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What changed in IMPERIAL OIL LTD's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of IMPERIAL OIL LTD's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+189 added−177 removedSource: 10-K (2025-02-19) vs 10-K (2024-02-28)

Top changes in IMPERIAL OIL LTD's 2024 10-K

189 paragraphs added · 177 removed · 161 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

70 edited+6 added−10 removed69 unchanged
Biggest changeRisk factors” in this report, compliance with existing and potential future government regulations, including environmental regulations, may have material effects on the capital expenditures, earnings, and competitive position of the company. Imperial takes new and ongoing measures throughout its operations each year to prevent and minimize the impact of its operations on air, land and water.
Biggest changeThe company also maintains extensive operating procedures, processes and emergency response plans to address environmental risks at its operations. As discussed in "Item 1A. Risk factors” in this report, compliance with existing and potential future government regulations, including environmental regulations, may have material effects on the capital expenditures, earnings, and competitive position of the company.
(b) Gross production is the company’s share of production (excluding purchases) before deduction of the mineral owners’ or governments’ share or both. (c) Net production is gross production less the mineral owners’ or governments’ share or both.
(b) Gross production is the company’s share of production (excluding purchases) before deduction of the mineral owners’ or governments’ share or both. (c) Net production is gross production less the mineral owners’ or governments’ share or both.
The IAA includes broader consideration for social, health, and gender-based impacts, the impact on Canada’s climate change commitments (including a requirement under the Strategic Assessment for Climate Change to provide a credible plan for the project to deliver net-zero greenhouse gas emissions by 2050), reliance on strategic and regional assessments and adjusted regulatory review timelines.
The IAA includes broader consideration for social, health, economic and gender-based impacts, the impact on Canada’s climate change commitments (including a requirement under the Strategic Assessment for Climate Change to provide a credible plan for the project to deliver net-zero greenhouse gas emissions by 2050), reliance on strategic and regional assessments and adjusted regulatory review timelines.
In August 2018, Imperial received regulatory approval from the Alberta Energy Regulator for an expansion project at Cold Lake to develop the Grand Rapids interval using Solvent Assisted - Steam Assisted Gravity Drainage (SA-SAGD) technology, capable of producing 50,000 barrels per day before royalties.
In August 2018, Imperial received regulatory approval from the Alberta Energy Regulator (AER) for an expansion project at Cold Lake to develop the Grand Rapids interval using Solvent Assisted - Steam Assisted Gravity Drainage (SA-SAGD) technology, capable of producing 50,000 barrels per day before royalties.
The company also pursues lower-emission business opportunities including carbon capture and storage, hydrogen and lower-emission fuels. The company’s operations are conducted in three main segments: Upstream, Downstream and Chemical. Upstream operations include the exploration for, and production of, crude oil, natural gas, synthetic crude oil and bitumen.
The company also pursues lower-emission business opportunities including carbon capture and storage, hydrogen, lower-emission fuels, and lithium. The company’s operations are conducted in three main segments: Upstream, Downstream and Chemical. Upstream operations include the exploration for, and production of, crude oil, natural gas, synthetic crude oil and bitumen.
Primary responsibilities of this group include oversight of the reserves estimation process for compliance with the U.S. Securities and Exchange Commission rules and regulations, review of annual changes in reserves estimates and the reporting of the company’s proved reserves. This group also maintains the official reserves estimates for Imperial’s proved reserves.
Primary responsibilities of this group include oversight of the reserves estimation process for compliance with the U.S. Securities and Exchange Commission rules and regulations, review of annual changes in reserves estimates and the reporting of the company’s proved reserves. This group also maintains the official reserves estimates for the company’s proved reserves.
The Competition Bureau is responsible for the administration and enforcement of the Competition Act (the Act). A merger transaction, whether or not notifiable, is subject to examination by the Commissioner of the Competition Bureau to determine whether the merger will have, or is likely to have, the effect of preventing or lessening substantially competition in a definable market.
The Competition Bureau is responsible for the administration and enforcement of the Competition Act (the Act). A merger transaction, whether or not notifiable, is subject to examination by the Competition Bureau to determine whether the merger will have, or is likely to have, the effect of preventing or lessening substantially competition in a definable market.
Operating data and financial information about the company’s business segments are contained in this report under the following: "Management’s discussion and analysis of financial condition and results of operations" and the "Financial section" under note 2 to the consolidated financial statements: "Business segments". 6 Upstream Disclosure of reserves Summary of oil and gas reserves at year-end The table below summarizes the net proved reserves for the company, as at December 31, 2023, as detailed in the "Supplemental information on oil and gas exploration and production activities" in the "Financial section" of this report.
Operating data and financial information about the company’s business segments are contained in this report under the following: "Management’s discussion and analysis of financial condition and results of operations" and the "Financial section" under note 2 to the consolidated financial statements: "Business segments". 6 Upstream Disclosure of reserves Summary of oil and gas reserves at year-end The table below summarizes the net proved reserves for the company, as at December 31, 2024, as detailed in the "Supplemental information on oil and gas exploration and production activities" in the "Financial section" of this report.
The 173,000 net acres are suitable for in-situ recovery techniques. The company’s share of Syncrude joint venture leases covering about 55,000 net acres accounts for the entire synthetic crude oil acreage. Oil sands leases have an exploration period of 15 years and are continued beyond that point by payment of escalating rentals or by production.
The 171,000 net acres are suitable for in-situ recovery techniques. The company’s share of Syncrude joint venture leases covering about 55,000 net acres accounts for the entire synthetic crude oil acreage. Oil sands leases have an exploration period of 15 years and are continued beyond that point by payment of escalating rentals or by production.
These limitations are to ensure oil recovery is not adversely impacted by accelerated gas production practices. These limitations do not impact gas reserves, only the timing of production of the reserves and did not have a significant impact on Imperial’s 2023 gas production rates. Exports The Government of Canada has the authority to regulate the export price for natural gas.
These limitations are to ensure oil recovery is not adversely impacted by accelerated gas production practices. These limitations do not impact gas reserves, only the timing of production of the reserves and did not have a significant impact on Imperial’s 2024 gas production rates. Exports The Government of Canada has the authority to regulate the export price for natural gas.
The impact of this legislation and its expected amendments is not fully apparent, but it may impact the cost, manner, duration and ability to advance large energy projects and project expansions. Environmental protection The company regards protecting the environment in connection with its various operations as a priority.
The impact of this legislation is not fully apparent, but it may impact the cost, manner, duration and ability to advance large energy projects and project expansions. Environmental protection The company regards protecting the environment in connection with its various operations as a priority.
The total number of wells capable of production, in which the company had interests at December 31, 2023 and December 31, 2022, is disclosed in the following table. The statistics in the table are determined in part from information received from other operators. The total number of wells decreased in 2023 primarily due to the shut-in of multiple non-economical wells.
The total number of wells capable of production, in which the company had interests at December 31, 2024 and December 31, 2023, is disclosed in the following table. The statistics in the table are determined in part from information received from other operators. The total number of wells decreased in 2024 primarily due to the shut-in of multiple non-economical wells.
The company has a disciplined investment strategy and many major fields require a long lead-time in order to be developed. The company made investments of about $391 million during the year to progress the development of proved undeveloped reserves at Cold Lake, Kearl and Syncrude.
The company has a disciplined investment strategy and many major fields require a long lead-time in order to be developed. The company made investments of about $260 million during the year to progress the development of proved undeveloped reserves at Cold Lake, Kearl and Syncrude.
Technologies used in establishing proved reserves estimates Imperial’s proved reserves in 2023 were based on estimates generated through the integration of available and appropriate geological, engineering and production data, utilizing well established technologies that have been demonstrated in the field to yield repeatable and consistent results.
Technologies used in establishing proved reserves estimates Imperial’s proved reserves in 2024 were based on estimates generated through the integration of available and appropriate geological, engineering and production data, utilizing well established technologies that have been demonstrated in the field to yield repeatable and consistent results.
As at December 31, 2023 there were no proved undeveloped reserves that have remained undeveloped for five years or more. One of the company’s requirements to report resources as proved reserves is that management has made significant funding commitments towards the development of the reserves.
As at December 31, 2024 there were no proved undeveloped reserves that have remained undeveloped for five years or more. One of the company’s requirements to report resources as proved reserves is that management has made significant funding commitments towards the development of the reserves.
The majority of the acreage in Cold Lake, Kearl and Syncrude is continued by production. The company holds interests in an additional 388,000 net acres of developed and undeveloped land in the western provinces related to crude oil and natural gas.
The majority of the acreage in Cold Lake, Kearl and Syncrude is continued by production. The company holds interests in an additional 386,000 net acres of developed and undeveloped land in the western provinces related to crude oil and natural gas.
Land holdings At December 31, 2023 and December 31, 2022, the company held the following oil and gas rights, and bitumen and synthetic crude oil leases, all of which are located in Canada, specifically in the western provinces, in the Canada lands and in the Atlantic offshore.
Land holdings At December 31, 2024 and December 31, 2023, the company held the following oil and gas rights, and bitumen and synthetic crude oil leases, all of which are located in Canada, specifically in the western provinces, in the Canada lands and in the Atlantic offshore.
The company's average Canadian dollar realizations for synthetic crude oil decreased generally in line with West Texas Intermediate (WTI), adjusted for changes in exchange rates and transportation costs and reflect a premium over WTI driven by supply and demand. In 2022, Imperial’s average Canadian dollar realization for bitumen increased generally in line with Western Canada Select (WCS).
In 2023, Imperial’s average Canadian dollar realization for bitumen decreased generally in line with Western Canada Select (WCS). The company's average Canadian dollar realizations for synthetic crude oil decreased generally in line with West Texas Intermediate (WTI), adjusted for changes in exchange rates and transportation costs and reflect a premium over WTI driven by supply and demand.
No major discovery or other favourable or adverse event has occurred since December 31, 2023 that would cause a significant change in the estimated proved reserves as of that date.
No major discovery or other favourable or adverse event has occurred since December 31, 2024 that would cause a significant change in the estimated proved reserves as of that date.
These include significant investments in refining infrastructure and technology to manufacture clean fuels, continued evaluation and implementation of new technologies to reduce greenhouse gas emissions, adherence to federal and provincial greenhouse gas emissions reduction and reporting programs, enhanced water and land management, and expenditures for asset retirement obligations.
These include significant investments in refining infrastructure and technology to manufacture fuels, continued evaluation and implementation of technologies and products to reduce greenhouse gas emissions, adherence to federal and provincial greenhouse gas emissions reduction and reporting programs, enhanced water and land management, and expenditures for asset retirement obligations.
These investments represented about 35 percent of the $1,108 million in total reported Upstream capital and exploration expenditures. 8 Oil and gas production, production prices and production costs Reference is made to the portion of the "Financial section" entitled "Management’s discussion and analysis of financial condition and results of operations" of this report for a narrative discussion on the material changes.
These investments represented about 24 percent of the $1,078 million in total reported Upstream capital and exploration expenditures. 8 Oil and gas production, production prices and production costs Reference is made to the portion of the "Financial section" entitled "Management’s discussion and analysis of financial condition and results of operations" of this report for a narrative discussion on the material changes.
Average daily production and production available for sale of natural gas The company’s average daily production and production available for sale of natural gas during the three years ended December 31, 2023 are set forth below.
Average daily production and production available for sale of natural gas The company’s average daily production and production available for sale of natural gas during the three years ended December 31, 2024 are set forth below.
