Pat Daniel is a small-town kid who made it big.

In the process, he also made Calgary-based pipeline builder and operator Enbridge Inc. big. The company has $10 billion worth of new projects under development.

For his efforts, the blunt president and CEO, who grew up in the tiny northwestern Alberta hamlet of Entwistle, was recently named the Canadian Energy Person of the Year by the Canadian Energy Council, this nation's chapter of a world council.

"What it really means to me is that Enbridge has attained a level of world and national prominence that we have come to the attention of a very important organization like the Energy Council of Canada," says Daniel.

Larry MacDougal, Business Edge
Enbridge Inc. CEO Pat Daniel's efforts have helped the pipeline builder earn praise for its corporate governance and reporting practices.

"It's not that many years ago that I remember us as a little old crude oil pipeline company from Edmonton," he adds. "Now, we're on the world stage. That's something that I'm very proud of."

Enbridge has also garnered praise for its corporate governance and reporting practices. If you check out the Enbridge website, you can find out how many shares are owned by each board member, including Daniel.

"We're a very open and transparent company, and believe that it's very important for investors to understand what executives are paid," says Daniel, who owns 324,547 shares, holds options on 1,657,400 shares and drew total compensation of $2.8 million last year.

"It's really a transparency thing."

His answers to our questions are fairly clear, too ...

1. What was it like living in Entwistle?

"It was fantastic. Small farming community. I have really fond memories of my childhood there. My father owned and operated a hardware store. I grew up in the town, but my grandfather had a farm a quarter mile from town, so I was back and forth all the time. It was a mixed farm (with) a little bit of grain, a little bit of hay, cattle, a few pigs, a few chickens - everything. I have three brothers and a sister, so there were five of us."

2. What were some of your early interests?

"I was absolutely convinced that I was going to be involved with horses in some way when I grew up - as a rodeo guy or whatever. But, I also went from sport to sport year round, whether it was hockey in the winter to baseball in the summer to football in the fall. You just turned in one set of equipment and grabbed the other."

3. What were some of the early lessons you learned growing up around the farm?

Pat Daniel

"Growing up around the farm, inevitably hard work comes to mind. There was always work to be done. Even though I would go there to play, inevitably my grandfather would say, 'Do this, do that.' Also, certain basic, core values are really emphasized in a farming community (along with) a plain-language way of expressing yourself. (Farmers are) very blunt, open, honest and truthful people."

4. What steered you toward engineering?

"I always liked to tinker around and do things. I really enjoyed the sciences in school. That and, probably, the fact that my older brother (Terry) went on and became an engineer. He was also very technically inclined and very good at the sciences in school. We moved to Red Deer when I was 10 years old, when my father sold the hardware business and went to work for a hardware firm there. Although I continued the sports thing, I got a little bit more involved academically (in school). My mother and father were both very strong on education.

I think they felt that being in a little bit bigger community, we might get a stronger education. I did my bachelor's degree in chemical engineering at the University of Alberta and then I went to the University of British Columbia and did my masters right after that (also in chemical engineering)."

5. What was your first job after university?

"My first job was with Occidental Petrochemicals in Buffalo, N.Y. It involved computer modelling and programming. I was one of the very first generations of engineers that used computers a lot. Therefore, as a new grad, that was very much in demand with most companies - somebody to write programs for engineers. Up until then, they were doing everything by slide rule and by hand."

6. How do you think that first job prepared you for your present position?

"I found that working in the systems area, you got to see everything that went on in the company.

In a way, I found it to be almost purer engineering than what the real engineers did, because you used engineering theory to write programs. I found it very helpful in terms of polishing my engineering background, but also getting good overviews as to what went on in the corporation, because you were serving users in all different parts of the organization. The second thing was maybe on the 'what-not-to-do side.' Occidental Petrochemicals was the owner of Hooker Chemicals, a company that had some real challenges around some of the environmental problems that came out of the Love Canal, where old chemicals were put in barrels and buried and started to leach into the soil in later years, creating a real health hazard. That probably has helped give me a level of environmental awareness that has stuck with me all the way through my career."

7. Who were some of the people who inspired you early in your life or your career?

"I still consider my older brother (Terry) as a big inspiration. He's one of the smarter businessmen I've ever met. He teaches business at the University of Alberta's school of business. Dave Betran, who I worked for at Occidental, had an amazing ability to sort the important things from the unimportant things. But each boss along the way really contributed a lot to my career. Two individuals who had the most effect later in my career were (Calgary businessman and philanthropist) Dick Haskayne when I worked with him at Home Oil and then Brian MacNeill, who was my predecessor here are Enbridge."

8. How would you describe your management style?

"That's really difficult. I'm sure that those who work for me could answer that much better than I can. But I think it's a style of being very approachable (and) being very inclusive. I realize there are a lot of things I don't know. Therefore, I seek the advice and counsel of people around me a lot. But I also know that ultimately it's my responsibility to decide as best I can what direction this company should take. I also would say, and everybody around me would agree, that I'm very involved in the business. That has pros and it has cons. I'm not saying that it's necessarily the best attribute, but I'm not comfortable unless I really do know everything that's going on in the business."

