fbpx
Connect with us

Energy

Biden considering killing Line 5 pipeline, cutting crucial energy link to Eastern Canada

A shutdown would lead to fuel shortages and price increases across Ontario and Quebec, and further dependency on foreign supply to meet regional demands.

mm

Published

on

US President Joe Biden doesn’t seem happy with killing only the Keystone XL expansion project, he’s now looking at shutting down Enbridge’s Line 5.

A shutdown would lead to fuel shortages and price increases across Ontario and Quebec, and further dependency on foreign supply to meet regional demands.

“Yes, we are,” deputy press secretary Karine Jean-Pierre said, asked in a news briefing if the administration is “studying” the impacts of a potential shutdown. 

“The army corps of engineers is preparing an environmental impact to look through this.”

Michigan governor Gretchen Whitmer has been actively trying to shut down the pipeline over fears of a spill into one of the Great Lakes.

“Where we are with this is Canada has decided to invoke dispute resolutions of the 1977 Transit Pipelines Treaty. We expect that both the US and Canada will engage constructively in those negotiations,” said Jean-Pierre.

Line 5 carries about 87 million liters of oil and natural gas liquids daily between Superior, WI, and Sarnia, Ont., traversing parts of northern Michigan and Wisconsin.

There is an underwater section between the Straits of Mackinac, which connects Lake Huron and Lake Michigan. It is divided into two pipes that are 50 cm in diameter. Enbridge maintains they’re in good condition and have never leaked.

Enbridge has said in order to keep up supply if the pipeline were to shut down, it would need 2,100 trucks to drive the route from Superior through Michigan each day, at a time when truck drivers are in short demand and the US is looking to cut down on roadway emissions, the Daily Mail reported.

Biden is now caught between environmentalist and angry American drivers after gas prices have hit a seven-year high.

“‘Biden wants to shut down another pipeline and increase your energy prices. Does he have any remorse for killing American jobs and families’ livelihoods?” Sen. Marsha Blackburn, R-Tenn., tweeted Monday. 

On his first day in office, Biden killed the Keystone XL pipeline expansion project which cost thousands of American and Canadian jobs.

Running from Alberta to Steele City, Nebraska and would have carried 830,000 barrels of oil each day.

“President Biden wants to destroy America’s energy sector while giving Russia a new pipeline and begging OPEC to produce more oil. It’s totally backwards. This is what it looks like to put America Last,” House GOP leader Kevin McCarthy tweeted over the weekend, according to the Daily Mail.

A report released earlier this year showed the devastating economic impact in the US a shutdown would bring.

“From the dynamic risk of shutting down Line 5, we’re looking at a $120 million increase in transportation fuel cost alone just in Michigan,” said Chris Ventura, Midwest executive director for Consumer Energy Alliance.

He said the report estimates “$20.8 billion of loss in economic activity, $2.36 billion of loss labor earnings, whether that’s wages or salaries for people employed in these states, and over 33,000 jobs lost.”

The report says if Line 5 closes, gas prices will increase and local farmers will have to find an alternate way to get their fertilizers and feed stock.

“Detroit’s Metropolitan Airport airport (DTW) for example, over 54% of the jet fuel they use to fill all of the jets is derived from Line 5, and when Line 5 is shut down one of the big questions is how is DTW going to replace that source of jet fuel,” said Ventura

“Airlines are going to be provided with limited options. One, they can raise ticket prices and two, they can actually reduce flights and cut routes out of DTW.”

Dave Naylor is the News Editor of the Western Standard
dnaylor@westernstandardonline.com
TWITTER: Twitter.com/nobby7694

Dave Naylor is the News Editor of the Western Standard and the Vice-President: News Division of Western Standard New Media Corp. He has served as the City Editor of the Calgary Sun and has covered Alberta news for nearly 40 years. dnaylor@westernstandardonline.com

Continue Reading
18 Comments

18 Comments

  1. Clash

    November 20, 2021 at 5:36 pm

    Shutting down Line 5 could be the best thing for Alberta in the long run. Let the Easterners (Quebec politicians, not so much the people) do with less oil, as in less cheap oil. Let the price go up to $2.10/$2.50 a litre for 2 years and see how many people Vote for Justin Trudeau after that. We will have to charge them a surcharge for everything going by truck or rail. The surcharge rate could be equal to Equalization payments. We would have such a glut of oil and gas here it would probably sell for $.35/$.50 / litre. Shut down Trans Mountain also, put the squeeze on that extortionist Premier Horgan, cut into the Federal Governments profits from Their Federal owned pipeline. The Liberals are just going to sell it to one of their DAVOS Billionaires for pennies on the dollar anyway (plus a nice healthy, quiet kickback into one of Trudeau’s and friends off shore accounts). That’s how business is done in the 21st century. Everything changes(except government corruption)!

  2. Ben Wilson

    November 11, 2021 at 1:29 pm

    If Line 5 goes down Alberta will be hit. This oil is all from Alberta. However, Alberta would need to send rail tankers of oil to the east ASAP. They could double the price to make up for lost Revenue from Line 5.

  3. The Real Kevin

    November 10, 2021 at 11:33 am

    Just reading up on Saule Omarova, one of Biden’s picks for the Department of Treasury. An actual, full on Soviet pick. She won a V.I. Lenin Scholarship for academic excellence from Moscow State University.

    The pipeline, is definitely being shut down. The title of her thesis; ‘Karl Marx’s Economic Analysis and the Theory of Revolution in The Capital”

    Direct Omarova quote: “We want them [oil, coal, gas industries] to go bankrupt if we want to tackle climate change.”

  4. Hutsul Honey

    November 10, 2021 at 8:42 am

    Let the games begin. Let’s go Brandeau!

  5. The Real Kevin

    November 10, 2021 at 8:14 am

    FYI, if Moe, or Kenney, or Pallister (or whomever is the new boss same as the old boss in Peopletoba is) actually wanted to fight, they would have been pushing an oil tanker ban in the Saint Lawrence since the 70s. They would have lawfare teams constantly suing over it. They would be shutting down pipelines from the east coast.

  6. The Real Kevin

    November 10, 2021 at 8:12 am

    Oh please, please, please let him do this. I pray oh Lord in Heaven, let the Liberal Party voters experience the full “orange man bad” government that they deserve. The rest of us, have to suffer along with them, but we at least are prepared for the shortages and inflation that is still to come.

    Get fit. Secure your supply chains. Don’t stop to help anyone in a Tesla or Prius.

  7. Phillip Grimison

    November 9, 2021 at 9:58 am

    It would be Karma. Joe shuttered KXL with nary a peep from Trudeau, our loathsome Prime Minister, but I’ll wager that Trudeau will scream bloody murder if Line 5 is shut down.

    Furthermore Quebec is attempting to sell electricity to Maine but some environmentalists are trying to stop that happening. QC has spent a lot of money on the infrastructure and will hurt financially if the power line is stopped. Bring it on I say.

  8. Ed Robbins

    November 9, 2021 at 7:48 am

    Kenney has repeatedly stressed that he is a Federalist, will protect the East as a way toward Prime Minister.
    Albertans need to get the hell out of Canada, won’t be easy, all the imports from East and immigrants getting immediate pensions stand in the way. Lets hope there is not enough of them.

  9. Stew James

    November 9, 2021 at 1:15 am

    Pls sleepy Joe shut it down, it would be the best thing that you could do! It’s supposed to be a real cold winter. In fact we should be shutting off natural gas to the east as well…make it so number one!

  10. Kelly Carter

    November 8, 2021 at 8:50 pm

    Best news I have read in a while. The eastern bastards can freeze I the dark along with the woke New England states such as New York. It will wipe out the democrats in the mid terms, and pretty much garauntee a Republican president in 2024. Going to be rather entertaining. In the mean time Alberta can separate from Canada and charge Canada a premium for its O&G.

  11. Baron Not Baron

    November 8, 2021 at 7:23 pm

    I must say, senile Brandon and his puppeteers are doing a great service to Alberta. It is God’s hand, folks, it really is God’s hand! But don’t expect anything good from this imbecile of Alberta, Kenney.

  12. Left Coast

    November 8, 2021 at 5:24 pm

    Poor ole China Joe Biden is so friggin Senile he does not even know what day it is.
    He reads most stuff from a Prompter . . . and of course never takes questions because he is terminally slow and vacuous.

    For 50 years Joe has been a Politician in DC and to this day has Zero Accomplishments.

    Closing the Pipeline would be Justice & Karma . . .

  13. Mars Hill

    November 8, 2021 at 5:08 pm

    All the native nations are in the area for shutting it down as well. They probably have more pull then “Mr Poopy Pants” in the matter. As an Albertan I’m all for it.

