CALGARY, ALBERTA--(Marketwire - Oct. 4, 2007) - Enbridge Inc. (TSX:ENB) (NYSE:ENB) clarified certain remarks made yesterday at its ninth annual Enbridge Day Investment Community Conference in Toronto regarding the impact of the current Alberta Royalty Review on oil sands development. "Enbridge shares its customers' need to ensure that Alberta remains a competitive business environment with a stable, positive and predictable investment climate," said Patrick D. Daniel, President and Chief Executive Officer, Enbridge Inc. "While we also share Albertans' concerns with the impact of our recent growth, we have always maintained that addressing growth with a new provincial royalty regime could be a costly mistake. The oil and gas industry is risky; industry costs are increasing dramatically, and the return on investment, especially in the oil sands, is marginal. Sudden changes in our royalty system, especially if they are based on out-of-date data on costs or industry conditions, could have serious negative impacts on all Albertans.
"To be clear, while royalty rates are important to oil sands development, Enbridge believes they are one of several important factors used in determining the economic viability of such large infrastructure projects. Many other factors, such as discounts on pricing of Canadian crude oil, labour, and construction costs also ultimately impact project economics. In combination, these factors are all trending unfavourably and jeopardize the ability of the oil sands to continue to contribute to the prosperity of Alberta.
"Obviously however, our royalty system and how it may be altered, particularly for projects already underway, impacts investor confidence. Any changes should be carefully considered and cautiously implemented. We believe the Alberta government is faced with a critical decision as it considers the recommendations put forward by the Alberta Royalty Review Panel. It is a decision that will impact the prosperity Albertans have come to expect. We support the Alberta government's consultation process and believe that a fair and balanced royalty system, built for today's economic realities, will support the on-going development of projects such as the oil sands."
A replay of the October 3 Enbridge Day Investment Community Conference can be heard at www.enbridge.com/investor
Enbridge Inc., a Canadian company, is a leader in energy transportation and distribution in North America and internationally. As a transporter of energy, Enbridge operates, in Canada and the U.S., the world's longest crude oil and liquids transportation system. The Company also has international operations and a growing involvement in the natural gas transmission and midstream businesses. As a distributor of energy, Enbridge owns and operates Canada's largest natural gas distribution company, and provides distribution services in Ontario, Quebec, New Brunswick and New York State. Enbridge employs approximately 5,000 people, primarily in Canada, the U.S. and South America. Enbridge's common shares trade on the Toronto Stock Exchange in Canada and on the New York Stock Exchange in the U.S. under the symbol ENB. Information about Enbridge is available on the Company's web site at www.enbridge.com.
Certain information provided in this news release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. Although Enbridge believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of risks and uncertainties pertaining to operating performance, regulatory parameters, weather, economic conditions and commodity prices. You can find a discussion of those risks and uncertainties in our Canadian securities filings and American SEC filings. While Enbridge makes these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Enbridge assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
For more information please contact:
Enbridge Inc.
Jennifer Varey
Media
(403) 508-6563
Email: jennifer.varey@enbridge.com
or
Enbridge Inc.
Bob Rahn
Investment Community
(403) 231-7398
Email: bob.rahn@enbridge.com
Website: www.enbridge.com