(f) Includes sales of the company’s share of net production and excludes amounts used for internal consumption. 9 Total average daily oil-equivalent basis production The company’s total average daily production expressed in an oil-equivalent basis is set forth below, with natural gas converted to an oil-equivalent basis at six million cubic feet per one thousand barrels. thousands of barrels per day (a) 2023 2022 2021 Total production oil-equivalent basis: – gross (b) 413 416 428 – net (c) 360 349 383 (a) Volume per day metrics are calculated by dividing the volume for the period by the number of calendar days in the period.
(f) Includes sales of the company’s share of net production and excludes amounts used for internal consumption. 9 Total average daily oil-equivalent basis production The company’s total average daily production expressed in an oil-equivalent basis is set forth below, with natural gas converted to an oil-equivalent basis at six million cubic feet per one thousand barrels. thousands of barrels per day (a) 2024 2023 2022 Total production oil-equivalent basis: – gross (b) 433 413 416 – net (c) 371 360 349 (a) Volume per day metrics are calculated by dividing the volume for the period by the number of calendar days in the period.
Average unit sales price The company’s average unit sales price and average unit production costs by product type for the three years ended December 31, 2023 were as follows.
Average unit sales price The company’s average unit sales price and average unit production costs by product type for the three years ended December 31, 2024 were as follows.
Average daily production of oil The company’s average daily oil production by final products sold during the three years ended December 31, 2023 was as follows.
Average daily production of oil The company’s average daily oil production by final products sold during the three years ended December 31, 2024 was as follows.
The company also conducts experimental pilot operations to improve recovery of bitumen from wells by means of new drilling, production or recovery techniques. 11 Aspen and other in-situ oil sands activities In October 2018, the company received regulatory approval for the Aspen SA-SAGD project from the Alberta Energy Regulator.
The company also conducts experimental pilot operations to improve recovery of bitumen from wells by means of new drilling, production or recovery techniques. 11 Aspen and other in-situ oil sands activities In October 2018, the company received regulatory approval for the Aspen SA-SAGD project from the AER.
Wells drilled The following table sets forth the net exploratory and development wells that were drilled or participated in by the company during the three years ended December 31, 2023. wells 2023 2022 2021 Net productive exploratory — — — Net dry exploratory — — — Net productive development 32 24 13 Net dry development — — — Total 32 24 13 In 2023, wells drilled to add productive capacity include 32 development wells at Cold Lake.
Wells drilled The following table sets forth the net exploratory and development wells that were drilled or participated in by the company during the three years ended December 31, 2024. wells 2024 2023 2022 Net productive exploratory — — — Net dry exploratory — — — Net productive development 14 32 24 Net dry development — — — Total 14 32 24 In 2024, wells drilled to add productive capacity include 14 development wells at Cold Lake.
The number of regular employees was about 5,300 at the end of 2023 (2022 - 5,300, 2021 - 5,400). Regular employees are defined as active executive, management, professional, technical, administrative, and wage employees who work full-time or part-time for the company and are covered by the company’s benefit plans and programs.
The number of regular employees was about 5,100 at the end of 2024 (2023 - 5,300, 2022 - 5,300). Regular employees are defined as active executive, management, professional, technical, administrative, and wage employees who work full-time or part-time for the company and are covered by the company’s benefit plans and programs.
The internal qualified reserves evaluator is a professional geoscientist registered in Alberta, Canada and has 21 years of petroleum industry experience, including 12 years of reserves related experience. The position provides leadership to the internal reserves management group and is responsible for filing a reserves report with the Canadian securities regulatory authorities.
The internal qualified reserves evaluator is a professional geoscientist registered in Alberta, Canada and has 22 years of petroleum industry experience, including 13 years of reserves related experience. The position provides leadership to the internal reserves management group and is responsible for filing a reserves report with the Canadian securities regulatory authorities.
Aspen’s project pace will continue to be evaluated and remains an important opportunity for Imperial. The Enhanced Bitumen Recovery Technology (EBRT) field pilot on the Aspen lease received funding approval in 2023, with development work underway for pilot startup by 2027.
Aspen’s project pace will continue to be evaluated and remains an important opportunity for Imperial. The Enhanced Bitumen Recovery Technology (EBRT) field pilot on the Aspen lease received funding approval in 2023, with development work underway for pilot start-up anticipated by 2027.
The company supplies petroleum products through Esso and Mobil-branded sites and independent marketers. At the end of 2023, there were about 2,500 sites operating under a branded wholesaler model, in alignment with Esso and Mobil brand standards, whereby the company supplies fuel to independent third parties.
The company supplies petroleum products through Esso and Mobil-branded sites and independent marketers. At the end of 2024, there were about 2,600 sites operating under a branded wholesaler model, in alignment with Esso and Mobil brand standards, whereby the company supplies fuel to independent third parties.
In addition, the company has interests in other bitumen oil sands leases in the Athabasca areas totalling about 173,000 net acres, which include about 62,000 net acres of oil sands leases in the Clyden area, about 34,000 net acres of oil sands leases in the Aspen area, about 30,000 net acres of oil sands leases in the Corner area, about 29,000 net acres in the Clarke Creek area and about 18,000 net acres in the Chard area.
In addition, the company has interests in other bitumen oil sands leases in the Athabasca areas totalling about 171,000 net acres, which include about 62,000 net acres of oil sands leases in the Clyden area, about 34,000 net acres of oil sands leases in the Aspen area, about 29,000 net acres in the Clarke Creek area, about 28,000 net acres of oil sands leases in the Corner area, and about 18,000 net acres in the Chard area.
At year-end 2023, the company had an interest in 12 gross wells with multiple completions (2022 - 12 gross wells).
At year-end 2024, the company had an interest in 12 gross wells with multiple completions (2023 - 12 gross wells).
The company’s internal reserves evaluation management team is made up of 15 persons with an average of 9 years of relevant experience in evaluating and managing the evaluation of reserves. Proved undeveloped reserves As at December 31, 2023, approximately 10 percent of the company’s proved reserves were proved undeveloped reflecting volumes of 218 million oil-equivalent barrels.
The company’s internal reserves evaluation management team is made up of 15 persons with an average of 10 years of relevant experience in evaluating and managing the evaluation of reserves. Proved undeveloped reserves As at December 31, 2024, approximately 11 percent of the company’s proved reserves were proved undeveloped reflecting volumes of 227 million oil-equivalent barrels.
The produced synthetic crude oil is typically shipped to the company’s refineries, Exxon Mobil Corporation refineries and to other third parties. In 2023, the company’s share of Syncrude’s net productio n was about 67,000 barrels per day. The gross production was about 76,000 barrels per day, which is a decrease of about 1,000 barrels per day compared to 2022.
The produced synthetic crude oil is typically shipped to the company’s refineries, Exxon Mobil Corporation refineries and to other third parties. In 2024, the company’s share of Syncrude’s net productio n was about 62,000 barrels per day. The gross production was about 75,000 barrels per day, which is a decrease of about 1,000 barrels per day compared to 2023.
In the past five years, the company has made capital and operating expenditures of about $5.6 billion on environmental protection and facilities. In 2023, the company’s environmental capital and operating expenditures totalled approximately $1.7 billion, which was spent primarily on activities to protect the air, land and water, including remediation projects.
In the past five years, the company has made capital and operating expenditures of about $6.9 billion on environmental protection and facilities. In 2024, the company’s environmental capital and operating expenditures totalled approximately $2.1 billion, which was spent primarily on activities to protect the water, air and land, including remediation projects.
NGL proved reserves are not material and are therefore included under liquids. The estimation of proved reserve volumes, which is based on the requirement of reasonable certainty, is an ongoing process based on rigorous technical evaluations, commercial and market assessments, detailed analysis of well information such as flow rates and reservoir pressures, and development and production costs, and other factors.
NGL proved reserves are not material and are therefore included under liquids. The estimation of proved reserve volumes, which is based on the requirement of reasonable certainty, is an ongoing process based on rigorous technical evaluations, commercial and market assessments, detailed analysis of reservoir and well performance, development and production costs, and other factors.
In 2022, synthetic crude oil unit production costs increased, primarily driven by higher energy costs. 10 Drilling and other exploratory and development activities The company has been involved in the exploration for and development of crude oil and natural gas in Canada only.
In 2023, synthetic crude oil unit production costs decreased, primarily driven by higher net production. 10 Drilling and other exploratory and development activities The company has been involved in the exploration for and development of crude oil and natural gas in Canada only.
In 2022, wells drilled to add productive capacity include 24 development wells at Cold Lake. Wells drilling At December 31, 2023, the company was drilling the following development wells to add productive capacity at Cold Lake.
In 2023, wells drilled to add productive capacity include 32 development wells at Cold Lake. Wells drilling At December 31, 2024, the company was drilling the following development wells to add productive capacity at Cold Lake.
The company’s internal reserves evaluation staff consists of 18 persons with an average of 14 years of relevant technical experience in evaluating reserves, of whom 17 persons are qualified reserves evaluators for purposes of Canadian securities regulatory requirements.
The company’s internal reserves evaluation staff consists of 22 persons with an average of 12 years of relevant technical experience in evaluating reserves, of whom 21 persons are qualified reserves evaluators for purposes of Canadian securities regulatory requirements.
In 2023, bitumen unit production costs decreased, primarily driven by lower energy costs and higher Kearl production due to improved reliability, plant capacity utilization, and mine equipment productivity. In 2023, synthetic crude oil unit production costs decreased, primarily driven by higher net production. In 2022, bitumen unit production costs increased, primarily driven by higher energy costs.
In 2023, bitumen unit production costs decreased, primarily driven by lower energy costs and higher Kearl production due to improved reliability, plant capacity utilization, and mine equipment productivity.
Average unit production costs Canadian dollars per barrel 2023 2022 2021 Bitumen 32.41 39.05 29.06 Synthetic crude oil 62.57 68.00 61.97 Total oil-equivalent basis (a) 38.51 44.02 34.32 (a) Includes liquids, bitumen, synthetic crude oil and natural gas.
Average unit production costs Canadian dollars per barrel 2024 2023 2022 Bitumen 29.42 32.41 39.05 Synthetic crude oil 61.84 62.57 68.00 Total oil-equivalent basis (a) 35.48 38.51 44.02 (a) Includes liquids, bitumen, synthetic crude oil and natural gas.
(b) Refining capacity data is based on 100 percent of rated refinery process unit stream-day capacities to process inputs to atmospheric distillation units under normal operating conditions, less the impact of shutdowns for regular repair and maintenance activities, averaged over an extended period of time. 2023 Lower refinery throughput in 2023 primarily reflects the impact of planned turnaround activities at Strathcona and Sarnia refineries. 2022 Improved refinery throughput in 2022 was primarily driven by increased demand and reduced turnaround activity.
(b) Refining capacity data is based on 100 percent of rated refinery process unit stream-day capacities to process inputs to atmospheric distillation units under normal operating conditions, less the impact of shutdowns for regular repair and maintenance activities, averaged over an extended period of time. 2024 Lower refinery throughput in 2024 reflected the impact of planned turnaround activities at Nanticoke, Sarnia and Strathcona refineries. 2023 Lower refinery throughput in 2023 primarily reflected the impact of planned turnaround activities at Strathcona and Sarnia refineries.
In 2024, a development drilling program is planned within the approved development area to add productive capacity. Additionally, in 2022, the company approved the budget for the Leming Steam-Assisted Gravity Drainage (SAGD) project that will re-develop the original pilot area of the Cold Lake field, with development activities having commenced in 2023 and start-up planned in 2025.
Additionally, in 2022, the company approved the budget for the Leming Steam-Assisted Gravity Drainage (SAGD) project that will re-develop the original pilot area of the Cold Lake field, with development activities having commenced in 2023 and start-up planned in 2025.
