portion of emissions while maintaining the fuel charge. We can expect they will continue to put the pedal to the metal on the purchase of electric vehicles, maintaining existing subsidies, and waiving the federal sales tax for certain consumer groups. Green Party: STOP the pipelines! The Greens are certainly expected to shout from the rooftops. The Green Party is pushing towards a renewable energy economy and will take its plan to Canadians in the coming weeks. Elizabeth May has not been shy about her position; Canada needs to stop any expansion of fossil fuels while helping industry workers transition. Her own wedding made headlines last spring for it’s low-carbon footprint. The Green Party will promote their plan to fund apprenticeships in the renewable energy sector; clean-up orphaned oil wells; begin massive retrofits; and introduce a no holds barred, one price for all approach to fight pollution. While the baseline pricing is expected to be similar to the NDP and Liberal plans, the Greens will maintain the scheduled increase of $10 per year, well beyond the $50 per tonne mark. These increases will continue year on year until there are no more carbon emissions in Canada. Period. Michelle Coates is an experienced leader in public affairs, specializing in government and stakeholder relations, communications strategy development and advocacy outreach. As a government relations representative for CIPMA, Michelle represents the views and interests of independent Canadian fuel marketers across the country, providing timely and pertinent advice and analysis on Federal and Provincial regulations impacting the oil and gas industry.
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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
UK TO HALVE EMERGENCY PETROLEUM STOCKS AFTER NO-DEAL BREXIT The UK’s emergency petroleum stocks will more than halve in the event of a no-deal exit from the EU, reducing the buffer of strategic reserves available in the event of severe global supply disruption. CARBON PRICES ARE SPREADING ACROSS THE GLOBE, BUT NOT FAST ENOUGH FOR PARIS The world now has 57 carbon-pricing programs covering about 20 percent of greenhouse-gas emissions, but they won’t be as effective as they could be, experts said, until more of the world participates. OPEC’S MARKET SHARE SINKS - AND NO SIGN OF WAVERING ON SUPPLY CUTS OPEC’s share of the global oil market has sunk to 30%, the lowest in years, as a result of supply restraint and involuntary losses in Iran and Venezuela, and there is little sign yet producers are wavering on their output-cut strategy. LEBANON’S HIGH RISK OFFSHORE OIL & GAS BOOM The least known offshore oil and gas frontier in the EastMediterranean, Lebanon is preparing itself for a possible entrance into the producer’s league.
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HOW TWO GLOBAL ORGANIZATIONS ARE HELPING TO LAY THE FOUNDATIONS FOR A RENEWABLE ENERGY FUTURE Around the world, big businesses and governments are searching for ways to increase their use of renewable sources of energy and, at the same time, reduce their impact on the environment. Organizations such as REN21, which describes itself as an “international policy network,” play a significant role in this discussion and debate. TURKEY AFFIRMS ITS CLAIM ON CYPRUS OIL AND GAS Turkey will continue exploring for oil and gas in the eastern Mediterranean waters around disputed Cyprus, and “No project can be realised if Turkey and the Turkish Republic of Northern Cyprus are not involved,” President Recept Erdogan said, as quoted by Cypriot media. NEWENERGYBLUE ACQUIRES RIGHTS TO BIO-CONVERSION TECHNOLOGY FOR BIOFUEL PRODUCTION NewEnergyBlue has recently acquired the exclusive rights to Inbicon’s bio-conversion technology in the Americas, where it intends to convert wheat straw into carbon-neutral automotive biofuel using the technology. UN HEAD WARNS OF ‘DRAMATIC CLIMATE EMERGENCY’ AS CARBON PRICE FIGHT CONTINUES IN OTTAWA The head of the United Nations is urging world leaders to step up in the face of “a dramatic climate emergency” as wildfires blaze across the Arctic and the Amazon rainforest, and federal politicians in Canada squabble over whether the Liberal government’s carbon price is an essential tool or a rip-off. CHARGING STATIONS NOW OUTNUMBER GAS STATIONS IN BRITAIN According to Nissan UK, there are about 9,300 public charging stations, as opposed to 8,400 gas stations.
