© 2017 CIPMA Canadian Independent Petroleum Marketers Association | www.cipma.org

I N D U S T R Y N E W S U P D A T E S • M E M B E R B E N E F I T S • U P C O M I N G E V E N T S • A N D M O R E

W W W . C I P M A . O R G

WESTERN MEMBERS MEETINGJune 13, 2017 | Hyatt Regency Calgary

CIPMA GOLF CHALLENGESeptember 14, 2017 | Glen Abbey, Oakville

&ANNUAL GENERAL MEETING & EASTERN MEMBERS MEETINGOctober 12, 2017 | Halifax

April 2017

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CIPMA Connection |

M I S S I O N

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.

Table of Contents

President’s Corner ...............................................1

2017 Conference ................................................2

Upcoming Events .................................................4

Advocacy Updates ................................................4

News Updates ....................................................5

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CIPMA Connection |

2017 Fuel Marketing Conference sheds light on evolving fuel marketing sector

This month, CIPMA was once again proud to host the annual Canadian Fuel Marketing Conference. Over the course of three days, over 220 attendees gathered in downtown Toronto

to engage with this year’s captivating speakers, network with industry executives and celebrate Canada’s fuel marketing sector. Our presenters covered several timely topics, including how politics in U.S. and Mexico are affecting the fuel market, the future of electric and autonomous vehicle markets and Canadian public opinion on key energy and environmental policies.

The conference also shed light on the fact that our industry is rapidly evolving, and that the fuel marketing sector is ultimately emerging from the shadows of the refining sector. Given this shift, it is even more important to spend time connecting with peers and hearing from thought-provoking experts and industry leaders to help us navigate the future of our sector.

As we face new challenges, it is important to stand together. At CIPMA, we have a 21-year reputation of being a strong voice on behalf of our members and helping to shape policy

decisions at every level of

government. We look forward to continuing our work in this new era of petroleum marketing.

Once again, we would like to thank all the speakers, sponsors, exhibitors, contributors and delegates that joined us for this year’s conference to help make it our most successful one to date. We hope to see you again at next year’s event.

PRESIDENT’S CORNERPresident and CEO, Tricia Anderson

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CIPMA Connection |

THE 2017 CANADIAN FUEL MARKETING CONFERENCE

The Canadian Fuel Marketing Conference is the number one networking and educational event for the fuel marketing industry in Canada. We were delighted once again to plan and host an informative and engaging conference. This year, our esteemed guest speakers and workshop leaders included:

• Dr. Elliot Engel, University of North Carolina• Andrew Coyne, Journalist and Opinion Leader• John Demopoulos, Argus Media• Nik Nanos, Nanos Research Corporation• Brian Hannasch, Alimentation Couche-Tard Inc.• John Eichberger, Fuels Institute• Chris Moore, Historian and Author• Ciara De Jong, Ortech Consulting Inc.

• Ian Thomson, Advanced Biofuels Canada

Our speakers covered various topics from their respective areas of expertise, such as:

• Canadian public opinion on key energy and environmental policies and what it means for governments and industry;• The reality about the electric and autonomous vehicle market;• How politics in the US and Mexico will affect the Canadian fuel market in the years to come;• The story of how one brand grew from one convenience store to 12,500 gas and convenience stores across the globe;• Business lessons from a $68-Million literary giant;• The questions we continue to face as a nation as we celebrate 150 years and beyond;• How Ontario’s cap and trade system will affect businesses; and• Opportunities for independent fuel markets in the clean fuels future

Copies of the presentations will be posted in the Members Only section of www.cipma.org.

If you attended this year’s conference, we would love to hear from you! We welcome your feedback and ideas, as they help us plan for future conferences. Please complete the conference feedback survey which was emailed to you immediately after the event.

Thank you to our sponsors, exhibitors and contributors for making the 2017 Fuel Marketing Conference another great success. We will be sharing more details about the 2018 conference as the date approaches, however, if there are topics or speakers you would like to see, please do not hesitate to contact Tricia Anderson directly.

We look forward to seeing you all again in 2018!

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T H A N K Y O U T O O U R S P O N S O R S

E X H I B I T O R S

O T H E R C O N T R I B U T O R S

CIPMA Connection |

UPCOMING EVENTS

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 bi-monthly updates on the association’s advocacy efforts, which are also posted on the Members Only section of cipma.org.

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WESTERN MEMBERS MEETING June 13, 2017 | Hyatt Regency Calgary

Watch for details, coming soon.

CIPMA GOLF CHALLENGE September 14, 2017 | Glen Abbey, Oakville

Watch for details, coming soon.

ANNUAL GENERAL MEETING AND EASTERN MEMBERS MEETING October 12, 2017 | Halifax

Watch for details, coming soon.

