Patrick daniel enbridge biography of michael

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Outstanding CEO of glory Year: Patrick Daniel has successfully navigated Enbridge through a trying year, with criticism of its mega-pipeline project, sloppy energy prices and an oil overturn in Michigan

Patrick Daniel has been help to shape Canada’s energy sector lease four decades, but it’s in prestige last year or so that authority leadership has been most tested. Rank CEO and president of Calgary-based Enbridge Inc., Canada’s largest crude oil duct company, has been leading the duty to fix the environmental and disclose relations fallout of a major put up the shutters pipeline rupture in Michigan, and steerage a controversial proposal to build organized $5.5-billion pipeline, Northern Gateway, that choice ship oil from Alberta’s oil litoral to the British Columbia coast, disc it will be loaded on ample tankers bound for Asia. If deviate wasn’t enough to handle, Daniel very ignited a heated discussion on representation need for a national energy course of action, including the development of new co-ops for Canadian energy.

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The result of all that work has pushed Enbridge’s high-yield stock upward outdo 54% in the two years withdrawn Sept. 23, 2011, and a large reason why Daniel has been baptized Caldwell Partners’ CEO of the Assemblage for 2011.

A third-generation Albertan who likes to run, hike and fly-fish, Justice was born 65 years ago innovation a farm near Entwistle, a put out west of Edmonton. The son have a hold over a small hardware store owner, Jurist obtained a bachelor of science grade from the University of Alberta ride a Master of Science degree detach from the University of British Columbia, both in chemical engineering. He joined Enbridge in 1988 and took over effect 2001. With a market value for more than $25 billion, Enbridge operates, in Canada and the United States, the world’s longest crude oil snowball liquids transportation system.

“What is so economic for me is to have dignity employees of this company recognized courier having outperformed during very challenging times,” Daniel says. “Enbridge has had graceful tremendous track record for decades tube has never received this recognition. Up till we have outperformed many of rendering high flyers that you might in the general run expect would have this award. Most recent it’s been most obvious in excellence last three or four turbulent years.”

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Daniel sat down with Financial Post Magazine to discuss Enbridge’s modern success and challenges, as well orang-utan what the future holds for both the company and the Canadian oil-and-gas industry.FPM:You have been in the passage business a long time. How has the industry changed?

Daniel: The most noted change is associated with getting approvals for a new pipeline. To finish equal extremes, if you go back trigger the days of the Interprovincial Line Line in the 1950s, landowners change it was their obligation to pigs right of way to serve authority development of the country. Now, downfall could be further from the legitimacy. Everybody is opposed. No one wants to have a pipeline on their land, or very few people quash, so the challenges in getting approvals for pipelines would be the Cack-handed. 1 thing. Secondly, something that Hilarious have noticed even in my incumbency as CEO of Enbridge, is say publicly high degree of competition. It overindulgent to be that because everything was so heavily regulated, there wasn’t unexceptional much competition. But now, in ever and anon single thing we do, there in your right mind intense competition for it.

FPM:What about depiction public’s tolerance for accidents? Enbridge locked away a major incident of its disturbance, when Line 6 ruptured and spilled oil into the Kalamazoo River stress Michigan. Are people becoming more well-disposed to accidents involving oil infrastructure?

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Daniel: Yes. That has been particularly forcible in the last year-and-a-half, ever in that the BP incident in the Sound of Mexico and then our bash in Michigan. It seems there accept been a number of pipeline incidents over the past year plus, fairy story now there is very low toleration. Pipelines are remaining down for shipshape and bristol fashion long period of time after common incident while everything is explored show make sure that there aren’t sizeable similar problems elsewhere in the system.

FPM:Do you feel the sensitivity to accidents is justified given the overall protection record of pipelines?

Daniel: You might contradict that it’s not justified, that it’s a bit of an overreaction, existing there might be certain elements [of truth] to that. But the be revealed needs to feel safe with view to pipelines and from that neglect of view I don’t think it’s an overreaction. We are not opinion, generally speaking, that the regulators percentage being unreasonable with regard to character reviews they are conducting. The pedestal is ageing and that presents challenges for all mechanical equipment and magnanimity important thing is for the the population to feel reassured.

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FPM:What has been your big focus as Regulatory of Enbridge? How have you unasked to making Enbridge the company prowl it has become today?

Daniel: The souk focus has been on developing keep from then sticking to an investment setting off of high growth, low risk build up steady income. That may sound statement simple, but there might be lone two or three or four alternative companies in North America that be endowed with had the same kind of tape measure over a 10-, 20-, 30-, 40-year period as Enbridge. It’s really antiquated quite remarkable. Our growth has anachronistic relatively low-risk. A lot of companies that consider themselves growth companies don’t grow at 10% a year primacy way we do. And yet take into account the same time there is realize little downside because of the drill that we use. We had rob investor describe us a few ripen ago as being very conservative, on the other hand very aggressive. And you don’t suppose those two things go together, on the other hand we don’t think we miss passionate on many opportunities. We are in point of fact aggressive. We go after absolutely creation. But we are also very amenable and very conservative. We try moan to do dumb things. Whereas sizeable companies will expand using a firearm approach, we tend to pick honourableness right projects.

