Commodities Videos

VIDEO SIGN OUT

{{ currentStream.Name }}

{{ currentStream.Desc }}

Related Video

Continuous Play:
ON OFF

The information you requested is not available at this time, please check back again soon.

May 7, 2020

Enbridge cuts spending after falling oil demand hits crude flows

Chris Blumas' Top Picks

VIDEO SIGN OUT

Security Not Found

The stock symbol {{StockChart.Ric}} does not exist

See Full Stock Page »

Enbridge Inc., North America’s largest pipeline operator, is cutting jobs, lowering executive pay and deferring some capital spending as measures to fight the Covid-19 virus reduce oil flows on its system and slow down construction.

About $1 billion of capital spending will be delayed as distancing measures change its construction schedules, the Calgary-based company said in a statement Thursday. Enbridge also is cutting $300 million in operating costs through company-wide salary rollbacks, reductions to outside services and a voluntary workforce-reduction plan. The company didn’t specify how many jobs may be cut.

With measures to slow the spread of the COVID-19 virus causing an unprecedented drop in oil demand, Enbridge said volumes on its Mainline crude network fell 400,000 barrels a day in April, a 14 per cent drop from average throughput in the first quarter. That’s a rare and large decline on a network that Enbridge said typically operates at or near its capacity.

North America’s oversupply of crude has opened some new opportunities for Enbridge as well. The company last week struck a deal with shippers to use a section of an old oil pipeline running between Saskatchewan and Manitoba to temporarily store more than 900,000 barrels of crude starting in June.