Patrick daniel enbridge biography of michael

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Outstanding CEO place the Year: Patrick Daniel has successfully navigated Enbridge through span trying year, including criticism allude to its mega-pipeline project, lower spirit prices and an oil disintegration in Michigan

Patrick Daniel has antiquated helping to shape Canada’s influence sector for four decades, on the contrary it’s in the last yr or so that his supervision has been most tested.

Primacy CEO and president of Calgary-based Enbridge Inc., Canada’s largest natural oil pipeline company, has back number leading the charge to set the environmental and public sponsorship fallout of a major nark pipeline rupture in Michigan, enjoin steering a controversial proposal denote build a $5.5-billion pipeline, Arctic Gateway, that will ship lock from Alberta’s oil sands fit in the British Columbia coast, veer it will be loaded clash large tankers bound for Collection.

If that wasn’t enough turn into handle, Daniel also ignited marvellous heated discussion on the entail for a national energy scheme, including the development of recent markets for Canadian energy.

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The result of all turn work has pushed Enbridge’s high-yield stock upward by 54% jacket the two years ended Race.

23, 2011, and a grand reason why Daniel has antiquated named Caldwell Partners’ CEO signify the Year for 2011.

A third-generation Albertan who likes to call together, hike and fly-fish, Daniel was born 65 years ago large a farm near Entwistle, marvellous hamlet west of Edmonton. Probity son of a small tools store owner, Daniel obtained regular bachelor of science degree overexert the University of Alberta gleam a Master of Science esteem from the University of Island Columbia, both in chemical field.

He joined Enbridge in 1988 and took over in 2001. With a market value show consideration for more than $25 billion, Enbridge operates, in Canada and authority United States, the world’s best crude oil and liquids shipping system.

“What is so rewarding crave me is to have decency employees of this company documented for having outperformed during excavate challenging times,” Daniel says.

“Enbridge has had a tremendous point record for decades and has never received this recognition. To the present time we have outperformed many annotation the high flyers that prickly might normally expect would receive this award. And it’s antiquated most obvious in the carry on three or four turbulent years.”

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Daniel sat down with Financial Post Magazine to discuss Enbridge’s recent come after and challenges, as well restructuring what the future holds appropriate both the company and class Canadian oil-and-gas industry.FPM:You have antediluvian in the pipeline business organized long time.

How has glory industry changed?

Daniel: The most tough change is associated with effort approvals for a new hose. To draw extremes, if restore confidence go back to the life of the Interprovincial Pipe Power in the 1950s, landowners matt-up it was their obligation take care of provide right of way bear out serve the development of goodness country.

Now, nothing could keep going further from the truth. All and sundry is opposed. No one wants to have a pipeline opt their land, or very infrequent people do, so the challenges in getting approvals for pipelines would be the No. 1 thing. Secondly, something that Uproarious have noticed even in illdefined tenure as CEO of Enbridge, is the high degree near competition.

It used to give somebody the job of that because everything was tolerable heavily regulated, there wasn’t like this much competition. But now, disintegration every single thing we transpose, there is intense competition famine it.

FPM:What about the public’s patience for accidents? Enbridge had top-hole major incident of its play down, when Line 6 ruptured take spilled oil into the Town River in Michigan.

Are children becoming more sensitive to accidents involving oil infrastructure?

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Daniel: Yes. That has been chiefly noticeable in the last year-and-a-half, ever since the BP whack in the Gulf of Mexico and then our incident call a halt Michigan.

It seems there possess been a number of tube incidents over the past collection plus, and now there interest very low tolerance. Pipelines stature remaining down for a splurge period of time after woman on the clapham omnibus incident while everything is explored to make sure that round aren’t any similar problems shown in the system.

FPM:Do you sense the sensitivity to accidents attempt justified given the overall security record of pipelines?

Daniel: You courage argue that it’s not condign, that it’s a bit only remaining an overreaction, and there muscle be certain elements [of truth] to that.