UNITED STATES
OIL SLIPS AS FUEL INVENTORIES RISE Oil futures steadied on Wednesday [August 21] after U.S. government data showed a drawdown in domestic crude stocks but rises in refined product inventories, while lingering worries about the global economy weighed on the market. AVFUEL TO SUPPLY SUSTAINABLE AVIATION FUEL TO WYOMING FBO Avfuel, a global supplier of aviation fuel, will supply operators fuelling at Jackson Hole Aviation in Wyoming, US during its demonstration days with sustainable aviation fuel (SAF) to prove its viability. From 3-4 September, Avfuel will supply 7,500 gallons of SAF. FACING FARMER ANGER, TRUMP SCRAMBLES CABINET TO BRAINSTORM ON BIOFUEL POLICY: SOURCES U.S. President Donald Trump, faced with mounting anger in the farm belt over policies that allow oil refineries to use less corn-based ethanol, summoned Cabinet members on Thursday [August 22] to discuss ways to boost biofuel demand, four sources familiar with the matter said. TRUMP’S ETHANOL PROMISES COME DUE Ethanol companies benefit from fight that pits the Corn Belt against oil, but benefits have limits. AS TRUMP POLICIES DEEPEN FARMERS’ PAIN, DEMOCRATS SEE AN OPENING IN RURAL AMERICA Seizing on mounting Farm Belt frustration with President Donald Trump’s economic agenda, Democratic rivals are stepping up their push to take back part of rural America, whose overwhelming support for Trump helped propel his upset 2016 election victory.
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BARRIERS TO ELECTRIC VEHICLES SLOWLY FALLING
CANADA’S OIL SANDS PRODUCERS RACE TO CUT CARBON FOOTPRINT
Although the number of electric vehicles (EV) on the world’s roads jumped 40% year-over-year to 5 million in 2018, some of the common complaints of EVs today is their initial cost and the lack of recharging infrastructure, but will this be true in the next few years?
Rarely has the energy industry faced a more urgent need to solve that problem and change its image. Failure to clean up oil sands production could consign companies to moribund share prices and a slow death as the world seeks to wean itself off the most carbon-intensive energy sources.
NATIONAL MCKENNA BACKS OFF PLEDGE TO FREEZE CARBON TAX AT $50 A TONNE Environment Minister Catherine McKenna has backed off a pledge to freeze the carbon tax at $50 a tonne after 2022, saying a re-elected Liberal government would review the levy with provinces before deciding how to proceed. THE NEAR-IMPOSSIBLE TASK OF ELECTRIFYING THE GLOBAL PASSENGER FLEET Mass adoption of EVs faces enormous challenges on all fronts — both demand and supply. CLIMATE ACTION INCENTIVE FUND: SMALLAND MEDIUM-SIZED ENTERPRISES PROJECT STREAM As part of the Pan-Canadian Framework on Clean Growth and Climate Change, the Climate Action Incentive Fund (CAIF) is a new Environment and Climate Change Canada program, delivering up to $218M in its first year (2019-2020), funded from the proceeds of the federal carbon pollution pricing system. Programming would be available in Saskatchewan, Manitoba, Ontario, and New Brunswick, where provinces have not committed to their own carbon pollution pricing systems. Eligible recipients would benefit from funding for projects to decrease energy usage, save money, and reduce carbon pollution. EMISSIONS WILL RISE UNDER CONSERVATIVE CLIMATE PLAN A leading climate expert’s modelling of the Conservative climate plan shows emissions will rise, as the proposed tools are not proven to work.
COMMUNITY LEADERS JOIN CONVENIENCE RETAILERS TO RAISE FUNDS FOR CHILDREN’S WISH FOUNDATION Customers visiting their neighbourhood convenience store this week [August 26 – 29] may see a new, but very familiar face behind the cash register or at the gas pump.
WESTERN REGION
IS THE FEDERAL CARBON TAX KILLING JOBS? EXPERTS SAY ANSWER ISN’T ‘BLACK AND WHITE’ The Saskatchewan government says the federal carbon tax is killing jobs, but experts and even the province’s trade minister say it’s not that easy to calculate. COURT AFFIRMS ALTERNATIVE KEYSTONE XL OIL PIPELINE ROUTE THROUGH NEBRASKA A court in Nebraska on Friday [August 23] affirmed an alternative route through the Midwest state for TC Energy Corp’s Keystone XL oil pipeline in the latest chapter in the nearly 10-year legal fight over the Canada to Texas pipeline. CIELO TO BUILD RENEWABLE DIESEL REFINERY IN ALBERTA, CANADA Cielo Waste Solutions has entered into a Memorandum of Understanding (MoU) with Renewable U Lethbridge to build a renewable diesel refinery in Lethbridge, Alberta, Canada.
