INSIDERS' BLOG: ENB Could Benefit From Oil Sands Ramp-Up

You've probably heard of the Canada oil sands by know, an area which has become one of the world's hottest areas for energy development due to enormous potential reserves (175 billion barrels). You may have even looked at some company�s leading the charge to ramp up oil production in the area, like Suncor Energy (NYSE: SU) and EnCana Corporation (NYSE: ECA). But have you looked at companies that are developing systems to accommodate and transport the new oil supply? These companies could provide opportunities for investors.

One stock that could benefit is Enbridge Inc. (NYSE: ENB). Enbridge recently announced agreements with ConocoPhillips Surmont Partnership and Total E&P Canada Ltd. to provide lateral facilities and pipeline transportation services on its Athabasca Pipeline for the Surmont oil sands project. The agreements provide for an initial contract volume of up to 50,000 barrels per day of crude oil. The agreement covering the dedicated Surmont lateral facilities and the agreement for transportation service on the Athabasca Pipeline are both for an initial term of 25 years, with extension provisions. The Athabasca Pipeline agreement also provides flexibility for the Surmont Shippers to transfer their production to the proposed Waupisoo Pipeline following its planned start-up in mid 2008.

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