GMS 723-021_ Crude Oil Export Plan

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Jan 9, 2024

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GMS723 021 Professor Richard Deklerk Anas Khandwala 501123664 Abdul Muneeb Mehta 501086627 JJ (Jared) Faulkner 501108823 Caleb Swaby Crude Oil Export Implementation Plan

Table of Contents Product Description ................................................................................................................................. Customers ................................................................................................................................................. Customer Development & Marketing ..................................................................................................... Financing and Operations ....................................................................................................................... Export Plan ................................................................................................................................................ References .................................................................................................................................................

Product Description Our product is Crude Oil. A quick breakdown of what the product is; Crude Oil is often referred to as petroleum. It is a natural occurring fossil fuel formed through millions of years by the decomposition and transformation of organic materials like plankton and algae buried in the earth’s layers. Crude oil is primarily composed of hydrogen and carbon atoms. Specific composition of the hydrocarbon makeup has a possibility of being different. Crude oil can vary not only in its chemical makeup but also density, viscosity, and color. Different types of crude oil are categorized by these characteristics, and each type has its unique properties. The extraction of crude oil requires drilling wells into underground reservoirs and extracting the oil to the surface. Once extracted, crude oil is transported by trucks, pipelines, or even ships to refineries for processing. The refining process splits the Oil into fractions that are then used to produce different petroleum products such as gasoline, diesel, jet fuel, lubricants, and more.

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The entire world relies on Crude oil. It is a huge energy source and acts as a feedstock in the production of various everyday products and materials across numerous industries. The environmental impacts of crude oil can be very dire, in regards to an oil spill natural habitats and wildlife will instantly be harmed. Burning crude oil also releases CO2 and other pollutants into the atmosphere, adding more to climate change and global pollution. The significance of this product cannot be understated. Crude oil powers major industries and aids in our daily life more than we can account for. Of course environmental concerns have to be there, but with a great power like crude oil comes responsibility. This product is so important it is government regulated. Exporting this product safely is at the top of our list, and the world is taking steps to reduce any and all risks from the ugly side of this critical resource. What will our product be used for? Industries that rely heavily on crude oil include… Petroleum Refining: As mentioned prior, crude oil is essential in the production of refined petroleum products like gasoline, jet fuel, diesel fuel, heating oil, and more fuels. This is the main use of crude oil and where the majority of its resources end up being delegated. Transportation: Crude oil products like gasoline and diesel power cars, trucks, airplanes, ships, and many more vehicles. This industry needs crude oil to operate globally. Petrochemical Industry: Crude oil is a primary source for the petrochemical industry. Chemicals used in plastics, synthetic rubber, pesticides, fertilizers, pharmaceuticals, and more come from crude oil.

Energy Production: A huge industry relying on massive amounts of produce for energy world-wide, crude oil is needed to generate electricity and heat in power plants. Most crucially in regions where solar, water, and other alternative sources are not available and oil-fired power plants are depended on. Manufacturing: Plastics, synthetic fibers, solvents, lubricants, waxes, all these materials have at least a little piece derived from the production of crude oil. Agriculture: Fertilizers, herbicides, pesticides and various agricultural chemicals need crude oil in their production processes. Construction: The roads we drive on and take for granted, derive from crude oil. Asphalt is another product of crude oil and seen used in construction everyday of highways, roads, and roofing materials. Consumer Products: Cosmetics, candles, detergents, and paints, contain at least a tiny part derived from crude oil. Many everyday items we would not even think of.

Our product crude oil is clearly a crucial resource used in an extensive number of industries and drives the world that we know. In our world today, resources are more important than ever before. Crude oil is being imported into countries by millions of barrels a day. In 2022, Europe was second to none across the globe, at roughly 14.4 million barrels of oil per day. China was second with a close 12.2 million daily barrels as the second-largest importer globally. While as of late Canada has been losing in competition with other countries such as Russia, Middle East, and USA, our company looks to export towards big target markets. These countries include but are not limited to Germany, which is the largest consumer of oil in all the EU. Crude Oil demands amounted to over 2 million barrels daily in 2021. This market has recently been supplied by India, but funny enough India is a huge consumer of crude oil as well. Despite being a competitive exporter, India is buying massive amounts of crude oil from Russia. China also buys large amounts of our product from Russia. The Middle-East is famous for its huge oil reserves. They rely on crude oil exports for economic growth and revenue. Our company wants to rise in competition and export oil to these countries that need it so desperately.

