CERI Crude Oil Report

Transcription

1 September 2017 The Eastern Refinery Market: Canadian and Imported Oil Supply and Transportation Options Andrei Romaniuk Canada is the fifth largest oil producer in the world, accounting for 4.8 percent of world production in 2016, ranking behind the United States (13.4%), Saudi Arabia (13.4%), Russia (12.2%) and Iran (5.0%) [1]. Canada s proved reserves, totaling billion barrels or 10 percent of the world s share of proved reserves, are behind only Venezuela (300.9 billion barrels) and Saudi Arabia (266.6 billion barrels) [1]. Despite this, Canada still imports oil. In 2016, imports in four provinces Ontario, Quebec, New Brunswick and Newfoundland and Labrador comprised 607 thousand barrels per day (Mbpd) [2]. Major suppliers were the United States (259.4 Mbpd), Saudi Arabia (86.7 Mbpd), Algeria (84.8 Mbpd) and Nigeria (73.7 Mbpd) [2]. The total cost of imported crude for 2016 was C$12.7 billion; C$5.6 billion from the United States and C$7.1 billion from other countries (Statistics Canada Trade Data, FOB base, does not include transportation costs from foreign oil offloading points to a Canadian refinery gate) [2]. As Canadian oil production capacity and reserves are high, there is an argument being made which suggests complete or partial substitution of imported oil in the Eastern refinery market. The motives vary and are generally driven by economic and social rationale. On the economic side, benefits are expected to come from using domestic production and, hence, leaving money to work inside the economy rather than leaving the national border. On the social side, the push aimed at substitution of crude oil coming from authoritarian states, which score low on democratic or human rights indices, have Editorial Committee: Ganesh Doluweera, Paul Kralovic, Dinara Millington, Megan Murphy, Allan Fogwill About CERI The Canadian Energy Research Institute is an independent, not-for-profit research establishment created through a partnership of industry, academia, and government in Our mission is to provide relevant, independent, objective economic research in energy and related environmental issues. For more information about CERI, please visit our website at or contact us at info@ceri.ca. poor environmental standards, or do not have a carbon emissions policy. In fact, if such substitution were to happen, what are the associated costs and benefits for refineries and the Canadian economy? The Canadian Energy Research Institute (CERI) is currently completing a study titled An Economic and Environmental Cost-Benefit Analysis of Eastern Canadian Crude Oil Imports. The study is aimed at answering many questions about substitution and will provide a cost and emissions comparison of domestic vs. foreign crude in the eastern Canadian refinery market as well as highlight other implications. The study will model several scenarios and compare the effects with base year This article presents a snapshot in time. Gathering data from various sources and synthesizing it to present the 2016 snapshot was conducted by CERI. It explores the refineries themselves, their technologies, Canadian and imported feedstock supply, as well as existing and potential transportation routes for western and eastern Canadian oil to the eastern refinery market. In order to discuss any substitution, it is critical to grasp and realize the sheer complexity of the eastern refinery market. Eastern Refineries Crude Intake Canada is a net exporter of refined products refinery capacity exceeds domestic demand, notably in Quebec and Atlantic Canada. On the national level, Canada exports 28 million liters of refined products, while it imports 14 billion liters [3]. There are 15 refineries in Canada, seven of which are located in western Canada and eight located in eastern Canada [3]. The total refining capacity in the East (Ontario, Quebec, and Atlantic Provinces) is 1.23 million barrels per day [4]. Four refineries reside in Ontario, two in Quebec, and one each in New Brunswick and Newfoundland and Labrador. All eight refineries, their capacities, utilization rates, crude intakes, and intake by oil type are illustrated in Table 1. Relevant Independent Objective

2 Page 2 Table 1: Eastern Refineries Crude Intake Utilization Province Refinery Location Capacity Rate (%) Crude Intake (Mbpd) Total Light SCO Heavy Bitumen Ontario Imperial Sarnia % Ontario Shell Canada Corunna 75 88% Ontario Suncor Energy Sarnia 85 92% Ontario Imperial Nanticoke % Quebec Valero Levis % Quebec Suncor Energy Montreal % New Brunswick Irving Oil Saint John % North Come by Newfoundland Atlantic Chance Refining % Total The data for this article (and the forthcoming CERI study) was obtained from several sources including Statistics Canada, Natural Resources Canada (NRCan), the Canadian Fuel Association (CFA), the Canadian Association of Petroleum Producers (CAPP), various refinery websites, midstream companies websites (Enbridge and others), Clipper Data (transportation of oil by tankers), as well as calculations and estimates by CERI where needed. If the data was suppressed, missing or conflicted with one another, CERI reconciled using multiple sources in order to infer quality and certainty in data. In 2016, Quebec refinery utilization rates did not seem to be representative across the refining industry in Canada (an average 78% for two refineries) [5]. For the purposes of modelling, an adjusted utilization rate of 88% was assumed for Valero, and 92% for the Suncor Energy refinery. For reference, the factual 2016 import in Quebec was thousand barrels (Mbpd) [2]; the modelled 2016 import is 9.8% more than factual 235 Mbpd. All import volumes were increased proportionally by the same rate 9.8%. All of Ontario s refineries are located in the southern part of the province, with three refineries located in the greater Sarnia area (Suncor Energy and Imperial Oil operate refineries in Sarnia while Shell Canada operates the Corunna Refinery in nearby St. Clair). Imperial Oil operates a refinery in Nanticoke. Québec has two refineries, Suncor Energy s Montreal Refinery and Valero s Jean-Gaulin Refinery, located in Lévis, near Québec City. Atlantic Canada also has two refineries, Irving Oil Refinery in Saint John, New Brunswick and the North Atlantic Refinery in Come By Chance, Newfoundland and Labrador. Light oil prevails in the supply slate for the four provinces comprising 71 percent, followed by synthetic crude oil (SCO) with 15 percent in the crude slate; heavy and bitumen both comprise 12 percent of the crude intake [4]. Even though the intake is largely light and SCO, process-wise refineries are equipped with technologies to process heavy oil and high sulphur crude. These include:

