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LR-Irving.Pdf L-R: Ian Whitcomb, President of Irving Oil, Sarah Irving, Executive Vice-President of Irving Oil and her father, Arthur Irving, Chairman of Irving Oil Irving Oil’s new headquarters PUMPED AND PRIMED After 92 years in business, Irving Oil continues to fuel Atlantic economy Refinery 2016 8 Atlantic Business Magazine | July/August 2016 SPONSORED CONTENT EXECUTIVE SUMMARY might be closing in on its payroll and other business expenses for a species known for its speed, agility centennial, but the company into the mix, then extrapolate its and vision) was a once-in-a-gener- founded by the late Kenneth cumulative impact over 92 years, and ation turnaround and the largest in ItColin (K.C.) Irving is more you quickly realize that Irving Oil is the company’s history. The company agile than ever. probably the most effective economic spent $200 million over an eight-week What started in 1924 in Bouctouche, development tool Atlantic Canada has period, creating 2,700 new jobs during New Brunswick as a single gas station ever seen. the construction phase, working is today a multi-national energy The company is vast – spanning around the clock to ensure that the and marketing company. Irving Oil geographies, markets, products, ser- project was completed on time. provides direct employment to over vices, covering almost a century of a Timeliness is imperative, says 3,000 Atlantic Canadians, operates proud Atlantic Canadian business. Irving Oil’s Vice President and Chief Canada’s largest refinery and delivers We focus our attention here on Operating Officer, Mark Sherman. “Our clean finished product to wholesale individual pieces of the company to dedicated supply and trading depart- and commercial customers, in bring the big picture to life. ments work hard for many months addition to more than 900 retail — as far as a year in advance — in the locations throughout Eastern Canada lead-up to a turnaround to ensure and New England. Refinery Takes Flight we have enough products to reliably One thing that hasn’t changed, Maintenance and upgrading of supply our customers and region however, is the company’s steadfast the largest refinery in Canada — the while our overall production rates are commitment to its Atlantic Canadian Irving Oil refinery in Saint John, New reduced during maintenance.” home. In the past two years alone, Brunswick — is an annual event. A One of the most intriguing aspects they have invested more than turnaround, as it’s known in indus- of Operation Falcon? That it didn’t $300 million throughout the region: trial circles, is an opportunity to test add additional capacity to the refurbishing their refinery; renovating and improve the safety, reliability and refinery. Notes Sherman: “The scope their retail network; enhancing environmental performance of refinery and investment level represent our marine terminals; preparing for the assets. Irving Oil’s typical turnaround commitment to long-term operation Energy East pipeline; and, donating budget ranges from $25 million to in Saint John and in Atlantic Canada, to various community causes. They’re $100 million. Its 2015 turnaround, and position our company for future also investing in a new 11-storey head Operation Falcon (symbolically named growth opportunities.” office building in Saint John, N.B. and, of course, they continuously work to develop their most valuable resource — their people. That’s a sizeable investment under any circumstances, but particularly so in the current economic climate. Irving Oil’s year-over-year expenditure is a much-needed economic shot-in- the-arm in an environment of shrinking budgets, expanding deficits, increasing taxes and stalled resource projects. In fact, the company’s 2015-2016 renovation and refurbishment budget People matter alone is equivalent in value to the With 3,000 employees working under the Irving Oil banner, you can biggest multi-year project on the appreciate why the company says people are its most valuable asset — Atlantic Provinces Economic Council’s and the company invests in them accordingly. There is safety training, 2015 Major Projects Inventory — with tuition support, a scholarship program for children of employees, healthy three big differences: Irving Oil’s spend lifestyle promotions, and wellness programs. There are also meaningful is 100 per cent private investment; and rewarding work terms, opportunities for advancement, and — of course it’s guaranteed money circulating — competitive remuneration packages. There are even annual personal throughout the economy (i.e. it isn’t development plans for every employee. subject to government cutbacks or The average tenure for an Irving Oil employee is 10 years, and the turnover falling global petroleum prices); and, rate is a below-industry standard of less than eight per cent. Search through it happens (to differing degrees) every the