CIPMA Connection

November | 2019

MESSAGE FROM THE PRESIDENT JENNIFER STEWART

UPCOMING EVENTS CANADIAN FUEL MARKETING CONFERENCE

ENCANA LEAVING CANADA IS A WAKE-UP CALL FOR ALL OF US

BY JENNIFER STEWART

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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| ENCANA LEAVING CANADA IS A WAKE-UP CALL FOR ALL OF US | BY JENNIFER STEWART

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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 November edition of our Connection Magazine.

With the newly announced Liberal cabinet, the team at CIPMA has been busy determining new ministerial mandates and strategizing to ensure that the voice and priorities of CIPMA members are heard among the new federal ranks.

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, advocate, and keep you informed of the latest issues impacting the transportation fuel sector, to ensure an efficient, sustainable and prosperous future for all members.

On that note, registration for the Canadian Fuel Marketing Conference, held in Montreal April 6-8, 2020, opens next month. I look forward to seeing many of you at what is sure to be another insightful and engaging event.

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.

Sincerely,

Jennifer Stewart President and CEO Canadian Independent Petroleum Marketers Association

Canadian Independent Petroleum Marketers Association | Connection 2019 |

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UPCOMING EVENTS CIPMA CONNECTION | 2019/2020 EVENTS

CANADIAN FUEL MARKETING CONFERENCE April 6 – 8, 2020 | Fairmont Queen Elizabeth, Montreal QC Registration opens in December*. *Associate Members – watch your inbox for your ADVANCE registration opportunity.

Associate Members will have the exclusive opportunity to secure their preferred sponsorships one week before registrations opens up to Full Members and general industry.

Canadian Independent Petroleum Marketers Association | Connection 2019 |

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ENCANA LEAVING CANADA IS A WAKE-UP CALL FOR ALL OF US Special to Financial Post, November 5, 2019

BY JENNIFER STEWART

Encana packing its bags and leaving Canada should be a wake-up call, not just to the oil and gas sector, but to all Canadians and their governments, especially their federal government.

Over the last two years we have seen a wedge driven between environmentalists and the oil and gas industries. The way the debate has been conducted, Canadians have been all but forced to pick a side. One party in the debate is good and forward-looking, the other is dated and dangerous and needs to be eased out of existence.

This simplistic good-and-evil lens distorts reality. Canadians are capable of seeing shades of grey where they exist, not just black and white. We should demand better of both activists and politicians.

Our natural resources, including oil and gas, are key to how our economy functions today and will be far into the future. We all enjoy the amenities that come with having abundant natural resources — mass air travel, cheap and convenient ground and sea transportation, countless consumer products, to name just a few. Yet many of us seem to believe we could at very little cost and in very little time almost magically convert away from the fuels that make all these things possible. That may happen someday but it isn’t going to happen soon. In the meantime, does it really make sense to block pipelines or resource development that will allow us to commercialize our domestic resources so we don’t have to rely on international oil, where we have no say in the producing country’s economic agenda, human rights policies or emission reduction targets?

This is not to say we shouldn’t focus on innovation and reducing our environmental footprint. We need to do better. Everyone in the industry I represent agrees. But vilifying a sector that has made great strides in recent years in emission reduction and instead switching our fossil fuel purchases to other countries isn’t the answer. The many advances the Canadian oil and gas sector have made need to be a bigger part of the national conversation. Vehicles now have tough emission standards. The sulphur content of gasoline has been significantly reduced. Mandates for renewable fuels — both federally and across many provinces — have been in place for years and vehicle engines have greatly improved their efficiency.

Canadian Independent Petroleum Marketers Association | Connection 2019 |

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These efforts have helped reduce emissions but the way forward is still challenging. It will require a myriad of efforts from industry, including increasing renewable fuel usage, continuing to improve engines, cleaning our gasoline even further, improving public transit and, yes, bringing electric and other modes of transport into the mix. But one thing couldn’t be clearer: Canadians are more likely to do all this if their economy continues to grow. We need to invest in our resources now so that we can sell them for fair market value and, among other things, invest in cleaner technology and further innovation going forward.

Encana leaving should open Canadians’ eyes. Oil and gas are not going away soon, and we shouldn’t hope they do. We have one of the best resource bases in the world, right here in our backyard, and we should shift the conversation to how we innovate — not alienate and try to destroy. While we debate a way forward, and pit some against others, we are experiencing real losses that will impact us long after the rhetoric dies down.

Too often, in politics and in life, all we see is black and white. In today’s reality, a simplistic understanding won’t advance our economy or improve our environment. With a divide in the West, and a Liberal government in power, the time is now to put politics aside and focus on what’s best for our nation.

“In today’s reality, a simplistic understanding won’t advance our economy or improve our environment.”

Canadian Independent Petroleum Marketers Association | Connection 2019 |

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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 OUTCOME OF CHINA-U.S. TRADE FIGHT RAISES QUESTIONS FOR CANADA'S OILPATCH The Canadian Energy Research Institute is flagging the potential outcome of a trade pact between the United States and China should it result in American producers becoming preferred suppliers of oil and gas to the Asian economic giant.