3 Page 3 Coking (25.5 Mbpd in Ontario) Visbreaking (5 Mbpd in Ontario and 40 Mbpd in the Atlantic provinces) Hydrocracker (around 60 Mbpd in Ontario, 22 Mbpd in Quebec, and 72 Mbpd in the Atlantic provinces) Catalytic cracker (98 Mbpd in Ontario, 67.5 Mbpd in Quebec, and 95 Mbpd in the Atlantic provinces), and Hydrotreating (290 Mbpd in Ontario, 320 Mbpd in Quebec, and 255 Mbpd in the Atlantic provinces) [6]. Sources of Supply and Transportation Modes Fifty-six percent of oil into the eastern region is imported, while thirty-nine percent comes from western Canada and five percent is supplied from Canadian eastern offshore assets (offshore Newfoundland & Labrador) (unless otherwise sourced, this and further information is cited from CERI s Crude Flow Model [4]). Among eastern Canadian refineries, Ontario receives the highest amount of western Canadian crude (almost 83%), followed by Québec (33%) and New Brunswick (4%). Newfoundland & Labrador does not receive oil from western provinces (Table 2). Table 2: Eastern Refineries, Crude Intake by Source of Supply Refinery Total Intake Western Canada Supply (Mbpd) Eastern Canada Supply (Mbpd) Imported (Mbpd) Imperial, ON Shell Canada, ON Suncor Energy, ON Imperial, ON Valero, QC Suncor Energy, QC Irving Oil, NB North Atlantic Refining, NL Total 1, % of total 39% 5% 56% The single exporter to Ontario s four refineries was the United States (58 Mbpd). Light oil comes from North Dakota and is modelled in the study to be transported through Enbridge Line 81 to Clearbrook, MN and further through the Enbridge Mainline (Line 5 entering Sarnia). Canadian light, heavy, and bitumen crude from three provinces Alberta, Saskatchewan and Manitoba flows through various lines of the Enbridge Mainline and enters Ontario via Line 5 and 78. Volume-wise, Alberta supplies 206 Mbpd, followed by Saskatchewan at 72.6 Mbpd, and Manitoba at 6.4 Mbpd. Suncor s Montreal refinery imports light oil from four countries the US (92.7 Mbpd), Azerbaijan (4.5), UK (4.1) and Norway (1.9). Of the total crude that comes from the US, 62.1 Mbpd comes from North Dakota and Michigan through Enbridge Mainline and Line 9 (from Sarnia to Montreal). All other crude, including 30.6 Mbpd from Texas, is transported by tankers from loading ports to Portland, Maine and then transported via the Portland- Montreal pipeline to the refinery. Canadian supplies include 16.4 Mbpd of bitumen and 5.8 Mbpd of light crude that comes from eastern offshore assets. Bitumen comes through Enbridge Mainline and Line 9, while the eastern crude follows the path of international oil via Portland. With the Line 9 reversal and purchase of two Panamax tankers by Valero with the goal to move Mbpd from Montreal to Lévis [7], the crude intake slate in the Valero refinery has changed dramatically. In 2016, it used 101 Mbpd of western Canadian crude, which includes synthetic, bitumen and heavy. The imported light oil came from four countries: Algeria (92.1 Mbpd), Kazakhstan (21.1), Nigeria (11.5), and the US (Texas,7.2). All foreign oil comes to Valero by tankers. The Irving Oil refinery in New Brunswick relies more heavily on imported oil and Eastern offshore supply. Western Canada supplied synthetic crude oil (11.9 Mbpd) via rail, 47.7 Mbpd of light crude came by tankers from Hibernia and other eastern offshore projects, and Mbpd came by tankers from four above-mentioned countries. Except for 15.3 Mbpd of heavy oil coming from Colombia and the Ivory Coast, the rest of the imported oil was light. The largest supplier of imported feedstock is Saudi Arabia (86.7 Mbpd), followed by Nigeria (45 Mbpd), the United States (34 Mbpd), Norway (24 Mbpd), the Ivory Coast (12.6 Mbpd), Colombia (5.3 Mbpd), Azerbaijan (2.8 Mbpd) and Congo (2.7 Mbpd). Lastly, Newfoundland and Labrador s North Atlantic Refining was supplied almost entirely by foreign crude. Eastern offshore light oil accounted for 3.3 Mbpd out of a modeled 93.7 Mbpd intake for the refinery. Imported oil comes from the US (49 Mbpd), Nigeria (18.3 Mbpd), Norway (13.7 Mbpd), the UK (6.2 Mbpd) and Denmark (1.7 Mbpd). Relevant Independent Objective