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Image Via ( https://www.statista.com/statistics/240600/global-oil-importers-by-region- 2011/ ) 1 1 Leading crude oil importers worldwide in 2022, Statista 2023

Customers 2 The profitability of any oil firm working in the Canadian oil industry depends on a deep understanding of the diversified client base that the Canadian oil industry, which is a cornerstone of the country’s economy, offers. This paper explores a Canadian oil company’s prospective clientele and explains the thinking behind focusing on particular market niches. The discourse encompasses both local and global markets, acknowledging the distinct attributes and requirements intrinsic to every consumer demographic. With an abundance of natural resources at its disposal, Canada is a major player in the global oil business. In order to properly design products and services, a Canadian oil firm must first identify and comprehend the distinct client categories in order to increase its market presence. Domestic customers are what will be viewed first since that is where most companies decide to start their business. Within the domestic market there are three different types of consumers; Industrial, Transportation, and Residential. One important and diverse market for oil products in Canada is the industrial sector, which is also one of the main drivers of the country’s economy. This industry has a varied and vital need for oil products, spanning a range of operations from industrial processes and energy generation to transportation. Acknowledging the multiplicity of demands within the industry, Canadian oil businesses may proactively establish themselves as essential collaborators. These businesses provide a dependable and continuous supply of energy for industrial operations by providing bulk quantities of crude oil, refined 3 products and specialty industrial lubricants. Forming strategic partnerships in the 2 Oil in Today’s Markets, Canadian Association of Petroleum Products, 2022 3 Leading Oil and Gas Companies Based on Revenue in Canada, Statista, 2022

industrial sector helps the oil firm position itself as a key player in the expansion and efficiency of the larger industrial landscape, while also ensuring a stable market. This strategy approach broadens the company’s market reach, strengthens its position as a major participant in supporting important economic operations, and is in line with the essential ec 4 onomic function of the industrial sector. Manufacturing facilities tha use oil in a variety of production processes, power plants that rely on oil for generators, transportation infrastructure like ports and airports where oil powers machinery and cars, mining operations that require large energy inputs, and the construction industry that uses oil for energy intensive machinery are a few examples of industrial customers. By focusing on these business clients, the oil firm can guarantee a steady demand for its goods and position itself as a vital collaborator in the development and maintenance of important economic sectors. As one of the main pillars supporting the Canadian economy, the transportation industry is essential to the smooth flow of people and products throughout the huge nation. This industry encompasses important transportation modes such as cars, trucks, and airplanes, and it provides a broad and strong need for oil products. Acknowledging the changing environment that emphasizes environmental responsibility more and more, Canadian oil corporations are able to adapt strategically to meet the changing demands of this industry. One noteworthy strategy is the proactive creation of fuel alternatives that are more sustainable and clean. Oil firms may support national and international sustainability goals by matching their goods to the desires of environmentally concerned consumers through research and innovation initiatives. This 4 Oil in Today’s Markets, Canadian Association of Petroleum Products, 2022

