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Value chain

Value chain

Our operations involve activities across the full value chain to develop, transport, produce and market crude oil and natural gas in Canada and internationally. Our physically integrated upstream and downstream operations help us mitigate the impact of volatility in light-heavy crude oil differentials and contributes to our bottom line by capturing value from oil and gas production through to the sale of finished products like transportation fuels.

We undertake seismic and exploratory drilling programs to identify the value and location of reserves and to inform our business and development plans.

We engage with our stakeholders and work to obtain regulatory approvals to responsibly develop and commission new facilities, well pads, wells and on-lease pipelines. We also plan for eventual abandonment and reclamation activities.

We extract our production from a variety of assets. This production is processed and transported, usually by pipeline, to a marketing hub. Once a project or asset has reached the end of its life, we remove equipment from the site and undertake reclamation and remediation activities.

Once we get the oil safely out of the ground, it’s either transported to a refinery or sold to large industrial users, wholesalers or commodity purchasers so it can be refined into usable products. These buyers are located all around the world. The majority of our oil is transported by pipeline; however we also use rail and marine tanker transportation.

We’re focused on finding new potential buyers, both in North America and around the world. With a variety of safe and economically viable transportation options, we can reach a broader buyer base and secure the highest sale price for our oil.

Pipelines

Currently, we move our products on a number of pipelines across Canada and the U.S. Pipelines are a safe, economic and environmentally friendly way to transport our oil. According to the Canadian Energy Pipeline Association (CEPA) 2020 transmission pipeline report, more than 1.7 billion barrels of crude oil and 5.6 trillion cubic feet of natural gas were safely delivered by CEPA members in 2019.

Most of our oil is moved by pipeline. We currently transport oil on several different pipelines and are supportive of all pipeline proposals that would provide additional shipping capacity for our expected production growth. We’re a committed shipper on the approved Trans Mountain Expansion Project.

On January 1, 2021 Cenovus Energy acquired Husky Energy. As part of this acquisition Cenovus is a 35% owner of Husky Midstream, which owns and operates approximately 2,200 kilometres of pipelines.

Rail

In addition to pipelines, we also transport our oil by rail. Rail transportation allows us to reach customers and refineries located in areas that aren’t connected to a major pipeline.

We own the Bruderheim Energy Terminal, a crude-by-rail loading facility near Edmonton, Alberta. A third-party service provider manages the rail terminal with the same rigour and attention to safety, environmental performance and operational excellence that we demonstrate in our oil and natural gas production operations.

Upgrading and refining converts crude oil into usable products such as gasoline to fuel our vehicles, and petroleum byproducts that become the building blocks for almost everything that we use every day, such as asphalt, smartphones, laundry detergent, contact lenses and clothes. Learn more about our upgrading and refining capacity across North America.

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 petrochemicals.

On January 1, 2021 Cenovus Energy acquired Husky Energy. The combined company unites high-quality and low-cost production with extensive downstream infrastructure. To learn more about downstream and retail operations and assets, please visit the following websites: