• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 3 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days Does Toyota Know Something That We Don’t?
  • 5 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 2 days World could get rid of Putin and Russia but nobody is bold enough
  • 1 day America should go after China but it should be done in a wise way.
  • 5 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 4 days China is using Chinese Names of Cities on their Border with Russia.
  • 5 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 4 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 10 days huge-deposit-of-natural-hydrogen-gas-detected-deep-in-albanian-mine
  • 5 days Putin and Xi Bet on the Global South
  • 5 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 6 days United States LNG Exports Reach Third Place
  • 6 days Biden's $2 trillion Plan for Insfrastructure and Jobs

Breaking News:

U.S. Crude Oil, Gasoline Inventories Boom

Carmakers' EV Enthusiasm Fizzles Out

Carmakers' EV Enthusiasm Fizzles Out

Big Auto, which so recently…

Enbridge: Line 5 Shutdown Will Lead To Immediate Oil Shortages

If Michigan shuts down the Line 5 crude oil pipeline, refiners in central Canada and the U.S. Midwest will face a shortage of feedstocks, and propane prices will shoot up, the operator of the pipeline, Enbridge, has warned.

“A shutdown of Line 5 would cause an immediate shortage of energy in the region,” Vern Yu, Enbridge president of liquid pipelines, said. “It would drive up prices significantly, and the replacement would be years away.”

Michigan’s Governor Gretchen Whitmer and the director of the state’s Department of Natural Resources last November revoked Enbridge’s easement for the operation of the twin Line 5 pipeline, citing repeated violations of the easement and the need to protect the Great Lakes.

“The state is revoking the easement for violation of the public trust doctrine, given the unreasonable risk that continued operation of the dual pipelines poses to the Great Lakes,” an official statement said. “Moreover, the state is terminating the easement based on Enbridge’s persistent and incurable violations of the easement’s terms and conditions.”

Related Video: Why The Oil & Gas Rig Count Matters

That happened a couple of months after Enbridge won the approval of the Pipeline and Hazardous Materials Safety Administration. It also won a case at the Michigan Circuit Court that greenlit the restart of work on the pipeline.

The Canadian pipeline operator proposed the replacement of a section of the Line 5 pipes with new ones a few years ago, and the Michigan Legislature approved it in late 2018. Enbridge’s proposal was motivated by safety concerns: the pipes in that section were 65 years old. Yet, it is again safety concerns that Gov. Whitmer is citing in her attempts to kill the replacement project.

The case is currently being looked into at a federal court after Enbridge filed an injunction to stop Michigan’s move to suspend the pipeline. Meanwhile, according to Yu, if Line 5 is shut down, this will necessitate some 15,000 oil trucks daily to move the oil from Canada to the U.S., as well as 800 rail cars.

ADVERTISEMENT

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News