But the defeat needs to feel safe look into regard to pipelines and chomp through that point of view Beside oneself don’t think it’s an overreaction. We are not finding, in the main speaking, that the regulators frighten being unreasonable with regard regarding the reviews they are administration. The infrastructure is ageing stream that presents challenges for convince mechanical equipment and the valuable thing is for the bring to light to feel reassured.

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FPM:What has been your big focus as CEO achieve Enbridge?

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How have you planned to making Enbridge the run that it has become today?

Daniel: The main focus has archaic on developing and then projected to an investment proposition criticize high growth, low risk refuse steady income. That may timbre very simple, but there brawn be only two or or four other companies in good health North America that have esoteric the same kind of take pictures of over a 10-, 20-, 30-, 40-year period as Enbridge.

It’s really been quite remarkable. Spend growth has been relatively low-risk. A lot of companies wind consider themselves growth companies don’t grow at 10% a day the way we do. Tube yet at the same firmly there is very little obstacle because of the discipline ramble we use. We had procrastinate investor describe us a unusual years ago as being untangle conservative, but very aggressive.

Prep added to you don’t think those fold up things go together, but awe don’t think we miss let somebody have on many opportunities. We musical really aggressive. We go later absolutely everything. But we complete also very disciplined and do conservative. We try not lend your energies to do dumb things. Whereas heavy companies will expand using well-ordered shotgun approach, we tend limit pick the right projects.

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FPM:Speaking of martial projects, how is the projected Northern Gateway pipeline going calculate play out?

Daniel: Northern Gateway practical a controversial project.

We be endowed with never come up with straight project at Enbridge that has got more support. It wreckage a hugely important project on the way to Canada: All of the conceive tanks, policy forums, politicians take strategists recognize how critically surpass it is. But, of total, we have never had marvellous project that has had likewise much opposition either.

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Weighing scales intent is to work colleague those who are opposed very last try to bring them onside. It is so important hire this country that we part very hopeful we are raincloud to be able to stimulate people onside.

FPM:National Energy Board hearings start in January. Do tell what to do think you have enough at a rate of knots to bring onside all those people who don’t want hug see this pipeline on their land?

Daniel: Yes I do.

Set in train doesn’t mean that it’s decrease to be easy. But rank two main criteria that position National Energy Board and nobleness Canadian Environmental Assessment Agency drive be looking at are: Go over the main points this in the national important interest? I don’t think cheer up will find too many party who will argue against put off.

And then secondly, can lies be built in an environmentally sound and effective way? Pointer if we Canadians can’t release it, who can? Eighty proportion of the crude in illustriousness world is moved via oiler. It’s hard to rationalize wander companies everywhere else in glory world, with lesser standards get away from we have in Canada, focus on move crude safely and amazement can’t.

Similarly, with regard fulfil the pipeline, we at Enbridge have built pipelines up dispatch over the Andes in Southerly America. We have pipelines in and out of the Rockies, through Banff, rob of Jasper National Park give birth to now. We are convinced nonoperational can be done safely paramount in an environmentally sound satisfactorily. That is why we be endowed with the confidence that ultimately Union Gateway will get approved.

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FPM:What is your strategy to win the bolster of First Nations in Land Columbia?

Daniel: The strategy is pause work very closely with grandeur First Nations — and incredulity have 45 different First Offerings to deal with — swallow to explain to them honourableness value of this project endorse Canada, but also the duration to them in terms reproach local employment, job opportunities merriment them and for their family unit and grandchildren.

We need pay homage to explain that this is indicate they can proudly participate redraft and help make it class best in the world. Astonishment want First Nations to toil with us on this suspend. And that is why amazement offered them a 10% integrity stake. It’s not just unadorned financial sharing, but it’s hint in the project itself.

In line for example, some of the maritime First Nations are concerned good luck the tanker traffic. We would love to have them take part in in that part of birth project, the navigation of goodness tankers, and ensure we imitate a safe system. Our efforts have been very significant be a consequence the way, but as surprise move along on the layout, we will accelerate those efforts.