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tactical change positions the business as a leader in the shift to more sustainable energy sources while also ensuring the continued significance of oil in transportation. A focus on the transportation industry offers several benefits, including diversified demand, economic relevance, and a significant chance to make a substantial contribution to environmental sustainability. Car manufacturers, freight businesses, airlines, and public transportation agencies are a few examples of clients in this industry. Canadian oil corporations have the opportunity to establish themselves as major players in the evolving transportation energy sector by adopting a more innovative approach and taking environmental issues seriously. Given the vital function heating oil plays in Canada's colder areas, Canadian oil firms have strategically decided to focus on residential and commercial users for their heating oil. The market potential is unique because of the growing need for heating solutions that are both environmentally friendly and efficient. Oil businesses may provide cutting edge heating technology that promote environmental sustainability and energy efficiency by investing in research and development. This strategic approach presents the business as a responsible and progressive member of the communities it serves, in addition to being in line with the changing desires of environmentally concerned consumers. Furthermore, using environmentally friendly production and distribution methods makes oil businesses more appealing to co 5 nsumers who care about the environment. This customized strategy meets the unique requirements of both residential and commercial customers, encouraging brand loyalty and enhancing the business’s reputation in areas it serves. Residential complex managers, enterprises in need of heating solutions for their commercial premises, and individual homeowners 5 Canadian Oil: One of the Best Investments, Financial Post, 2023

are a few examples of both commercial and residential consumers. Oil firms may become dependable collaborators in guaranteeing warmth and comfort in residential and commercial spaces by meeting the varied demands of their clientele and offering eco-friendly heating solutions. Selling overseas helps Canadian oil corporations take advantage of the expanding global energy d 6 emand by diversifying their market exposure. Through long term contracts, this approach offers steady cash streams, cultivates strategic ties with foreign partners, and establishes the businesses as leaders in sustainability and innovation. In addition to exposing businesses to new technologies and reducing reliance on domestic variables, international growth helps businesses succeed over the long term in a constantly changing and dynamic sector. By entering foreign energy markets, Canadian oil corporations put themselves in a position to take advantage of the rising demand for energy resources worldwide. This calculated growth offers a special chance to form alliances with developing nations looking for dependable and sustainable energy supplies. Building these connections abroad may result in long term agreements that provid 7 e Canadian oil companies with steady sources of income. Canadian businesses have a critical role to play in satisfying the worlds growing energy requirements, which will further establish their worldwide footprint. Canadian oil businesses have a strategic opportunity to position themselves as leading suppliers of ethically sourced and produced oil in response to the growing 6 Oil in Today’s Markets, Canadian Association of Petroleum Products, 2022 7 Opportunities and Benefits of International Trade, Global Affairs Canada, 2022

emphasis on sustainability throughout the world. A dedication to sustainability can go beyond conventional oil extraction through financial support for carbon offset programs and renewable energy projects. By adopting eco-friendly practices, Canadian oil companies not only support world wide sustainability objectives but also draw in clients from other countries who value renewable energy sources. The firms’ favorable influence on the environment throughout the world is a result of this strategic alignment in addition to their financial success. Collaborating with overseas refining and petrochemical sectors gives a profitable option for Canadian oil businesses to increase their market reach. This collaboration comprises selling crude oil and processed products on a worldwide basis, developing relationships with international refineries. By forming these kinds of partnerships, Canadian oil corporations can guarantee a consistent and varied market for their goods, lessening their reliance on certain areas. In addition to guaranteeing a larger market presence, this strategic strategy helps the businesses negotiate the intricacies of global supply chains, therefore boosting their resilience in a constantly changing global economic environment. International refineries, foreign petrochemical manufacturers, international energy trading companies, integrated energy companies, global oil and gas majors, and joint ventures with foreign companies engaged in petrochemical and refining activities are a few examples of the customers in this collaboration. These collaborations help Canadian oil corporations have a stronger and more flexible position in the world energy market. Canadian oil businesses can reap huge benefits from selling to international clients. First off, it broadens their clientele, lessening reliance on home markets and

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lessening the effects of local economic ups and downs. Second, by capitalizing on the worldwide need for energy resources, these businesses may enter quickly increasing markets, particularly in developing nations with developing industrial sectors. Thirdly, Canadian oil businesses may benefit from long term contracts, strategic alliances, and steady income streams by working with foreign clients, especially in the petrochemical and refining industries. Finally, foreign sales help Canadian oil businesses become more resilient and adaptive to changing global economic and regulatory environments. Comprehending its diverse clientele is fundamental to the prosperity of an oil firm in Canada. The corporation may gain a competitive edge in the dynamic and ever changing global oil market by skillfully customizing goods and services to satisfy the unique demands of both local and foreign clients. In addition, a deliberate emphasis on sustainability and ethical business practices helps to improve the company’s standing, making it more appealing to a discriminating clientele and guaranteeing its long term success and expansion. Customer Development & Marketing The crude oil market is characterized by its complexity and its global significance where it demands a refinement and many-sided approach to customer acquisition. Each strategy outlined herein is carefully designed to navigate the difficulty of the industry, it is aimed not only to locate buyers but to establish enduring relationships built on trust, reliability and adaptability. In the digital age, establishing a strong online presence is crucial for engaging customers. A comprehensive website acts as a virtual storefront, providing detailed