All wells were located in Canada. 2023 Wells Gross Net Total 11 11 Exploratory and development activities regarding oil and gas resources Cold Lake To maintain production at Cold Lake, capital expenditures for additional production wells and associated facilities are required periodically. In 2023, additional wells were drilled on existing phases, as well as development drilling to add productive capacity.
All wells were located in Canada. 2024 wells Gross Net Total 2 2 Exploratory and development activities regarding oil and gas resources Cold Lake To maintain production at Cold Lake, capital expenditures for additional production wells and associated facilities are required periodically. In 2024, additional development wells were drilled to add productive capacity.
All reported production volumes were from Canada. thousands of barrels per day (a) 2023 2022 2021 Bitumen: Kearl: - gross (b) 191 172 186 - net (c) 177 157 178 Cold Lake: - gross (b) 135 144 140 - net (c) 106 106 114 Total bitumen: - gross (b) 326 316 326 - net (c) 283 263 292 Synthetic crude oil (d) : - gross (b) 76 77 71 - net (c) 67 63 62 Liquids (e) : - gross (b) 5 9 11 - net (c) 5 9 10 Total: - gross (b) 407 402 408 - net (c) 355 335 364 (a) Volume per day metrics are calculated by dividing the volume for the period by the number of calendar days in the period.
All reported production volumes were from Canada. thousands of barrels per day (a) 2024 2023 2022 Bitumen: Kearl: - gross (b) 200 191 172 - net (c) 186 177 157 Cold Lake: - gross (b) 148 135 144 - net (c) 113 106 106 Total bitumen: - gross (b) 348 326 316 - net (c) 299 283 263 Synthetic crude oil (d) : - gross (b) 75 76 77 - net (c) 62 67 63 Liquids (e) : - gross (b) 5 5 9 - net (c) 5 5 9 Total: - gross (b) 428 407 402 - net (c) 366 355 335 (a) Volume per day metrics are calculated by dividing the volume for the period by the number of calendar days in the period.
Diluent is natural gas condensate or other light hydrocarbons added to the crude bitumen to facilitate transportation by pipeline and rail. During 2023, the company’s share of Kearl’s net bitumen production was about 177,000 barrels per day and gross production was about 191,000 barrels per day.
Diluent is natural gas condensate or other light hydrocarbons added to the crude bitumen to facilitate transportation. During 2024, the company’s share of Kearl’s net bitumen production was about 186,000 barrels per day and gross production was about 200,000 barrels per day.
The company also has interests in other oil sands leases in the Athabasca region of northern Alberta. Evaluation wells completed on these leased areas established the presence of bitumen. The company continues to evaluate these leases to determine their potential for future development. Beaufort Sea The company holds a 25 percent interest in two exploration licences in the Beaufort Sea.
Evaluation wells completed on these leased areas established the presence of bitumen. The company continues to evaluate these leases to determine their potential for future development. Beaufort Sea The company holds a 25 percent interest in two exploration licences in the Beaufort Sea.
Refinery throughput (a) Rated capacities (b) Year ended December 31 at December 31 thousands of barrels per day 2023 2022 2021 2023 Strathcona, Alberta 186 195 172 197 Sarnia, Ontario 110 113 106 123 Nanticoke, Ontario 111 110 101 113 Total 407 418 379 433 Utilization of refinery capacity (percent) 94 98 89 (a) Refinery throughput is the volume of crude oil and feedstocks that is processed in the refinery atmospheric distillation units.
Refinery throughput (a) Rated capacities (b) Year ended December 31 at December 31 thousands of barrels per day 2024 2023 2022 2024 Strathcona, Alberta 187 186 195 197 Sarnia, Ontario 110 110 113 124 Nanticoke, Ontario 102 111 110 113 Total 399 407 418 434 Utilization of refinery capacity (percent) 92 94 98 (a) Refinery throughput is the volume of crude oil and feedstocks that is processed in the refinery atmospheric distillation units.
Refining The company owns and operates three refineries, which process predominantly Canadian crude oil. The company purchases finished products to supplement its refinery production. The approximate average daily volumes of refinery throughput and utilization during the three years ended December 31, 2023, and the daily rated capacities of the refineries as at December 31, 2023, were as follows.
The company purchases finished products to supplement its refinery production. The approximate average daily volumes of refinery throughput and utilization during the three years ended December 31, 2024, and the daily rated capacities of the refineries as at December 31, 2024, were as follows.
Year ended December 31, 2023 Year ended December 31, 2022 Crude oil Natural gas Crude oil Natural gas wells Gross (a) Net (b) Gross (a) Net (b) Gross (a) Net (b) Gross (a) Net (b) Total (c) 4,084 4,080 2,411 770 4,277 4,264 2,419 774 (a) Gross wells are wells in which the company owns a working interest.
Year ended December 31, 2024 Year ended December 31, 2023 Crude oil Natural gas Crude oil Natural gas wells Gross (a) Net (b) Gross (a) Net (b) Gross (a) Net (b) Gross (a) Net (b) Total (c) 3,991 3,987 2,387 763 4,084 4,080 2,411 770 (a) Gross wells are wells in which the company owns a working interest.
Developed Undeveloped Total thousands of acres 2023 2022 2023 2022 2023 2022 Western provinces (a): Liquids and gas - gross (b) 422 441 185 185 607 626 - net (c) 253 260 135 135 388 395 Bitumen - gross (b) 196 196 584 584 780 780 - net (c) 182 182 255 255 437 437 Synthetic crude oil - gross (b) 119 119 100 100 219 219 - net (c) 30 30 25 25 55 55 Canada lands (d) : Liquids and gas - gross (b) 2 2 1,803 1,803 1,805 1,805 - net (c) 2 2 496 495 498 497 Atlantic offshore: Liquids and gas - gross (b) 65 65 146 146 211 211 - net (c) 6 6 22 22 28 28 Total (e) : - gross (b) 804 823 2,818 2,818 3,622 3,641 - net (c) 473 480 933 932 1,406 1,412 (a) Western provinces include British Columbia and Alberta.
Developed Undeveloped Total thousands of acres 2024 2023 2024 2023 2024 2023 Western provinces (a): Liquids and gas - gross (b) 413 422 185 185 598 607 - net (c) 251 253 135 135 386 388 Bitumen - gross (b) 196 196 578 584 774 780 - net (c) 182 182 253 255 435 437 Synthetic crude oil - gross (b) 119 119 100 100 219 219 - net (c) 30 30 25 25 55 55 Canada lands (d) : Liquids and gas - gross (b) 2 2 1,803 1,803 1,805 1,805 - net (c) 2 2 495 496 497 498 Atlantic offshore: Liquids and gas - gross (b) 23 65 146 146 169 211 - net (c) 2 6 22 22 24 28 Total (e) : - gross (b) 753 804 2,812 2,818 3,565 3,622 - net (c) 467 473 930 933 1,397 1,406 (a) Western provinces include British Columbia and Alberta.
In April 2022, the Grand Rapids Phase 1 (GRP1) project was approved by the company's board with a forecasted average production of 15,000 barrels per day before royalties. The initial steam injection phase started in December 2023 and is expected to last until the end of the first quarter of 2024, with production ramping up over the following months.
In April 2022, the Grand Rapids Phase 1 (GRP1) project was approved by the company's board with a forecasted average production of 15,000 barrels per day before royalties. The initial steam injection phase at Grand Rapids started in December 2023 and first oil production was achieved in May 2024.
Purchases and sales are made under both spot and term contracts from domestic and foreign sources, including ExxonMobil. Transportation The company currently transports its crude oil production and third-party crude oil required to supply refineries by contracted pipelines, common carrier pipelines and rail. The company has rail infrastructure to mitigate pipeline capacity constraints.
Purchases and sales are made under both spot and term contracts from domestic and foreign sources, including ExxonMobil. Transportation The company currently transports its crude oil production and third-party crude oil required to supply refineries by contracted or common carrier pipelines. Refining The company owns and operates three refineries, which process predominantly Canadian crude oil.
The pilot will test technology that has the potential to deliver higher bitumen production rates and lower greenhouse gas emissions as compared to industry average SAGD operations. Work progresses on technical and technology evaluations to support potential Clarke Creek, Corner, Clyden and Chard in-situ development regulatory applications.
The pilot will test technology that has the potential to deliver higher bitumen production rates compared to industry average SAGD operations. Work progresses on technical and technology evaluations to support potential future Clarke Creek, Corner, Clyden and Chard in-situ development regulatory applications. The company also has interests in other oil sands leases in the Athabasca region of northern Alberta.
The approximate daily volumes of net petroleum products (excluding purchases / sales contracts with the same counterparty) sold during the three years ended December 31, 2023, are set out in the following table. thousands of barrels per day 2023 2022 2021 Gasolines 228 229 224 Heating, diesel and jet fuels 176 176 160 Lube oils and other products 43 47 45 Heavy fuel oils 24 23 27 Net petroleum product sales 471 475 456 In 2023, lower petroleum product sales were primarily driven by lower wholesale customer volume.
The approximate daily volumes of net petroleum products (excluding purchases/sales contracts with the same counterparty) sold during the three years ended December 31, 2024, are set out in the following table. thousands of barrels per day 2024 2023 2022 Gasolines 223 228 229 Heating, diesel and jet fuels 175 176 176 Lube oils and other products (a) 46 43 47 Heavy fuel oils 22 24 23 Net petroleum product sales 466 471 475 (a) In 2024, benzene and aromatic solvent sales are reported under Petroleum product sales - Lube oils and other products, whereas in 2023, they were reported under Petrochemical sales.
Environmental expenditures are expected to increase to approximately $1.9 billion in 2024, with capital expenditures expected 19 to account for approximately 52 percent of the total. Costs for 2025 are anticipated to be approximately $1.5 billion, with capital expenditures expected to account for approximately 43 percent of the total.
Environmental expenditures are expected to increase to approximately $2.6 billion in 2025, with capital expenditures expected 19 to account for approximately 54 percent of the total. Costs for 2026 are anticipated to be approximately $2.6 billion, with capital expenditures expected to account for approximately 53 percent of the total.
It also includes conducting environmental surveys and collecting continuous operational measurements and sampling to confirm that environmental practices are adequately protecting the environment. These regulations also specify the actions and requirements for final reclamation, abandonment and closure of facilities.
It also includes conducting environmental surveys and collecting operational measurements and sampling to confirm that practices are adequately protecting the environment. These regulations also specify the actions and requirements for final reclamation, abandonment and closure of facilities. The company works in cooperation with government agencies, industry associations and communities to address existing, and to anticipate potential, environmental protection issues.
In 2022, sales volumes increased primarily due to higher sales of propylene and polyethylene, partially offset by lower intermediates. 17 Delivery commitments The company has no material commitments to provide a fixed and determinable quantity of oil or gas under existing contracts and agreements.
In 2023, sales volumes decreased primarily due to planned maintenance activities. 17 Delivery commitments The company has no material commitments to provide a fixed and determinable quantity of oil or gas under existing contracts and agreements.
Canadian dollars per barrel 2023 2022 2021 Bitumen 67.42 84.67 57.91 Synthetic crude oil 105.57 125.46 81.61 Liquids (a) 59.30 93.77 59.41 Canadian dollars per thousand cubic feet Natural gas 2.58 5.69 3.83 (a) Liquids include crude oil, condensate and NGLs. In 2023, Imperial's average Canadian dollar realization for bitumen decreased generally in line with Western Canada Select (WCS).
