Oil Patch Insider

Enbridge stirs feelings in the Battle of Two Cities: says Edmonton could lose benefits

Enbridge has waved the ultimate red flag to arouse Edmonton support for the pipeline company’s bid to become a key player in the Alaska gas pipeline project.

Stephen Letwin, Enbridge’s vice president of gas strategy, said that if TransCanada retains its exclusive right to build the Canadian section of the pipeline the bulk of the work will head 180 miles south to Calgary.

He warned the Edmonton Journal’s editorial board that a decision by the Canadian government to stick with the 1978 Northern Pipeline Act, that assures TransCanada of total control, will mean the focus of attention will be in Calgary, TransCanada’s administrative, operations and pipeline control center.

Enbridge, although its head office moved from Edmonton to Calgary a decade ago, left the 360 employees in its major projects team in Edmonton.

If Enbridge is denied the opportunity to compete, “I’m betting you dollars to doughnuts most of the activity is going to be in Calgary,” Letwin said.

“We can’t sit back and deny Edmontonians the chance to participate in a project of this size,” he said.

The Edmonton Journal characterized Letwin’s comments as a warning that benefits of the Alaska pipeline could be “siphoned out of Edmonton and drained to Calgary.”

It’s just another round in the inter-city rivalry that started in the 19th century when the transcontinental railway was routed through Calgary, continued when Edmonton was chosen as provincial capital 100 years ago and has prevailed through battles for economic, cultural, political, football or ice hockey supremacy as the two cities engage in a race to see which will be first to hit the 1 million population mark.

If political clout counts for anything, Edmonton should hold some sway in the Canadian government.

Deputy Prime Minister Anne McLellan represents an Edmonton constituency in the Liberal government; Calgary has no Members of Parliament in the government caucus.

A ruling is expected soon from the federal government on whether to uphold the Northern Pipeline Act, or open the door to competitive bidding.

Either way, Enbridge and TransCanada are girding for court appeals.

—Gary Park

Terrell joins IADC

Terrell has more than 30 years of publishing, marketing and business experience. He led petroleum-group operations for a major business publishing company and has experience in strategic planning, sales management, marketing and product development.

Terrell retired as senior vice president of PennWell’s Publishing Group in 2002, a position he had held since 1997. Terrell joined the Oil & Gas Journal in 1969 and was named petroleum group vice president and publisher in 1992.

Terrell began his career in the industry in 1966 with the National Supply Division of Armco Steel, and previously served on active duty in the Coast Guard Reserve.

Worldwide members of Houston-based IADC own most of the world’s land and offshore drilling units. The organization’s membership also includes oil and gas producers and manufacturers and suppliers of oilfield equipment and services.