Canada’s Refining Industry 2018 Sector Performance Report · 2 Canadian Fuels Association |...
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Canada’s Refining Industry 2018 Sector Performance Report
Transcript of Canada’s Refining Industry 2018 Sector Performance Report · 2 Canadian Fuels Association |...
Canada’s Refining Industry
2018 Sector Performance Report
I Canadian Fuels Association | Sector Performance Report 2018
The Canadian Fuels Association represents the industry that produces, distributes and markets petroleum products in Canada – including 95 percent of the transportation fuels Canadians rely on to remain mobile and globally competitive.
The fuels sector contributes over $5 billion to Canada’s GDP each year and employs more than 117,000 Canadians at 16 refineries, 78 fuel distribution terminals and approximately 12,000 retail and commercial sites throughout Canada.
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Source: Companies’ websites, 2018Statistics Canada, 2018
* Due to confidentiality issues, capacity numbers were used instead of production numbers.** Domestic sales adjusted for exports and imports by non-reporting companies.
Note: Numbers may not add due to rounding.
*** North West Redwater refinery to be fully operational in 2019.
Canada’s refining sector at a glance
• 16 refineries located in 7 provinces • Refinery employment, 2017: 18,039
• Total refining capacity, 2017: 1,884 kb/d • Refined product exports, 2017: 28.6 billion litres
• Product demand, 2017: 1,860 kb/d • Refined product imports, 2017: 16.6 billion litres
• GDP contribution, 2017: $5.9 billion • Total annual investments, 2017: $1.1 billion
* Refining Capacity (1,884 kb/d)** Product Demand (1,860 kb/d)
Petro-Canada Lubricants - 16
Husky - 12
North West Redwater***Suncor - 142
Imperial - 187Shell - 100
FederatedCo-op - 130
Valero- 265
Imperial - 120Shell - 75
Suncor - 85
Suncor - 137 Irving Oil - 318
North Atlantic Refining - 130
Parkland - 55
B.C.67
213
Prairies 559 517
Ontario408 600
Quebec 402 369
Atlantic 448 161
Imperial - 112
2 Canadian Fuels Association | Sector Performance Report 2018
Production
Canadian exports and imports of refined petroleum products
Canada is a net exporter of refined products – refinery capacity exceeds domestic demand, notably in Quebec and Atlantic Canada.
An increase in freight transport is driving growth in diesel demand.
*Other includes propane, butane, petro-chemical feedstocks, lubricating oils, petroleum coke, asphalt, etc. | Data: Statistics Canada, 2018. | Numbers may not add up due to rounding.
Data: Statistics Canada, 2018.
Canadian supply and demand, 2017
Refined petroleum products flow across both sides of the Canada – U.S. border, adjusting to demand and market conditions.
Canadians pump over 214 million litres of gasoline and diesel into their fuel tanks every day. To meet demand and to keep Canadians on the move, the country’s 16 refineries operate 24/7 to produce around 116 billion litres of road, jet, rail and marine fuels, heating oil, lubricants and petro-chemicals.
Domestic sales by product (billions of litres), 2017
43.5% Gasoline – 47 billion l28.8 % Diesel – 31 billion l 7% Aviation fuels – 8 billion l 2.8% Heavy fuel oil – 3 billion l 1.8% Heating oil – 1.9 billion l 16.4% Other* – 17 billion l
Data: Statistics Canada, 2018.
Domestic demand of refined products
Refined products exports
Refined products imports
Refinery production
Crude oil intake at Canadian refineries
0 25 50 75 100 125 Billion litres
Billi
on li
tres
35
30
25
20
15
10
5
02002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Exports Imports
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Since 2000, total recordable injuries for refinery employees have decreased by 82%. The work doesn’t stop here – we believe no one should ever get hurt, on or off the site.
Refinery employees – Total recordable injury frequencies
Safety
Our member companies are leaders in industrial safety management, and have among the best safety records of any manufacturing industry in Canada.
Canadian Fuels Association members only.
Inju
ry fr
eque
ncy
per 1
00 fu
ll-tim
e w
orke
rs
Medical treatment case frequency Restricted work case frequency Lost time injury frequency
2.0
1.5
1.0
0.5
0.0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
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Canadian Fuels members’ total environmental expenditures
Canadian Fuels Association members only.
Canadian Fuels and its members work closely with communities to help give surplus sites a second life. Since 2009, our members have remediated 1501 surplus sites, making them available for industrial, recreational, residential, or commercial use.
Canadian Fuels Association members only.
Surplus site remediation
Canadian Fuels members are working to get greener every year. Since 2000, our members have invested close to $12 billion to improve the environmental performance of their refineries and the fuels they produce, including $5 billion to significantly reduce sulphur in gasoline and diesel.
Environmental performance
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
Mill
ions
of C
anad
ian
dolla
rs
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
2
000
2001
2002
2003
2004
2005
200
6
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Num
ber o
f site
s
2015 2014 2013 2012 2011 2010 2009
837
428
900
800
700
600
500
400
300
200
100
0
Service stations Other sites
Annual total (left axis) Cumulative total (right axis)
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Energy consumption of petroleum refineries
Total CO2 emissions, Canadian refining industry
Our sector’s carbon dioxide (CO2) emissions have been reduced by 9% since 1990 – all while the refining process has become increasingly intensified to meet stringent fuel quality standards (see page 8), and also while pro-ducing 7% more products.
One way to reduce GHG emissions is to decrease energy use. Energy fuel consumption at Canadian refineries has decreased by 20% since 2008.
Greenhouse gas emissions
Canadians, as well as governments at all levels, are increasingly concerned by the challenge of mitigating climate change. Canada’s refiners account for 2% of the country’s total GHG emissions and are committed to doing their part to reduce them.