NESTE EXITS FUEL RETAIL BUSINESS IN RUSSIA The Finnish oil company is officially getting out of Russia's fuel retailing business by closing the sale to Tatneft.

EASYJET BUYS NEW AIRCRAFT BUT PROMISES TO OFFSET CARBON EMISSIONS EasyJet is increasing its fleet of A320neos with 12 new aircraft, while claiming it will soon operate net-zero carbon flights. The A320neo aircraft are set to replace an older generation of less efficient aircraft that will be phased out of the fleet.

OPINION: GOODBYE V8, HELLO HYBRID: WHY AUTOMAKERS ARE LOOKING BEYOND THE GASOLINE ENGINE Car companies are now trying to figure out what kinds of cars will excite the next generation of drivers, those who grew up dreaming about owning a Tesla rather than a Ferrari Testarossa. The only certainty is that, whatever else these new and exciting cars are, they will need to be fast. As for what’s under the hood, it will probably be a hybrid motor, maybe even a fully electric one. Either way, it almost certainly won’t just be a big old V-8 as was the case in McQueen’s day, and is, still often, the case today.

Canadian Independent Petroleum Marketers Association | Connection 2019 |

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GLOBAL AUTOMAKERS RAISE BET ON GASOLINE CROSSOVERS, SUVS IN SEARCH OF GROWTH OPPORTUNITIES With the carbon credit program enacted at the start of this year Beijing seeks to expand annual electrified vehicle output in China to 2 million units in 2020 from 1.27 million in 2018.

IRAN’S FUEL PRICE CRISIS SHOWS ECONOMY STRANGLED UNDER US SANCTIONS Iran, reeling from the economic impact of US sanctions, has taken the long-awaited decision to increase petrol prices by at least 50 per cent, provoking five days of protests — the worst in about two years.

FORD STOCK CLIMBS ON ELECTRIC-MUSTANG HYPE For the first time in over half a century, Ford’s Mustang lineup is getting an addition. The electric vehicle revolution continues to build as legacy automakers are making their moves. At the L.A. Auto Show, Ford unveiled its new all-electric 2021 Mustang Mach-E to its lineup, waxing poetic in noting the vehicle embodies the “Mustang spirit” with its “sleek silhouette and muscular curves.”

UNITED STATES

USDA: U.S. ETHANOL EXPORTS TOP 100 MILLION GALLONS IN SEPTEMBER The USDA Foreign Agricultural Service released September export data on Nov. 5 reporting the U.S. exported 100.31 million gallons of ethanol and 1.05 million tons of distillers grains during the month.

NATIONAL

TRUDEAU UNVEILS NEW CABINET: SEAMUS O'REGAN IN NATURAL RESOURCES, JONATHAN WILKINSON IN ENVIRONMENT Prime Minister Justin Trudeau unveiled Wednesday [November 20] a larger cabinet that aims to advance Liberal campaign promises to tackle climate change and promote middle-class prosperity, while attempting to soothe regional tensions exacerbated by last month's election outcome.

SCHEER CRITICIZES LIBERAL CABINET LINEUP WHILE KENNEY, FORD CONGRATULATE THE NEW TEAM Conservative Leader Andrew Scheer scoffed at the composition of Prime Minister Justin Trudeau's new federal cabinet Wednesday [November 20], saying the presence of many of the same faces will lead the government to repeat the errors of its first term.

U.S. GENERATION OF RENEWABLE FUEL CREDITS RISES IN OCTOBER: EPA

CANADIAN HEAVY CRUDE WEAKENS AS CN STRIKE HALTS OIL SHIPMENTS

The United States generated more renewable fuel blending credits in October than in September, the Environmental Protection Agency said on Thursday [November 21].

The price of Canadian heavy crude weakened as a worker strike at the nation’s largest railway curbed oil shipments, exacerbating a supply glut that’s crippled Canada’s oil industry.

BIO PARTNERS WITH LCFC TO DRIVE ADOPTION OF LOW CARBON FUEL POLICIES

SHELL SAYS IT'S THE OIL MAJOR STAYING IN CANADA AS OTHERS FLEE

The Biotechnology Innovation Organization (BIO) has teamed up with the Low Carbon Fuels Coalition (LCFC) to drive adoption of low carbon fuel policies in the US.

Royal Dutch Shell Plc is reassuring investors, workers, and anyone else who will listen that it’s the international oil major that’s staying in Canada as others pull up stakes.

Canadian Independent Petroleum Marketers Association | Connection 2019 |

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WESTERN REGION

MOST OF OTTAWA’S $1.6B BAILOUT FOR ALBERTA OIL AND GAS INDUSTRY HAS BEEN HANDED OUT Canada’s $1.6-billion bailout for Alberta’s battered oil industry is well underway, but with little transparency about who is getting the money and for what.

