Commodity Marketing

Husky is a financially strong and reliable long-term player with a team of experienced marketing professionals focusing on trading energy-based commodities and coordinating related logistics. Commodities Marketing markets Husky’s and third-party production of crude oil, synthetic crude oil, natural gas liquids (NGL), natural gas, sulphur and petroleum coke in Canada, the United States and offshore North America. The group supplies feedstock and fuel to Husky’s upgrading, cogeneration, storage, refining and asphalt facilities from proprietary and third party production.

Crude oil is a complex mixture of hydrocarbons refined to produce gasoline, diesel fuel and heating oil. Crude oil is also the raw material used in many  chemical products, including solvents, fertilizers, pesticides, and plastics.

Crude Oil Marketing

Husky ranks among the top producers and marketers of crude oil in Canada. Teams of experienced professionals focus on trading and logistics activities in those regions where Husky has operations including Western Canada, offshore Canada’s East Coast, the U.S. Midwest and the South China Sea. Husky is open to a broad spectrum of crude oil marketing arrangements and deals with a variety of customers.

Production Sales

Husky markets approximately 240,000 barrels per day of proprietary crude oil produced from the Western Canada Sedimentary Basin, Jeanne d’Arc Basin (offshore Newfoundland and Labrador) and the South China Sea.

Supply Requirements

Husky refines or processes more than 130,000 barrels per day of crude oil into synthetic crude, asphalt and refined products in Canada. Marketing also supplies approximately 140,000 barrels per day of foreign and U.S.  domestic crude oil to the Lima Refinery. Feedstock to meet its processing needs is supplied through a combination of internal production and direct purchases of crude oil from independent producers.

Marketing Activities

Husky's Crude Oil Marketing group manages approximately 840,000 barrels per day of various crude oil grades in Western Canada, offshore Eastern Canada, the U.S. Midwest and South China Sea. The marketing group provides transportation, storage and various pricing options to third party producers and end user customers. In 2008, the Company’s offshore crude oil production and sales exceeded 35 million barrels.

Husky is interested in a broad range of energy-related arrangements and deals with a variety of customers throughout and offshore North America. In addition, the Company has excellent credit practices which minimize

Natural Gas Storage

Husky operates natural gas storage facilities in Alberta and Saskatchewan. Storage capacity at the end of 2008 was 39.6 billion cubic feet of owned and contracted facilities, compared to 33.5 bcf in 2007.

The Company’s largest natural gas storage facility is located at Hussar, Alberta. That facility has a total storage capacity of 17.2 billion cubic feet of natural gas. Husky holds a 50 percent interest in a 5.3 billion cubic feet storage facility in East Cantaur, Saskatchewan; and has approximately 17 billion cubic feet of contracted storage capacity at third party facilities in Alberta.

Sulphur

Pure sulphur, produced from hydrogen sulphide, the “sour” portion of Husky’s abundant natural gas and crude oil resources, is used in the domestic and international fertilizer and chemical industries.

Husky has been a major sulphur producer and marketer since the 1970s. The Company produces sulphur at its Ram River sour gas processing facility, Caroline (Shantz) sulphur facility, Windfall sulphur facility and Lloydminster Upgrader. Husky has marketed more than one million tonnes per year of production, inventory remelt and third party volumes. The Company has substantial long term-storage capability at Ram River.

Sulphur Marketing

Proprietary sulphur production	435,000 tonnes per year
Third party volumes	225,000 tonnes per year
Remelt capacity	2,500 tonnes per day

 

New Ventures

Husky is a member of ICO2N, an alliance of Canada’s largest industrial companies involved in the implementation of carbon capture and storage (CCS). The group has been working for more than three years on a system to reduce carbon dioxide emissions by more than 20 million tonnes per year during the next decade – the equivalent of taking four million cars off the road annually.

Under the system, CO2 would be extracted from flue gases and transported under pressure through an underground pipeline system to areas where it would be injected deep underground into secure geological formations or used for enhanced oil recovery, extracting an additional five to 15 percent of the oil remaining in depleted oil reservoirs.  More information is available at ICO2N’s website www.ico2n.com .