4 Page 4 Possible Transportation Options for Canadian Crude Western Canadian crude could reach as far as Valero s refinery in Lévis, Quebec by pipeline and tanker, and as far as St. John by rail. Eastern Canadian offshore oil could reach as far as Montreal. The Eastern refining market can be generally accessed through pipelines, sea and rail (see Figure 1). Figure 1: Possible Routes of Canadian Oil Supply to Eastern Refineries and Capacities per Refinery and Pipeline The major artery for western Canadian crude to the market is the Enbridge Mainline which can bring Western crude from Alberta, Saskatchewan and Manitoba. Specifically, the Mainline enters Sarnia via two entry lines Line 5 and Line 78 with a total capacity of 1,040 Mbpd. As Ontario refineries consume 344 Mbpd (total refining capacity 393 Mbpd), the incoming pipeline capacity is sufficient to carry more Canadian oil beyond the Ontario demand. The only refinery in Ontario with railway offloading capability is the Imperial refinery in the Nanticoke (20 Mbpd). Eastern offshore oil does not seem to have a straightforward and easy way to access Ontario refineries. In Quebec, two refineries in Montreal and Lévis can be accessed by western and eastern Canadian oil producers. Montreal s refinery, with oil intake of Mbpd (total capacity 137), can be fully supplied from the west through the 300 Mbpd Enbridge Line 9, which is connected to Sarnia, and can also receive up to 30 Mbpd by rail. Montreal can also accept Panamax (60,000-80,000 DTW) size tankers directly from the eastern offshore projects. Finally, it can receive more Eastern oil through the Portland-Montreal pipeline which has a capacity of 285 Mbpd and is heavily underutilized. Valero s refinery can receive around Mbpd of western Canadian crude oil from Montreal (recall, 2016 consumption of this refinery was Mbpd). If Montreal were to use 100% of western Canadian crude, Line 9 would only allow an additional 160 Mbpd to Valero, which existing tankers could handle. Valero can also receive oil from the west by rail (up to 60 Mbpd) as well as eastern oil directly by water to its offloading facilities. Irving Oil in New Brunswick, with crude consumption of 277 Mbpd in 2016, is located on the coastline and has direct access to eastern offshore oil (47,000 barrels of eastern crude were used in 2016). The refinery also has large rail offloading capacity of 145 Mbpd. Usage of rail has decreased substantially in recent years, as Irving Oil used to import approximately one-third of its intake by rail; that number dropped to 10% in 2015, and to an estimated 4% in The refinery can be accessed by tankers loaded at Montreal which could traverse along the St. Lawrence river and further to St. John, provided there is spare capacity in Line 9 (however, this route has not been used in 2016). Lastly, North Atlantic Refining can have access to eastern oil and potentially western oil from Montreal by tanker. To sum up, existing transportation infrastructure allows to push more Canadian crude from the west and east to eastern Canadian refinery markets, however it is not sufficient to substitute all foreign oil. The major infrastructural bottleneck for western crude becomes Line 9 capacity to supply any refinery to the east of Montreal. If Suncor Energy and Valero were to consume all Line 9 throughput capacity 285 Mbpd (125 Mbpd for Suncor Energy and 160 Mbpd for Valero), the remaining 40% of Valero capacity, 100% of Irving Oil and 100% of North Atlantic Refining would be left to use a combination of rail from the west (up to 225 Mbpd) and tanker supply from the east for oil substitution purposes. Transportation capacity is not the only constraint and consideration in foreign oil substitution. Other constraints in refinery decision-making are economics of supply and crude availability in the west and east. The former means that refineries modus operandi is to optimize the cost of feedstock while gaining desired yields demanded by the refined petroleum markets. Thus, if Canadian oil is more expensive at the gate of a particular refinery compared to foreign oil, in marketdriven, non-policy constrained decision-making, a refinery will prefer cheaper feedstock (if it can get the same desired yields). Prices of particular brands of

5 Page 5 foreign and domestic oil as well as transportation costs play a role in the selection of intake slate. On the latter note, tankers are generally a cheaper option than pipelines and far cheaper than rail. As western production is relatively far from eastern refinery market, transportation costs by pipeline and rail will almost always be at a cost disadvantage to foreign tanker costs. Finally, to substitute foreign oil, enough domestic light oil should be available for a minimum combined volume of 585 Mbpd. As there is some refinery capacity to handle bitumen and heavy oil, this capacity is limited. Conclusion The mix of the above-mentioned constraints for each refinery defines the viability for oil substitution in each circumstance and will be reviewed in detail in the upcoming study. The research looks at four key questions. First, how much additional oil can be economically pushed through existing infrastructure to eastern refineries (from west and from east) substituting foreign oil and how much more (or less) emissions will this substitution bring? In this case, only more expensive foreign oil volumes are substituted. Second, how would the cost of feedstock and emissions levels differ if only oil from authoritarian states was substituted? Third, if there was additional transportation pipeline infrastructure like an Energy East project, how much more economic oil could be brought to Eastern refineries and at what emissions levels? Fourth, what would the cost of feedstock and emissions levels be if all foreign crude was substituted with Canadian crude using expanded transport infrastructure? References 1. Natural Resource Canada, Energy Factbook Natural Resource Canada, Statistics Canada Trade Statistics 3. CFA, 2016 Sector Performance Report, canadianfuels.ca/website/media/images/resources/ Sector-Performance-Report-2016_Canadian-Fuels- Association.pdf 4. CERI Crude Flows Model, based on number of sources: Statistics Canada, Natural Resources Canada, CFA, CAPP, various refinery websites, COLC, midstream companies websites (Enbridge Mainline and others), Clipper Data (transportation of oil by tankers), Oil and Gas Journal. 5. Statistics Canada, CANSIM Refineries Receipts table 6. Oil and Gas Journal, 2106, Refineries survey 7. energy/valero-strikes-deal-to-ship-line-9-crude-frommontreal-to-quebec-city-by-tanker As substitution of foreign oil using more Canadian crude could be macro-economically attractive and sociallypushed, the market economy profit-seeking decisionmaking process at each refinery may come at odds with a social push if Canadian oil is more expensive at the gate of a refinery compared to foreign oil. The forthcoming CERI study will show market and sociallypushed scenario outcomes which could serve as a good indication for Canadians on how beneficial or costly such substitution could be. Relevant Independent Objective

6 Page 6 US$/bbl WTI Spot - WTI Edmonton Crude - Brent Prices Light Price Price Differentials Differentials (US$/bbl) US$/bbl US$/bbl WTI - Edmonton Light Price Differentials (US$/bbl) Differential WTI Edmonton Light Brent-WTI Differential WTI Brent Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct Sep-14 Sep-15 Sep-16 Sep-17 Spot Prices WTI Brent Cdn.Light* Cdn. Heavy* Year-to-Date Quarter-to-Date SOURCE: EIA. October 16, SOURCE: EIA. US$/bbl 100 WTI - Canadian WTI - Hardisty Heavy Heavy Benchmark Price (US$/bbl) Differentials US$/bbl 52 NYMEX WTI Crude Forward Curve 4 contract months Differential WTI WCS Aug 07, 2017 Sep 07, 2017 Oct 10, Sep-14 Sep-15 Sep-16 Sep SOURCE: NRCan, EIA, Baytex. SOURCE: EIA, CERI.

