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Enbridge (ENB) CEO Projects Strong Oil Demand Through 2050
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Enbridge Inc. (ENB - Free Report) CEO Greg Ebel has made a bullish forecast for global oil demand, stating that it will continue to grow well in the coming decades. Speaking in an interview with Bloomberg on Tuesday, Ebel said that oil consumption could potentially exceed 100 million barrels per day (bbl/day) by 2050, reaching more than 110 million bbl/day.
The CEO’s outlook is driven by ongoing economic growth, particularly in developing countries, where demand for "lighter, faster, denser (and) cheaper" energy is on the rise. He noted that this increasing need for affordable energy should lead to higher oil usage.
Alignment With OPEC's Projections
Enbridge's optimistic view on oil demand aligns closely with that of the Organization of the Petroleum Exporting Countries (“OPEC”), which has projected global oil demand to hit 116 million bbl/day by 2045. However, the view stands in sharp contrast to the International Energy Agency's (“IEA”) conservative forecast, which anticipates demand to decline to 97 million bbl/day by 2050.
North America's Role in the Future of Oil
Ebel highlighted North America's critical role in the global oil market, noting that the region's future is deeply tied to oil production and exports. Enbridge is heavily investing in its liquids pipelines division, including expanding storage and loading capacity at its Ingleside crude export terminal in Texas. As the largest oil export facility in the U.S., this terminal is consistently setting new volume record each month.
Potential Expansion of the Mainline System
Looking ahead, Ebel mentioned that Enbridge may increase the capacity of its Mainline oil pipeline system, which transports crude from Canada's oil sands to U.S. refiners. The company could add 100,000 to 150,000 bbl/day of capacity by 2026 or 2027, further supporting its optimistic outlook for long-term oil demand.
Enbridge's bullish stance on oil demand underscores the company's confidence in the continued relevance of oil in the global energy mix, even as the world transitions toward cleaner energy sources.
Zacks Rank & Key Picks
Currently, Enbridge carries a Zack Rank #3 (Hold).
SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.
The Zacks Consensus Estimate for SM’s 2024 EPS is pegged at $7.57. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
MPLX derives stable fee-based revenues, driven by long-term contracts, with minimal exposure to commodity-price fluctuations. The partnership’s robust capital expenditure forecast for 2024, along with significant expansion initiatives, underscores its commitment to sustainable growth.
The Zacks Consensus Estimate for MPLX’s 2024 EPS is pegged at $4.21. The company has a Zacks Style Score of B for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Northern Oil and Gas’ core operations are focused on three leading basins of the United States — the Williston, Permian and the Appalachian. The upstream operator employs a unique nonoperating business model, which helps it to keep costs down and increase cash flow.
The Zacks Consensus Estimate for NOG’s 2024 EPS is pegged at $5.21. The company has witnessed upward earnings estimate revisions for 2024 in the past seven days.
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Enbridge (ENB) CEO Projects Strong Oil Demand Through 2050
Enbridge Inc. (ENB - Free Report) CEO Greg Ebel has made a bullish forecast for global oil demand, stating that it will continue to grow well in the coming decades. Speaking in an interview with Bloomberg on Tuesday, Ebel said that oil consumption could potentially exceed 100 million barrels per day (bbl/day) by 2050, reaching more than 110 million bbl/day.
The CEO’s outlook is driven by ongoing economic growth, particularly in developing countries, where demand for "lighter, faster, denser (and) cheaper" energy is on the rise. He noted that this increasing need for affordable energy should lead to higher oil usage.
Alignment With OPEC's Projections
Enbridge's optimistic view on oil demand aligns closely with that of the Organization of the Petroleum Exporting Countries (“OPEC”), which has projected global oil demand to hit 116 million bbl/day by 2045. However, the view stands in sharp contrast to the International Energy Agency's (“IEA”) conservative forecast, which anticipates demand to decline to 97 million bbl/day by 2050.
North America's Role in the Future of Oil
Ebel highlighted North America's critical role in the global oil market, noting that the region's future is deeply tied to oil production and exports. Enbridge is heavily investing in its liquids pipelines division, including expanding storage and loading capacity at its Ingleside crude export terminal in Texas. As the largest oil export facility in the U.S., this terminal is consistently setting new volume record each month.
Potential Expansion of the Mainline System
Looking ahead, Ebel mentioned that Enbridge may increase the capacity of its Mainline oil pipeline system, which transports crude from Canada's oil sands to U.S. refiners. The company could add 100,000 to 150,000 bbl/day of capacity by 2026 or 2027, further supporting its optimistic outlook for long-term oil demand.
Enbridge's bullish stance on oil demand underscores the company's confidence in the continued relevance of oil in the global energy mix, even as the world transitions toward cleaner energy sources.
Zacks Rank & Key Picks
Currently, Enbridge carries a Zack Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like SM Energy Company (SM - Free Report) , MPLX LP (MPLX - Free Report) and Northern Oil and Gas, Inc. (NOG - Free Report) . While SM Energy currently sports a Zacks Rank #1 (Strong Buy), MPLX and Northern Oil and Gas carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.
The Zacks Consensus Estimate for SM’s 2024 EPS is pegged at $7.57. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
MPLX derives stable fee-based revenues, driven by long-term contracts, with minimal exposure to commodity-price fluctuations. The partnership’s robust capital expenditure forecast for 2024, along with significant expansion initiatives, underscores its commitment to sustainable growth.
The Zacks Consensus Estimate for MPLX’s 2024 EPS is pegged at $4.21. The company has a Zacks Style Score of B for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Northern Oil and Gas’ core operations are focused on three leading basins of the United States — the Williston, Permian and the Appalachian. The upstream operator employs a unique nonoperating business model, which helps it to keep costs down and increase cash flow.
The Zacks Consensus Estimate for NOG’s 2024 EPS is pegged at $5.21. The company has witnessed upward earnings estimate revisions for 2024 in the past seven days.