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Our value chain

Our value chain

Our operations involve activities across the full value chain to develop, produce and market crude oil and natural gas in Canada. Having both upstream and downstream operations helps us mitigate the impact of volatility in light-heavy crude oil differentials. 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.

Value chain segment Activities
Unlock and develop We undertake seismic and exploratory drilling programs to identify the value and location of reserves and inform our business and development plans.
Execution (construction) We undertake stakeholder consultation and design work to obtain regulatory approvals that permit development of our facilities. Once an approval is obtained, construction and commissioning of new facilities, well pads, wells and on-lease pipelines are permitted. We also plan for abandonment and reclamation costs and requirements.
Production and operations We extract our production, process it and then transport it, usually by pipeline, to a marketing hub. Once a production project or asset has reached the end of its life, we remove equipment from the site and undertake reclamation and remediation activities.
Marketing and transportation
Our marketing activities are focused on ensuring safe and efficient transport to the nearest market hub and on maximizing the value we receive for our production using Cenovus’s portfolio of market access assets and capabilities (i.e. pipe, rail, waterborne and storage).
Refining and upgrading Refining converts crude oil into usable products. We have 50 percent ownership in two U.S. refineries – Wood River, located in Roxana, Illinois, and Borger, located in Borger, Texas – that are jointly owned and operated by Phillips 66. Ownership in these two refineries reduces the risk of price fluctuations in the oil market by allowing us to capture value from the production of oil through to the output of finished products such as gasoline, diesel and jet fuel.
End use Buyers of our production have operations across North America and around the world. This includes end use fuel products such as gasoline, diesel or jet fuel, as well as products made from petro-chemicals.