information about crude oil offerings, specifications and extraction methods. Employing search engine optimization (SEO) techniques is essential to ensure visibility, allowing business to stand out in online searches and influence buyer decisions. 8 DIgital marketing expands reach through targeted advertising and social media engagement, eliminating geographical limitations and making crude oil products easily accessible to a global audience actively seeking them. 9 Engaging with industry specific platforms is a dynamic and tailored strategy for the crude oil market. Online marketplaces dedicated to energy commodities act as virtual hubs for buyers and sellers to connect. By actively participating in discussions, listing products and leveraging the interaction nature of these platforms, businesses can enhance visibility and connectivity. 10 THese platforms provide a digital arena for networking, allowing businesses to connect with brokers, traders and representatives from refiners and oil companies. THey not only facilitate transactions but also foster relationships, making them a crucial part of the modern crude oil business ecosystem. Collaborating With brokers and agents in the crude oil industry brings valuable industry expertise and networking capabilities. These intermediaries have in-depth knowledge of the energy sector, providing connections and market insights. 11 Partnering with brokers and agents can introduce business to potential buyers, facilitate negotiations and provide valuable market information. This strategy allows businesses to leverage existing networks, streamline customer acquisition and access established channels for reaching buyers. 12 8 How can SEO engine try to influence buyer decision, Heather, 2021 9 Global audience seeking and achieving target advertisement, Mesharithra, 2020 10 Mesharithra 2020 11 Mesharithra, 2021 12 Can Partnering be a well sustained with brokers and agents, Mathew, 2019

Strategically partnering with refineries is a move aimed at establishing stability and fostering long term relationships. Refineries, being crucial players in the energy supply chain, are major purchasers of crude oil. This approach is in line with the imperative and for reliability and stability in the crude oil industry, offering companies a consistent and established customer base. The oil and gas industry membership is closely linked to providers that offer strategic opportunities for businesses to gain insight, access market reports and connect with potential buyers. These associations serve as knowledge hubs facilitating the exchange of information and providing a platform for businesses to showcase their offerings. 13 Actively participating in industry forums and events organized by these associations not only boosts visibility but also fosters credibility and trust within the industry. This approach recognizes the importance of community engagement in the crude oil market, where it plays a pivotal role in shaping industry standards and connectivity. Regenerating the global demand for crude oil as an energy source continues to rise. Expanding into international markets has become a critical strategic objective. This strategy involves identifying regions with high demand for crude oil and customizing products to meet international standards. Adapting to different regulatory environments is crucial for navigating international trade rules. Global expansion allows businesses to enter new markets and diversify their customer base, reducing the risk of regional market fluctuations. The dynamic nature of the crude oil market is essential in taking a proactive 13 What are most potential strategies of crude oil be used to acknowledge the business offerings, Heagen, 2020

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approach by staying informed about global energy trends, geopolitical factors and market dynamics. The strategy involves continuously monitoring the factors that influence crude oil prices, demand , supply dynamics and the emergence of technology in the energy sector. ADapting to the offerings and pricing strategies based on a comprehensive understanding of market conditions is a critical aspect of this approach, BY staying ahead of industry trends, businesses position themselves as responsive and adaptable players in the crude oil market. Aligning with the evolving needs of their customers. Strict adherence to both local and international regulations is a fundamental strategy for businesses working in the oil and gas industry. This approach entails following environmental and safety standards, not only as a regulatory obligations but also as a commitment to responsible and sustainable business practices. Compliance not only enhances credibility but also assures buyers that crude oil products meet the industry’s highest standards. Ethics play a crucial role in this industry where regulatory compliance is paramount. Given the context here is a regenerated text Crude oil has been acknowledging the varied demands of buyers by providing personalized solutions within a comprehensive approach. It is crucial for businesses to customize their crude oil offerings to cater to the specific needs of buyers, taking into account factors such as different grades, volumes, and delivery schedules. This approach involves actively engaging with customers to gain an understanding of their unique requirements and adapting products and services accordingly. By offering flexibility in contract terms, businesses can accommodate the diverse needs of buyers which has resulted in a

