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NEIGHBOUR NEWS - Imperial Oil

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					          NEIGHBOUR NEWS
                                                                          Strathcona Refinery •                            S umm er 2012
INSIDE:        In the Community              |      Performance Scorecard               |    From the Manager          |    Contacts


          Improvements result in best-
          ever year for energy efficiency
Strathcona refinery reduces its energy use by eight percent since 2008
and has plans for further efficiencies
                                                                                                                             Energy Improvement Leader
          Ian Walford’s primary responsibility at Strathcona                          accepted index. In fact, our energy- Ian Walford
          refinery is an important one. As the site’s energy                          efficiency rating for 2011 was
          improvement leader, his role is to help identify and                        eight percent better than in 2008, which is a dramatic
          implement ways in which the refinery can produce                            improvement in our industry.”
          petroleum fuels and other products while using as
                                                                                   “It’s also worth noting,” Walford adds, “that the natural
          little energy as possible.
                                                                                   gas we saved in 2011 versus prior years would heat more
          “Refining is a very energy-intensive                       The       natural gas than a thousand typical Edmonton-area
                                                                                                  homes for a year.”
          business,” Walford explains. “The less
          energy we use in our operations, the more                  we saved in 2011
                                                                                                   The improvements have come from a
          natural resources we conserve and the                      would heat more               highly systematic management process
          less greenhouse gases we release into the
                                                                     than a thousand               coupled with a tightly disciplined and
          atmosphere. It’s good business and good
                                                                                                   sustained focus by every employee, in
          for the environment, which are both                         Edmonton-area                every job. All refineries in Imperial’s
          good for the community.”
                                                                     homes for a year.             network benefit from having access to a
          The drive to improve energy efficiency                                                   multinational team of energy-efficiency
          at Strathcona has shown steadily improving results in                       experts who conduct a detailed review of operations and
          recent years, Walford says. “For three consecutive years                    provide a detailed list of ideas for improvement, both
          (2009 through 2011) the amount of energy consumed in                        minor and major, based on world-wide best practices.
          our operations per barrel of crude oil processed has been                   Strathcona refinery’s last visit from the team was in
          reduced, and in 2011, we had our best year ever in terms                    late 2009 and since then they’ve worked very hard to
          of energy efficiency, as measured by an internationally                     implement improvements.
                                                                                      Significant improvement initiatives have already
                                                                                      begun including upgrading furnaces and improving
                                                                                      both operating and maintenance procedures to
                                                                                      eliminate waste and increase efficiency. In addition,
                                                                                      the introduction of computer-based, real-time
                                                                                      operations monitoring and controls systems have
                                                                                      dramatically improved energy use compared with
                                                                                      manual-intervention systems.
                                                                                      And, despite the new record, further energy-use
                                                                                      improvements are coming, Walford says. “Among other
                                                                                      initiatives, we are planning a significant upgrade to our
                                                                                      air compressor unit, which is a major energy-consuming
                                                                                      operation. Overall, we’ll invest in new, energy-efficiency
          Natural gas is needed for the many furnaces that heat distillation towers   equipment while sticking to our ongoing commitment to
          and other operating units.                                                  operate what we already have as efficiently as possible.”
                                        In the Community
                                        Imperial is committed to helping our communities remain strong, healthy and
                                        prosperous. We support numerous community organizations and initiatives through
                                        donations, sponsorship and volunteerism.
                                        Here are some community events and projects we supported in 2011 and 2012:
                                        Occupational Health                                        learn about biodiversity using a combination of
                                        Imperial announced a $450,000 donation over four           outdoor exploration and online adventure.
A group of clean-shaven electricians