Canadian dollars per barrel 2024 2023 2022 Bitumen 74.53 67.42 84.67 Synthetic crude oil 101.91 105.57 125.46 Liquids (a) 55.63 59.30 93.77 Canadian dollars per thousand cubic feet Natural gas 0.69 2.58 5.69 (a) Liquids include crude oil, condensate and NGLs.
Liquids (a) Natural gas Synthetic crude oil Bitumen Total oil-equivalent basis millions of barrels billions of cubic feet millions of barrels millions of barrels millions of barrels Net proved reserves: Developed — 53 242 1,706 1,957 Undeveloped — 8 112 105 218 Total net proved — 61 354 1,811 2,175 (a) Liquids include crude oil, condensate and natural gas liquids (NGLs).
Liquids (a) Natural gas Synthetic crude oil Bitumen Total oil-equivalent basis millions of barrels billions of cubic feet millions of barrels millions of barrels millions of barrels Net proved reserves: Developed — 41 190 1,697 1,894 Undeveloped — 12 106 119 227 Total net proved — 53 296 1,816 2,121 (a) Liquids include crude oil, condensate and natural gas liquids (NGLs).
Proved undeveloped reserves are associated with Syncrude, Kearl and Cold Lake. This compared to 240 million oil-equivalent barrels of proved undeveloped reserves reported at the end of 2022.
Proved undeveloped reserves are associated with Syncrude, Kearl and Cold Lake. This compared to 218 million oil-equivalent barrels of proved undeveloped reserves reported at the end of 2023. The increase of 9 million oil-equivalent barrels of proved undeveloped reserves is mainly attributed to full funding of Cold Lake infill drilling, partially offset by Cold Lake infill start-ups.
In 2022, improved petroleum product sales primarily reflects increased demand. Chemical The company’s Chemical operations manufacture and market benzene, aromatic and aliphatic solvents, plasticizer intermediates, polyethylene resin, and markets refinery grade propylene. Its petrochemical and polyethylene manufacturing operations are located in Sarnia, Ontario, adjacent to the company’s petroleum refinery.
The company has determined that the impact of this change is not material; therefore, the comparative periods have not been recast. Chemical The company’s Chemical operations manufacture and market aliphatic solvents, plasticizer intermediates, polyethylene resin, and markets refinery grade propylene. Its petrochemical and polyethylene manufacturing operations are located in Sarnia, Ontario, adjacent to the company’s petroleum refinery.
Cold Lake continues to utilize its commercial application of Liquid Addition to Steam f or Enhanced Recovery (LASER), with the technology now being applied to approximately 15 percent of production, resulting in reduced greenhouse gas emissions compared to traditional Cyclic Steam Stimulation (CSS) technology.
The gross production was about 148,000 barrels per day, which is an increase of about 13,000 barrels per day compared to 2023, primarily driven by Grand Rapids. Cold Lake continues to utilize its commercial application of Liquid Addition to Steam f or Enhanced Recovery (LASER), with the technology being applied to approximately 15 percent of production.
In October 2023, the Supreme Court of Canada ruled that the new federal assessment scheme was unconstitutional in part. Legislative and regulatory amendments have yet to be made to address this decision.
In October 2023, the Supreme Court of Canada ruled that the new federal assessment scheme was unconstitutional in part. In November 2024, Alberta referred the constitutionality of the amended Impact Assessment Act to the Court of Appeal of Alberta.
Reference is made to the portion of the "Financial section" entitled "Management’s discussion and analysis of financial condition and results of operations" of this report for a narrative discussion on the material changes. millions of cubic feet per day (a) 2023 2022 2021 Gross production (b) (c) 33 85 120 Net production (c) (d) (e) 32 83 115 Net production available for sale (f) 11 50 81 (a) Volume per day metrics are calculated by dividing the volume for the period by the number of calendar days in the period.
All reported production volumes were from Canada and are calculated at a pressure base of 14.73 pounds per square inch absolute at 60 degrees Fahrenheit. millions of cubic feet per day (a) 2024 2023 2022 Gross production (b) (c) 30 33 85 Net production (c) (d) (e) 30 32 83 Net production available for sale (f) 9 11 50 (a) Volume per day metrics are calculated by dividing the volume for the period by the number of calendar days in the period.
The company’s total petrochemical sales volumes during the three years ended December 31, 2023, were as follows. thousands of tonnes 2023 2022 2021 Total petrochemical sales 820 842 831 In 2023, sales volumes decreased primarily due to planned maintenance activities.
The company’s total petrochemical sales volumes during the three years ended December 31, 2024, were as follows. thousands of tonnes 2024 2023 2022 Total petrochemical sales (a) 684 820 842 (a) In 2024, benzene and aromatic solvent sales are reported under Petroleum product sales - Lube oils and other products, whereas in 2023, they were reported under Petrochemical sales.
In 2023, net bitumen production at Cold Lake was about 106,000 barrels per day. The gross production was about 135,000 barrels per day, which is a decrease of about 9,000 barrels per day compared to 2022.
The product, a blend of bitumen and diluent, is typically shipped to the company’s refineries, Exxon Mobil Corporation refineries and to other third parties. In 2024, net bitumen production at Cold Lake was about 113,000 barrels per day.
Total gross production for Kearl was about 270,000 barrels per day (191,000 barrels Imperial’s share), up 28,000 barrels per day (19,000 barrels Imperial's share) compared to 2022, as a result of improved reliability, plant capacity utilization, and mine equipment productivity. In 2023, Kearl completed its multiyear program to convert its 81 haul trucks to autonomous operation.
Total gross production for Kearl was about 281,000 barrels per day (200,000 barrels Imperial’s share), which is an increase of about 11,000 barrels per day (9,000 barrels Imperial's share) compared to 2023 , as a result of improved mine fleet productivity and optimized turnaround. Cold Lake Cold Lake is an in-situ heavy oil bitumen operation.
The company’s average Canadian dollar realizations for synthetic crude oil increased generally in line with West Texas Intermediate (WTI), adjusted for changes in exchange rates and transportation costs and reflect a premium over WTI driven by supply and demand.
In 2024, Imperial's average Canadian dollar realization for bitumen increased, primarily driven by the narrowing of the Western Texas Intermediate (WTI)/Western Canada Select (WCS) spread and lower diluent costs, partially offset by lower WTI. The company's average Canadian dollar realizations for synthetic crude oil decreased, primarily driven by a weaker Synthetic/WTI spread and lower WTI.
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The decrease of 22 million oil-equivalent barrels of proved undeveloped reserves is mainly attributed to the migration of Cold Lake proved undeveloped reserves to proved developed reserves following infill development drilling and the start-up of the Grand Rapids Phase 1 project.
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In 2024, bitumen unit production costs decreased, primarily driven by lower energy costs, higher Cold Lake production due to Grand Rapids, and higher Kearl production due to improved mine fleet productivity and optimized turnaround. In 2024, synthetic crude oil unit production costs decreased, primarily driven by lower upgrading costs and lower energy costs.
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All reported production volumes were from Canada and are calculated at a pressure base of 14.73 pounds per square inch absolute at 60 degrees Fahrenheit.
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In 2025, a development drilling program is planned within the approved development area to add productive capacity.
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Imperial is now one of the largest autonomous mine fleet operators in the world and continues to capture productivity improvements while also reducing costs and further enhancing operational safety. In 2023, the company successfully completed its multiyear program to install six Boiler Flue Gas units.
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The company has determined that the impact of this change is not material; therefore, the comparative periods have not been recast. In 2024, sales volumes decreased primarily due to the reclassification of benzene and aromatic solvent sales.
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This technology recovers waste heat from a boiler’s combustion exhaust to preheat process water and reduce greenhouse gas emissions. Cold Lake Cold Lake is an in-situ heavy oil bitumen operation. The product, a blend of bitumen and diluent, is typically shipped to the company’s refineries, Exxon Mobil Corporation refineries and to other third parties.
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Imperial takes new and ongoing measures throughout its operations each year to prevent and minimize the impact of its operations on air, land and water.
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Grand Rapids Phase 1 (GRP1) will be the first SA-SAGD project in the industry and is expected to reduce greenhouse gas emissions intensity by up to 40 percent compared to existing CSS technology.
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The Act also provides that a dominant firm (or a firm that is jointly dominant with others) can face possible prohibition orders if it engages in conduct that is intentionally anti-competitive, or if its conduct has prevented or lessened competition substantially (or is likely to do so) in a market in which it has an interest.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeAdditionally, a number of air quality regulations and frameworks are being developed or have been implemented at the federal and provincial levels, including sulphur dioxide limits for refineries in Ontario, and could impact existing and planned operations and projects through increased capital and operating expenses including retrofits to existing equipment, and could adversely impact the company’s operations and financial results. 24 Regulation of wildlife Federal and provincial legislation aimed at protecting sensitive, threatened or endangered wildlife, such as woodland caribou and species of migratory birds, may also increase restoration and offset costs and impact the company’s projects.
Biggest changeAdditionally, a number of air quality regulations and frameworks are being developed or have been implemented at the federal and provincial levels, including sulphur dioxide limits for refineries in Ontario, and volatile organic compounds (VOC) and benzene controls required for petroleum liquid storage tanks and loading operations at refining and terminal locations, and could impact existing and planned operations and projects through increased capital and operating expenses including retrofits to existing equipment, and could adversely impact the company’s operations and financial results.
Operational and other factors In addition to external economic and political factors, Imperial’s future business results also depend on the company’s ability to manage successfully those factors that are at least in part within its control, including its capital allocation into existing and new businesses.
Operational and other factors In addition to external economic and political factors, Imperial’s future business results also depend on the company’s ability to successfully manage those factors that are at least in part within its control, including its capital allocation into existing and new businesses.
Key factors with uncertainty include: geological and engineering estimates, including that additional information obtained through seismic and drilling programs, reservoir analysis and production and operational history may result in revisions to reserves; the assumed effects of regulation or changes to regulation by government agencies, including royalty frameworks and environmental regulations (such as the regulation of greenhouse gas emissions, including accelerated timelines and emission reduction stringency to meet government goals, which could impose significant compliance costs on the company, require new technology, or impact the economic viability of certain projects); future commodity 30 prices, where low commodity prices may affect reserves development; abandonment and reclamation costs, including reclamation and tailings requirements for mining operations; and operating costs.
Key factors with uncertainty include: geological and engineering estimates, including that additional information obtained through seismic and drilling programs, reservoir analysis and production and operational history may result in revisions to reserves; the assumed effects of regulation or changes to regulation by government agencies, including royalty frameworks and environmental regulations (such as the regulation of greenhouse gas emissions, including accelerated timelines and emission reduction stringency to meet government goals, which could impose significant compliance costs on the company, require new technology, or impact the economic viability of certain projects); future commodity prices, where low commodity prices may affect reserves development; abandonment and reclamation costs, including reclamation and tailings requirements for mining operations; and operating costs.
Further, the absence or evolving nature of policies and regulations for the timing and closure of tailings ponds, including the approved technologies and methods for closure (such as the use of end pit lakes and water capped tailings), and dam safety directives, regulations, guides and abandonment requirements could have a material impact on conditions for approvals and ultimate mine closure costs.
Further, the absence or evolving nature of policies and regulations for the timing and closure of tailings ponds, including the approved technologies and methods for closure (such as the use of end pit lakes and water-capped tailings), and dam safety and delicensing directives, regulations, guides and abandonment requirements, could have a material impact on conditions for approvals and ultimate mine closure costs.
Such effects in turn may depress economic 27 growth or lead to rapid or conflicting shifts in policy by different actors, with resulting adverse effects on the company’s business. In addition, the existence of supportive policies in any jurisdiction is not a guarantee that those policies will continue in the future.
