Enbridge CEO sees “colossal” AI power use, increased U.S. oil, LNG demand
(Bloomberg) – Enbridge Inc. Chief Executive Officer Greg Ebel has played a major role in the company’s transformation from an oil-focused pipeline operator into a sprawling enterprise with businesses touching all forms of energy.
He came to Enbridge in the $28 billion takeover of natural gas transporter Spectra Energy Corp. in 2017 and since becoming CEO last year has built up the company’s utilities business with a $9.4 billion acquisition from Dominion Energy Inc. He has also overseen projects that are expanding the company’s capacity to export oil and natural gas from the Americas to the rest of the world.
Here are Ebel’s comments on a variety of energy topics from an interview at Bloomberg’s headquarters in New York on Tuesday. His comments have been edited and condensed.
How do you see the role of the U.S. in global oil markets?
“The future of oil in North America is through it and out of it. You see that on the export side. Just in the last three or four years, we’ve gone large into oil exports at Enbridge. We own the largest facility now in Corpus Christi called Ingleside, which hits record after record every quarter.”
“The Permian continues to pump a lot of oil and associated gas, and that’s going abroad. So I’ll go with the trend, and the trend is more oil demand year after year.”
How are you anticipating the rise of artificial intelligence will affect natural gas and electricity demand?
“We’ve had electricity demand largely flat for decades here in North America. Our view is that it will add somewhere between half a percent and 2%, which might not sound like much, but per annum through 2030, that’s a colossal move.”
Ebel said that 45% of all natural gas-fired generation in North America is within 50 miles of its pipelines.
“That’s going to lead to opportunities for more and more of those generators seeking our services on those pipelines, storage facilities, et cetera.”
How do you feel about the current pause on liquefied natural gas projects in the U.S.? If Vice President Kamala Harris wins in November, do you anticipate that pause will vanish?
“I don’t think we’ve seen Vice President Harris’s policy on that yet. Perhaps we’ll get some clarity on that this week. But regardless of the fact of where that lands, remember that pause does not affect the projects that are already approved. And we still expect to see LNG exports from the United States double between now and 2030.”
How do you think that the Biden administration’s energy policy has evolved over the last few years?
“For most governments, the rhetoric of an election campaign is quickly wiped away by the reality of governing. Particularly in a country like the United States, which has so many global obligations — which you can argue are good or bad — the reality is you’re going to need more oil. You’re going to need more gas. You’re going to need more wind and renewables. So, I think they’ve balanced that.”
“Again, we’ll have to see where Vice President Harris is on this. But President Biden had talked about this earlier, that whether you’re banning fracing or reducing oil, that’s just not a realistic approach.”
Would a victory by former President Trump lead to increased oil and gas production?
“Regardless of whether you want to drill a lot more or not, you have to be able to build the infrastructure. That’s going to take time. That’s going to take crossing multiple jurisdictions of all different stripes. And I don’t think you can do it by executive caveat or even just pure legislation.”
“Now, you can improve it. A permitting bill that limits the time of review and sets clear guidelines for federal review, I think could definitely be beneficial. The only way that’s happening is with legislation, and that’s going to take a bipartisan approach.”
How would you describe the regulatory attitude of the Canadian and British Columbia governments toward the development of LNG projects?
“The province of British Columbia, which is currently a left-leaning government, the NDP, I think they’ve recognized the benefits economically to the province, but also for indigenous communities. So does that mean anything could get built? No, but I think with the right structure, you’ll continue to see that.”
“The federal government needs to giddy-up on loan guarantees. They’ve announced them multiple years, and they’re getting lapped by the provinces and haven’t yet got there. But I think their intent is right. I think it’s just a classic case of it taking a lot of time for a Canadian federal government to get things done in western Canada. But I’m hopeful that’s changing.”