7 SOURCE: EIA, CERI. SOURCE: NRCan. Page 7 NYMEX Petroleum Products CDN/US$ Exchange Rate US$/gal CDN/US$ RBOB Gasoline Heating Oil Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 NYMEX Prices Unleaded Gasoline Heating Oil Year-to-Date Quarter-to-Date October 17, Oil Demand Global in Selected Oil Demand Countries US Products Demand September September 2017 Y-on-Y change MMbpd % 52.5% 52.0% 51.5% 51.0% 50.5% 50.0% 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 % 15% 10% 5% 0% -5% -10% -15% -20% -25% -30% -35% Total Gasoline Jet Fuel Distillate Residual Propane Other Total OECD Total Non-OECD non-oecd Demand share SOURCE: IEA Oil Market Report. SOURCE: EIA Weekly Petroleum Status Report. Relevant Independent Objective

8 SOURCE: IEA Oil Market Report, CERI. SOURCE: IEA Oil Market Report. SOURCE: IEA Oil Market Report. SOURCE: IEA Oil Market Report. Page 8 Global Oil Supply MMbpd Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 non-opec Supply OPEC Supply non-opec Share of Global Supply Canadian Oil Production by product Mbpd 6,000 5,000 4,000 3,000 2,000 1, Q17 3Q17 4Q17 1Q18 2Q18 AB L/M/H AB Bitumen SK Other NGLs Synthetic 60.5% 60.0% 59.5% 59.0% 58.5% 58.0% 57.5% 57.0% Mbpd 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Mbpd 3,500 3,000 2,500 2,000 1,500 1, US Oil Production by region 2Q17 3Q17 4Q17 1Q18 2Q18 Alaska California Texas Federal GOM Other Lower 48 NGLs Other OECD Commercial Stocks by region Aug-14 Aug-15 Aug-16 Aug-17 OECD North America OECD Europe OECD Pacific

9 SOURCE: EIA Weekly Petroleum Status Report. SOURCE: IEA Oil Market Report. Page 9 MMb US Commercial Stocks August 25 - September 29, 2017 M-on-M Change Crude Gasoline Distillate Products Total MMb Canadian Stocks on Land 2Q16 3Q16 4Q16 1Q17 2Q17 Relevant Independent Objective

10 Page 10 World Supply and Demand Balance (MMbpd) Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 World Demand OECD non-oecd World Supply Non-OPEC OPEC NGLs OPEC Crude Supply - Demand OECD Stocks (MMbbls) Days Cover OPEC Crude Oil Production (MMbpd) Sustainable Production Spare Capacity vs Production Capacity Jul-17 Aug-17 Sep-17 Jul-17 Aug-17 Sep-17 Saudi Arabia Iran UAE Kuwait Qatar Angola Nigeria Libya Algeria Equatorial Guinea Ecuador Venezuela Gabon OPEC. Excl. Iraq Iraq Total OPEC WTI Price Projections ($US/barrel) Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 High Price Case Reference Case Low Price Case

11 Page 11 Data Appendix Relevant Independent Objective

12 Page 12 A1: Historic Light Sweet Crude Futures Prices ($US per barrel) NYMEX Light Sweet Crude Last 3 Day Avg. When 12-Month Spread Close Average Near Mo. Strip Avg. (1-2 Mo.) Q Q Q Q Q Yr-on-Yr Chg. -2.3% -2.1% 0.9% -1.3% Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Yr-on-Yr Chg. 16.0% 15.4% 6.5% 4.9% A2: Historic Crude Product Futures Prices ( US per gallon) NYMEX Unleaded Gasoline NYMEX Heating Oil Last 3 Day Avg. When 12-Month Spread Last 3 Day Avg. When 12-Month Spread Close Average Near Mo. Strip Avg. (1-2 Mo.) Close Average Near Mo. Strip Avg. (1-2 Mo.) Q Q Q Q Q Yr-on-Yr Chg. 26.6% 19.6% 8.4% 5.4% 17.1% 13.0% 6.6% 4.1% Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Yr-on-Yr Chg. 8.1% 10.4% 19.5% 18.0% 18.6% 21.2% 25.0% 19.6% Notes (Tables A1 and A2): Prices are listed by contract month. Close: final contract close on the last day of trading. Last 3 Day Average Close: simple average contract close on last three days of trading. Average When Near Month: simple average closing price on trading days when contract was near month. 12-Month Strip Average: simple average of daily near 12-month contract closing prices in a given contract month. Spread: difference between one-month and two-month forward prices in a given period. Source: New York Mercantile Exchange (NYMEX).

13 Page 13 A3: World Crude Oil Contract Prices (FOB, $US per barrel) Saudi U.A.E. Oman U.K. Norway Russia Venez. Kuwait Ecuador Mexico Nigeria Indon. Arab Lgt Dubai Oman Brent Ekofisk Urals 1 T.J. Light Blend Oriente Isthmus Bonny Lgt Minas Q Q Q Q Q Yr-on-Yr Chg. 16.0% 16.5% 16.5% 13.6% 14.3% 16.4% 24.8% 18.2% 17.3% 18.7% 12.5% 12.7% Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Yr-on-Yr Chg. 24.8% 22.5% 25.5% 20.1% 20.4% 23.4% 31.4% 26.7% 24.5% 23.9% 18.4% 22.1% Notes: 1. Urals is Delivered price at Mediterranean. Contract prices are based on prices at the end of each month. Source: OPEC Monthly Oil Market Report. A4: North American Posted Crude Prices (FOB, $US per barrel) United States Canada ANS 1 Lost Hills Kern R. WTI WTS GCS Okla. Sw. Kans. Sw. Mich. So. Wyo. Sw. CDN Sweet 2 CDN Heavy Q Q Q Q Q Yr-on-Yr Chg. 39.0% 16.4% 23.8% 9.1% 10.3% 14.5% 9.1% 9.1% 11.2% 8.9% 9.4% 22.5% Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Yr-on-Yr Chg. 11.9% 17.6% 25.2% 7.2% 8.1% 9.0% 7.2% 8.0% 8.8% 7.7% 11.9% 21.6% Notes: 1. ANS is Delivered price on US West Coast. 2. As of August 2016, Edmonton Light Sweet is referred to as Canadian Sweet. 3. As of August 2016, Western Canadian Select is referred to as Canadian Heavy. Posted prices are based on price at the end of each month. Sources: Oil & Gas Journal; Natural Resources Canada. Relevant Independent Objective