ranks, and you’ll often find multiple generations of the same family year. working under the Irving banner. The life span of the top 20 projects Sarah Irving, Irving Oil’s Executive Vice President and Chief Brand Officer on APEC’s 2015 Major Projects says the company owes much of its’ success to its’ hard working and Inventory is, on average, eight years. dedicated people. “Our company is able to take on world class projects Irving Oil’s accumulated spend across and compete against the world’s largest oil and gas companies because that same time frame easily places it our people are the best in the business – they’re loyal, passionate, they’re among the top 10 in terms of project dedicated and they work hard every day to help make Irving Oil the best it value. And that’s still just its reno and can be.” refurb expenditures. Toss its annual SPONSORED CONTENT atlanticbusinessmagazine.com | Atlantic Business Magazine 9 Kenneth Colin (K.C.) Irving, that is recognized as the international THEN founder Irving Oil mark of excellence for green building When it was founded in 1960, in 150 countries.” the Irving Oil refinery had Ian Whitcomb, President of Irving 150 employees and processed Oil, says the move to King’s Square 40,000 barrels per day represents a philosophical as well as a physical shift. “Working together under one roof in a modern and NOW efficient workspace will build on our Approximately 1,500 workers company’s one-team approach. It (staff and contractors) are will foster collaboration and produc- employed at the refinery year- tivity, positioning our people and our round, producing 320,000 barrels company for growth and success.” of finished energy product daily Asked why Irving Oil is so committed to staying in Saint John, Whitcomb explains that it’s a reflection of A Place To Call Home from multiple offices across the city – K.C. Irving’s founding principles. Earlier this year the company housing all 1,000 under one roof. The “He believed in the strength of this announced plans to build a new home building is of classical design and built community and that belief continues office in Saint John. Located on King to complement the existing street- today with our Chairman, Arthur Irving. Square, the new headquarters is just scape. We could not succeed without the a stone’s throw from the Golden Ball The 18-24 month construction support of our people and community. building – Irving Oil’s home office for project is also being designed to Our new home office is one way to say the past 50 years. Structural heritage stringent environmental standards: thank you for that support.” goes further back with the original it will be registered with the Canada Irving Oil building opening on Dock Green Building council with the goal “We Run a Clean Shop” Street in the 1930s before moving to of becoming LEED certified. According Curiously, Irving Oil’s 900-plus retail the current location in 1957. to the Canada Green Building website, outlets are as well known for their clean The new 11 storey building will “Leadership in Energy and Environ- washrooms as they are for the gasoline bring together all home office staff mental Design (LEED) is a rating system they sell. For people on the road, the ENERGY EAST Irving Oil’s Saint John refinery is an deep-water access, Canaport offers reliably-open shipping important component of the proposed lanes as well as the shortest sailing times to global markets Energy East pipeline project. hungry for western Canadian crude. Canaport regularly handles Very Large Crude Carriers (VLCCs) and is the only a west-east conduit of energy, the 4,600-km Energy marine facility on the Eastern Seaboard to handle one of the As East pipeline (3,000 km already in place) is a project largest supertankers in the world: Ultra Large Crude Carriers of nation-building proportions. If constructed, the pipeline (ULCCs). will open up new markets for crude oil from Alberta and For New Brunswick, the pipeline will ensure a secure supply Saskatchewan. At present, Canada spends approximately $35 of energy from domestic sources (approximately 50 per cent million daily to import oil from the United States, Saudi Arabia of all oil in Eastern Canada is currently imported from outside and the North Sea — even though the world’s third-largest oil the country). Further, the economic impact of the pipeline in reserves are in western Canada. its first 30 years would be more than $6.5 billion, providing Irving Oil’s Canaport facility is supremely well-suited as the much-needed jobs and tax revenue. Eastern terminus for the pipeline. With its year-round ice-free, For more information: energyeastpipeline.com 10 Atlantic Business Magazine | July/August 2016 SPONSORED CONTENT guarantee of a spotless washroom is a investing $100 million into its marine compelling reason to stop at an Irving Oil terminals in Halifax, N.S.
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