at the Strathcona refinery grew         years to the University of Alberta’s Department            To learn more about Natural Treasure, visit:
mustaches for the 2011 Movember         of Medicine in the Faculty of Medicine and                 http://naturaltreasure.gettoknow.ca/
campaign, which is held each            Dentistry. The money will be used to develop
November to raise money and
                                        and support the new Foundation Course in
                                                                                                   United Way
awareness for men’s health,
specifically prostate cancer.           Occupational Medicine aimed at teaching                    Imperial and CEP Local 21A, along with a gift
                                        community-based physicians how to recognize                from the Imperial Oil Foundation, raised $398,000
                                        occupational problems, what is the best way                for the United Way of the Alberta Capital Region
                                        to handle the injury or disease, and when it’s             during the annual employee campaign. The 2011
                                        appropriate to go back to work.                            campaign was the biggest to date and involved
                                                                                                   various fundraisers including pizza lunches, raffles
                                        Each year, there are about 100,000 Workers’                and silent auctions.
                                        Compensation Board claims in Alberta. The program,
                                        launching in September, will enable physicians to          In addition to the funds raised, employees and
                                        better treat and diagnose patients with occupational       retirees also donated their time. Each year, one
                                        injuries and diseases and manage their return to work.     employee from the site is loaned to the United
Imperial was once again a proud                                                                    Way for a three-month period. Day of Caring
sponsor of the Provincial Skills                                                                   projects are also an important component of the
Canada Competition held May 10-11,
2012 in Edmonton. Since 1998, the
                                                                                                   annual event. Thirty-five people volunteered for
Imperial Oil Foundation has provided                                                               Day of Caring projects totalling 96 volunteer
$130,000 to Skills Canada Alberta.                                                                 hours throughout the campaign.
                                                                                                   Job Safety Skills Society
                                                                                                   For the past 10 years, Imperial has been supporting
                                                                                                   the Job Safety Skills Society. The society provides
                                                                                                   extensive school-based programs on workplace
                                        Marilyn Kandt (left), VP of the Imperial Oil Foundation,   health and safety-education, and aims to prevent
                                        presents a cheque for the new Foundation Course in         future incidents by ensuring that all youth are
                                        Occupational Medicine.                                     properly prepared to be safe workers.
Imperial has supported the              Natural Treasure                                           Over the years, Imperial has provided
Edmonton Symphony Orchestra                                                                        $140,000 to the organization. Recent
since 1998, and has donated             Imperial donated $20,000 to help launch Natural
                                                                                                   funding helped implement the Job Safe
$115,000 over the years. Current        Treasure. In September 2011, the program began
funding supports the Symphony                                                                      in the Classroom and Beyond program,
                                        at the John Janzen Nature Centre. The initiative,
For Kids, the only professional                                                                    which meets the teaching needs for
orchestral music program for families   from the Robert Bateman Get to Know Program,
                                                                                                   the new safety curriculum
in Central/Northern Alberta.            provides youth with “hands-on” opportunities to
                                                                                                   introduced by Alberta Education.
  Imperial‘s volunteers make a difference                                                                               JOB SAFETY SKILLS SO
  Imperial’s Volunteer Involvement Program (VIP) supports employees, retirees and spouses
  in their volunteer activities by providing grants to eligible organizations.
  Imperial retiree puts engineering background to good use in Fort Edmonton Park
  All visitors to the famous and popular Fort Edmonton Park get to admire Doug Warren’s volunteer handiwork
  and many enjoy it in a more active and exciting way, as well. Warren, an Imperial retiree currently engaged
  as a work process improvement consultant at the refinery, serves on the volunteer team who designed, built,
  decorated and operate the full-scale working replica of an early 20th century carousel on the park’s 1920 Street,
  including hand-carving and painting the “go-round horses” and elaborate panels.
  Having helped restore antique vehicles for the street’s recreated “Motordrome” car dealership, Warren joined a team of volunteer carvers and painters who
  spent 50,000-plus person hours on the carousel project and later created two hand-cranked “juvenile rides” for toddlers known as “Chair-O-Planes” and the
  “Menagerie Carousel.” Later, his engineering and project management experience with Imperial led to his managing the carousel assembly and the facility that
  houses it. Warren and the group are still at it – currently recreating an early-1900s-era “Mangels Ride,” which Warren describes as a “Chair-O-Plane” for adults.