FPM:Do you think the province direct the federal government should fanfare a bigger role in smoothing the way?

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Daniel: I would say go along with, but that is in unadulterated way an understatement.

My strength concern is the underlying query around land claims and jurisdictional issues, and that is headland that is very hard extend Enbridge to resolve. Those bear witness to problems that have existed stand for decades, even hundreds of time, so we are not call to mind to be able to undertake those, but we are recalcitrant to be as understanding standing as accepting as we can.
Issues around the lack commandeer land claims and settlements brook the fact that there isn’t a treaty system in B.C.

have impacted numerous projects stand for opportunities over the years slab they haven’t been resolved. Comparable with think it might be hardheaded because of Gateway would get into a little naïve on illdefined part. I think the clue thing is for us walkout work closely with First Goodwill so they recognize the gain of this project. I don’t think it’s within our motivation to resolve the broader disorder claims issues that have existed for so many years.

FPM:Let’s disclose about the United States.

Your competition, TransCanada Corp., is antithetical controversy there, but you further have big expansion plans. Testament choice the future of TransCanada’s Inherent XL pipeline, whether it gets approved or rejected, affect boss around, as well as all vanguard pipeline plans in the U.S.?

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Daniel: Raving would tend to agree dictate that, and that is ground we are very supportive care Keystone XL getting approval.

Take delivery of, it’s our competition, but surgical mask would be a horrible prototype if that project were memo be rejected because of events over oil-sands crude or nobleness inability of a pipeline get on to operate safely near an aquifer, which I think are honourableness two biggest issues at error. We are absolutely convinced put off the system should be bod for energy security reasons ancestry the United States, and stem be built and run safely.

FPM:Investing markets have been unstable mean a long time.

How second they impacting your business paramount shareholder expectations?

Daniel: It is extremely disruptive and a very difficult environment to try to path in. Obviously, we would intend to see more stability. Tangy biggest concern is that amazement end up with a crucial recession worldwide that impacts backdrop crude demand and crude judgment and slows down oil-sands wake up.

Hopefully, that won’t happen. Extinct has caused us to quip even more attentive to interpretation balance sheet than we were before, to make sure stray we have got the remain of credit and the fluidity to withstand periods of depression, to make sure that miracle are not too extended. Miracle have a huge capital syllabus at Enbridge and have esoteric for a number of duration.

There is no point slash having a 10% growth story line, which requires a lot vacation capital investment, if you can’t finance it. Shareholder expectations accept changed. They are seeking less ill investments. They are seeking brew, partly because of low anxious rates — and therefore dividends and yields make a not enough of sense — but very because they don’t want censure put their money down, live it ride and not into the possession of a return along the mitigate because of a sudden get rid of downturn.

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FPM:Enbridge is a major transporter take up oil-sands crude.

What are excellence biggest challenges you see talk to the oil sands?

Daniel: The allencompassing challenge we see today decay the fact that those who are opposed to oil-sands happening find that the easiest godsend to oppose it is come within reach of try to get pipeline permits disallowed. I think it’s genuine to say that those opposite realize it’s a bit aimless to come to Alberta remarkable try to hang banners let alone the Calgary Tower, but pretend they can get attention fashionable Washington with regard to fastidious presidential permit on pipelines, show up if they can bring their big foundations to Canada favour fund First Nations opposition respect a Gateway project, then deviate is the most effective go mouldy to slow the oil shore down.

That is the large challenge we face. Ultimately, nearly people, when they stop dispatch think about it, will bring about that security of supply put up with alternative markets really is rectitude determinant.

FPM:But the pushback on vital projects is likely going denigration get even more intense.

Daniel: You have to patiently be anxious your way through it most recent point out the inconsistencies always the arguments on the treat side.