9. What would you say are areas that you've needed help with?

"My background is in engineering. I've never spent any time in finance. Hence, I'm not a financial expert. Everything I've learned is by osmosis with regard to finance.

"This is one of the reasons I give Dick Haskayne a lot of credit at Home Oil. As you may know, he's got his name on the school of business at the University of Calgary. I said, 'Dick, I've got an MBA working for you, but you've paid me to do it, rather than me having to go ahead and do it at your school.' Also, being an engineer, we are never known for our (human resources) skills. So I've had to rely on the skills of the people in the HR area (for) some of the softer skills that don't come very naturally to an engineer."

10. What do you see as some of the tougher decisions that you've had to make?

"There have been a variety over the years. Being in the upstream oil and gas business, as I was with Home Oil, you'd go through oil-price shocks or gas-price shocks where you have to lay people off. I think firing people has been the single most difficult issue that I've had to face along the way. That's one of the reasons I'm so cautious when we start adding people and growing the way we are today. I remind everybody that, at some point in time, you're going to have to fire somebody. So be careful and don't over-do (the growing). There are also strategic decisions that one has to make that you don't like. Maybe you've got a division of the company that you need to dispose of - or dramatically change the direction - and that impacts on an awful lot of people."

11. What kind of feedback have you had since Enbridge announced that it was interested in selling part of the Gateway project to Chinese interests?

"That has been back and forth. About a year ago, we kind of put Gateway on hold, because we didn't have enough support for the commercial (shipping) terms to really proceed with its development. But there were a variety of reactions. First of all, there was a very broad national concern around this whole Gateway project with regard to the investments that state-owned Chinese oil companies would make in the oilsands, and whether big investment in state-owned hands was a good idea. I personally think it is. The issue around Gateway got broadened out into: Should the Chinese be buying a Canadian oil and gas business? Obviously, the fact that people have done very few major business deals with the Chinese meant there was some concern in trying to negotiate all of the agreements around people in a culture that we didn't have a lot of experience in. Most of our projects are either Canadian-customer based or U.S.-customer based. And there was a whole series of questions around movement of crude oil by tanker along a very environmentally sensitive coast in British Columbia and, also, the challenges around building a pipeline through a very environmentally sensitive countryside from Edmonton all the way out to Kitimat. The implied thought was, 'Why would you do this just to move crude oil to China?' " 12. Have you renewed your interest in Gateway?

"Yeah, we have. We haven't formally put it back on the frontburner yet. But we've had interest renewed over the last several months, primarily because Western Canadian producers don't feel they'll ever get full international pricing for their crude oil until they're able to move some of it offshore - to create a little bit of pricing tension in the market.

"So we continue to work on trying to get commercial terms in place to proceed."

13. Why did you seek to partner with TransCanada Pipelines on the Canadian portion of the Alaska pipeline?

"We didn't necessarily seek to partner with them. However, we've indicated along the way that this is such a massive project that there's room for multiple companies to participate and it doesn't make any sense to be fighting over it. The Alaska pipeline will probably (cost) in excess of $20 billion. It's going to tax the financing capability of many companies. At this point, it's very difficult to comment (on the prognosis for a possible partnership), because the project itself has got a long way to go."

14. What would be the best Canadian route for the Alaska pipeline?

"That's a real challenge, to be able to answer that definitively, because right now we have two projects - the Mackenzie Valley project and the Alaska project - that have stalled. We need to re-assess the economics and the routing of both of those lines. But, inevitably, they will come through Alberta - if the pipelines are built - and the Alaska pipeline (will go) through a corner of British Columbia as well."

15. What would be your vision for a possible combination of the lines?

"The routing that was discussed a number of years ago, if they were to be a combined project, would be to run 'over the top and down the valley.' That meant Prudhoe Bay over to Inuvik and from Inuvik south to Norman Wells, and from Norman Wells down to Zama, Alta., and then into the Alberta (pipeline) grid. The challenge is that you engage in a lot of controversy over the Alaska Wildlife Reserve. That's why we propose that the over-the-top route would be offshore - shallow water offshore - in order to avoid the reserve. But that project hasn't been worked on for so long now, because the state of Alaska was strongly opposed to any routing that didn't go through the state. Hence, it's almost academic to talk about the over-the-top route. It's environmentally feasible. It certainly is well within the engineering capabilities of pipeline contractors to do that job. In a lot of ways, it may be less environmentally impactful as well."

16. How do you see the ownership model of the Mackenzie Valley pipeline being different from others?

"The first thing to keep in mind is that the producers will be major owners in the Mackenzie Valley line and the Alaska gas pipeline project. It's fair to say that if they're going to spend billions of dollars in developing the reserves upstream, that they're going to want to have significant control of the pipeline - because without it, they have nothing. However, I think companies like Enbridge, with the pipeline expertise, with the ability to develop and facilitate these projects through the (regulatory) hearing process, we've got a lot to contribute."