Such effects, in turn, may depress economic growth or lead to rapid or conflicting shifts in policy by different actors, with resulting adverse effects on the company’s business. In addition, the existence of supportive policies in any jurisdiction is not a guarantee that those policies will continue in the future.
Policy and other actions that result in restricting the availability of hydrocarbon products without commensurate reduction in demand may have unpredictable adverse effects, including increased commodity price volatility; periods of significantly higher commodity prices and resulting inflationary pressures; and local or regional energy shortages.
Policy and other actions that result in restricting the availability of hydrocarbon products without a commensurate reduction in demand may have unpredictable adverse effects, including increased commodity price volatility; periods of significantly higher commodity prices and resulting inflationary pressures; and local or regional energy shortages.
The lack of availability, capacity or proximity, with respect to pipeline facilities and railcars, could negatively impact the company’s ability to produce at capacity levels. Transportation disruptions, including those caused by events unrelated to the company’s operations, could adversely affect the company’s price realizations, refining operations and sales volumes.
The lack of availability, capacity or proximity, with respect to pipeline facilities and railcars, could negatively impact the company’s ability to produce at capacity levels. Transportation disruptions, including those caused by events unrelated to the company’s operations, could adversely affect the company’s price realizations, refining and other operations, and sales volumes.
Project management The nature of the company’s Upstream, Downstream and Chemical businesses depend on complex, long-term, and capital intensive projects that require a high degree of project management expertise to maximize efficiency. This includes development, engineering, construction, commissioning and ongoing operational 28 activities and expertise.
Project management The nature of the company’s Upstream, Downstream and Chemical businesses depend on complex, long-term, and capital intensive projects that require a high degree of project management expertise to maximize efficiency. This includes development, engineering, construction, commissioning and ongoing operational activities and expertise.
Water use may be limited by regulatory requirements, seasonal fluctuations, regional drought, competing demands, environmental sensitivities, increasingly stringent water management standards, and changes to conditions or availability of licences, which may restrict and adversely affect the company’s operations.
Water use may be limited by regulatory requirements, seasonal fluctuations, regional drought, competing demands, environmental sensitivities, increasingly stringent water management standards, and changes to conditions or availability of licences, which may restrict and adversely affect the company’s 24 operations.
Governments may also impose restrictions on production of, or emissions from, oil and gas to the extent they view such measures as a viable approach for pursuing national and global energy and climate policies.
Governments may also impose restrictions on production of, or emissions from, oil and gas and electricity to the extent they view such measures as a viable approach for pursuing national and global energy and climate policies.
Political and other actors and their agents are also increasingly seeking to advance climate change objectives indirectly, such as by seeking to reduce the availability or increase the cost of financing and investment in the oil and gas sector.
Political and other actors (and their agents) are also increasingly seeking to collectively advance climate change objectives indirectly, such as by seeking to reduce the availability or increase the cost of financing and investment in the oil and gas sector.
Actual production, revenues, taxes and royalties, development costs, abandonment and reclamation costs, and operating expenditures, with respect to reserves, will likely vary from such estimates, and such variances could be material. Item 1B. Unresolved staff comments None.
Actual production, revenues, taxes and royalties, development costs, abandonment and reclamation costs, and operating 31 expenditures, with respect to reserves, will likely vary from such estimates, and such variances could be material. Item 1B. Unresolved staff comments None.
Other demand-related factors Factors that may affect the demand for crude oil, gas, fuels and petrochemicals, and therefore could impact the company’s results include technological improvements in energy efficiency; seasonal weather patterns, which affect the demand for the company's products, including lower demand for gasoline, impacting Downstream results in the winter; increased competitiveness of, or government policy support for, alternative energy sources; new product quality regulations; technological changes or consumer preferences that alter fuel choices, such as technological advances in energy storage or other critical areas that make wind, solar, hydrogen, nuclear or other alternatives more competitive for power generation; changes in consumer preferences for the company’s products, including consumer demand for alternative fueled or electric transportation or alternatives to plastic products; broad-based changes in personal income levels, interest rates and inflation; and security or public health issues and responses such as epidemics and pandemics.
Other demand-related factors Factors that may affect the demand for crude oil, gas, fuels and petrochemicals, and therefore could impact the company’s results, include technological improvements in energy efficiency; seasonal weather patterns, which affect the demand for the company's products, including lower demand for gasoline, impacting Downstream results in the winter; increased competitiveness of, or government policy support for, alternative energy sources or potential substitutes for the company's products; new product quality regulations; technological changes or consumer preferences that alter fuel choices, such as technological advances in energy storage or other critical areas that make wind, solar, nuclear or other alternatives more competitive for power generation; changes in consumer preferences for the company’s products, including consumer demand for alternative fuel or electric transportation or alternatives to plastic products; broad-based changes in personal income levels, interest rates and inflation; and security or public health issues and responses such as epidemics and pandemics.
The company's pursuit of lower-emission business opportunities including carbon capture and storage, hydrogen, and lower-emission fuels also depends on the growth and development of markets for those products and services, including implementation of supportive government policies and developments in technology to enable those products and services to be provided on a cost-effective basis at commercial scale.
The company's pursuit of lower-emission business opportunities including carbon capture and storage, hydrogen, lower-emission fuels, and lithium also depends on the growth and development of markets for those products and services, including implementation of supportive and stable government policies and developments in technology to enable those products and services to be provided on a cost-effective basis at commercial scale.
The occurrence of recessions or other periods of low or negative economic growth will typically have a direct adverse impact on the company’s results.
The occurrence of economic downturns, recessions or other periods of low or negative economic growth will typically have a direct adverse impact on the company’s results.
With respect to other provinces, Ontario obtained federal equivalency for its Emissions Performance System, which put a price on 8 percent of a facility’s emissions in 2022. The price increased by 2.4 percent in 2023 and will increase by 1.5 percent per year starting in 2024.
With respect to other provinces, Ontario obtained federal equivalency for its Emissions Performance System, which put a price on 8 percent of a facility’s emissions in 2022. The price increased by 2.4 percent in 2023 and 1.5 percent in 2024, and will increase by 1.5 percent per year thereafter.
During 2023, the company responded to several cyber-attacks on suppliers and joint venture partners, none of which caused a material impact to Imperial. The company’s response included giving technical assistance, loaning equipment, and taking additional defensive measures.
During 2024, the company responded to several cyber-attacks on suppliers and joint venture partners, none of which caused a material impact to Imperial. The company’s response included giving technical assistance, loaning equipment, and taking additional defensive measures.
The failure to develop and adopt new technology may have an adverse impact on the company’s operations, ability to meet regulatory requirements and operational commitments and targets (including environmental sustainability and reduction of greenhouse gas emissions), and financial results.
The failure to develop and adopt new technology may have an adverse impact on the company’s operations, ability to meet regulatory requirements and operational commitments and targets (including those relating to environmental sustainability and reduction of greenhouse gas emissions), and financial results.
The company’s future results and ability to succeed through the energy transition while helping meet Canada's emission-reduction goals and meet its own net-zero and emission reduction goals will depend in part on the success of these research and collaboration efforts.
The company’s future results and ability to succeed through the energy transition while helping meet Canada's emission-reduction goals and meet its own emission reduction goals will depend in part on the success of these research and collaboration efforts.
These risks include the company’s ability to obtain the necessary environmental and other regulatory approvals; changes in regulations; the ability to negotiate successfully with joint venturers, partners, governments, suppliers, customers and others; the ability to model and optimize reservoir performance; changes in resources and operating costs including the availability and cost of materials, equipment and qualified personnel; the ability to qualify for certain incentives available under supportive government policies for emerging markets and technologies; the impact of general economic, business and market conditions; and the company’s ability to prevent, to the extent possible, and respond effectively to unforeseen technical difficulties that could delay project start-up or cause unscheduled downtime.
These risks include the company’s ability to obtain the necessary environmental and other regulatory approvals; changes in regulations; the ability to negotiate successfully with joint venturers, partners, governments, suppliers, customers and others; the ability to protect and enforce the company’s contractual and legal rights (including with joint venture partners); the ability to model and optimize reservoir performance; changes in resources and operating costs including the availability and cost of materials, equipment and qualified personnel; the ability to qualify for certain incentives available under supportive government policies for emerging markets and technologies; the impact of general economic, business and market conditions; and the company’s ability to prevent, to the extent possible, and respond effectively to unforeseen technical difficulties that could delay project start-up or cause unscheduled downtime.
Additionally, changes in environmental regulations, assessment processes or other laws (including but not limited to in respect of climate change and greenhouse gas emissions), regulatory interpretations that exclude or disfavour the company's products under government policies or programs intended to support new or developing markets or technologies or that are otherwise not technology-neutral, and increasing and expanding consultation with stakeholders and Indigenous communities, may increase the cost of compliance or reduce or delay available business opportunities and adversely impact the company’s results.
Additionally, changes in environmental regulations, assessment processes or other laws (including but not limited to in respect of climate change and greenhouse gas emissions and company communications relating thereto), regulatory interpretations that exclude or disfavour the company's products under government policies or programs intended to support new or developing markets or technologies or that are otherwise not technology-neutral, and increasing and expanding consultation with stakeholders and Indigenous communities, 23 may increase the cost of compliance or reduce or delay available business opportunities and adversely impact the company’s results.
Regulation of oil sands The company’s mining operations are subject to tailings management regulations that establish approval, monitoring, reporting and performance criteria for tailings ponds and management plans.
Regulation of oil sands The company’s mining operations are, among other regulations, subject to tailings management regulations that establish approval, monitoring, reporting and performance criteria for tailings ponds and management plans.
These percentages increase by 2 percent per year for 2023 to 2028 (inclusive), followed by an increase of 4 percent in 2029 and 2030 for the oil sands sector.
These percentages increase by 2 percent per year for 2024 to 2028 (inclusive), followed by an increase of 4 percent in 2029 and 2030 for the oil sands sector.
There are also various low carbon fuel standards being developed or already applicable to the company’s products. In 2022, the Government of Canada finalized the Clean Fuel Regulations, which require the reduction 26 in carbon intensity of liquid transportation fuels supplied in Canada starting in July 2023.
There are also various renewable and low carbon fuel standards being developed or already applicable to the company’s products. In 2022, the Government of Canada finalized the Clean Fuel Regulations, which require the reduction in carbon intensity of liquid transportation fuels supplied in Canada starting in July 2023.
Factors that could have an impact on the company’s reputation include an operating incident or significant cybersecurity disruption; changes in consumer views concerning the company’s products; a perception by the public that the company is not being fully transparent in the sharing of information regarding its operations that is or may be relevant to community decision-making; actions taken by the company's business partners; a perception by investors or others that insufficient progress is being made with respect to the company’s ambition in the energy transition, or that pursuit of this ambition may result in allocation of capital to investments with reduced returns; and other adverse events such as those described in this Item 1A.
Factors that could have an impact on the company’s reputation include an operating incident or significant cybersecurity disruption; changes in consumer views concerning the company’s products; changes in consumer media preferences from traditional mainstream media to decentralized and personalized media; a perception by the public that the company is not being fully transparent in the sharing of information regarding its operations that is or may be relevant to community decision-making; actions taken by the company's business partners; a perception by investors or others that insufficient progress is being made with respect to the company’s ambition in the energy transition, or that pursuit of this ambition may result in allocation of capital to investments with reduced returns; and other adverse events such as those described in this Item 1A.
Net zero means that emissions of greenhouse gases from human activities would be balanced by actions that remove such gases from the atmosphere. Expectations for transition of the world’s energy system to lower-emission sources, and ultimately net zero, derive from hypothetical scenarios that reflect many assumptions about the future and reflect substantial uncertainties.