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CIPMA Connection |

NEWS UPDATES

OIL DEMAND GROWTH SEEN SLOWING FOR A SECOND YEAR

OIL MARKET IS NOW ‘VERY CLOSE’ TO REACHING A BALANCE, IEA SAYS

FEDERAL GOVERNMENT SEEKS TO PUSH BACK METHANE REDUCTION REGULATIONS BY UP TO 3 YEARS

U.S. OIL RIG COUNT HITS TWO YEAR HIGH

OIL PRICES SHOOT UP AS DONALD TRUMP FIRES MISSILES AT SYRIA

NEBRASKA FARMERS COULD DERAIL KEYSTONE XL PIPELINE

CANADIAN RETAIL GASOLINE PRICES AVERAGE 117.1 CENTS PER LITRE IN APRIL

The International Energy Agency expects growth in the global demand for crude oil to slow for a second consecutive year in 2017. The Paris-based agency expects growth of 1.3 million barrels a day this year, compared with 1.4 million barrels previously forecast, due to stalled demand in the U.S., Middle East, Russia and India.

The oil market is “slowly but surely” reaching a balance as a result of the success of the OPEC production deal, the head of the oil industry and markets division at the International Energy Agency (IEA), told CNBC on April 13.

The federal government wants to delay the implementation of its much-touted new methane regulations by up to three years. The initial federal plan was to phase in tough rules to control methane from the oil and gas industry starting in 2018, with all of the new regulations in place by 2020. But a revised federal timeline shows the regulations would be phased in starting in 2020 and wouldn’t be fully implemented until 2023

As of April 25, the Canadian average retail regular gasoline price was 117.1 cents per litre, up from 103.3 cents per litre in April 2016, while the average retail diesel price hit 108.8 cents per litre, versus 91.9 for the same time last year, according to Kent Group Ltd. For more information and analytics, click here.

The number of active oil rigs in the United States now stands at 683 – 332 rigs higher than the figure one year ago. The last time oil rigs were this high in number was in April 2015.

Oil prices traded “sharply higher” after the U.S. fired as many as 60 missiles at a Syrian airbase on April 6 in retaliation for a chemical attack earlier in the week. The price of oil jumped by about a dollar per barrel to $52.70 US during after-hours trading following news of the attack.

For the Keystone XL pipeline project to proceed, Donald Trump and TransCanada Pipeline Co. will have to get through Nebraska farmers, ranchers and land owners, who are making a last stand against the pipeline. The fate of the project now rests with the Nebraska Public Service Commission, a state regulatory board.

Click on the news title to view full article.

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G L O B A L U N I T E D S TAT E S N A T I O N A L

http://www.pennenergy.com/articles/pennenergy/2017/04/oil-and-gas-oil-demand-growth-seen-slowing-for-a-second-year.htmlhttp://www.cnbc.com/2017/04/13/opec-oil-producers-brent-wti-deal-iea.htmlhttp://www.cbc.ca/news/politics/methane-emissions-regulations-changes-1.4078468http://oilprice.com/Energy/Energy-General/US-Oil-Rig-Count-Hits-2-Year-High.htmlhttp://globalnews.ca/news/3363014/oil-prices-donald-trump-syria/http://www.reuters.com/article/us-usa-trump-keystone-insight-idUSKBN17L2HKhttp://charting.kentgroupltd.com/Charting/ViewWPPSArchivehttp://charting.kentgroupltd.com/Charting/ViewWPPSArchivehttp://www.cipma.org/https://twitter.com/CIPMAssoc

CIPMA Connection |

ANDREW SCHEER PROPOSES DISPLAYING FLAGS OF COUNTRIES THAT EXPORT OIL TO CANADA ON GAS PUMPS

CRITICS SLAM VANCOUVER’S $300K PIPELINE FIGHT

PIPELINE BREAK SPILLS CRUDE OIL INTO STRATHCONA COUNTY CREEK

ALBERTA-BASED CIPMA MEMBER PARKLAND FUEL BUYS CHEVRON CANADA FUEL BUSINESS FOR NEARLY 1.5B

MORE OILSANDS WORKERS WEARING ELECTRONIC TRACKERS AFTER FORT MCMURRAY WILDFIRE

LOBLAW TO SELL GAS STATION BUSINESS TO BROOKFIELD IN $540-MILLION DEAL

WHY THIS IS GOING TO BE THE MOST EXPENSIVE YEAR FOR GASOLINE SINCE 2014

In a press release sent on March 31, Conservative Leadership Candidate Andrew Scheer said if elected prime minister he would “mandate” companies to display the flag of the oil’s country of origin. This would allow Canadians to “make the choice to purchase Canadian-sourced, ethically produced oil”. The City of Vancouver’s pricey

campaign against the Kinder Morgan pipeline expansion was “all about politics” and not an actual move to stop it, the Canadian Taxpayers Federation says. Details of the city’s ad campaign against the Trans Mountain pipeline were made available by request filed under the Freedom of Information Act. The paperwork shows that the city spent $300,000 on research and advertising.

