(Bloomberg) — Enbridge Inc. CEO Greg Ebel has played a key role in transforming the company from an oil-focused pipeline operator into a sprawling conglomerate with businesses across all aspects of energy.
Greg Ebel (Photographer: Aaron M. Sprecher/Bloomberg)
He joined Enbridge in 2017 as part of its $28 billion acquisition of natural gas transporter Spectra Energy Corp. and since being named CEO last year, he has expanded the company’s utility business with its $9.4 billion acquisition of Dominion Energy Inc. He has also led projects to expand the company’s capacity to export oil and natural gas from North and South America to the rest of the world.
Here are Ebel’s comments on a variety of energy topics from an interview Tuesday at Bloomberg’s headquarters in New York. His comments have been edited and condensed.
How do you view the role of the USA in the global oil markets?
“The future of oil in North America is moving through it and moving out of it. You can see that on the export side. In the last three or four years alone, we at Enbridge have gotten heavily into oil exports. We now own the largest facility in Corpus Christi called Ingleside, which is hitting record after record every quarter.”
“The Permian continues to produce a lot of oil and associated gas, and that goes overseas. So I’m going with the trend, and the trend is increasing oil demand year after year.”
What impact do you think the rise of artificial intelligence will have on demand for natural gas and electricity?
“Here in North America, electricity demand has remained largely unchanged for decades. We expect it to increase by between half and two percent. That may not sound like much, but by 2030, that’s a huge increase per year.”
Ebel said 45 percent of all natural gas-generated energy in North America comes within 50 miles of pipelines there.
“This will result in more and more of these producers using our services for these pipelines, storage facilities, etc.”
What do you think about the current delay in liquefied natural gas projects in the US? Do you expect this delay to be lifted if Vice President Kamala Harris wins the election in November?
“I don’t think we’ve seen Vice President Harris’ policy on this yet. Maybe we’ll get some clarity on that this week. But regardless of where this ends up, remember that the pause does not affect the projects that have already been approved. And we still expect United States LNG exports to double by 2030.”
In your opinion, how has the Biden administration’s energy policy evolved in recent years?
“With most governments, the rhetoric of an election campaign is quickly overshadowed by the reality of governing. Particularly in a country like the United States, which has so many global commitments – which are good or bad to argue about – the reality is that you need more oil. You need more gas. You need more wind and renewables. I think they’ve balanced that.”
“Again, we’ll have to wait and see where Vice President Harris stands on this issue. But President Biden has spoken before about how banning fracking or reducing oil production is simply not a realistic approach.”
Would a victory for former President Trump lead to increased oil and gas production?
“Whether or not you want to drill a lot more, you have to be able to build the infrastructure. That’s going to take time. You have to go through a lot of different jurisdictions to do that. And I don’t think you can do that through an executive order or just legislation.”
“Now it can be improved. An authorization bill that limits the time for the review and sets clear guidelines for the federal review could definitely be beneficial, in my opinion. That can only be done through legislation, and that requires a bipartisan approach.”
How would you describe the regulatory attitude of the governments of Canada and British Columbia towards the development of LNG projects?
“The province of British Columbia, which is currently governed by a left-leaning government, the NDP, I think has recognized the economic benefits for the province, but also for Indigenous communities. Does that mean anything could be built? No, but I think with the right structure you will continue to see that.”
“The federal government needs to move quickly on the loan guarantees. They have announced them for several years, but they are being overtaken by the provinces and have not yet arrived at the finish line. But I think their intention is right. I think it’s just a classic case of the Canadian federal government taking a lot of time to get things done in Western Canada. But I’m confident that will change.”