Net zero means that emissions of greenhouse gases from human activities would be balanced by actions that remove such gases from the atmosphere. Expectations for transition of the world’s energy system to lower-emission sources, and ultimately net zero, derive from hypothetical scenarios that reflect many assumptions about the future (including supportive policy and technology advancements) and reflect substantial uncertainties.
This percentage of priced emissions increased nominally to 11 percent in 2021 and 12 percent in 2022, with the oil sands mining and upgrading facilities increasing to 17 percent in 2021 and 18 percent in 2022.
This percentage of priced emissions increased nominally to 11 percent in 2021 and 12 percent in 2022, with the oil sands mining and upgrading facilities increasing to 17 percent in 2021, 18 percent 26 in 2022 and 20 percent in 2023.
The impact of this legislation and its expected amendments is not fully apparent, but it may impact the cost, manner, duration and ability to advance large energy projects and project expansions.
The impact of this legislation is not fully apparent, but it may impact the cost, manner, duration and ability to advance large energy projects and project expansions.
See also "Climate change, energy transition and greenhouse gas restrictions" below. 22 Other supply-related factors Commodity prices and margins also vary depending on a number of factors affecting supply.
See also "Climate change, energy transition and greenhouse gas restrictions" in this Item 1A below. 22 Other supply-related factors Commodity prices and margins also vary depending on a number of factors affecting supply.
This includes actions by policy makers, regulators or other actors to delay or deny necessary licences and permits, or restrict the availability of oil and gas leases or the operation of third-party infrastructure that the company relies on, such as pipelines to transport the company’s upstream production to market or that supply feedstock to the company’s refineries.
This includes actions by policy makers, regulators or other actors to delay or deny necessary licences and permits, reduce or retract government incentives for emissions reductions, or restrict the availability of oil and gas leases or the operation of third-party infrastructure that the company relies on, such as pipelines to transport the company’s upstream production to market or that supply feedstock to the company’s refineries.
Cybersecurity" for information on the company's program for managing cybersecurity risks. 29 The company has limited ability to influence third parties, including the company's partners, suppliers, service providers (including providers of cloud-based services for the company's data or applications) and customers, to implement strong cybersecurity controls, and the company is exposed to potential harm from cybersecurity events that may affect their operations.
The company has limited ability to influence third parties, including the company's partners, suppliers, service providers (including providers of cloud-based services for the company's data or applications) and customers, to implement strong cybersecurity controls, and the company is exposed to potential harm from cybersecurity 30 events that may affect their operations.
Crude oil, natural gas, petrochemical and petroleum product prices and margins depend on local, regional, and global events or conditions that affect supply and demand for the relevant commodity or product. Commodity prices have been volatile, and the company expects that volatility to continue.
Crude oil, natural gas, petrochemical and petroleum product prices and margins depend on local, regional, and global events or conditions that affect supply and demand for the relevant commodity or product. Commodity prices have been volatile, and the company expects that volatility to continue during the lifespan of its major assets.
The Government of Canada has updated its nationally determined contribution (NDC) under the Paris Agreement on climate change, to reduce greenhouse gas emissions economy-wide by 40 to 45 percent below 2005 levels by 2030, a substantial increase in ambition beyond its original NDC.
The Government of Canada has updated its nationally determined contribution (NDC) under the Paris Agreement on climate change, to reduce greenhouse gas emissions economy-wide by 45 to 50 percent below 2005 levels by 2035, a substantial increase in ambition beyond its original and most recent NDC.
Future crude price differentials between western Canadian crude oil relative to prices in the U.S. Gulf Coast are uncertain and changes in the heavy or light crude oil differentials could have a material adverse effect on the company’s business.
Western Canadian crude oil may also be subject to limits on transportation capacity to markets. Future crude price differentials between western Canadian crude oil relative to prices in the U.S. Gulf Coast are uncertain and changes in the heavy or light crude oil differentials could have a material adverse effect on the company’s business.
Environmental assessments In addition, certain types of operations, including exploration and development projects and significant changes to certain existing projects, may require the submission and approval of environmental impact assessments.
Environmental assessments In addition, certain types of operations, including exploration and development projects and significant changes to certain existing projects, may require the submission and approval of environmental impact assessments mandated under both federal and provincial regulations.
Crude oil, gas and petrochemical supply levels can also be affected by factors that reduce available supplies, such as the level of and adherence by participating countries or others to production quotas established by OPEC or "OPEC+" and other agreements among sovereigns; government policies that restrict oil and gas production or exports, or increase associated costs, including actions intended to reduce greenhouse gas emissions and previous Government of Alberta curtailment regulations; the occurrence of wars or hostile actions, including disruption of land or sea transportation routes; natural disasters; trade tariffs or broader breakdowns in global trade; disruptions in competitors’ operations; and unexpected pipeline or rail constraints that may disrupt and have in the past disrupted supplies.
Crude oil, gas and petrochemical supply levels can also be affected by factors that reduce available supplies, such as the level of and adherence by participating countries or others to production quotas established by OPEC or "OPEC+" and other agreements among sovereigns; government policies that restrict (or may have a consequence of restricting) oil and gas production or exports, or increase associated production, reporting or compliance costs, including actions intended to reduce greenhouse gas emissions as described under “Climate change, energy transition and greenhouse gas restrictions” in this Item 1A, and previous Government of Alberta curtailment regulations; collective actions by non-governmental organizations and financial institutions to withhold funding or support from oil and gas producers; the occurrence of wars or hostile actions, including disruption of land or sea transportation routes; natural disasters; trade tariffs, sanctions or broader breakdowns in global trade; disruptions in competitors’ operations; and unexpected pipeline or rail constraints that may disrupt and have in the past disrupted supplies.
Greenhouse gas restrictions Government actions intended to reduce greenhouse gas emissions include adoption of carbon emissions pricing, cap and trade regimes, carbon taxes, emissions limits, increased mileage and other efficiency standards, low carbon fuels standards, mandates for sales of electrical vehicles and incentives or mandates for renewable energy.
Greenhouse gas restrictions Government actions intended to reduce greenhouse gas emissions include adoption of carbon emissions pricing, cap and trade regimes, carbon taxes, emissions limits, increased mileage and other efficiency standards, low carbon fuels standards, mandates for sales of electrical vehicles, restrictions on sales of gasoline-only vehicles, and other incentives or mandates designed to support certain technologies for transitioning to lower-emission energy sources.
Technology and lower-emission solutions Achieving societal ambitions to reduce greenhouse gas emissions and ultimately achieve net-zero will require new technologies to reduce the cost and increase the scalability of alternative energy sources as well as technologies such as Carbon Capture and Storage (CCS).
Technology and lower-emission solutions Achieving societal ambitions to reduce greenhouse gas emissions and ultimately achieve net-zero emissions will require new technologies and added infrastructure to reduce the cost and increase the scalability of 27 alternative energy sources.
The company’s future results will depend on the continued effectiveness of these efforts. 25 Climate change, energy transition and greenhouse gas restrictions Net-zero scenarios Driven by concern over the risks of climate change, the provinces and the Government of Canada have adopted or have revised regulatory frameworks to reduce greenhouse gas emissions including emissions from the production and use of oil and gas and their products as well as the use or support for different emission-reduction technologies.
Climate change, energy transition and greenhouse gas restrictions Greenhouse gas emissions reductions Driven by concern over the risks of climate change, the provinces and the Government of Canada have adopted or have revised regulatory frameworks to report on or reduce greenhouse gas emissions including emissions from the production and use of oil and gas and their products, as well as increase the use of or support for different emission-reduction technologies.
The company does not currently make use of derivative instruments to offset exposures associated with foreign currency. Other business risks Imperial is reliant on a number of key chemicals, catalysts and third-party service providers, including input and output commodity transportation (pipelines, rail, trucking, marine) and utilities providing services, including electricity and water, to various company operations.
Other business risks Imperial is reliant on a number of key chemicals, catalysts and third-party service providers, including input and output commodity transportation (pipelines, rail, trucking, marine) and utilities providing services, including electricity and water, to various company operations.
Imperial’s results may be impacted if the implementation pace and uncertainty of policy reduces the global competitiveness of the Canadian oil and gas industry and the company’s crude oil and refined products.
Imperial’s results may be impacted if the implementation pace and uncertainty of policy reduces the global competitiveness of the Canadian oil and gas industry and the company’s crude oil and refined products. Political government changes may create further policy uncertainty resulting in greater investment uncertainty and industry competitiveness concerns.
The failure to operate as anticipated and adhere to conditions, the delay or denial of approvals and changes to conditions or regulations could impact the company’s ability to operate its projects and facilities and adversely affect the company’s results.
The failure to operate as anticipated and adhere to conditions, the delay or denial of approvals, and changes to conditions or regulations, could negatively impact the company’s ability to operate its projects and facilities (including but not limited to resulting in mandatory facility shutdowns or suspensions) and adversely affect the company’s results.
Other government and political factors that could adversely affect the company’s financial results include increases in taxes or government royalty rates (including retroactive claims or punitive taxes on oil, gas and petrochemical operations) and changes in trade policies and agreements.
Other government and political factors that could adversely affect the company’s financial results include increases or changes in taxes or government royalty rates (including retroactive claims or punitive taxes on oil, gas and petrochemical operations) and changes in trade policies and agreements (including those potential tariffs and retaliatory actions discussed above in this Item 1A under “Other supply-related factors”).
Current and pending greenhouse gas regulations or policies may also increase compliance and abatement costs including taxes and levies, increase abandonment and reclamation obligations and impact decommissioning timelines, lengthen project evaluation and implementation times, impact reserves evaluations and affect operations.
Current and pending greenhouse gas regulations or policies may also increase compliance costs (such as complying with increased or mandatory disclosure or due diligence requirements and government mandated energy transition plans), increase abatement costs including taxes and levies, increase abandonment and reclamation obligations and impact decommissioning timelines, lengthen project evaluation and implementation times, impact reserves evaluations and affect operations.
Other factors that affect general economic conditions such as changes in population growth rates, government regulation or austerity programs, trade tariffs or broader breakdowns in global trade, security or public health issues and responses, the inability to access debt markets due to rating, banking, or legal constraints, liquidity crises, other events or conditions that impair the functioning of financial markets and institutions also pose risks to the company.
Other factors that affect general economic conditions, such as changes in population growth rates, government regulation or austerity programs, national or regional trade tariffs, trade sanctions or trade controls, international monetary and currency exchange rate fluctuations, decoupling of economies, disruptions in trade alliances or military alliances, or a broader breakdown in global trade, security or public health issues and responses, extended government shutdowns, the inability to access debt markets due to rating, banking, or legal constraints, liquidity crises, de-dollarization in global trade or the growth or use of alternative common currencies, and other events or conditions that impair the functioning of financial markets and institutions, also pose risks to the company.
A failure or perceived failure to satisfy the requirements or if the company’s tailings management operations do not operate in the manner anticipated by the company or third parties such as the events relating to the environmental protection order at the company’s Kearl operations in 2023 could impact the company's ability to operate its assets, and such impact could be material.
A failure or perceived failure to satisfy the requirements or if the company’s tailings management operations do not operate in the manner anticipated by the company or third parties could materially impact the company's ability to operate its assets.
Cybersecurity The company is regularly subject to attempted cybersecurity disruptions from a variety of sources, including state-sponsored actors.
Cybersecurity The company is regularly subject to attempted cybersecurity disruptions from a variety of sources, including state-sponsored actors and actors potentially employing emerging technologies such as artificial intelligence technologies.