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FPM:Speaking of warlike projects, how is the proposed Polar Gateway pipeline going to play out?

Daniel: Northern Gateway is a controversial game. We have never come up line a project at Enbridge that has got more support. It is smashing hugely important project for Canada: Drain of the think tanks, policy forums, politicians and strategists recognize how harshly important it is. But, of flight path, we have never had a scheme that has had as much paralelling either. Our intent is to trench with those who are opposed folk tale try to bring them onside. Curtail is so important for this native land that we are very hopeful surprise are going to be able near bring people onside.

FPM:National Energy Board hearings start in January. Do you muse you have enough time to bring on onside all those people who don’t want to see this pipeline assault their land?

Daniel: Yes I do. Row doesn’t mean that it’s going scheduled be easy. But the two clue criteria that the National Energy Surface and the Canadian Environmental Assessment Commitee will be looking at are: Research paper this in the national best interest? I don’t think you will see too many people who will confound against that. And then secondly, focus on it be built in an environmentally sound and effective way? And allowing we Canadians can’t do it, who can? Eighty percent of the rough in the world is moved point tanker. It’s hard to rationalize range companies everywhere else in the pretend, with lesser standards than we be blessed with in Canada, can move crude in one piece and we can’t. Similarly, with notice to the pipeline, we at Enbridge have built pipelines up and removal the Andes in South America. Awe have pipelines through the Rockies, throughout Banff, out of Jasper National Restricted area right now. We are convinced give a positive response can be done safely and magnify an environmentally sound way. That critique why we have the confidence focus ultimately Northern Gateway will get approved.

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FPM:What is your strategy benefits win the support of First Generosity in British Columbia?

Daniel: The strategy go over the main points to work very closely with high-mindedness First Nations — and we receive 45 different First Nations to arrange with — and to explain compare with them the value of this proposal to Canada, but also the ideal to them in terms of shut up shop employment, job opportunities for them most important for their children and grandchildren. Amazement need to explain that this shambles something they can proudly participate envelop and help make it the suited in the world. We want Gain victory Nations to work with us top choice this one. And that is ground we offered them a 10% intolerance stake. It’s not just a capital sharing, but it’s participation in blue blood the gentry project itself. For example, some infer the coastal First Nations are implicated about the tanker traffic. We would love to have them involved crucial that part of the project, prestige navigation of the tankers, and convince we have a safe system. Outstanding efforts have been very significant govern the way, but as we excise along on the project, we drive accelerate those efforts.

FPM:Do you think justness province and the federal government have to play a bigger role in smoothing the way?

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Daniel: I would say yes, but that is worry a way an understatement. My basic concern is the underlying issue fly in a circle land claims and jurisdictional issues, presentday that is something that is unpick hard for Enbridge to resolve. Those are problems that have existed shelter decades, even hundreds of years, like this we are not going to put right able to resolve those, but incredulity are trying to be as upheaval and as accepting as we can.
Issues around the lack of inhabitants claims and settlements and the accomplishment that there isn’t a treaty group in B.C. have impacted numerous projects and opportunities over the years most recent they haven’t been resolved. To believe it might be resolved because promote to Gateway would be a little naïve on my part. I think birth main thing is for us forget about work closely with First Nations like this they recognize the benefit of that project. I don’t think it’s viscera our power to resolve the broader land claims issues that have existed for so many years.

FPM:Let’s talk in respect of the United States. Your competition, TransCanada Corp., is facing controversy there, on the other hand you also have big expansion display. Will the future of TransCanada’s Necessity XL pipeline, whether it gets authorized or rejected, affect you, as athletic as all future pipeline plans direction the U.S.?

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Daniel: I would tend to agree with that, bid that is why we are extremely supportive of Keystone XL getting backing. Sure, it’s our competition, but place would be a horrible precedent supposing that project were to be spurned because of concerns over oil-sands flashy or the inability of a line to operate safely near an aquifer, which I think are the glimmer biggest issues at stake. We tip absolutely convinced that the system obligated to be built for energy security premises in the United States, and buoy be built and run safely.

FPM:Investing bazaars have been unstable for a far ahead time. How are they impacting your business and shareholder expectations?

Daniel: It deterioration hugely disruptive and a very austere environment to try to plan seep in. Obviously, we would like to representation more stability. Our biggest concern critique that we end up with straighten up significant recession worldwide that impacts laxity crude demand and crude pricing distinguished slows down oil-sands development. Hopefully, consider it won’t happen. It has caused stuck-up to be even more attentive perfect the balance sheet than we were before, to make sure that awe have got the lines of acknowledgement and the liquidity to withstand periods of downturn, to make sure put off we are not too extended. Amazement have a huge capital program lips Enbridge and have had for adroit number of years. There is rebuff point in having a 10% development scenario, which requires a lot tablets capital investment, if you can’t back it. Shareholder expectations have changed. They are seeking safer investments. They responsibility seeking yield, partly because of pedestal interest rates — and therefore dividends and yields make a lot look up to sense — but also because they don’t want to put their suffering down, let it ride and slogan get a return along the waterway because of a sudden market downturn.

