Enbridge CEO Says Ready to Spend to Expand US Network
CNBC Executive News Editor
Enbridge CEO Al Monaco said the company has $15 billion in hand to put into pipeline expansion.
The boom in U.S. and Canadian oil production has resulted in more oil than can be pumped through existing pipelines, and Enbridge has actively been working to help provide a network that would take crude to the coasts. The U.S. was ill prepared for the mid-continent boom since oil traditionally went inward from the coasts to the center of the country, he said.
Monaco expects a regulatory decision on the Gateway pipeline—which runs from Edmonton to the West Coast of Canada—from Canadian authorities by the end of the year.
"You've got basically a replumbing of this North American pipeline," he said.
Besides the recent north-to-south reversal of the Seaway pipeline carrying crude to the Gulf Coast, Monaco said the recently announced reversal of the Eastern Gulf Coast Access should take another 440,000 to 660,000 barrels a day from Illinois to St. James, Louisiana. If approved, TransCanada's Keystone XL pipeline also would take oil from the north to the south, but Monaco said there's plenty of supply to fill those pipelines.
The oil industry has also relied on rail to carry crude to refining areas, and it's estimated more than 50 percent of the oil produced in the North Dakota Bakken field is moved by rail.
Monaco was at the annual CERAWeek conference in Houston where he was appearing on a panel on logistics.
(Read More: Finding an Edge in the Booming US Energy Market)