                                                                        Imperial Oil | Neighbour News | Strathcona Refinery | Summer 2012
                                                           Performance
                            Issue                         Indicator                                         2009 2010 2011 Comments
                            Air quality                   Sulphur dioxide (SO2)                             4114    3979    3942    Sulphur dioxide performance was similar to 2010. The slight decrease
                                                          (tonnes)                                                                  is due to reduced flaring and improved site-wide sulphur recovery.

                                                          Nitrogen oxides (NOx)                             1595    1675    1549    Oxides of nitrogen performance was improved from 2010. Improved
                                                          (tonnes)                                                                  calculation methodology and reduced combustion within operating furnaces,
                                                                                                                                    boilers and flare are the main reasons for the decrease.

                                                          Volatile organic compounds (VOC)                   561     584     645    VOC emissions increased from 2010. The increase is due to higher ketone
                                                          (tonnes)                                                                  emissions and generally higher storage tank temperatures. It is noted that
                                                                                                                                    ketone emissions per barrel of lube oil processed decreased from 2010;
                                                                                                                                    however an increase in lube oil production caused more ketone emissions.

                            Regulatory                    Environmental regulatory incidents                  2       4       0     There were no recordable regulatory compliance incidents during 2011.
                            compliance                    (One event can lead to multiple exceedances)
Environmental Performance




                            (Number of times
                            government requirements
                            were temporarily exceeded)

                            Spills                        Number of oil and chemical spills                   4       2       4     Through the environmental business planning process, the refinery has
                                                          (> one barrel)                                                            increased its focus on spill prevention. Experts from within the organization
                                                                                                                                    completed a peer–assisted review late in 2011 to help reduce spills.
                                                                                                                                    This work continues through 2012.

                            Water quality                 Oil and grease (kg/day)                            8.2     6.4     3.6    The refinery has been promoting a no oil/no chemical to refinery sewer mindset
                            (includes all water                                                                                     across all operating units. This program is responsible for the improved result.
                            discharged to the North
                            Saskatchewan River,           Total suspended solids includes organic           44.1    53.7    35.7    Suspended solids are typically related to stormwater flow to the refinery
                                                          matter and silt (kg/day)                                                  sewer system. Flows were reduced in 2011 compared to 2010.
                            including storm water that
                            enters the refinery’s water
                                                          Ammonia (kg/day)                                   1.0     0.7     0.4    The refinery has been promoting a no oil/no chemical to refinery sewer
                            handling system)                                                                                        mindset across all operating units. This program is responsible for the
                                                                                                                                    improved result.

                            Greenhouse gas                Direct GHGs from running our operations           1355    1486    1479    Improved energy management has allowed GHG emissions to remain constant
                                                          (thousand tonnes of CO2 equivalent)                                       despite increases in production that should have driven emissions higher.
                            emissions (GHGs)
                                                          Indirect GHGs from purchased                       352     397     409    Purchased electricity rose slightly from 2010 in order to meet the demands
                                                                                                                                    of increased production.
                                                          electricity (thousand tonnes of CO2 equivalent)
                                                          Total GHGs Total direct + indirect purchased      1707    1883    1888    We continue to pursue opportunities to reduce GHGs through improved
                                                          (thousand tonnes of CO2 equivalent)                                       energy efficiency (see cover story).

                                                          Number of employees                                450     450     450    This represents the total number of on-site employees.

                            Employment                                                                                              The 2011 increase in the number of contractors was due to increased
                                                          Number of contractors (average daily number)       200     225     500    construction and maintenance at the Strathcona refinery. These numbers
                                                                                                                                    are expected to remain flat or increase into 2012.
Workforce




                                                          Employees                                         0.22    0.22    0.68
                                                                                                                                    We had a disappointing year in 2011 with three employee recordable injuries.
                            Safety
                                                          Contractors                                       0.40    0.34    0.15    We had a best ever year in 2011 for contractor safety, with one recordable injury.
                            Total recordable
                            incident rate                 Petroleum products industry employees             0.50    0.47    0.50
                            (Number of incidents          (Does not include occupational illnesses)                                 Although we continue to outperform industry safety statistics for contractors,
                            per 200,000 hours worked)                                                                               we had a disappointing year in 2011 with three employee recordable injuries.
                                                          Petroleum products industry contractors           0.48    0.71    0.75
                                                          (Does not include occupational illnesses)
                                                                                                                                    Thirty-five employees and retirees volunteered a total of 96 hours during
Community




                                                          United Way                                        $394K   $394K   $398K   Day of Caring events. The total donation included Imperial and CEP Local 21A
                                                                                                                                    campaign donations and a corporate gift.
                            Contributions
                                                                                                                                    Imperial views community investments not simply as a responsibility,
                                                          Total community contributions                     $645K   $638K   $346K   but as an essential component in building strong and healthy communities.
                                                                                                                                    Our total community giving across Canada in 2011 was nearly $15 million.



          Celebrating 25 years of lost-time incident free work
          On October 7, 2011, the Strathcona Refinery FPEC (Facilities, Project, Engineering and
          Construction) Capital Projects Contractor Group achieved a world-class milestone, 25
          years of project construction and five million exposure hours without a lost-time incident.
          This achievement required the dedication and commitment of dozens of contractor
          companies and thousands of contractor employees over the course of the past 25 years,
          working with and alongside Imperial supervisors and employees.
          There is no job in the refinery that is so important that it cannot be done safely.
          The commitment of Imperial to the people on our site is that we will never compromise
          personal safety.