17. What do you think builders and operators can learn from your partnership in the Arctic with AltaGas Services and the Inuvialuit Petroleum?

"There are several things to learn. First of all, we own and operate the Norman Wells pipeline from Norman Wells down to Zama. There are a lot of technical things that we've learned from running a pipeline in the discontinuous permafrost that would be applicable to a northern gas pipeline. With regard to the Inuvik gas investment, the main (thing) there related to regulatory process and relationships with the First Nations native people along the way and in the communities, because we've got a very good working relationship there.

"That's going to be absolutely critical to the success of any northern pipeline project."

18. What is Enbridge doing to create business opportunities for First Nations?

"We have a very active Aboriginal involvement program. Every single project that we undertake, we work to maximize the Aboriginal opportunities. That flows primarily in the form of employment opportunities for people along the way, during either the construction of the pipeline project or in subsequent operation."

19. What does Enbridge do to prevent squabbles with landowners - whether they're Aboriginals or other landowners - on pipeline routes?

"We work very closely with our landowners. We can't prevent squabbles. I'm sure you can appreciate, for a company with operations right across North America, inevitably you're going to end up with some. We have had very few over time and have got very good relationships. It really starts from the outset when you're negotiating the right of way and follows right through to cleanup after construction and day-to-day operation."

20. What would you do if you weren't president and CEO of Enbridge anymore?

"(Chuckling) I guess at age 61, I should be starting to think about that, shouldn't I? I would probably get involved with a renewable energy company. I think renewable energy companies have got just great futures, and (renewable energy) is something that I believe in.

I would (also) probably do a little bit of fly fishing and I would go relax someplace down in Scottsdale, Ariz. I would spend a little bit more time hiking and travelling the world a little bit, too. Right now, I must admit, I'm not really anxious to get out and travel because I have to do so much travelling with work. But at some point in time, it would be fun to travel for the fun of it again."

Pat Daniel

* Title: President/CEO

* Born/raised/age: Edmonton/Entwistle, Alta., and Red Deer/61.

* Education: Daniel obtained undergraduate and master's degrees in chemical engineering from the University of Alberta and UBC, respectively. He has also completed management training programs at Harvard and the University of Western Ontario's Richard Ivey School of Business.

* Family: Wife Dora, sons Jarrod, 32, Paul, 29

* Career: Daniel began his three-decade career in the energy industry with Occidental Petroleum in Buffalo. He was appointed president and CEO on Jan. 1, 2001, after serving as director of planning for Enbridge subsidiary Interhome Energy Inc. and starting up its technology and consulting business unit and international division, and expanding its natural gas operation. Before joining Enbridge about 13 years ago, his major stints included process engineering, information technology and corporate planning positions with Hudson's Bay Oil & Gas and Home Oil.

* Moonlighting: Daniel sits on the boards of EnCana Corp., Synenco Energy Inc. and Enerflex Systems Ltd. He also holds advisory and review board positions with AMEC, Accenture and Air Liquide Holdings Inc., the University of Alberta's business faculty and UBC's engineering faculty. Charitable organizations with which he's involved include the Alberta Cancer Foundation, S.T.A.R.S. Air Ambulance, Trout Unlimited and the Nature Conservancy of Canada.

* Passions: Hiking, fly fishing, mountain scrambling, do-it-yourself home handiwork.


Enbridge Inc.


* Brass: Pat Daniel, president and CEO; Stephen J. Wuori, executive vice-president and chief financial officer; Richard Bird, executive vice-president, liquids pipeline; Stephen Letwin, executive vice-president, gas transportation; James Schultz, senior vice-president, new ventures; John Whelen, senior vice-president, corporate development; Alison Love, vice-president and corporate secretary; Bonnie DuPont, group vice-president, corporate resources; David Robottom, group vice-president, corporate law.

* Profile: Enbridge builds and operates oil and gas pipelines in Canada, the U.S., Colombia and Spain. It ranks as a North American leader in energy delivery via a system that spans 5,000 kilometres of mainline pipe in Canada and 5,600 kilometres in the U.S. The company operates the world's longest crude oil pipeline system and Canada's largest natural gas distribution company through wholly owned subsidiary Enbridge Gas Distribution Inc., which serves more than 1.5 million residential, commercial and industrial customers in Ontario, Quebec and Upper New York State. Enbridge also builds and operates natural gas-gathering, processing and transmission systems, markets liquids, distributes electrical power and provides retail energy products and services.

* Stats: Enbridge has approximately $17 billion in assets and 4,500 employees. The company is also building $10 billion worth of new projects. Last year, Enbridge delivered 2.2 million barrels of petroleum per day across its North American system.

* Recent Stock Price (Exchange): $39.50 (52-week range, $41.60-$33.62).

* Website: www.enbridge.com

* HQ: 30th floor, Fifth Avenue Place, 425 1st Street S.W., Calgary, T2P 3L8

* Phone: (403) 231-3900/(403) 231-3920.