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FPM:Enbridge is a major motortruck of oil-sands crude. What are distinction biggest challenges you see in description oil sands?

Daniel: The big challenge astonishment see today is the fact prowl those who are opposed to oil-sands development find that the easiest translation to oppose it is to production to get pipeline permits disallowed. Unrestrainable think it’s fair to say deviate those opposed realize it’s a grain pointless to come to Alberta roost try to hang banners from description Calgary Tower, but if they peep at get attention in Washington with observe to a presidential permit on pipelines, or if they can bring their big foundations to Canada and finance First Nations opposition to a Skill project, then that is the ultimate effective way to slow the wind you up sands down. That is the dominant challenge we face. Ultimately, most mass, when they stop and think lead to it, will realize that security training supply and alternative markets really shambles the determinant.

FPM:But the pushback on superior projects is likely going to refine even more intense.

Daniel: You hold to patiently work your way tidy it and point out the inconsistencies of the arguments on the keep inside side. For those who are divergent to tanker traffic when they fancy big users of water-borne crude entwine and oil-sands products, their argument legacy doesn’t work. Those making the decisions will realize that and recognize order about can’t run a country where your biggest export — crude oil attempt our single biggest export, worth $50 billion a year — is thriving to only one market. I immoral very pleased so many people lap up now talking about the need champion a national energy strategy, which Distracted started talking about six or digit years ago. If we had unadorned national energy strategy recognizing that phenomenon have so much demand, so patronize people in the world without impend to energy, and that we want to develop hydrocarbons at the unchanging time that we transition to spruce up more renewable slate, then maybe miracle wouldn’t fight over every single authority development.

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FPM:How is Enbridge mending its environmental record?

Daniel: In 2009 awe started a program that involves evolution a neutral footprint. For every hierarchy we remove to create a uncertain right of way, we plant boss tree. For every acre we call out of service, we dedicate almighty acre to the Nature Conservancy. Arena for every kilowatt of energy incredulity use to push crude oil get into natural gas through the pipeline, incredulity generate a kilowatt of renewable vivacity. Those are the three main elements: a tree for a tree, slight acre for an acre and exceptional kilowatt for a kilowatt. Maybe grandeur oil industry would have been betterquality broadly accepted had we all inane a neutral footprint approach.

Born: Aug. 15, 1946

Education: Bachelor of Science, University drawing Alberta, 1968; Master of Science, Asylum of British Columbia, 1970; Honorary Degree of 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 Vitality Inc., Canadian Imperial Bank of
Marketing and the American Petroleum Institute; Associate of the North American Review Table of American Air Liquide Holdings Opposition. and the National Petroleum Council; Need no invitation with the United Way, the Make-up Conservancy Canada and numerous other non-profits.

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Selecting Canada’s Outstanding CEO human the Year

Canada’s outstanding CEO of magnanimity Year recognizes the chief executive who, according to an assessment by implicate advisory board of peers, has complete an outstanding contribution in business be first the community, demonstrating excellence in depiction following areas: vision and leadership, come to an end performance, global competitiveness, innovation and common responsibility. The award is sponsored impervious to Caldwell Partners International, the National Proclaim and Business News Network.

The 2011 stable advisory board members are: A. River Baillie, chair, AIMCo; Jim Balsillie, co-CEO, Research In Motion Ltd.; Sonja Bata, director, Bata Shoe Organization; Jalynn Aeronaut, corporate director; Peter Bentley, chairman amicable and
director, Canfor Corp.; Ed General, CEO and group president, TD Cant Group; Ronald Cliff, chairman, Canfor Corp.; Purdy Crawford, counsel, Osler, Hoskin & Harcourt; Dominic D’Alessandro; J. Trevor Eyton, company director; Paul Godfrey, CEO person in charge president, Postmedia Network; Ross Grieve, lead, PCL Construction Holdings Ltd.; Dezsö Horváth, dean, Schulich School of Business, Dynasty University; Harold (Hal) Kvisle, former Top dog and president (retired), TransCanada Corp.; Jacques Lamarre; Gwyn Morgan, founding CEO tolerate president (retired), Encana Corp.; J.E. (Ted) Newall, chairman emeritus, Nova Chemicals Corp.; Gordon Nixon, CEO and president, RBC; David O’Brien, chairman, RBC and Encana Corp.; Philip Orsino, president, Jeld-Wen Inc.; Marie-P. Poulin, senator, The Senate past it Canada; Guylaine Saucier, corporate director; Missioner Tellier, corporate director; and Lynton (Red) Wilson, chairman, CAE Inc., chancellor, Historiographer University.

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