  14. Ken

    November 8, 2021 at 5:05 pm

    This would be fun to watch how the east fares through the winter months
    Lets go Brandon
    I personalty think we have to have a good old witch burnin to solve this climate crisis

  15. berta baby

    November 8, 2021 at 4:47 pm

    Oh please Brandon , please do this… the climate poopy pants think of the climate!

    Freezing out the east is like number 5 on my bucket list

  16. Eldon

    November 8, 2021 at 3:47 pm

    Let’s talk equalization and carbon taxes shall we!
    Kenny has a great opportunity here. What he does or doesn’t do will cement his future as leader as premier here in Alberta.

  17. Baron Not Baron

    November 8, 2021 at 3:34 pm

    Here is the moment when Alberta would tell Ottawa bye-bye, separating an selling them oil.. and they should be thankful for not letting them without needed energy!! WINTER IS COMING !

  18. Baron Not Baron

    November 8, 2021 at 3:17 pm

    Popcorn time! I want to see them coming and begging for Alberta oil!

You must be logged in to post a comment Login

Leave a Reply

Energy

IEA recognizes Canadian oil industry as the environmental world leader

In 2018, oil and gas companies also invested $3.6 billion in environmental protection initiatives, recognized by the IEA as by far the largest environmental protection spend of any industry in the country.  

mm

Published

on

Canada is doing great but should take measures to continue its reputation as a preferred oil and gas supplier on the global market, says the International Energy Agency.

IEA Executive Director Fatih Birol is a big advocate for net zero targets, but still recognizes the reliance on oil and gas that will persist into the future.

He said he prefers oil supply to come from “good partners” like Canada, he told a press conference.

“Canada has been a cornerstone of global energy markets, a reliable partner for years,” said Birol.

“We will still need oil and gas for years to come… I prefer oil is produced by countries … like Canada (that) want to reduce the emissions of oil and gas.” 

The same IEA report included recommendations for Canada to incentivise moves away from oil production, yet the director still recognizes Canada’s contribution to the global market.

World oil consumption returned to pre-pandemic levels and natural gas demand surpassed levels pre-COVID-19 last year, according to IEA data.

Yet Canada only supplies 6% of the current world market.

Consumption of both oil and gas is expected to continue rising even as more renewable energy sources come online. 

A Russian-caused natural gas crisis in Europe has many looking to Canada as a great alternative.

“The world needs reliable partners,” said Birol, of the European situation.  

Canada is the fourth-largest producer of oil and natural gas in the world and home to the third-largest oil reserves.

“This creates employment for Canadians and secure and reliable oil and gas for both domestic and global markets,” the IEA said.  

The IEA recommends that remaining competitive in global oil and gas markets requires further emission reductions, to ensure the sector remains a major driver of the Canadian economy beyond 2050.

Emission reduction has already been steadily implemented in Canada, analysts praised the oil and gas industry’s “strong track record” of reducing emissions intensity.

The oilsands by have decreased emissions by 32% since 1990 and further reductions of up to 27% are expected by 2030. 

Canadian oil and gas companies spend an average of $1 billion per year on clean energy technology, in addition to billions in environmental protection.  

In 2018, oil and gas companies also invested $3.6 billion in environmental protection initiatives, recognized by the IEA as the largest environmental protection spend of any industry in the country.  

“Canadian oil and natural gas producers are leveraging their improving environmental, social and governance performance and Canada’s stringent environmental regulations to build a global competitive advantage.”

Ewa Sudyk is a reporter with the Western Standard
esudyk@westernstandardonline.com

Continue Reading

Energy

Oil price jump prompts additional $6 billion in investments

Oilsand investments alone are expected to increase to $11.6 billion in 2022, a 33% jump.

mm

Published

on

The largest oil and gas industry group in Canada says it’s expecting $32.8 billion in oil patch spending this year, a 22% jump from last year.

Canadian Association of Petroleum Producers (CAPP) says the increased investment will help capitalize on the surge in crude oil prices, the growth will amount to an additional $6 billion this year.

Oilsand investments alone are expected to increase to $11.6 billion in 2022, a 33% jump.

As of Friday, the price of West Texas intermediate crude oil today is $87.05.

