The combination of the coronavirus pandemic and the oil crisis left Canadian pipeline operator Enbridge Inc. with a first quarter loss of at least $1.4 billion but its total was $4 billion that included charges related to investments and derivative losses. It means losses for Oklahoma too.
It’s a loss that affects Oklahoma because the operator has storage facilities in Cushing and as of the end of 2019 spent nearly $24 million in the state on pipe steel, equipment purchases and replacement and capital leases.
Alberta-based Enbridge said the COVID-19 pandemic and resulting decline in demand for fuel pressured its Mainline system. Throughput on the pipeline system, which can ship 3 million barrels per day (bpd) of crude from Alberta to the United States, was down about 400,000 bpd in April.
A recent plunge in global crude prices due to lost demand caused by the pandemic has battered Canada, the world’s fourth-largest crude producer.
Over the past few weeks, North American oil companies have announced steep output curbs, slashed spending, cut dividends and suspended buybacks in response to the price rout.
Enbridge has deferred C$1 billion in capital spending and cut costs by C$300 million, including salary cuts and retirements, Monaco said.
Enbridge announced C$400 million worth of asset sales, including two North America electricity and gas lines and an interest in French offshore wind projects.
As of the end of 2019, Enbridge reported $31 million in operating and administrative expenditures in Oklahoma. The company had at least 116 Oklahoma-based permanent and temporary employees as well as contractors. More than $9 million was in base salary to the Oklahoma employees.
The company also paid nearly $12 million in property taxes in the state as well as $3.5 million in corporate income tax.
Source: Enbridge/Reuters