Four energy companies are cleaning up crude oil that spilled into an unnamed creek in Strathcona County on April 22. A team of Imperial Oil workers discovered the leak during routine maintenance. The creek flows directly into the North Saskatchewan River.

Parkland Fuel Corp. says it will pay $1.46 billion to acquire Chevron Canada’s fuel business, including 129 gas stations in the Vancouver area and a refinery in Burnaby, B.C.

Parkland Fuel Corp.’s acquisition of Chevron Corp. gas stations solidifies the Red Deer company as Canada’s largest fuel retailer, but, according to the Calgary Herald, it also signals an ongoing shakeup in the retail market that’s been battered by low profits.

When last year’s ferocious Alberta wildfire threatened Suncor Energy’s oilsands upgrader near Fort McMurray, the rush to safely remove hundreds from the area provided a rare large-scale test of technology that can let companies know the location of every single worker. As a result, an increasing number of oilsands operators are relying on radio technology to keep track of their workers.

Meanwhile, the oilsands are beefing up defenses as wildfire season looms, such as enhancing firebreaks and cutting back surrounding vegetation.

Canadian grocery and pharmacy retailer Loblaw Companies Ltd. said on April 19 it would sell its gas station business to asset manager Brookfield Business Partners LP for about $540-million. The sale includes Loblaw’s 213 retail gas stations and convenience stores adjacent to the gas stations across Canada.

Many motorists across Ontario and Quebec woke up to much higher gasoline prices on April 12, just as the Easter long weekend approached. But all of Canada is in for some pain at the pump this summer, according to Dan McTeague, an analyst at GasBuddy.com

WESTERN REGION

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http://www.huffingtonpost.ca/2017/04/03/andrew-scheer-flags-gas-pump-oil-countries-canada_n_15781946.htmlhttp://bc.ctvnews.ca/all-about-politics-critics-slam-vancouver-s-300k-pipeline-fight-1.3354900http://www.cbc.ca/news/canada/edmonton/pipeline-spill-crude-oil-strathcona-county-cleanup-creek-1.4082296http://www.cbc.ca/news/canada/calgary/parkland-fuel-buying-chevron-canada-fuel-business-for-nearly-1-5-billion-1.4074875http://www.cbc.ca/news/canada/edmonton/alberta-oilsands-wildfire-radio-trackers-workers-1.4069230http://www.theglobeandmail.com/report-on-business/loblaw-to-sell-gas-station-business-to-brookfield-in-540-million-deal/article34747475/http://globalnews.ca/news/3374045/why-this-is-going-to-be-the-most-expensive-year-for-gasoline-since-2014/http://calgaryherald.com/business/energy/gas-retailers-are-battered-by-low-margins-but-parkland-is-betting-on-scalehttp://ca.reuters.com/article/topNews/idCAKBN17L2EE-OCATPhttp://ca.reuters.com/article/topNews/idCAKBN17L2EE-OCATPhttps://www.gasbuddy.com/http://www.cipma.org/https://twitter.com/CIPMAssoc

CIPMA Connection |

ONTARIO SELLS $472M OF ALLOWANCES IN 1ST CAP AND TRADE AUCTION

NEWFOUNDLAND OIL FALLS AS PROVINCE MARKS 20TH YEAR OF PRODUCTION

Ontario’s first cap and trade auction sold out all current allowances, giving the new market a strong start, but the province’s environment minister warned the real test of the system will be in the emission reductions it brings about. The March 22 auction brought in $472 million, the government said on April 3.

Meanwhile, Canadian and U.S. political leaders vowed to press ahead with a joint cap and trade program involving California, Quebec and Ontario despite what some fear are mounting legal and political hurdles to establishing North American carbon market.

The Ontario Chamber of Commerce expressed concerns over cap and trade, sending Premier Kathleen Wynne an open letter on April 5, calling on the province to contain the costs of cap and trade to support Ontario’s business community.

2017 will mark the 20th full year of oil production in Newfoundland and Labrador, with output expected to decrease 7.8 per cent to 70.8 million barrels with lower production at Hibernia, Terra Nova and White Rose. The industry is the largest contributor to GDP, accounting for 16.7 per cent in 2015.

ONTARIO / QUEBEC REGION ATLANTIC REGION

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http://www.cbc.ca/news/business/ontario-cap-and-trade-first-auction-1.4053437http://www.jwnenergy.com/article/2017/4/newfoundland-oil-forecast-falls-province-marks-20th-year-production/http://www.theglobeandmail.com/news/world/california-quebec-and-ontario-push-forward-with-cap-and-trade-program/article34770662/http://www.canadianmanufacturing.com/regulation/ontario-chamber-of-commerce-expresses-concerns-over-cap-and-trade-190042/http://www.cipma.org/https://twitter.com/CIPMAssoc

F U E L L I N G C A N A D A ’ S F U T U R E

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