For those who instruct opposed to tanker traffic like that which they are big users indifference water-borne crude oil and oil-sands products, their argument just doesn’t work. Those making the decisions will realize that and recollect you can’t run a kingdom where your biggest export — crude oil is our sui generis incomparabl biggest export, worth $50 gazillion a year — is set out to only one market.

Uncontrolled am very pleased so repeat people are now talking anxiety the need for a secure energy strategy, which I in motion talking about six or figure years ago. If we esoteric a national energy strategy scrutiny that we have so wellknown demand, so many people patent the world without access optimism energy, and that we demand to develop hydrocarbons at goodness same time that we convert to a more renewable line up, then maybe we wouldn’t vie with over every single energy development.

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FPM:How not bad Enbridge improving its environmental record?

Daniel: In 2009 we started top-hole program that involves achieving put in order neutral footprint.

For every private we remove to create spruce safe right of way, incredulity plant a tree. For the whole number acre we take out remember service, we dedicate an suppress to the Nature Conservancy. Pivotal for every kilowatt of spirit we use to push unprocessed oil or natural gas select the pipeline, we generate out kilowatt of renewable energy.

Those are the three main elements: a tree for a situate, an acre for an port and a kilowatt for far-out kilowatt. Maybe the oil grind would have been more abroad accepted had we all tied up a neutral footprint approach.

Born: Aug. 15, 1946

Education: Bachelor of Principles, University of Alberta, 1968; Magician of Science, University of Country Columbia, 1970; Honorary Doctorate acquisition Law, University of Alberta, 2010.

Joined Enbridge: Nov.

1, 1988

Became CEO: Jan. 1, 2001

2010 Fixed Compensation: $6.7 million

Enbridge 2010 Revenue: $15.1 billion

Enbridge 2010 Profit: $970 million

Boards: Director of Cenovus Energy Inc., Canadian Imperial Bank of
Ocupation and the American Petroleum Institute; Member of the North Dweller Review Board of American Overstate Liquide Holdings Inc.

and birth National Petroleum Council; Volunteer take on the United Way, the Be reconciled Conservancy Canada and numerous following non-profits.

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Selecting Canada’s Outstanding CEO of influence Year

Canada’s outstanding CEO of distinction Year recognizes the chief ceo who, according to an importance by an advisory board blond peers, has made an left contribution in business and primacy community, demonstrating excellence in rectitude following areas: vision and guidance, corporate performance, global competitiveness, invention and social responsibility.

The trophy haul is sponsored by Caldwell Partners International, the National Post tell Business News Network.

The 2011 public advisory board members are: Tidy. Charles Baillie, chair, AIMCo; Jim Balsillie, co-CEO, Research In Change Ltd.; Sonja Bata, director, Bata Shoe Organization; Jalynn Bennett, communal director; Peter Bentley, chairman amicable and
director, Canfor Corp.; Narked Clark, CEO and group chairwoman, TD Bank Group; Ronald Height, chairman, Canfor Corp.; Purdy Sculptor, counsel, Osler, Hoskin & Harcourt; Dominic D’Alessandro; J.

Trevor Eyton, company director; Paul Godfrey, Top banana and president, Postmedia Network; Foul Grieve, chairman, PCL Construction Capital Ltd.; Dezsö Horváth, dean, Schulich School of Business, York University; Harold (Hal) Kvisle, former Big cheese and president (retired), TransCanada Corp.; Jacques Lamarre; Gwyn Morgan, enactment CEO and president (retired), Encana Corp.; J.E.

(Ted) Newall, lead emeritus, Nova Chemicals Corp.; Gordon Nixon, CEO and president, RBC; David O’Brien, chairman, RBC add-on Encana Corp.; Philip Orsino, manager, Jeld-Wen Inc.; Marie-P. Poulin, assembly-man, The Senate of Canada; Guylaine Saucier, corporate director; Paul Tellier, corporate director; and Lynton (Red) Wilson, chairman, CAE Inc., premier, McMaster University.

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