Survey finds farm confidence still faltering
In the first-of-its-kind survey for the Canadian Association of Petroleum Producers, Enbridge has emerged as Canada’s third largest oilfield service company. Enbridge’s CEPO crude oil product output is expected to climb 12 per cent in 2015.
“The report is바카라사이트 a reflection of the fact that Enbridge, as one of the sector’s dominant players, faces mounting risks. But the report also highlights what is going to be the major challenge that the sector will face from Alberta, especially if Enbridge continues to see continued declines in oil costs,” said Richard Hildebrand, president and CEO of the Canadian Association of Petroleum Producers.
Enbridge has been operating at around $47.20 US per barrel since December 2014 when it began to add new oil sands to its product lines in the Rocky Mountain region. In 2013, the first quarter of Enbridge’s 2014 year, oil sands production was only about 20,000 barrels a day, meaning crude oil production would be at a level not seen since 1976.
“The CEPO report shows our industry continues to face growing risks for both financial health and operational efficiencies in the short-term. Th바카라사이트is suggests that, while Enbridge’s costs have risen significantly in recent years, revenues have not,” said Kevin Pollack, chief executive officer of Enbridge Energy Services Inc. “Continued low Canadian crude oil prices and an expanding cost advantage for Enbridge, coupled with the need to refinance C$6 billion in debt, is the main impediment to long-term profitability.”
Enbridge has yet to submit full quarterly results. The company currently has debt of C$21.6 billion, including C$21.2 billion in non-performing loans. At the start of this year, Enbridge had revenue of C카지노 사이트$33.8 billion, with the remaining C$3.9 billion owed to debt.
While the financial pressures mounted for Enbridge, its management faced other challenges in the fourth quarter. The CPPIB also questioned the company’s progress and its commitment to reducing capital expenditures.
According to Enbridge Chief Financial Officer Tom Clark, a $10 billion reduction in capital expenditures would put the company on course for achieving full profitability by October 2015.
Despite the low oil prices, Enbridge’s revenue from its production was flat last quarter. However, Enbridge believes it will be able to continue to generate substantial gains over the next few years, with production rising to about 20 million barrels o