When Kinder Morgan, the third largest energy company in North America, announced its plans to renew its bitumen pipelines running from Edmonton to Burnaby in B.C., they were faced with much opposition from several parties of which the most prominent was the First Nations. The question which arises as a result of this situation is: how will these oppositions caused by macroeconomic factors affect the company’s activities in the long run? Using the tool of a PESTLE analysis, political, social and economic factors can be taken into account to examine how Kinder Morgan’s future activities may be affected by the current macroeconomic environment of the market in which they plan to expand. Firstly, from a political point of view, Kinder Morgan faces high political pressure as the Canadian government has since years made a treaty with First Nations to allow them to protect what was and still is their land and home. Moreover, this treaty can be seen to include social factors as the fear of rising cancer rates near the Alberta oil sands acts as the basis for the treaty which bans increased oil transport through Burrard Inlet. Additionally, from an economic perspective, the proposed expansion may look rather skeptical in the eyes of natives since possible economic growth generated through the extended pipelines such as an increase in temporary employment will likely not benefit the people of the region since income will most not likely be distributed amongst them. In other words, the wealth generated will not be shared. Evaluating the mentioned points above, it seems clear that due to the active and resistant forces of current macroeconomic factors, the future activities of Kinder Morgan involving expansion in the B.C. area looks rather restrained and feeble.

SOURCE:

ARTICLE: www.biv.com/article/2014/9/coastal-first-nations-sign-treaty-stop-kinder-morg/

WORKS CITED:

Cbc.ca, (2014). First Nations issues need ‘ambitious’ approach, Atleo says. [online] Available at: http://www.cbc.ca/news/politics/first-nations-issues-need-ambitious-approach-atleo-says-1.1141867 [Accessed 6 Oct. 2014].

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Kindermorgan.com, (2014). Kinder Morgan – A Different Kind of Energy Company. [online] Available at: http://www.kindermorgan.com/ [Accessed 6 Oct. 2014].

Shepherd, J. (2014). Coastal First Nations sign treaty to stop Kinder Morgan pipeline. [online] Business In Vancouver. Available at: http://www.biv.com/article/2014/9/coastal-first-nations-sign-treaty-stop-kinder-morg/ [Accessed 6 Oct. 2014].