Enbridge’s Barrier to Proceed With its Pipelines

http://www.vancouversun.com/news/First+Nation+chiefs+stage+Site+showdown/10215965/story.html

 

 

The Pipeline issue has been widely discussed recently and indeed Enbridge is facing a hard time with its pipelines, since the project can only proceed with the agreement of the First Nation leaders. This would be considered as both a political and a social factor in the PEST analysis model. While changes in these factors could bring threats as well as opportunities for companies, this one may be more threat focused.

As for the business, although the project has already been approved by the Government, it still needs the approval of local First Nations communities to proceed. While the project hasn’t been widely supported socially due to society and environmental concerns, the project is likely to fail if the business doesn’t make any adjustments. Politically, under the laws and treaties related to First Nations, it can be difficult for Enbridge to get land-use permission and the influences for the company can be huge, resulting in a loss of billions, not just of the company, but also including foreign investors, the governments and the stakeholders that are consuming the oil in Asia. However, on the other hand, it would benefit local stakeholders such as the First Nation Communities and the Canadian society as a whole.

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