14 Page 14 A5: Crude Oil Quality Differentials (FOB, $US per barrel) Light vs. Heavy Sweet vs. Sour Arab Lt Arab Hv Diff. Isthmus Maya Diff. CDN Sweet 1 CDN Heavy 2 Diff. GCS WTS Diff Q Q Q Q Q Yr-on-Yr Chg. 16.0% 20.3% 18.7% 20.3% 9.4% 22.5% 14.5% 10.3% Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Yr-on-Yr Chg. 24.8% 29.2% 23.9% 30.6% 11.9% 21.6% 9.0% 8.1% Notes: 1. As of August 2016, Edmonton Light Sweet is referred to as Canadian Sweet. 2. As of August 2016, Western Canadian Select is referred to as Canadian Heavy. Sources: OPEC Monthly Oil Market Report: Oil & Gas Journal; Natural Resources Canada. A6: Crude Oil Spot Prices and Differentials (FOB, $US per barrel) Spot Prices Differentials WTI Brent Dubai Urals Basket 1 WTI-Brent WTI-Dubai WTI-Urals WTI-Basket Q Q Q Q Q Yr-on-Yr Chg. 7.3% 13.7% 16.6% 16.5% 16.6% Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Yr-on-Yr Chg. 10.2% 20.1% 23.2% 23.4% 24.6% Notes: 1. OPEC-Reference Basket is average price of seven crude streams: Algeria Saharan Blend, Dubai Fateh, Indonesia Minas, Mexico Isthmus, Nigeria Bonny Light, Saudi Arabia Light and Venezuela Tia Juana Light. Source: OPEC Monthly Oil Market Report.

15 Page 15 A7: World Petroleum Product Spot Prices ($US per barrel) US Gulf Coast, Pipeline Rotterdam, Barges Singapore, Cargoes Gasoline 1 No. 6 3% 2 Jet/Ker. Gasoline 1 Gasoil Resid. 3 Gasoline 1 Gasoil Resid Q Q Q Q Q Yr-on-Yr Chg. 17.0% 30.2% 22.4% 19.6% 17.2% 33.1% 21.6% 18.8% 27.9% Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Yr-on-Yr Chg. 23.5% 30.8% 31.9% 22.9% 24.8% 34.4% 21.4% 25.4% 30.5% Notes: 1. Regular unleaded gasoline. 2. Waterborne 3. High Sulfur ( %) Residual Fuel Oil. Spot prices are based on average daily prices over a specific timeframe. Source: IEA Oil Market Report. A8: Product Spot Prices in Selected American Cities ( US per gallon) NY Harbor US Gulf Los Angeles Gasoline 1 No. 2 H.O. Distill. Gasoline 1 Jet Fuel Distill. Gasoline 1 Distill Q Q Q Q Q Yr-on-Yr Chg. 22.7% 17.2% 18.1% 17.4% 23.0% 18.0% 21.8% 21.8% Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Yr-on-Yr Chg. 29.8% 26.4% 26.3% 25.8% 36.5% 26.9% 17.5% 31.6% Notes: 1. Reformulated regular unleaded gasoline. Spot prices are based on average daily prices over a specific timeframe. Source: EIA Weekly Petroleum Status Report. Relevant Independent Objective

16 Page 16 B1: World Petroleum Supply and Demand Balance (million barrels per day) OECD Non-OECD OPEC World Americas Europe Asia Ocean. Total 1 Asia Non-Asia FSU Total 1 P. Gulf Non-Gulf Total 2 Total 3 Demand Q Q Q Q Q Q Q Q Q Supply Q Q Q Q Q Q Q Q Q Balance Q Q Q Q Q Q Q Q Q Notes: 1. Totals for OECD and non-oecd supply include net refining gains; specific regions/groupings within each do not. 2. OPEC demand is an estimate based on historical annual data. 3. Balance for World equals global stockbuilds (+) and stockdraws (-) for crude oil and petroleum products and miscellaneous gains and losses. Regional surpluses (+) and deficits (-) are balanced through net-imports and stock changes in the short-term, and net-imports in the longer term. Supply includes crude oil, condensates, NGLs, oil from non-conventional sources and processing gains. Demand is for petroleum products. Source: IEA Oil Market Report.

17 Page 17 B2: World Petroleum Production (million barrels per day) OECD Non-OECD OPEC World Americas Europe Asia Oc. Total Asia Non-Asia FSU Total P. Gulf Non-Gulf Total Total Q Q Q Q Q Yr-on-Yr Chg. 3.1% 2.7% -6.7% 2.8% -2.4% -2.9% 1.9% -0.4% -2.9% 0.1% 0.3% 0.7% Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Yr-on-Yr Chg. 2.0% 16.1% -2.3% 3.8% 10.4% -4.2% 0.3% 1.4% -2.8% -2.6% -2.3% 0.3% R/P Ratio Notes: 1. Production includes crude oil, condensates and NGLs. 2. Reserve-Production ratio is based on latest month production and British Petroleum reserve estimates. Sources: IEA Oil Market Report and BP Statistical Review of World Energy. B3: OECD Commercial Petroleum Stocks (million barrels) Americas Europe Asia Oceania OECD Crude Product Total Crude Product Total Crude Product Total Crude Product 1 Total , ,020 1,401 2, , ,208 1,502 3, , ,177 1,500 2,985 2Q , , ,208 1,529 3,052 3Q , ,176 1,556 3,060 4Q , ,177 1,500 2,985 1Q , , ,245 1,479 3,030 2Q , ,211 1,481 3,015 Yr-on-Yr Chg. 1.0% -2.6% -0.8% 2.5% -4.0% -1.0% -6.2% -3.0% -3.1% 0.3% -3.2% -1.2% Aug , , ,181 1,578 3,086 Sep , ,176 1,556 3,060 Oct , ,196 1,522 3,048 Nov , ,182 1,522 3,028 Dec , ,177 1,500 2,985 Jan , , ,212 1,544 3,067 Feb , , ,228 1,521 3,056 Mar , , ,245 1,479 3,030 Apr , , ,223 1,516 3,054 May , , ,228 1,504 3,057 Jun , ,211 1,481 3,015 Jul , , ,207 1,494 3,029 Aug , ,178 1,511 3,015 Yr-on-Yr Chg. -1.4% -4.0% -3.0% 0.1% -4.0% -1.9% 2.8% -6.1% -0.7% -0.3% -4.2% -2.3% Notes: 1. Product includes only finished petroleum products. 2. Total stocks include NGLs, refinery feedstocks, additives/oxygenates and other hydrocarbons. All stocks are closing levels for respective reporting period. Source: IEA Oil Market Report. Relevant Independent Objective

