Wednesday, October 14, 2009

Enbridge CEO sees pipeline overcapacity from oil sands to U.S.

NEW YORK - Enbridge Inc. said pipeline companies have overbuilt capacity from Alberta to the U.S. in the hopes of capitalizing from a boom in the Canadian oil sands before crude prices fell from a record high.
The extra capacity could reach 200,000 to 400,000 b/d and will be used when companies like EnCana Corp. and Suncor Energy Inc. start production of new projects in the oil sands, said Chief Executive Officer Patrick Daniel.
“There is no doubt that we are going to have overbuilt the pipeline capacity needed ex-Alberta,” Daniel said in an interview with Bloomberg Television in New York on Oct. 7. “A good part of this is already committed, but the projects have yet to be developed that will bring that production on stream.”
Enbridge, the biggest shipper of crude from the oil sands, said ON Oct. 6 that it is in talks with producers such as EnCana, Suncor or Husky Energy Inc. to transport more of their crude on its existing Athabasca and Waupisoo conduits. About 20 percent of daily U.S. oil imports come from Canada, according to the U.S. Energy Department.

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