Enbridge SWOT and PESTLE Analysis

Strength

1. Runs the world’s longest and most complex crude oil and liquids transportation system: Enbridge operates the world’s longest and most complex crude oil and liquids transportation system, which connects North America’s key supply basins with the refining centers —the U.S. Midwest, the Gulf Coast and Eastern Canada. Their mainline system mobilizes approximately 25% of North America crude oil. They deliver approximately 2.785 million barrels per day, beating their own benchmarks. They have added 450,000 bpd of capacity to the mainline since 2015 through low cost optimization and expansion. Their team is working on a number of long and short-term enhancements to address the problems of transportation in Western Canada. Enbridge’s Mainline and Express pipeline account for approximately 62% of United States-bound Canadian crude oil exports.

2. Geographic location advantage: Enbridge is a 70 year old company. It has a wide base of employees standing at a large number of more than 11,000 employees as of 2019. It is headquartered in Calgary, Alberto which is presently in Canada. Also it has its business widely spread over Canada, to be precise Western Canada. Canada has many oil depositories. Rather Canada is a hub of crude oil depositories. It is known to be one of the biggest exporters of crude oil. Being one of the leading companies of Canada, geographic location of Enbridge is an edge over its competitors. Good geographic location gives an assurance to the company’s production and profit levels and minimizes transportation and handling expenses. Enbridge enjoys this location advantage as it is present in the hub of depositories.

3. Natural gas pipelines connect key supply basins to North America’s largest demand centers: Enbridge is known to be the largest natural gas suppliers of North America. Its pipelines connects key supply basins to North America’s largest demand centers, namely, New York, Chicago, Boston, Toronto, Vancouver and Seattle. They transport approximately 18% of all the natural gas that is consumed in the US. North America and the Gulf of Mexico get covered under their gas transmission network. They operate as one of the largest natural gas utilities in North America. They deliver approximately 3.7 million homes and businesses with energy. They deliver very reliable and low cost energy to their customers in Ontario. They are even the largest crude oil market in the United States. They are expecting that the global crude oil demand will continue to grow till 2035. Enbridge is known to have the largest transportation system of natural gas and crude oil across North America. For their mainline and express pipelines, each day on an average 2.9 millions of crude oil are delivered. They also have storing facilities for natural gas. The crude oil production rate can be accounted as 25% in North America. In the distribution sector, they are known to be the natural gas provider that is the largest in Canada. They have retail customers (3.7 million) in Canadian states Ontario, Quebec, New Brunswick and New York State.

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Weakness

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Opportunity

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Threat

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Political

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Economic

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Social

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Technological

1. IOT in logistics: Digitization is all around. IOT (Internet of Things) has already wide range of applications. Enbridge is known to adopt various innovative technological disruptions to outshine competition. One of the major costs incurred by the oil and gas or utilities sector are in logistics and supply chain management. Internet of things (IoT) can be easily leveraged to smoothen out these two processes. In an industry as diverse as O&G, the IoT solution targets three business objectives relevant to IoT deployments -improving reliability, optimizing operations, and creating new value. Midstream companies like Enbridge (e.g., transportation, such as pipelines and storage) eyeing higher network integrity and new commercial opportunities will tend to find significant benefit by building a data-enabled infrastructure. There is a good amount of cost involved in loading and unloading materials. Internet of things can control these processes and ensure a free flow supply chain and ensure good and hindrance free management. A device can be connected at a place from where it has to be delivered and also at a place where it has to be delivered. This ensures more connectivity. IoT can play a huge role in optimizing these processes and saving costs. There is a term redefine by GE that is Internet of Energy where the data is associated with every electron. Enbridge is collaborating with GE, whose power turbines and generators feed 30% of the globe’s electricity needs, to harness a new era of information, as well as grid-based power generation and delivery systems, and merge them into data-driven energy distribution.

2. Data Protection problems: Digitization is at its peaks, and information systems are harnessed a lot for data protection. Enbridge is also very much careful about its security. Breach of data and security can affect it a lot. They store very crucial and confidential data in their information system. They even store the details of their operational activities, which are later used to analyze the results of various activities. The delivery systems may get affected if the crucial data is compromised. There may be misuse of their assets. Delays in delivery are something which they cannot afford. Their customer satisfaction levels may decrease. Enbridge also stores confidential information about how they work and where to work. Breach of information can prove to be hazardous to Enbridge. Hence the cyber-attacks which are actually a technological threat to Enbridge pose as a great risk factor to them.

3. Bio mining rare earths critical for the future of technology: Bio mining is a very eco-friendly way of getting metals from various ores which also includes getting the metals from old mobile phones ad hard drivers. There is a big tank in which microorganisms are present and they leach to get the ores. This method of mining is very beneficial. The traditional method of mining is costly and requires lots of time and chemicals. But Bio mining does not pollute the environment, besides producing valuable by-products like organic acids and gases. It is a cheap and simple method which can also be used to get low grades sources of metals which is otherwise not possible economically to get using traditional mining methods. This can be a useful technology to extract ores of crude oil. Enbridge can work upon this technology to support its vision of becoming more sustainable and environment friendly.

Legal

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Environmental

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