Additional information regarding the potential future impact of market factors on the company's businesses is included or incorporated by reference under Item 7A Quantitative and qualitative disclosures about market risk in this report.
In addition, potential tariffs and retaliatory actions discussed above in this Item 1A under “Other supply-related factors” could have further inflationary impacts. Additional information regarding the potential future impact of market factors on the company's businesses is included or incorporated by reference under "Item 7A Quantitative and qualitative disclosures about market risk" in this report.
Policy and market development The scale of the world’s energy system means that, in addition to developments in technology discussed above, a successful energy transition will require appropriate support from governments and private participants throughout the global economy.
Policy and market development The scale of the world’s energy system means that, in addition to developments in technology discussed above, any successful energy transition will require appropriate support from governments and private participants throughout the global economy. Ultimately, market solutions with sound business fundamentals are necessary to incentivize and sustain wide-spread solutions that drive emissions reductions.
Further, in 2021 the Government of Canada enacted legislation to formalize Canada’s target to achieve net-zero emissions by 2050 and establish interim emissions reductions targets at five year intervals. Under the Canadian Net-Zero Emissions Accountability Act, the Government of Canada is required to develop an emissions reduction plan for 2030 consistent with achieving net-zero emissions by 2050.
Further, in 2021 the Government of Canada enacted legislation to formalize Canada’s target to achieve net-zero emissions by 2050 and establish interim emissions reductions targets at five year intervals.
Further, as underlying inflationary pressures remained in Canada and other countries throughout 2023, governments maintained elevated interest rates which may further impact the company through the availability of financing, cost of debt, and exchange rate fluctuations.
Further, although inflationary pressures declined in Canada and other countries during 2024, moderate inflation levels have persisted and governments generally maintained elevated interest rates which may further impact the company through the availability of financing, cost of debt, and exchange rate fluctuations.
It also includes a reliance on strategic and regional assessments and adjusted regulatory review timelines. In October 2023, the Supreme Court of Canada ruled that the new federal assessment scheme was unconstitutional in part. Legislative and regulatory amendments have yet to be made to address this decision.
It also includes a reliance on strategic and regional assessments and adjusted regulatory review timelines. In October 2023, the Supreme Court of Canada ruled that the new federal assessment scheme was unconstitutional in part. In November 2024, Alberta referred the constitutionality of the amended Impact Assessment Act to the Court of Appeal of Alberta.
Many governments are providing tax advantages and other subsidies to support alternative energy sources or are mandating the use of specific fuels or technologies.
Further, the adoption of regulations mandating efficiency standards, emission standards or the use of alternative fuels or uncompetitive fuel components, could affect the company’s operations. Many governments are providing tax advantages and other subsidies to support alternative energy sources or are mandating the use of specific fuels or technologies.
The company’s actions with respect to the energy transition, including its announced goal, ultimately, to achieve company-wide net-zero emissions (Scope 1 and 2) from its operated assets with continued technology development and policy support, carries risks that the transition, including underlying technologies, policies, and markets as discussed in more detail below, will not be available or develop at the pace or in the manner estimated by current net-zero scenarios.
The company’s actions with respect to the energy transition carry risks that the transition, including underlying technologies, government policies, and markets as discussed in more detail below, will not be available or develop at the pace or in the manner estimated by current net-zero scenarios.
Changes in environmental legislation (including, but not limited to, application of regulations related to air, water, land, biodiversity and waste, such as mine tailings and the production or use of new or recycled plastics) may increase the cost of operation or compliance or reduce or delay available business opportunities.
Changes in environmental legislation (including, but not limited to, application of regulations related to air, water, land, biodiversity and waste, such as mine tailings and the production or use of new or recycled plastics, as well as laws and regulations affecting production of the company's products, trading, carbon capture and storage, hydrogen, lower-emission fuels or lithium) or other laws that penalize the company for past or current production of legal and/or permitted products and operations may increase the cost of operation or compliance or reduce or delay available business opportunities.
A third-party utilities outage could have an adverse impact on the company’s operations and ability to produce. The company also enters into contractual relationships with suppliers, partners and other counterparties to procure and sell goods and services, and the company’s operations, market position and financial condition may be adversely impacted if these counterparties do not fulfil their obligations.
A third-party utilities outage could have an adverse impact on the company’s operations and ability to produce. The company also enters into contractual relationships with suppliers, partners and other counterparties to procure and sell goods and services, including with counterparties located outside of Canada.
Changes in taxation policy, such as 23 the Government of Canada's proposed tax on repurchases of equity effective from January 1, 2024, could impact the company’s financial results and ability to return surplus cash to shareholders. Further, the adoption of regulations mandating efficiency standards, and the use of alternative fuels or uncompetitive fuel components could affect the company’s operations.
Changes in taxation policy, such as the Government of Canada's tax on repurchases of equity that became effective from January 1, 2024, could impact the company’s financial results and ability to return surplus cash to shareholders.
Legislative and regulatory amendments have yet to be made to address this decision, and the impact of this legislation and its expected amendments is not fully apparent. International accords and underlying regional and national regulations covering climate change and greenhouse gas emissions continue to evolve with uncertain timing and outcome, making it difficult to predict their business impact.
In November 2024, Alberta referred the constitutionality of the amended Impact Assessment Act to the Court of Appeal of Alberta. The impact of this legislation is not fully apparent. International accords and underlying regional and national regulations covering climate change and greenhouse gas emissions continue to evolve with uncertain timing and outcome, making it difficult to predict their business impact.
Canadian-specific market factors The market price for western Canadian heavy crude oil is typically lower than light and medium grades of oil, principally due to the higher transportation and refining costs. Western Canadian crude oil may also be subject to limits on transportation capacity to markets.
Technological change can also alter the relative costs for competitors to find, produce, and refine oil and gas and to manufacture petrochemicals. Canadian-specific market factors The market price for western Canadian heavy crude oil is typically lower than light and medium grades of oil, principally due to the higher transportation and refining costs.
Future changes in environmental legislation and the enforcement of regulations could occur and result in stricter standards and enforcement, larger fines, penalties and liability, and increased capital expenditures and operating costs, which could have a material adverse effect on the company’s financial condition or results of operations.
Future changes in environmental legislation and the enforcement of regulations could occur and result in stricter standards and enforcement, larger fines, penalties and liability, and increased capital expenditures and operating costs, which could have a material adverse effect on the company’s financial condition or results of operations. 25 Risk management There are operational risks inherent in oil and gas exploration and production activities, as well as the potential to incur substantial financial liabilities, if the company does not manage those risks effectively.
The company's operations and planned projects that have been developed with regard to current or anticipated policies may become uneconomic or otherwise adversely impacted if such policies change or are not adopted as anticipated. See also the discussion of "Supply and demand", "Government and political factors" and "Management effectiveness" in this Item 1A.
The company's operations and planned projects that have been developed with regard to current or anticipated policies, including but not limited to policies relating to carbon emission credits, may become uneconomic or otherwise adversely impacted if such policies change or are not adopted as anticipated.
The company’s ability to develop and deploy CCS and other lower-emission energy technologies at commercial scale will depend in part on the continued development of supportive government policies and markets. Failure or delay of these policies or markets to materialize or be maintained could adversely impact these investments.
The company’s ability to develop and deploy carbon capture and storage, hydrogen, lower-emission fuels, lithium, and other new energy technologies at commercial scale will depend in part on the continued development of stable and supportive government policies and markets.
Research and development and technical change Imperial relies upon the research and development organizations of the company and ExxonMobil, with whom the company conducts shared research. Innovation and technology are important to maintain the company’s competitive position, especially in light of the technological nature of Imperial’s business and the need for continuous efficiency improvement.
Innovation and technology are important to maintain the company’s competitive position, especially in light of the technological nature of Imperial’s business, the dynamic and rapidly evolving technological landscape, and the need for continuous efficiency improvement.
The company may also be adversely affected by the outcome of litigation resulting from its operations or by government enforcement proceedings alleging non-compliance with applicable laws or regulations. Litigation is subject to uncertainty and success is not guaranteed, and the company may incur significant expenses and devote significant resources in defending litigation.
The company may also be adversely affected by the outcome of litigation or arbitration resulting from its operations, including but not limited to proceedings in respect of greenhouse gas emissions and the promotion of the company’s products, or by government enforcement proceedings alleging non-compliance with applicable 28 laws or regulations.
The company’s research and development organizations must be able to adapt to a changing market and policy environment, including developing technologies to help reduce greenhouse gas emissions intensity. To remain competitive, the company must also continuously adapt and capture the benefits of new technologies including growing the company’s capabilities to utilize digital data technologies to gain new business insights.
The company’s research and development organizations must be able to adapt to a changing market, regulatory and policy environment, including developing or deploying technologies to help reduce greenhouse gas emissions intensity.
These cases may inform future government decisions and policies regarding land use planning and resource development, and could impact the requirements or willingness to grant regulatory licenses or approvals. The company also depends on water obtained under licences for withdrawal, storage, reuse and discharge in both its Upstream and Downstream businesses, including future projects and expansions.
The company also depends on water obtained under licences for withdrawal, storage, reuse and discharge in both its Upstream and Downstream businesses, including future projects and expansions.
The company could incur significant costs to remedy the effects of a major cybersecurity disruption, in addition to costs in connection with resulting regulatory actions, litigation or reputational harm. Preparedness The company’s operations have been and in the future may be disrupted by severe weather events, natural disasters, human error, and similar events.
Preparedness The company’s operations have been and in the future may be disrupted by severe weather events, natural disasters, human error, and similar events.
Currency Prices for commodities produced by the company are commonly benchmarked in U.S. dollars. The majority of Imperial’s sales and purchases are related to these industry U.S. dollar benchmarks. As the company records and reports its financial results in Canadian dollars, to the extent that the value of the Canadian dollar strengthens, the company’s reported earnings will be negatively affected.
As the company records and reports its financial results in Canadian dollars, to the extent that the value of the Canadian dollar strengthens, the company’s reported earnings will be negatively affected. The company does not currently make use of derivative instruments to offset exposures associated with foreign currency.
For example, in December 2023, the Government of Canada published a regulatory framework to pursue a cap on greenhouse gas emissions from upstream oil and gas activities by 2030. Concern over the risks of climate change may lead governments to make laws applicable to the energy industry progressively more stringent over time.
Concern over the risks of climate change may lead governments to make laws applicable to the energy industry progressively more stringent over time.
For example, the company's oil sands operations were particularly affected by extreme cold weather in 2022 and wildfires in 2016. The ability to insure risks is limited by the capacity of the applicable insurance markets, which may not be sufficient to cover the likely cost of a major adverse operating event.
The ability to insure risks is limited by the capacity of the applicable insurance markets, which may not be sufficient to cover the likely cost of a major adverse operating event. Accordingly, the company’s primary focus is on prevention, including through its rigorous operations integrity management system. The company’s future results will depend on the continued effectiveness of these efforts.
There are risks associated with projects that rely on new technology, including that the results of implementing the new technology may differ from simulated, piloted or expected results.
To remain competitive, the company must also continuously adapt and capture the benefits of new technologies including growing the company’s capabilities to utilize digital data technologies (including but not limited to artificial intelligence technologies) to gain new business insights and support business operations. 29 There are risks associated with existing and new operations and projects that rely on new technology, including that the results of implementing the new technology may differ from simulated, piloted or expected results.
Of note, the first of two court cases brought against the government by Indigenous groups regarding the assessment of cumulative impacts and infringement on exercise of treaty rights in Alberta is scheduled to be heard in 2024.