18 Page 18 B4: OPEC Crude Oil Production and Targets (million barrels per day) Persian Gulf Non-Persian Gulf OPEC-12 Arabia Iran UAE Kuwait Qatar Angola Nigeria Libya Algeria Venez. Ecuador Gabon Total 1 Iraq Q Q Q Q Q Yr-on-Yr Chg. -5.9% 4.4% -6.1% -7.5% -4.7% -2.9% 32.0% 203.2% -6.2% -9.1% -1.8% -13.0% -0.4% 1.6% Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Yr-on-Yr Chg. -6.3% 4.3% -5.5% -6.6% -1.6% -1.8% 19.4% 155.6% -5.4% -8.9% -3.6% -9.5% -3.4% 0.7% Notes: 1. Does not include NGLs; OPEC production targets apply to crude oil only. 2. Iraq does not have an official OPEC target. Source: IEA Oil Market Report. B5: OECD Refinery Activity Crude Input (MMbpd) - Utilization (percent) - Refining Margins ($US/barrel) Americas Europe Asia Oceania OECD Input Util. Margin 1 Input Util. Margin 2 Input Util. Margin 3 Input Util Q Q Q Q Q Yr-on-Yr Chg. 5.5% 29.6% 5.3% 39.4% -1.9% % 4.1% Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Yr-on-Yr Chg. 1.4% 59.3% 1.0% 127% 6.0% % 2.1% Notes: 1. Based on dated Brent being processed in average US Gulf cracking refinery. 2. Based on dated Brent in average Rotterdam cracking refinery. 3. Based on spot Dubai in average Singapore hydroskimming refinery. Source: IEA Oil Market Report.

19 Page 19 C1: US Petroleum Supply and Demand Balance (million barrels per day) United States 1 East Mid-West Supply Demand Net-Imp. Stk. Chg. Supply Demand Balance Supply Demand Balance Q Q Q Q Q Yr-on-Yr Chg. 3.2% 3.0% -9.3% 19.0% 3.6% 0.9% -0.6% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Yr-on-Yr Chg. 4.5% 1.6% -31.7% 11.8% 7.3% 2.5% -6.0% % of Total % 100.0% 3.7% 28.1% 24.5% 24.2% South-Central North-West West Supply Demand Balance Supply Demand Balance Supply Demand Balance Q Q Q Q Q Yr-on-Yr Chg. 4.0% 5.3% 2.1% 4.2% -0.6% 3.6% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Yr-on-Yr Chg. 6.7% 2.4% 6.5% 7.0% -8.1% 1.7% % of Total % 27.8% 7.3% 3.9% 7.6% 16.0% Notes: 1. Does not balance because of unaccounted for crude oil. Regional surpluses (+) and deficits (-) are balanced through net-imports/transfers and stock changes in the short-term, and net-imports/transfers in the longer term. 2. As of most recent month. Supply includes crude oil, condensates, NGLs, oil from nonconventional sources and processing gains. Demand is for petroleum products. Source: EIA Petroleum Supply Monthly. Relevant Independent Objective

20 Page 20 C2: US Petroleum Demand by Product (million barrels per day) Finished Petroleum Products NGLs Petroleum Gasoline Jet Fuel Distil. Resid. Total 1 Total Total Q Q Q Q Q Yr-on-Yr Chg. 1.0% 4.4% 2.7% -9.3% 1.8% 3.8% 3.0% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Yr-on-Yr Chg. -0.3% 0.8% 3.6% -40.1% 0.3% -7.7% 1.6% Notes: 1. Total includes other finished petroleum products. 2. Total petroleum demand includes refinery feedstocks, additives/oxygenates and other hydrocarbons. Source: EIA Petroleum Supply Monthly. C3: US Petroleum Stocks (million barrels) Petroleum Stocks 1 Crude Oil Finished Products East Mid-West S-Cent N-West West U.S. Total 2 Gasoline Jet Fuel Distil. Resid. Total , ,856 1, , ,015 1, , ,031 1, Q , ,077 1, Q , ,048 1, Q , ,031 1, Q , ,033 1, Q , ,009 1, Yr-on-Yr Chg. -4.4% -1.7% -3.4% -5.4% -4.0% -3.3% -3.6% -9.6% 1.5% 1.6% -12.6% -1.6% Jul , ,062 1, Aug , ,063 1, Sep , ,048 1, Oct , ,050 1, Nov , ,054 1, Dec , ,031 1, Jan , ,053 1, Feb , ,049 1, Mar , ,033 1, Apr , ,033 1, May , ,039 1, Jun , ,009 1, Jul , ,998 1, Yr-on-Yr Chg. -8.6% -1.9% -2.2% -1.4% -7.5% -3.1% -2.0% -6.5% -2.1% -3.1% -12.3% -4.2% Notes: 1. Petroleum stocks include crude oil, finished products, NGLs, refinery feedstocks, additives/oxygenates and other hydrocarbons. 2. Includes Strategic Petroleum Reserves. 3. Total includes other finished petroleum products. All stocks are closing levels for respective reporting period. Source: EIA Petroleum Supply Monthly.