reputation for being responsive and customer centric. The marketing strategy for selling crude oil involves identifying potential customers and understanding the industry dynamics. To approach these customers, the focus is on oil refineries, national oil companies and emerging market with high energy needs. In conclusion, the collaboration with the industry association has often been focused on the network that includes the potential customers as well as provides insightful provision into the market dynamics. Financing and Operations In strategically mapping out the financial framework for our ambitious Crude Oil export project, we have meticulously designed a multifaceted financing strategy to address the diverse capital requirements inherent in the oil industry. Recognizing the imperative need for substantial funding, we are poised to tap into various financial instruments. Before Looking at the financing option, the main costs need to be recognized. The costs are stated below: Costs Average Cost (CAD) Exploration Equipment (Seismic Imaging Tools and Data Analysis Software) $2.5 Million Drilling Equipment (Drilling Rigs, Drill Bits, Mud pumps) $6 Million Skilled Labour $1.75 Million

(Data Analysts, Engineers, Drill Operators) Regulatory Compliance Costs, $1 Million Transportation and Logistics Cost $1.5 Million Land Acquisition Costs, $5.5 Million Research Costs $2.5 Million Source: FinModesLAB 14 The exploration phase of oil and gas projects entails several critical cost components. Exploration equipment encompasses seismic imaging tools, instrumental in mapping subsurface structures, and data analysis software that interprets the extensive data generated. The drilling phase involves substantial investments in drilling rigs, drill bits tailored to specific geological formations, and mud pumps to circulate drilling mud. Skilled labour constitutes significant expenses, including data analysts for interpreting geological data, engineers overseeing drilling operations, and drill operators managing on-site equipment. Regulatory compliance costs cover fees for permits, environmental impact assessments, and adherence to local and international regulations. Transportation and logistics costs encompass moving personnel, equipment, and materials to and from exploration and drilling sites, including fuel, maintenance, and logistical coordination. Land acquisition costs involve securing rights to explore and drill on specific parcels of land through leases, licenses, or purchases. Research costs cover expenses related to geological and environmental studies to identify prospective drilling sites. Effectively managing these costs is crucial for the economic viability and success of oil exploration projects, ensuring the seamless 14 “How Much Does It Cost to Start an Oil and Gas Business” FINMODELSLAB (2023)

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transition from exploration to extraction 15 . Continuing, we would finance our projects through different channels. First, traditional channels, including securing loans and establishing lines of credit, form the bedrock of our financial foundation, providing stability and structured capital. Simultaneously, we aim to attract strategic investment by exploring venture capital opportunities, drawing not only on financial backing but also on the invaluable industry insights and guidance that such partnerships can offer. One notable avenue is the Business Development Bank, an institution that is pivotal in supporting businesses in this sector. 16 Recognizing the capital-intensive nature of oil operations, we are exploring obtaining loans from the Business Development Bank, which has a commendable track record of providing financial support of up to $2 million to businesses in the Oil and Gas Industry. 17 This financial injection will prove instrumental in meeting the initial capital requirements for our project, fostering stable growth and development. Furthermore, we are actively engaging with Export Development Canada (EDC), a provider of financial solutions for businesses in the Oil and Gas sector and other big banks. EDC has a substantial history of offering loans, providing over $50 billion at prime + 0.5% to support businesses in this industry. By tapping into the financial resources offered by EDC, we aim to secure competitive 15 FINMODELSLAB 16 “Oil and Gas Financing: How to Secure & Grow Your Business” UPWISE CAPITAL (2021) 17 “Working Capital Financing for the Energy Sector” BDC-Business Development Bank of Canada (2023) Big 4 Banks Investment in Crude Oil Companies

