Outgoing Enbridge CEO talks pipelines, industry transition
, BNN Bloomberg
ENBRIDGE INC (ENB:CT)
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The outgoing chief executive of Enbridge Inc. discussed how the energy giant has changed during his 10 years at the helm, with an expanded roster of energy sources and responses to growing environmental concerns that have been aimed at the industry.
Al Monaco spoke with BNN Bloomberg's Tara Weber ahead of his Jan. 1 retirement from the president and chief executive officer position. Current Enbridge board chair Greg Ebel is set to replace him in the top job.
Monaco said he’s seen the industry improve in response to political opposition over the last decade, with a greater focus on building relationships with Indigenous communities and responding to consumer demand for more sustainable energy sources.
RENEWABLE ENERGY TRANSITION, NATURAL GAS
Enbridge has tried to look to the “future of energy,” Monaco said.
The company has focused on growing its natural gas assets, he said, and has added a “small component of renewables” as Enbridge looks to expand its wind, solar, hydrogen and carbon capture positions.
That has been balanced with what Monaco calls “conventional energy” like oil. He predicted the global energy transition may take some time as companies like Enbridge diversify their assets.
“I do think we're on the right track,” he said.
PIPELINE OPPOSITION
Pipelines and other energy infrastructure have been a “point of attack” as opposition to fossil fuels has grown, Monaco acknowledged, saying the company has had to focus its messaging to the public in response.
Opposition has plagued some of Enbridge’s expansion plans over the last decade. The Line 3 replacement pipeline project was completed years behind schedule after controversy in Minnesota. Enbridge is still facing legal battles related to the Line 5, an oil supply conduit that the state of Michigan is seeking to shut down over environmental concerns.
Monaco said he’s not surprised that Line 5 has seen such pushback because pipelines have become a focal point of environmental and climate change concerns for many.
“It’s sort of the meat in the sandwich and it’s very critical, so if you want to attack conventional energy that’s the place to start, and I think it’s been effective if you want to look at it from an opposition point of view,” he said.
In response, Monaco said the company has focused on communicating with the public about the purpose of energy infrastructure, and has stressed the importance of affordable and reliable energy sources – an issue he said came into greater focus during the pandemic.
COMMUNITY ENGAGEMENT, FIRST NATIONS OWNERSHIP
Completing energy projects now takes strong “ground game” and engagement with communities, Monaco said, pointing to that strategy as key to the ultimate completion of the beleaguered Line 3 project.
He said Enbridge had to engage more with Indigenous communities in the U.S. and Canada to complete the project and said such relationships are critical to the future of the industry, pointing to the growing trend of Indigenous ownership stakes in energy infrastructure projects.
“Today, it's very common to talk about Indigenous ownership as part of how you run assets in the future,” Monaco said. “I think it's going to be a critical component.”
NEXT STEPS
Looking back at his time as CEO, Monaco said he’s “pleased” with the safety changes the company made after a 2010 oil spill in Michigan. He said he’s also proud of the company’s expanded presence on the U.S. Gulf Coast – allowing for more participation in the global energy market – and its engagement with Indigenous communities, as well as steps to reduce the company’s carbon footprint like using carbon capture technology and adding renewable sources.
Monaco did not give hints about his next career move, but said he’s “looking forward to doing some other things.”
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