21 Page 21 C4: US Petroleum Net Imports by Source (million barrels per day) Region of Origin OPEC Canada Mexico Lat. Am. Europe Africa M.E. Total 1 Venez. S. Arabia Nigeria Total 2 P. Gulf Q Q Q Q Q Yr-on-Yr Chg. 15.7% 192% -44.8% -13.8% 29.7% 5.2% -9.3% -5.7% -4.3% 18.8% 5.8% 9.1% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Yr-on-Yr Chg. 16.7% 284% -55.8% 134.9% -9.6% -2.9% -31.7% -27.0% -24.6% -21% -9.4% 1.0% % of Total % -11.7% 10.1% -11.4% 12.2% 48.5% 100.0% 17.0% 21.9% 6.5% 89.2% 48.9% Notes: 1. Total includes net-imports from Russia and Asia-Pacific region. 2. Total OPEC includes the other eight cartel members. 3. As of latest month. Source EIA Petroleum Supply Monthly. C5: US Regional Crude Oil Production (million barrels per day) PAD District U.S. Major Producers East Mid-West S-Cent N-West West Total Alaska Calif. 1 Louis. Texas G. of Mex Q Q Q Q Q Yr-on-Yr Chg. -6.7% -5.9% 1.8% -5.7% -4.5% -1.0% 2.7% -10.9% -13.3% 0.2% 6.0% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Yr-on-Yr Chg. 2.8% -1.7% 5.8% 3.4% -3.4% 3.1% 0.5% -7.2% -10.9% 7.3% 2.8% R/P Ratio Notes: 1. California includes Federal Offshore crude oil production. 2. Gulf of Mexico includes Federal Offshore production adjacent to Texas and Louisiana. 3. Crude oil Reserve-Production ratio as of latest production month. Crude oil production does not include NGLs. Source: EIA Petroleum Supply Monthly. Relevant Independent Objective

22 Page 22 C6: US Refinery Activity Crude Input (MMbpd) - Utilization (percent) East Mid-West South-Central North-West West U.S. Input Util. Input Util. Input Util. Input Util. Input Util. Input Util Q Q Q Q Q Yr-on-Yr Chg. -5.0% 8.4% 6.8% 7.9% 1.9% 5.6% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Yr-on-Yr Chg. -1.5% 3.6% 6.2% 2.4% -1.1% 3.8% % of Total 1 6.1% 21.9% 53.4% 3.7% 15.0% 100.0% Notes: 1) As of most recent month. Source: EIA Petroleum Supply Monthly. C7: US Refinery Margins ($US per barrel) NY Harbor Chicago US Gulf Los Angeles (East Coast Comp.) (WTI) (WTS) (ANS) Q Q Q Q Q Yr-on-Yr Chg. 57.8% 30.0% 40.9% 48.2% Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Yr-on-Yr Chg. 79.3% 41.2% 69.5% 11.0% Note: Based on specific crude being processed in average cracking refinery in a given area. As of February 2010, NY Harbor Arab Med. is now East Coast Composite. Source: Oil and Gas Journal.

23 Page 23 D1: Canada Petroleum Supply and Demand Balances (million barrels per day) Canada East West Supply Demand Net-Exp Stk. Chg. Supply Demand Balance Supply Demand Balance Q Q Q Q Q Yr-on-Yr Chg. 15.7% 15.0% 21.3% 17.8% 12.4% 15.5% 18.4% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Yr-on-Yr Chg. 6.9% 4.0% 12.4% 30.0% 0.3% 5.7% 8.7% % of Total % 100.0% 6.2% 54.0% 93.8% 46.0% Notes: 1. As of most recent month. See notes for Table C1 for additional comments. Source: Statistics Canada s Energy Statistics Handbook. D2: Canada Demand by Product (million barrels per day) Finished Products Gasoline Distil. Resid. Total Q Q Q Q Q Yr-on-Yr Chg. 0.9% 0.1% 51.3% 1.6% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Yr-on-Yr Chg. 0.1% 12.0% -95.3% 3.3% Notes: 1. Total includes other finished petroleum products. 2. Total petroleum demand includes refinery feedstocks, additives/oxygenates and other hydrocarbons. Source: Statistics Canada s Energy Statistics Handbook. D3: Canada Petroleum Stocks (million barrels) Finished Products Crude Oil Petrol. Gasoline Distil. Resid. Total 1 Total Total Q Q Q Q Q Yr-on-Yr Chg. 6.3% 12.6% -1.3% 7.2% -0.6% 2.4% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Yr-on-Yr Chg. -2.7% 1.5% -1.9% 0.7% -5.3% -2.9% Notes: 1. Total includes other finished petroleum products. 2. Total petroleum stocks include NGLs, refinery feedstocks, additives/ oxygenates and other hydrocarbons. All stocks are closing levels. Source: Statistics Canada s Energy Statistics Handbook. Relevant Independent Objective

24 Page 24 D4: Canada Crude Oil Production (million barrels per day) Major Producers Canada Petroleum Type Alta. Sask. B.C. N.W.T. Atlantic Total 1 Light SCO Heavy Bitumen NGLs Q Q Q Q Q Yr-on-Yr Chg. 21.0% 7.2% -12.3% % 27.1% 18.0% 7.0% 67.6% 1.7% 11.2% 13.1% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Yr-on-Yr Chg. 8.9% 5.1% -7.9% % 43.1% 9.1% 13.4% 16.2% -2.6% 5.1% 14.6% Note: Total includes small amounts of production from Manitoba and Ontario. Source: Statistics Canada s Energy Statistics Handbook. D5: Canada Petroleum Imports by Source (thousand barrels per day) Non-OPEC OPEC Imports Mexico U.S. U.K. Norway Total 1 Algeria Nigeria S. Arabia Venez. Total 2 P. Gulf Total Q Q Q Q Q Yr-on-Yr Chg 0.0% -65.7% -100% % 18.0% -54.3% 0.0% 0.0% 0.0% -54.3% 0.0% 4.4% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Yr-on-Yr Chg. 0.0% -8.9% 0.0% 0.0% 18.6% -99.5% 0.0% 0.0% 0.0% -99.5% 0.0% -8.6% % of Total 3 0.0% 39.9% 0.0% 0.0% 99.9% 0.1% 0.0% 0.0% 0.0% 0.1% 0.0% 100.0% Notes: 1. Includes all non-opec production. 2. Includes production by the other seven OPEC members. 3. As of most recent month. Sources: Statistics Canada s Energy Statistics Handbook.