Source: Canadian Energy and Emissions Data Centre (CEEDC), Simon Fraser University, 2018.
Data: Statistics Canada, 2018.
400
350
300
250
200
150
100
50
0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Refinery production Energy consumption (Higher Heating Value HHV)
Refinery production (billion litres)
Ener
gy c
onsu
mpt
ion
(pet
ajou
les)
22201816141210
86420
CO2 (Megatonnes)
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
120 110100
908070
60
50
40302010
0
6 Canadian Fuels Association | Sector Performance Report 2018
Sulphur oxides (SOx) ▼52%
Data: Environment and Climate Change Canada National Pollutant Release Inventory (NPRI), 2018.
Volatile organic compounds (VOCs) ▼47%Tonnes
Benzene (C6H6) ▼42%
Tonnes
Nitrogen oxides (NOX) ▼42%
Total particulate matter (TPM) ▼42%
Refiners are continuously looking at ways to improve their processes – leading to significant improvements in air emissions at facilities.
Canada’s refining sector can help improve air quality on two fronts – decreasing emissions at refineries, and producing cleaner fuels (p. 8).
Air emissions
120,000
100,000
80,000
60,000
40,000
20,000
0
35,000
30,000
25,000
20,000
15,000
10,0005,000
0
18,00016,00014,00012,00010,000
8,0006,0004,0002,000
0
Tonnes
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
140
120
100
80
60
40
20
0
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Tonnes
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Tonnes
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2002
2003
2004
2005
2006
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2017
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Canadian Fuels Association member refineries only.
*Total suspended solids. | Canadian Fuels Association members only. | 2017 data.
Refinery water usage
Refinery effluent quality
Water intake is down 30% since 2005.
Effluent deposits from refineries are well below federal maximum allowable limits.
Years of commitment to continuous improvement in how we use water has paid off: refiners need less water to process a barrel of crude oil, and water is returned to the environment in a cleaner state.
Water
Cubic metres (m3)350,000,000
300,000,000
250,000,000
200,000,000
150,000,000
100,000,000
50,000,000
0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Regulations 100%
% of allowable limits
120%
100%
80%
60%
40%
20%
0% Oil and Sulphide Ammonia Phenol T.S.S.* grease nitrogen
Maximum allowable limits (100%)
IntakeDischarge
8 Canadian Fuels Association | Sector Performance Report 2018
Sulphur in gasoline*
Sulphur in diesel*
Benzene in gasoline1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
Canadian Fuels Association members only. | Data includes imports. Volume-weighted averages are shown.
*Canadian Fuels Association members only. | Data includes imports. Quarterly volume-weighted averages are shown.
Fuels have changed significantly in the past decades. Lead was entirely phased out of gasoline and benzene was cut to less than 1% of volume. Refiners have invested over $5 billion to cut sulphur to less than 30 ppm in gasoline and less than 15 ppm in diesel. The new regulation in 2017 further reduced sulphur in gasoline to 10 ppm annual average.
Sulphur in Diesel Fuel Regulations implemented in 2006 cut sulphur in on-road diesel from 500 ppm to 15 ppm.
Benzene content is far below the maximum allowable.
Fuel quality20
00
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2000
2001
2002
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2007
2008
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2010
2011
2012
2013
2014
2015
2016
2017
Sulp
hur c
onte
nt (p
arts
per
mill
ion)
Benz
ene
cont
ent (
% v
olum
e)
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
400
350
300
250
200
150
100
50
0
Sulp
hur c
onte
nt (p
arts
per
mill
ion)
500
450
400
350
300
250
200
150
100
50
0
*10 ppm annual average with use of sulphur credits.
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Downstream sector employment
Refining sector investments (millions of Canadian dollars) Canadian refiners have invested more than $25 billion in structures, machinery and equipment since 1991. That’s an average of close to $2 billion a year in the last 10 years.
Canada's fuel refining, distibution and retailing sector employs over 117,000 workers, including over 18,000 at refineries, more than 15,000 at fuel distribution terminals and over 84,000 at retail sites.
A competitive refining sector is a key contributor to a strong Canadian economy, adding over $5 billion to the country’s GDP each year.
Refining sector economic indicatorsN
umbe
r of e
mpl
oyee
s
Data: Statistics Canada, 2018. Table 14-10-0202-01 Employment by Industry, NAICS [324, 3241, 412, 4121, 447, 4471]
Data: Statistics Canada 2018, The Conference Board of Canada.
3,000
2,500
2,000
1,500
1,000
500
0Annu
al in
vest
men
ts, s
truc
ture
s, m
achi
nery
and
equ
ipm
ent
30,000
25,000
20,000
15,000
10,000
5,000
0
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Structures (left axis) Machinery and equipment (left axis) Cumulative total (right axis)
120,000
100,000
80,000
60,000
40,000
20,000
0
Gasoline stations Petroleum terminals Petroleum refineries
Investments, cum
ulative total
2001
2002
2003
2004
2005
200
6
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
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Trade and economic contribution
11 Canadian Fuels Association | Sector Performance Report 2018
Downstream SectorRefining, Distribution, Marketing
Product movement
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Product trade flow
North WestRedwaterHusky
Suncor
FederatedCo-op
ValeroSuncor
Shell
Irving Oil
North Atlantic Refi ning
Chevron
Refi ned Petroleum Product Flow
Imperial
ShellImperial
Imperial
Suncor
Interprovincial Trade
Exports
ImportsWest Supply Orbit
EastSupply Orbit
Petro-Canada Lubricants
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Fuel Facts
Members
1000 - 275 Slater Street, Ottawa ON K1P 5H9 | 613.232.3709 | canadianfuels.ca
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