Tim McMillan, president of the CAPP, said the seven-year high price of oil doesn’t mean bad news, as companies are recording record cash flows and investment remains well below what it was in the boom years.

For example, in 2014 the Canadian industry captured 10% of total global upstream natural gas and oil investment, and the oil patch received record investment at $81 billion.

“Today we’re at $32 billion, and we’re only capturing about 6% of global investment,” said McMillan.

“We’ve lost ground to other oil and gas producers, which I think is problematic for a lot of reasons … and it leaves billions of dollars of investment that is going somewhere else, and not to Canada.”

Alberta is expected to be the leader among provinces in overall oil and gas capital spending, with upstream investment expected to increase 24% to $24.5 billion in 2022.

Over 80% of the industry’s new capital spending this year will be focused in Alberta, representing an additional $4.8 billion of investment into the province compared with 2021, according to CAPP.

Investment increase is also excepted in British Colombia, Saskatchewan and offshore production.

This means major recovery for the industry, as 2020 was harsh with global demand crashing and oil prices collapsing.

Global investment is on the down turn, as potential investors are discouraged by Canada’s history of cancelled pipeline projects, regulatory hurdles and negative government policy signals.

McMillan explained many now see Canada as a “difficult place to invest.”

“Rapid demand growth for oil and natural gas globally and strengthening commodity prices mean there is opportunity for Canada’s industry for decades to come,” said McMillan.

“To ensure a true recovery takes hold in Canada, government at all levels along with the industry must work together to create an environment where the natural gas and oil industry can thrive and attract investment back to Canada.”

Ewa Sudyk is a reporter with the Western Standard
esudyk@westernstandardonline.com

Continue Reading

Energy

Energy report tells feds to incentivize moves away from oil

The IEA calls for the Canadian government to creating transparent changes to the oil and gas industry but incentivizing technology changes and creating emergency oil stocks.

mm

Published

on

A new report says Canada should further invest in clean in electricity and that our country is already among the cleanest energy production in the world.

The International Energy Analysis (IEA) came out with a report outlining recommendations for Canada’s energy future, including balanced decarbonization across the country.

That means higher coordination between federal, provincial and territorial levels to set clear targets for energy efficiency in buildings, transport and industry sectors.

The IEA calls for the Canadian government to create transparent changes to the oil and gas industry but incentivizing technology changes and creating emergency oil stocks.

Canada’s electricity system is one of the cleanest globally according to the IEA report, as 80% of supply is from non-emitting sources such as hydropower and nuclear power.

“Canada’s wealth of clean electricity and its innovative spirit can help drive a secure and affordable transformation of its energy system and help realize its ambitious goals,” said IEA Executive Director Fatih Birol.

“Equally important, Canada’s efforts to reduce emissions — of both carbon dioxide and methane — from its oil and gas production can help ensure its continued place as a reliable supplier of energy to the world.”

The report follows Environmental Minister Steven Guildbeault’s announcement for Canada to be ready to eliminate fossil fuels in 18 months, with zero-emission cars and stricter methane regulations.

Conservative leader Erin O’Toole expressed concern on Twitter with the zero emission plans, calling attention to the need to invest in the oil sector rather than turn away from it.

Energy makes up over 10% of Canada’s GDP, being a major source of capital investment, export revenue and jobs, making the net-zero goals both a challenge and opportunity.

Since the last IEA review in 2015, Canada has made international and domestic commitments dedicated to transforming the energy sector, including a target to cut greenhouse gas emissions by 40‑45% by 2030.

Canada is also a part of the United Nations zero-emission 2050 target that involves over 130 countries worldwide.

Ewa Sudyk is a reporter with the Western Standard.
esudyk@westernstandardonline.com

Continue Reading

Recent Posts

Recent Comments

Share

Petition: No Media Bailouts

We the undersigned call on the Canadian government to immediately cease all payouts to media companies.

1,178 signatures

No Media Bailouts

The fourth estate is critical to a functioning democracy in holding the government to account. An objective media can't maintain editorial integrity when it accepts money from a government we expect it to be critical of.

We the undersigned call on the Canadian government to immediately cease all payouts to media companies.

**your signature**



The Western Standard will never accept government bailout money. By becoming a Western Standard member, you are supporting government bailout-free and proudly western media that is on your side. With your support, we can give Westerners a voice that doesn\'t need taxpayers money.

Share this with your friends:

Trending

Copyright © Western Standard New Media Corp.