SGMA591 Midterm 1
Lecture 02
Mike Maher
October 15, 2012

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Introduction

Enbridge is faced with challenges on a daily basis. Its multiple strategic positions are meticulously thought out by countless individuals, and have to this date ensured consistent growth and success within the corporation. The purpose of this report is to detail the many aspects behind Enbridge Inc.’s strategy, including those strategies before and after the catastrophic failure of pipeline 6B on 26 July 2010 in Talmadge Creek. This report will address Enbridge’s strengths, weaknesses, opportunities, and threats, it will include an analysis of the organization’s financials, as well as address a number of key short-term and long-term issues that face the company, paired with recommendations. Through extensive research of Enbridge Inc., it is clear that the company is in need of strict maintenance strategies regarding its pipelines, in order to avoid the costly detriment of events much like that of Talmadge Creek. It is spills such as these that vastly affect the financial performance of Enbridge. Further elaboration of this statement will be presented in the body of this report.

Talmadge Creek The Enbridge spill that took place in Calhoun County, Michigan, leaked more that 900,000 US gallons of crude tar sands oil into the Talmadge Creek, and was an event that to this day Enbridge hasn’t been able to fully recover from. The spill was so extensive, that the Calhoun County Health Department issued a notice of evacuation for over 30 households in the area. Because the Talmadge Creek flows directly into the Kalamazoo River, the estimated costs of cleanup were drastically undervalued. The spill was contained to a forty-kilometer stretch of the Kalamazoo River, and the original estimation costs of five million dollars turned into 585 million