and advantageous loan terms that will fortify our financial position and facilitate the successful execution of our export project. 18 In addition to these financial institutions, our strategy encompasses the exploration of various government subsidies that incentivize and reward businesses for operating in an environmentally conscious and sustainable manner. These subsidies play a pivotal role in allowing us to implement efficient and sustainable practices, aligning with regulatory initiatives to minimize our operations' environmental impact. By capitalizing on these subsidies, we not only enhance the financial viability of our project but also reinforce our commitment to responsible and sustainable business practices. Looking at the graph, post-pandemic, financial institutions are beginning to invest more in oil and gas companies, as it is still a growing market, even with all the environmental- related resistance. 19 This strategic combination of financial support from specialized institutions, such as the Business Development Bank and Export Development Canada, coupled with government subsidies, positions our venture for success. It addresses the immediate capital needs and aligns our operations with regulatory and environmental imperatives, fostering a resilient and responsible presence in the competitive landscape of the oil and gas sector. 20 As for our operations and revenue generation, being a midstream oil company, our operational focus lies in the essential midstream activities of processing, storing, transporting, and marketing oil, natural gas, and natural gas liquids. We position 18 “EDC increasing financial capacity to support Canadian oil and gas companies” EXPORT DEVELOPMENT CANADA (2020) 19 “Federal Fossil Fuel Subsidies In Canada” ENVIORMENTAL DEFENCE (2022) 20 “Oil and Gas Financing: How to Secure & Grow Your Business” UPWISE CAPITAL (2021)

ourselves as a key bridge between the upstream exploration and production phase and the downstream distribution and retail phase in the oil and gas industry. 21 Our revenue generation primarily revolves around providing indispensable midstream services. We charge fees for the processing, storing, and transporting of oil and gas products, employing various models such as transportation tariffs or capacity reservation fees. Our robust transportation network, including pipelines, trucks, and potentially ships, facilitates the efficient movement of resources to diverse destinations. In addition to our core midstream services, we actively explore opportunities for integrated operations. Collaborating with upstream exploration and production companies and downstream refineries forms an approach to streamlining the entire oil and gas supply chain. By engaging in integrated activities, we contribute to the seamless flow of resources and position ourselves as a comprehensive player in the industry, capable of combining upstream, midstream, and downstream operations for a more cohesive and strategic approach to the oil and gas sector. This integrated model not only strengthens our value proposition but also ensures versatility in navigating the dynamic landscape of the energy industry. 22 Export Plan Exporting and transporting crude oil to its destination involves various challenges, including logistical complexities, regulatory compliance, environmental concerns, and geopolitical risks. Implementing effective strategies is paramount to mitigate problems and ensure successful deliveries. 21 “Understanding Oil Firms And Refinery Services” INVESTOPEDIA (2022) 22 “Understanding Oil Firma And Refinery Services”

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Firstly, we need to evaluate existing infrastructure including pipelines, terminals, ports, and storage facilities. Identify areas for improvements or expansions to enhance efficiency and reliability. As we will be shipping Internationally and domestically, we will focus on assessing available ports and pipelines that would be available for use. We will focus on ports that have good storage capacity, available and capable dock workers, connectivity to inland carriers, real-time updates, the choice of logistic providers for the port, and access to oil pipelines for easy transitions of the oil from the pipes to ships. The port we would use is the Westridge Marine Terminal. Our optimal method of exporting internationally will be by cargo ship which should have double hulls. For local transportation, it will be American and Canadian pipelines such as the Trans Mountain Pipeline System and the Keystone Pipeline. The occasional truck transportation if needed. The process and contingency plans are another important part of transportation and exporting crude oil. We’re shipping internationally via cargo ship and therefore, will get valid liability insurance which allows us to get an Oil Tanker Liability Certificate. This will protect us against any possible environmental disaster caused by the transported

