Our integration strategy generates strong performance
Darren Curran, Vice-President Refining and Upgrading on-site at one of our refineries.
October 2015 –Not only do we produce oil in the oil sands, we also own 50 percent of two U.S. refineries. Phillips 66 owns the other half and is the operator.
Our ownership in these refineries means we can capture the full value chain from oil production through to refined products. Once the oil is out of the ground, it has to go through a number of steps – blending, transporting, upgrading, refining – all the way to finished products.
"Refining is a key component of our strategy," says Darren Curran, Vice-President Refining and Upgrading. "Being involved in the entire process, from oil production through to finished products (gasoline, diesel, jet) has given us resiliency throughout market fluctuations".
From a pricing perspective, the value of a barrel of heavy crude oil is significantly less than the value of a comparable amount of gasoline or jet fuel.
Having both upstream and downstream operations helps protect us from price variability in the heavy crude oil market. Being involved in various steps of the value chain helps our bottom line by allowing us to capture value from the production of oil through to the output of finished products like transportation fuels. Essentially, we shift from being a producer of heavy crude oil to being a producer of high-value finished products.