NANAIMO SERVICE STATION FIRST IN B.C. TO BE PART OF PETRO-CANADA’S ‘ELECTRIC HIGHWAY’ Drivers are topping up their electric cars at Nanaimo’s Petro-Canada station at the corner of Terminal Avenue and St. George Street. The gas bar is B.C.’s first Petro-Canada station in the B.C. section of Canada’s Electric Highway, announced in February by PetroCanada, the first hydro-carbon fuel retailer to plug into the electric vehicle energy supply market.

CANOLA AT THE PUMPS? FARMERS WANT ALBERTA TO INCREASE BIOFUEL REQUIREMENTS Alberta’s canola farmers are lobbying the province to mandate the use of more biofuels, a move they say would help the environment and boost the domestic market for their crop.

B.C. PUSHES FOR GREATER INDUSTRY ‘TRANSPARENCY’ IN GASOLINE PRICING The B.C. government is moving ahead with legislation to require gasoline producers to disclose more information about their fuel pricing.

B.C. INTRODUCES FUEL PRICE TRANSPARENCY ACT TO TRY TO PREVENT GAS GOUGING The B.C. government has introduced legislation that would force oil and gas companies to turn over supply and pricing data. If passed, Bill 42 will allow the province to regularly collect and make public financial information about the market.

CANADA'S NEW NATURAL RESOURCES MINISTER TO MAKE IMMEDIATE VISIT TO ALBERTA The newest minister for Canada's natural resources ministry will waste no time jumping into the fray as a new cabinet for the Trudeau government attempts to parry back western resentment. Seamus O'Regan, an MP from Newfoundland and Labrador, was named Canada's newest minister of natural resources Wednesday [November 20], moving from Indigenous services.

ENVIRONMENTAL LAW FIRM SEEKS TO KILL 'ANTI-ALBERTA' OIL AND GAS INQUIRY An environmental law firm is asking a court to strike down Alberta's inquiry into the role that foreign money has in financing the activities of charities that oppose the oilsands.

OPINION: TRUDEAU MUST RESTORE ENERGY SECTOR'S ATTRACTIVENESS TO INVESTORS Last month after Encana, once Canada’s largest natural gas producer, announced plans to change its name and move its corporate headquarters to the United States, the media understandably focused on the likely consequences for Alberta and the Canadian energy industry. However, a key issue — Canada’s declining competitiveness — has been largely ignored.

ONTARIO / QUÉBEC REGION ONTARIO PREMIER DOUG FORD DEFENDS $231-MILLION COST OF KILLING GREEN-ENERGY DEALS Ontario Premier Doug Ford is defending his cancellation of 758 wind and solar energy contracts despite the move’s recently revealed $231-million price tag, saying he would rip out every wind turbine in the province if he could.

ONTARIO LEGISLATION AIMS TO CUT FUEL TAX RATE New government legislation will see Northern communities get a cut on its aviation fuel tax rate.

The move is to increase competitiveness in the industry in Northern Ontario and reduce the costs for air travellers.

Canadian Independent Petroleum Marketers Association | Connection 2019 |

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ONTARIO RESEARCHER SAYS HE DISCOVERED NEW WAY TO CONVERT CO2 TO METHANOL An Ontario researcher says he has discovered a new, inexpensive way to convert carbon dioxide into a liquid fuel using sunlight in a process that mimics photosynthesis.

ONTARIO CONSIDERING BAN ON FLAVOURED E-CIGARETTE PRODUCTS AMID YOUTH VAPING CRISIS

N.L. LAGS BEHIND CANADA IN ENERGY EFFICIENCY, BUT THERE'S A SILVER LINING TO THE STATS Efficiency Canada released its first-ever provincial scorecard Nov. 20, comparing energy efficiency policies among the provinces. With energy efficiency a key part of reducing greenhouse gas emissions, Newfoundland and Labrador sat in 10th place, noted for its lack of policies on everything from promoting electric vehicle use to improving efficient construction codes.

Ontario is considering a ban on flavoured e-cigarette products, which appeal to young people, but it is also weighing concerns that restrictions could deter adults who use vapes to quit smoking. Balancing worries about the rising rates of youth vaping with the desire to make e-cigarettes an option for adult smokers is a growing public-health worry for governments in Canada and abroad.

GREENFIELD GLOBAL, HY2GEN TO SET UP 29MW GREEN HYDROGEN PLANT IN QUEBEC Canadian ethanol producer Greenfield Global Inc and Hy2gen Canada on Wednesday [November 20] announced plans for a 50/50 joint venture to build a 29-MW green hydrogen production facility in Quebec.

NEW BRUNSWICK SAYS NEW CARBON PRICING PLAN WOULD REDUCE PRICE OF GASOLINE New Brunswick’s environment minister says the province’s new carbon pricing proposal would actually reduce prices at gas pumps.

ATLANTIC REGION

STUDY IMAGINES LOW-CARBON N.S. BY 2030: ELECTRIC CARS, RENEWABLES, HEAT PUMPS A environmental group's study is imagining Nova Scotia in 2030 as a province with tens of thousands of electrically powered cars, a link to Hydro-Quebec's renewable power, and widespread use of home heat pumps pulling warmth from the coastal air.

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

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