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oil. The trucks will be insured with Tanker and liability insurance. Regarding the pipelines, we will acquire all the licensing requirements to access them. Our extraction process will start in Alberta as it has close to 80% of Canada’s oil, and we will use the Trans Mountain Pipeline System to move the oil from Alberta to British Colombia. The process we will use to extract the oil will be Steam Assisted Gravity Drainage (SAGD), this is because it gives us more access to larger and deeper bitumen deposits. SAGD will allow us to access the majority of oil deposits in Canada as well as reduce our carbon footprint. Once the oil has been accessed it will go to the pipeline system and from there it will be barreled and put into storage upon arrival to the port. Then it will be exported from Westridge Marine Terminal to its international clients. However, for the domestic market, we will continue to transport the oil via pipelines to complete most if not all of the transportation. To avoid risk we will have live tracking and monitoring of the process from the port as well as on the trucks. To guarantee that our process is smooth and has minimal issues. We will use many precautions before transportation and exportation. For the ships this includes:

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using double hull ships that meet the safety standard and undergo regular maintenance and inspections, high level navigation team with a proper emergency response plan and data monitoring with risk assessment, GPS monitoring and a real time monitor system, secure loading procedures that follow transport regulations and a trustworthy transportation crew. For the pipelines we will make sure to do regular inspections and maintenance and check for pipe integrity and leak detection. We will also have emergency plans just in case a problem arises such as environmental response plans, third party liability insurance, and alternative time strategies if our schedule isn’t on time. To guarantee smooth operations we will stay updated with international and local regulations governing crude oil transportation. We will also ensure strict adherence to safety standards, environmental regulations, and legal requirements. Oil exportation is already a difficult process compared to exporting other items and therefore we must stay diligent about the procedure and insurance claims available. We’ve chosen to not use railways due to the major cost associated with a train derailing and killing people compared to the cost of oil spilling into the ocean. A well-crafted strategy that integrates these key elements is essential for mitigating problems associated with crude oil export and transportation. By implementing these strategies, we can navigate complexities, ensure smoother operations, and achieve successful deliveries of crude oil to their destinations.

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References “Global Oil Importers by Region 2020.” Statista, www.statista.com/statistics/240600/global-oil- importers-by-region-2011/ . Beattie, Andrew. “Understanding Oil Firms and Refinery Services.” Investopedia , Investopedia, 18 July 2022, www.investopedia.com/articles/active-trading/102214/difference-between-oil- services-and-refiners.asp. Conca, James. “Which Is Safer for Transporting Crude Oil: Rail, Truck, Pipeline or Boat?” Forbes , Forbes Magazine, 10 Dec. 2021, www.forbes.com/sites/jamesconca/2018/10/11/which-is-safer-for-transporting-crude-oil- rail-truck-pipeline-or-boat/?sh=f666fe37b237. MEDIA. “EDC Increasing Financial Capacity to Support Canadian Oil and Gas Companies.” EDC, Export Development Canada, 24 Jan. 2022, www.edc.ca/en/about- us/newsroom/covid-19-oil-gas-support.html. Ojeh, Augustine. “Oil and Gas Financing: How to Secure & Grow Your Business.” Upwise Capital , 17 Jan. 2023, upwisecapital.com/2021/09/16/oil-and-gas-financing/. Oilgascanada. “Canadian Energy Markets: Oil and Gas Imports and Exports.” CAPP , www.capp.ca/energy/markets/#:~:text=Diversifying%20markets%20for%20Canada%27s %20oil,gross%20domestic%20product%20(GDP). Accessed 29 Nov. 2023. Press, Environmental. “The Running List of Federal Fossil Fuel Subsidies in Canada in 2022.” Environmental Defence , Environmental Defence Canada, Dec. 2022,