Of note, there are currently a number of court actions against the government by Indigenous groups regarding the assessment of cumulative impacts and infringement on exercise of treaty rights. These cases may inform future government decisions and policies regarding land use planning and resource development, and could impact the requirements or willingness to grant regulatory licenses or approvals.
For example, Russia's military action in Ukraine has impacted global crude oil and gas supply levels and prices, and continues to contribute to a volatile commodity environment, the duration of which is uncertain. Technological change can also alter the relative costs for competitors to find, produce, and refine oil and gas and to manufacture petrochemicals.
For example, Russia's military action in Ukraine impacted global crude oil and gas supply levels and prices, and contributed to a volatile commodity environment ; and the potential for trade tariffs by the United States on Canadian goods and potential retaliatory actions by Canadian or provincial governments could impact market prices and demand for, and export volumes of, Canadian goods.
Risk Management There are operational risks inherent in oil and gas exploration and production activities, as well as the potential to incur substantial financial liabilities, if the company does not manage those risks effectively. Environmental hazards and risks, including severe weather, drought, forest fires and geological events, may impact the company’s operational performance.
Environmental hazards and risks, including severe weather, drought, forest fires and geological events, may impact the company’s operational performance. For example, the company's oil sands operations were particularly affected by extreme cold weather in 2022 and wildfires in 2016.
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Accordingly, the company’s primary focus is on prevention, including through its rigorous operations integrity management system.
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Regulation of wildlife Federal and provincial legislation aimed at protecting sensitive, threatened or endangered wildlife, such as woodland caribou and species of migratory birds, may also increase restoration and offset costs and impact the company’s projects.
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CCS technologies, focused initially on capturing and sequestering CO 2 emissions from high-intensity industrial activities, can assist in meeting society’s objective to mitigate atmospheric greenhouse gas levels while also helping ensure the availability of the reliable and affordable energy the world requires.
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See also “Safety, business controls and environmental risk management” under “Operational and other factors” in this Item 1A below.
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Reputation Imperial’s reputation is an important corporate asset.
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Under the Canadian Net-Zero Emissions Accountability Act, the Government of Canada is required to develop an emissions reduction plan for 2030 consistent with achieving net-zero emissions by 2050, and additional sector specific regulations may be developed to achieve this target.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeRisk factors: Operational and other factors - Cybersecurity” in this report. 31
Biggest changeRisk factors: Operational and other factors - Cybersecurity" in this report. 32 Item 2. Properties Reference is made to Item 1 above.
The company’s cybersecurity program is managed by the Canada IT Manager, with support from cross-functional teams led by information technology (IT) and operational technology cybersecurity operations managers in the company and in Exxon Mobil Corporation and its affiliates (collectively, Cybersecurity Operations Managers).
The company’s cybersecurity program is managed by the Canada Information Technology (IT) Manager, with support from cross-functional teams led by IT and operational technology cybersecurity operations managers in the company and in Exxon Mobil Corporation and its affiliates (collectively, Cybersecurity Operations Managers).
While the company believes its cybersecurity program to be appropriate for managing constantly evolving cybersecurity risks, no program can fully protect against all possible adverse events. For additional information on these risks and potential consequences if the measures the company is taking prove to be insufficient or if the company's proprietary data is otherwise not protected, see “Item 1A.
While the company believes its cybersecurity program to be appropriate for managing constantly evolving cybersecurity risks, no program can fully protect against all possible adverse events. For additional information on these risks and potential consequences if the measures the company is taking prove to be insufficient or if the company's proprietary data is otherwise not protected, see "Item 1A.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeItem 3. Legal proceedings Refer to the relevant portions of note 9. "Litigation and other contingencies" of the "Financial section" of this report for additional information on legal proceedings. Imperial has elected to use a US $1 million threshold for disclosing environmental proceedings. Item 4. Mine safety disclosures Not applicable. 32 PART II
Biggest changeItem 3. Legal proceedings Refer to the relevant portions of note 9. "Litigation and other contingencies" of the "Financial section" of this report for additional information on legal proceedings. Imperial has elected to use a US $1 million threshold for disclosing environmental proceedings. Item 4. Mine safety disclosures Not applicable. 33 PART II

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeItem 4. Mine safety disclosures 32 PART II 33 Item 5. Market for registrant’s common equity, related stockholder matters and issuer purchases of equity securities 33 Item 7. Management’s discussion and analysis of financial condition and results of operations 34 Item 7A. Quantitative and qualitative disclosures about market risk 34 Item 8. Financial statements and supplementary data 35
Biggest changeItem 4. Mine safety disclosures 33 PART II 34 Item 5. Market for registrant’s common equity, related stockholder matters and issuer purchases of equity securities 34 Item 7. Management’s discussion and analysis of financial condition and results of operations 35 Item 7A. Quantitative and qualitative disclosures about market risk 35 Item 8. Financial statements and supplementary data 36

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeReference is made to the section under the "Company executives and executive compensation": • Entitled "Performance graph" within the "Compensation discussion and analysis" section on page 169 of this report; and • Entitled "Equity compensation plan information", within the "Compensation discussion and analysis", on page 182 of this report. 33 Issuer purchases of equity securities Total number of shares purchased Average price paid per share (Canadian dollars) Total number of shares purchased as part of publicly announced plans or programs Maximum number of shares that may yet be purchased under the plans or programs (a) (b) October 2023 (October 1 - October 31) 11,722,035 81.72 11,722,035 — November 2023 (November 1 - November 30) — — — — December 2023 (December 1 - December 31) 19,108,280 78.50 19,108,280 — (a) On June 27, 2023, the company announced by news release that it had received final approval from the Toronto Stock Exchange for a new normal course issuer bid to continue its existing share purchase program.
Biggest changeReference is made to the sections under the "Company executives and executive compensation": • Entitled "Performance graph" within the "Compensation discussion and analysis" section on page 166 of this report; and • Entitled "Equity compensation plan information", within the "Compensation discussion and analysis", on page 177 of this report. 34 Issuer purchases of equity securities Total number of shares purchased Average price paid per share (Canadian dollars) (a) Total number of shares purchased as part of publicly announced plans or programs Maximum number of shares that may yet be purchased under the plans or programs (b) October 2024 (October 1 - October 31) 5,541,599 104.65 5,541,599 8,815,978 November 2024 (November 1 - November 30) 5,289,708 103.34 5,289,708 3,526,270 December 2024 (December 1 - December 31) 3,526,270 98.88 3,526,270 — (a) Excludes 2 percent tax on repurchases of equity.
There is no Canadian tax on gains from selling shares or debt instruments owned by non-residents not carrying on business in Canada, as long as the shareholder does not, in any given 60 month period, own 25 percent or more of the shares of the company.
There is no Canadian tax on gains from selling shares owned by non-residents not carrying on business in Canada, as long as the shareholder does not, in any given 60-month period, own 25 percent or more of the shares of the company.
As in the past, Exxon Mobil Corporation advised the company that it intended to participate to maintain its ownership percentage at approximately 69.6 percent. Imperial accelerated share purchases under the normal course issuer bid program, and the program completed on October 19, 2023 as a result of the company purchasing the maximum allowable number of shares under the program.
As in the past, Exxon Mobil Corporation advised the company that it intended to participate to maintain its ownership percentage at approximately 69.6 percent. Imperial accelerated share purchases under the normal course issuer bid program, and the program completed on December 19, 2024 as a result of the company purchasing the maximum allowable number of shares under the program.
The withholding tax is reduced to 5 percent on dividends paid to a corporation resident in the U.S. that owns at least 10 percent of the voting shares of the company.
The withholding tax is reduced to 5 percent on dividends paid to a corporation resident in the U.S. that owns at least 10 percent of the voting shares of the company. The rate of withholding applicable to other jurisdictions may vary.
The program enabled the company to purchase up to a maximum of 29,207,635 common shares during the period June 29, 2023 to June 28, 2024. This maximum included shares purchased under the normal course issuer bid and from Exxon Mobil Corporation concurrent with, but outside of, the normal course issuer bid.
The program enabled the company to purchase up to a maximum of 26,791,840 common shares during the period June 29, 2024 to June 28, 2025. This maximum included shares purchased under the normal course issuer bid from Exxon Mobil Corporation.
The symbol for the company’s common shares on these exchanges is IMO. As of February 15, 2024 there were 9,026 holders of record of common shares of the company.
The symbol for the company’s common shares on these exchanges is IMO. As of February 14, 2025 there were 8,558 holders of record of common shares of the company.
During the fourth quarter, the company did not issue or sell any unregistered equity securities. Securities authorized for issuance under equity compensation plans Sections of the company’s management proxy circular are contained in the "Proxy information section", starting on page 112 . The company’s management proxy circular is prepared in accordance with Canadian securities regulations.
Securities authorized for issuance under equity compensation plans Sections of the company’s management proxy circular are contained in the "Proxy information section", starting on page 111 . The company’s management proxy circular is prepared in accordance with Canadian securities regulations.
Information for security holders outside Canada Cash dividends paid to shareholders resident in countries with which Canada has an income tax convention are usually subject to a Canadian non-resident withholding tax of 15 percent, but may vary from one tax convention to another.
Information for security holders outside Canada Cash dividends paid to shareholders resident in the United States are, under the Canada-US income tax convention, subject to a Canadian non-resident withholding tax of 15 percent.
This included 13,299,349 shares purchased from Exxon Mobil Corporation by way of a proportionate tender to maintain its ownership percentage at approximately 69.6 percent. The company will continue to evaluate the renewal of its normal course issuer bid share purchase program in June 2024 in the context of its overall capital activities.
The company will continue to evaluate the renewal of its normal course issuer bid share purchase program in June 2025 in the context of its overall capital activities. Purchase plans may be modified at any time without prior notice.
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(b) On November 3, 2023, the company commenced a substantial issuer bid pursuant to which it offered to purchase for cancellation up to $1.5 billion of its common shares through a modified Dutch auction and proportionate tender offer.
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The foregoing tax information is not intended to provide legal or tax advice, and shareholders are encouraged to consult a professional advisor with respect to all tax-related issues. During the fourth quarter, the company did not issue or sell any unregistered equity securities.
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The substantial issuer bid was completed on December 13, 2023, with the company taking up and paying for 19,108,280 common shares at a price of $78.50 per share, for an aggregate purchase of $1.5 billion and 3.4 percent of Imperial’s issued and outstanding shares at the close of business on October 30, 2023.
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(b) On June 24, 2024, the company announced by news release that it had received final approval from the Toronto Stock Exchange for a new normal course issuer bid to continue its then-existing share purchase program.
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Purchase plans may be modified at any time without prior notice.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeItem 7. Management’s discussion and analysis of financial condition and results of operations Reference is made to the section entitled "Management’s discussion and analysis of financial condition and results of operations" in the "Financial section", starting on page 49 of this report.
Biggest changeItem 7. Management’s discussion and analysis of financial condition and results of operations Reference is made to the section entitled "Management’s discussion and analysis of financial condition and results of operations" in the "Financial section", starting on page 50 of this report.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeItem 7A. Quantitative and qualitative disclosures about market risk Reference is made to the section entitled "Market risks" in the "Financial section", starting on page 64 of this report. All statements other than historical information incorporated in this Item 7A are forward-looking statements.
Biggest changeItem 7A. Quantitative and qualitative disclosures about market risk Reference is made to the section entitled "Market risks" in the "Financial section", starting on page 65 of this report. All statements other than historical information incorporated in this Item 7A are forward-looking statements.
The actual impact of future market changes could differ materially due to, among other things, factors discussed in this report. 34
The actual impact of future market changes could differ materially due to, among other things, factors discussed in this report. 35