Brad Corson: Yes, so it’s a really good question, and one we spend a fair amount of time reflecting on. I guess I would start with stating that we remain committed to our U.S. $20-per barrel unit cost target. And we believe that is achievable even with the use of renewable diesel, which as your question implies, that renewable diesel does come at the premium cost, and we recognize that. But we’re looking at kind of the totality of our operation, and balancing cost objectives with the emissions performance objectives. And part of our emissions performance involves being responsible for carbon costs for any emissions that — incremental emissions across our operations, that we would have to pay for carbon. And so, when we put all that together, we believe it’s prudent from a cost standpoint, as well as from an emissions standpoint.
So, again, when you look at compliance costs, you look at offsets that will be generated at the projected increase over time of carbon credits approaching $170 per tonne, we actually see it as accretive to our business. And then, as I mentioned, our use of renewable diesel at Kearl really has two benefits. There’s the immediate benefit to Kearl, as I was just talking about. But we also see it as important to be able to work with Caterpillar, demonstrate the suitability of renewable diesel at increasingly higher blend rates to demonstrate the suitability with other customers as well. So, it becomes integral to our supply strategy for the 20,000 barrels a day that we plan to produce at Strathcona once it starts up, which will be Canada’s largest renewable diesel manufacturing facility.
So, it’s an integrated strategy.
Dennis Fong: Great. No, I really appreciate the color on both of those dynamics. I’ll turn it back.
Brad Corson: [Technical difficulty] — Dennis.
Operator: We’ll go next to Doug Leggate with Bank of America.
Kalei Akamine: Hey, good morning, guys. This is Kalei, on for Doug. So, thanks for taking my question here. So, Brad, my first question really goes to Kearl, and it’s a follow-up on guidance. And I know you reiterated guidance in your opening remarks, but I’m hoping you can address Kearl maybe a bit more directly. So, full-year guidance is around 270, if I’m not mistaken. So, hitting that would imply a material step-up in the second-half, perhaps around the 300,000 barrel mark. So, I’m hoping that you can address maybe the upper limits of the production capacity at Kearl, and talk about how that’s trending relative to the guidance that you laid out at Analyst Day?
Brad Corson: Yes, thanks for the question. And as I’ve commented on earlier, Kearl has a repeated history of continuing to demonstrate strong volume performance, increasing volume performance, and setting records. And in order to achieve our guidance of 265,000 to 275,000 barrels a day full-year, we are going to need to continue to have very strong volumes performance at Kearl. But as I mentioned with one of the earlier questions, in the first quarter, we set records. The first-half is second-best. July is approaching a record. And it will take continued strong performance like that with some more records. But we believe that’s quite achievable. We have had in our history both last year, the year before several months where we exceeded 300,000 barrels a day.
So, our objective, my challenge to team is going to be to string together several strong months in a row to get us to the end of the year. It won’t be easy. And it’s going to require this continued focus on reliability. But again at this point, we believe it is achievable.
Kalei Akamine: Okay. Brad, you mentioned July. Would you be able to give us that number?
Brad Corson: Yes, I think I mentioned it on the call. July is not over yet. Of course, right? So, we still have a few days left. But we are on track as I sit here today to achieve around 285,000 barrels a day for July.