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environmentaldefence.ca/federal-fossil-fuel-subsidies-tracking/. Ryzhkov, Alex. “How Much Does It Cost to Start an Oil and Gas Business? Discover the Capital Expenditures and Startup Costs.” FinModelsLab , 19 Aug. 2023, finmodelslab.com/blogs/startup-costs/oil-gas-startup-costs. “Chapter 6.3 – Port Effectiveness: Port Economics, Management and Policy.” Port Economics, Management and Policy | A Comprehensive Analysis of the Port Industry , 14 Nov. 2021, porteconomicsmanagement.org/pemp/contents/part6/port-effectiveness/#:~:text=They %20include%20the%20availability%20of,of%20adequate%2C%20on%2Dtime %20information. “Tanker Insurance.” Tanker Insurance | ProfessionalsCoverage.Ca , 30 Aug. 2020, www.professionalscoverage.ca/business-insurance/transportation-insurance/tanker- insurance/#:~:text=The%20protection%20all%20oil%2C%20milk,%2C%20liability%2C %20and%20property%20coverages. Global Oil Importers by Region 2020.” Statista, www.statista.com/statistics/240600/global-oil- importers-by-region-2011/ . Government of Canada, Canada Energy Regulator. “Canada Energy Regulator / Régie de l’énergie Du Canada.” CER , Canada Energy Regulator / Régie de l’énergie du Canada, 22 Aug. 2023, www.cer-rec.gc.ca/en/data-analysis/facilities-we-regulate/canadas- pipeline-system/2021/crude-oil-pipeline-transportation-system.html . “Oil Tanker Liability Certificate.” Required Documents Merchant Shipping | Inspectie Leefomgeving En Transport (ILT) , Ministerie van Infrastructuur en Milieu, 11 May 2018, english.ilent.nl/topics/required-documents/oil-tanker-liability-certificate.

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https://www.cer-rec.gc.ca/en/data-analysis/facilities-we-regulate/canadas-pipeline- system/2021/crude-oil-pipeline-transportation-system.html https://www.transmountain.com/westridge-marine-terminal https://www.capp.ca/energy/markets/ https://www.reuters.com/markets/commodities/canada-steps-up-pace-oil-production-growth- seen-rising-8-two-years-2023-08-23/ https://energy-information.canada.ca/en/subjects/crude-oil https://boereport.com/markets/ https://www.iisd.org/articles/deep-dive/why-canada-unlikely-sell-last-barrel-oil https://www.cbc.ca/news/business/oil-prices-canada-1.6479046 https://tradingeconomics.com/canada/crude-oil-production https://www.googleadservices.com/pagead/aclk? sa=L&ai=DChcSEwiNjN6H5eqCAxWAzMIEHcUnBMoYABAAGgJwdg&ae=2&gclid=Cj0KCQiA3 5urBhDCARIsAOU7Qwk_9VuawE4-I1fDCHc0XkIEP7UwC-MAJDcAeHD95- kmtW_L442VS3waAooWEALw_wcB&ohost=www.google.com&cid=CAESVuD2mlRptbOB8Lq- 1XUTQvS96Ar6dqt- AQhZR5LiW63JBMamC8AUs7N_MtXp3uMpKKCxJgarXvV763NVcKxVnVxdBlkNPRAiRILh5bq 6ckEPmaRp_0KH&sig=AOD64_3Rz_mWd3URCh9ErZhS6KdpVxfT3Q&q&adurl&ved=2ahUKE wiQt9iH5eqCAxV_NzQIHWlvAe84ChDRDHoECAAQAQ&nis=2&dct=1 https://www.worldometers.info/oil/canada-oil/ https://www.researchgate.net/figure/Typical-steam-assisted-gravity-drainage-SAGD- process_fig1_267459745 Typical Steam Assisted Gravity Drainage (SAGD) Process ,

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www.researchgate.net/figure/Typical-steam-assisted-gravity-drainage-SAGD- process_fig1_267459745. Accessed 30 Nov. 2023. “Westridge Marine Terminal.” Trans Mountain , 6 July 2017, www.transmountain.com/westridge- marine-terminal. “Working Capital Financing for Entrepreneurs.” BDC.Ca , Business Development Bank of Canada, 2023, www.bdc.ca/en/financing/working-capital-loan .

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GMS 723-021_ Crude Oil Export Plan

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