Prices for dilbit should soon be increasing and Oil Sands producers should broaden their marketing reach.

World oil demand has now exceeded slightly the "pre crash" demand level at approximately 87 million BBL per day. A demand scenario which has not yet been reflected in dilbit pricing. As an "at the margin" source of petroleum this should begin to be reflected in dilbit pricing in time. The interesting element here is that the increased demand is not coming from North America or Europe. It is in fact coming from the developing world.

In order to take strategic advantage of this situation, the Canadian Oil Sands Industry should begin to agressively market to the developing world. Such marketing should be aimed at exporting refined product so as to catch as much of the "value added stream" as is possible. It is time to begin the inclusion of Strategic Marketing in the Oil Sands approach to the market. This approach is not intended to diminish the till now engineering and production orientation the Oil Sands industry but, rather to augment it in terms of "market reach" so as to develop the market, increase sales and share of market, while improving the capture of margin potential which is available to the industry and its participants. Such will also assist in developed market penetration by signalling the desire and willingness to diversify the customer base.

Brian