25 Page 25 E1: World Drilling Activity (active oil and gas rigs) OECD Non-OECD OPEC World N. A. Europe Asia-Pac Total Asia Non-Asia Total 1 P. Gulf Non-Gulf Total Total , , , , , , ,592 3Q ,538 4Q ,690 1Q , , ,966 2Q , , ,965 3Q , , ,102 Yr-on-Yr Chg. 87.4% -12.0% 221.4% 77.1% -4.0% 5.3% 1.1% 5.0% -2.2% 2.9% 36.7% Sep ,584 Oct ,620 Nov ,678 Dec ,772 Jan-17 1, , ,918 Feb-17 1, , ,994 Mar-17 1, , ,985 Apr , ,918 May-17 1, , ,935 Jun-17 1, , ,041 Jul-17 1, , ,110 Aug-17 1, , ,116 Sep-17 1, , ,080 Yr-on-Yr Chg. 72.7% -3.9% 300.0% 66.2% -7.0% 4.0% -1.0% 3.3% -7.5% 0.2% 31.3% % of Total % 3.5% 0.8% 60.3% 8.3% 11.2% 19.5% 14.9% 5.3% 20.2% 100.0% Notes: 1. Does not include active rigs in the Former Soviet Union and onshore rigs in China. 2. As of latest month. Source: Baker Hughes, Inc. E2: North American Drilling Activity (active oil and gas rigs) United States Canada North America 1 East Mid-West S-Cent N-West West Total Land 2 Offshore Total Oil Gas Total , ,861 1, , , , Q Q Q ,027 2Q ,007 3Q ,155 Yr-on-Yr Chg % 76.4% 13.4% 98.7% 106.4% 97.4% 101.1% 4.4% 71.2% 88.4% 114.2% 92.1% Sep Oct Nov Dec Jan Feb ,053 Mar ,042 Apr May Jun ,081 Jul ,151 Aug ,164 Sep ,150 Yr-on-Yr Chg % 69.2% 3.6% 83.9% 96.1% 84.7% 87.8% 0.0% 48.9% 72.3% 105.5% 76.9% % of Total 3 7.9% 15.7% 2.5% 42.7% 13.0% 81.7% 80.1% 1.6% 18.3% 83.7% 16.3% 100.0% Notes: 1. Excluding Mexico. 2. Includes drilling on inland waterways. 3. As of latest month. Source: Baker Hughes, Inc. Relevant Independent Objective

26 Page 26 Geographical Specifications 1. The World: OECD is comprised of countries from three regions: North America (Canada, Mexico, US); Europe (Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Luxembourg, the Netherlands, Norway, Poland, Portugal, the Slovak Republic, Spain, Sweden, Switzerland, Turkey, UK); and Asia-Pacific (Australia, Japan, New Zealand, South Korea). OPEC is comprised of Persian Gulf (Iran, Iraq, Kuwait, Qatar, Saudi Arabia, United Arab Emirates) and non-persian Gulf countries (Algeria, Indonesia, Libya, Nigeria, Venezuela). Non-OECD is comprised of countries from three regions: Former Soviet Union (Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kirghizstan, Moldova, Russia, Crude Oil Qualities Producing API Country or Gravity Region F) Sulfur Content (%) BBLs/Metric Tonne Crude Stream Tapis Blend Malaysia Ekofisk Blend Norway WTI Texas GCS Gulf of Mexico Oklahoma Sweet Oklahoma Kansas Sweet Kansas Wyoming Sweet Wyoming ELS Alberta Brent Blend United kingdom Bonny Light Nigeria Oman Blend Oman Arabian Light Saudi Arabia Minas Indonesia Isthmus Mexico Michigan Sour Michigan WTS Texas Urals Russia Tia Juana Light Venezuela Dubai U.A.E Lost Hills California Cano Limon Colombia Arabian Heavy Saudi Arabia ANS Alaska Oriente Ecuador Hardisty Heavy Alberta Maya Mexico Kern River California Tajikistan, Turkmenistan, Ukraine, Uzbekistan); Asia (including non-oecd Oceania); and non-asia (Africa, Middle East, Latin America, and non- OECD Europe). 2. United States: East (PADD I) New England (Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont); Central Atlantic (Delaware, Maryland, New Jersey, New York, Pennsylvania, and the District of Columbia) and Lower Atlantic (Florida, Georgia, North Carolina, South Carolina, Virginia, and West Virginia). Mid -West (PADD II) Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, Oklahoma, South Dakota, Tennessee, and Wisconsin. South-Central (PADD III) Alabama, Arkansas, Louisiana, Mississippi, New Mexico and Texas. North-West (PADD IV) Colorado, Idaho, Montana, Idaho, Montana, Wyoming. West (PADD V) Alaska, Arizona, California, Hawaii, Nevada, Oregon, Washington. 3. Canada: East is comprised of Ontario, Manitoba, Quebec and the Maritime provinces (New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island). West is comprised of Alberta, British Columbia, Saskatchewan and the northern territories (NorthWest Territories, Nunavuut, and Yukon). Additional Notes 1. Petroleum and oil refer to crude oil and natural gas liquids (NGLs), whereas crude oil refers to its namesake and field condensates. Condensates derived from natural gas processing plants are classified as NGLs. 2. The spot price is for immediate delivery of crude oil or refined products at a specific location. Spot transactions are generally on a cargo by cargo basis. In contrast, a futures price is for delivery of a specified quantity of a commodity at a specified time and place in the future. 3. Crude oil sold Free-On-Board (FOB) is made available to the buyer at the loading port at a particular time, with transportation and insurance the responsibility of the buyer. Crude oil sold Cost-Insurance-Freight (CIF) is priced at a major destination point, with the seller responsible for the transportation and insurance to that point. A Delivered transaction is similar to a CIF transaction, except the buyer in the former pays based on the quantity and quality ascertained at the unloading port, whereas in a CIF transaction, the buyer accepts the quantity and quality as determined at the loading port. 4. Processing gain is the volume of which refinery output is greater than crude oil inputs. The difference is due to the processing of crude oil products, which in total have a lower specific gravity than crude oil. 5. Unaccounted for crude oil reconciles the difference between crude input to refineries and the sum of domestic production, net imports/exports, stock changes and documented losses (in the U.S.). 6. Totals may not equal the sum of their parts in the statistical tables due to rounding. For more information, please contact Dinara Millington at dmillington@ceri.ca. Canadian Energy Research Institute 150, Street NW Calgary, AB T2L 2A6