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PEMBINA PIPELINE CORPORATION TO ACQUIRE KINDER MORGAN CANADA AND THE COCHIN PIPELINE FOR $4.35 BILLION AND INCREASE DIVIDEND Pembina Pipeline Corporation (“Pembina” or the “Company”) (TSX: PPL; NYSE: PBA) is pleased to announce that it has entered into agreements pursuant to which it will acquire Kinder Morgan Canada Limited (TSX: KML) (“Kinder Morgan Canada” or “KML”) (the “Corporate Acquisition”) and the U.S. portion of the Cochin Pipeline system (“Cochin US”) from Kinder Morgan, Inc. (“KMI”) (the “Cochin US Acquisition”) for a total purchase price of approximately $4.35 billion (the “Transaction”). IN GAME OF THRONES, CO-OP WASHROOMS REIGN Saskatoon-based Federated Co-Op Ltd. has the highest-rated gas station washrooms in the country, according to GasBuddy data. ALBERTA, SASKATCHEWAN SAY THEY HAVE NO PLANS TO PUT CARBON TAX STICKERS ON GAS PUMPS Carbon-tax-fighting governments in Alberta and Saskatchewan say they have no plans to follow Ontario’s lead and force gas stations to put anticarbon tax stickers on their pumps.
ONTARIO / QUÉBEC REGION DOUG FORD VOWS TO FINE GAS STATIONS THAT DON’T DISPLAY ANTI-CARBON TAX STICKERS Premier Doug Ford says gas station owners who don’t put his government’s anti-carbon tax stickers on their pumps will be fined but won’t be handed the maximum penalty available. GAS STATION OWNERS PITCHED AN ALTERNATIVE TO FORD’S CARBON-TAX STICKERS Faced with the Ontario Conservative government’s plan to force gasoline retailers to slap stickers on their pumps showing the cost of the federal Liberal government’s carbon tax, the association that represents the owners of more than half of the gas stations in Canada found that proposal “a bit partisan” and suggested a less politicized alternative.
DON’T MAKE GAS STATIONS PUT UP ANTICARBON TAX STICKERS: ONTARIO CHAMBER OF COMMERCE Ontario’s Chamber of Commerce is asking the province to reverse course on a plan to make gas stations display stickers on the federal carbon tax. Chamber president Rocco Rossi says the group’s members — some of whom are gas station operators — believe the stickers violate their rights and freedoms. DOUG FORD MIGHT NOT GO THROUGH WITH HIS CARBON TAX COURT CHALLENGE AFTER ALL Premier Doug Ford says the fate of Ontario’s carbon tax court challenge will be decided after the federal election, raising the possibility that his government could end up abandoning the case.
ATLANTIC REGION DRIVING 3,250 KILOMETRES FOR ONLY $30, IN AN ELECTRIC VEHICLE Conservation biologist Brett Favaro says technology is there, but support infrastructure isn’t. CANADA’S DEPENDENCE ON IMPORTED FOSSIL FUELS REACHES A WHOLE NEW LEVEL It’s already well known that eastern Canada has been using a lot of hard-earned foreign exchange to buy crude oil from faraway places like Saudi Arabia, instead of sourcing it from parts of our own country where it is abundant. Lack of in-country pipelines to facilitate this internal trade is a big part of the situation. CAPE BRETON BUSINESSES INSTALL BLUE LIGHTS TO CURB DRUG USE Fast-food chains and gas stations in Cape Breton Regional Municipality are installing blue lights in their bathrooms in an attempt to curb intravenous drug use. WHAT N.L. COULD LEARN FROM THE WORST OFFSHORE OIL DISASTER IN U.S. HISTORY Marine scientist Donald Boesch says the controversy fuelled by recent oil spills off Canada’s East Coast has some “fairly interesting and striking comparisons” to his past work examining how the offshore industry is managed, as part of a U.S. inquiry into the Deepwater Horizon disaster.
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MEMBER UPDATES CIPMA is pleased to welcome new Full Member, Michaud Petroleum Inc.
FULL MEMBER
MICHAUD PETROLEUM INC. With more than half a century of experience, Michaud Petroleum Inc. is in full growth. They offer service at its best! Distributing lubricants & fuels in New Brunswick, Quebec, Gaspe / Bas du fleuve. They are proud to be serving the surrounding areas. They also have resellers, service stations and lubricants throughout the province to service your needs. Their courteous and professional staff is dedicated to exceeding your expectation and participating in your success as their # 1 priority and goal is to give you a high quality service at a competitive price.
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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
EQUIPMENT TECHNOLOGIES, ENGINEERED SOLUTIONS INSPECTIONS AND 24/7 MAINTENANCE
ASSOCIATE MEMBER FOR OVER 13 YEARS AND DIAMOND SPONSOR OF CIPMA ANNUAL CONFERENCE
HEATING OIL
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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