                                                                                                 Imperial Oil | Neighbour News | Strathcona Refinery | Summer 2012
                                      From the Manager
                                       Neighbour News interviews new Refinery Manager Fabio Garagiola about the experience
                                       he brings to the refinery, as well as his thoughts on the future of the refinery’s operations
                                       and workforce.
                                       You’re new to the role of Strathcona                           evaluating new technologies, including a COGEN
                                       refinery manager. Can you tell us a bit about                  facility, which would increase power generation
                                       your background?                                               efficiency and address reliability issues caused by
                                                                                                      external power supply.
                                       FG: I began my career with Exxon in Italy shortly
                                       after graduating with a Chemical Engineering                   What current employment opportunities are
                                       degree from the Politecnico di Milano in 1988.                 available at the Strathcona refinery?
                                       I spent my entire career quite evenly split between
                                                                                                      FG: The demographics at the Strathcona refinery
                                       Refining and Supply, covering several headquarters
                                                                                                      model that of Canada. We have had many
                                       Supply positions in Rome, Fairfax and the United
                                                                                                      employees retire over the past year, and it is a trend
                                       Kingdom both in product and crude optimization.
                                                                                                      we expect to see continue. Over the next five to
                                       In particular, I would mention my experience in
      “It is the                       Fairfax as the first Mediterranean Crude optimizer
                                                                                                      10 years, we will need to fill many mechanical,
                                                                                                      technical and process operating positions.
  responsibility of                    and my assignment in the UK to start up the
                                       product optimization group for Europe.                         In order to support our future workforce, Imperial
   managers and                        In Refining, I had several assignments in technical,           invests in community programs that introduce
supervisors to model                   process, refining coordination and projects,                   students of all ages to employment opportunities
                                       including an international assignment with Esso                within the oil and gas industry. The programs range
 working safely and                    Engineering Europe. My last assignment was in                  from focusing on safety to learning about trades.
  to enforce safety                    the ExxonMobil Augusta refinery in Italy, where                We are proud to support both the University
                                       I had been the refinery manager since 2007.                    of Alberta through its Foundation Course in
   expectations.”                                                                                     Occupational Medicine and NAIT, with the
                                       I strongly believe that it is important for managers
                                       to work in the field and gain knowledge and                    Imperial Oil Entrance to Instrumentation
                                       insight that can only be provided by those who                 Scholarship. We also hire numerous co-op students.
                                       work there and have for many years. In turn, it                Each year, our recruitment department conducts
                                       is the responsibility of managers and supervisors              career fairs and information sessions across
                                       to model working safely and to enforce safety                  Canada. In 2011, our team was at the University
                                       expectations in and out of the field.                          of Alberta and, in early 2012, we were at NAIT.
                                       On the newsletter’s cover, we talked about the                 If you are interested in our current job opportunities or
                                       energy efficiency improvements at the refinery.                career fairs in the area, visit: http://imperialoil.ca/careers.
                                       How will you sustain these improvements in
 How to reach us                       future years?
 If you detect any unusual             FG: As was mentioned in the cover story, our
 odours, sights or sounds,             systematic management processes and sustained
 please call the refinery
                                       focus by every employee have been key for our
 24-hours a day at 780-449-3776
 (ESSO). We would be pleased           energy efficiency improvement. In addition to
 to hear your comments –               those already completed, we have a healthy series
 please call, email or write:          of energy efficiency initiatives planned for the
 Community relations office
                                       coming years. Project discipline, combined with
 at 780-449-8571                       employee commitment, will allow us to sustain
 imperial.strathcona@esso.ca           and integrate the improvements seen since 2008.
 Imperial Oil Strathcona Refinery      Imperial’s commitment to energy efficiency
 P.O. Box 1020                         is demonstrated by the funding it allocates to
 Edmonton, Alberta T5J 2M1             energy efficiency projects. The company is always

What it means when you hear our alarms
Strathcona refinery’s emergency warning system consists of a series of air horn alarms to alert our personnel of potential emergencies
at the site. These alarms are tested every Monday at noon. Should you hear an alarm outside of this testing period, a call from police
or an alert on radio or television will advise if an emergency can affect you. You can also call the UPDATEline at any time for current information.
   What‘s new online                                                                                         Mixed Sources
                                                                                                                                       This report is printed on 50 percent
                                                                                                                                       recycled paper that includes 30 percent
For more in-depth information on our performance, visit our full Corporate Citizenship Report                  logo here               post-consumer waste. It is chlorine and
at www.imperialoil.ca. Our online Community Report is at www.imperialoil.ca/strathcona.                                                acid-free.                      WB00207 12 05

				
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