Monday, November 08, 2021

Biden weighs shutting down another pipeline despite runaway gas prices: Energy Secretary Granholm argues 'fuel prices are going to skyrocket this winter anyway'
President Joe Biden's Administration is considering shutting down the Line 5 oil pipeline that links Superior, Wisconsin with Sarnia, Ontario, sources report

A group of Republican lawmakers issued a letter to Biden on Thursday urging him to keep the line in operation

They argued termination would exacerbate fuel shortages and increase prices
The lawmakers cited concerns over energy prices as midwesterners enter into the winter season

However, Energy Secretary Jennifer Granholm alleged that fuel prices are going to skyrocket this winter anyway

Meanwhile, Michigan's 12 federally recognized tribes also called on Biden last week asking him to move forward with the shutdown

The Biden Administration has yet to make a decision about Line 5's operation


By NATASHA ANDERSON FOR DAILYMAIL.COM
PUBLISHED: 8 November 2021

The Biden Administration is considering shutting down a Michigan oil pipeline despite warnings from Republican lawmakers who believe the move would result in fuel price shocks throughout the Midwest.

The administration is exploring the possibility of terminating the Line 5 pipeline - which links Superior, Wisconsin, with Sarnia, Ontario - and gathering data to determine if shutting down the line will cause a surge in fuel pricing, according to published reports.

In a letter dated Thursday, 13 Congress members - led by Ohio Rep. Bob Latta - urged the president to keep the oil line in operation, saying: 'Line 5 is essential to the lifeblood of the Midwest.'

'Should this pipeline be shut down, tens of thousands of jobs would be lost across Ohio, Michigan, Wisconsin, and the region; billions of dollars in economic activity would be in jeopardy; and the environment would be at greater risk due to additional trucks operating on roadways and railroads carrying hazardous materials,' the legislators wrote.

'Furthermore, as we enter the winter months and temperatures drop across the Midwest, the termination of Line 5 will undoubtedly further exacerbate shortages and price increases in home heating fuels like natural gas and propane at a time when Americans are already facing rapidly rising energy prices, steep home heating costs, global supply shortages, and skyrocketing gas prices.'


President Joe Biden's Administration is considering shutting down a Michigan oil pipeline despite warnings from Republican lawmakers who believe the move would result in fuel price shocks throughout the midwest

Line 5 is part of a network that moves crude oil and other petroleum products from western Canada to Escanaba, Michigan and transports approximately 540,000 barrels each day.

The pipeline is said to deliver vital products used to heat homes and businesses, fuel vehicles and power other North American industries.

Those in favor of its operation allege shutting it down further exacerbate fuel shortages and price increases as citizens enter the winter months.

However, Energy Secretary and former Michigan Governor Jennifer Granholm argues that fuel prices are going to skyrocket this winter anyway.

'Yeah, this is going to happen,' Granholm told CNN on Sunday. 'It will be more expensive this year than last year.'


Thirteen Congress members wrote a letter to Biden Thursday urging him to keep the Line 5 pipeline (pictured) in operation, saying: 'Line 5 is essential to the lifeblood of the midwest.'




Ohio Rep. Bob Latta (left), who is among those leading the effort to keep the pipeline, argues terminating its operation will exacerbate fuel shortages and price increases. Energy Secretary Jennifer Granholm (right) argues that fuel prices are going to skyrocket this winter anyway

'We are in a slightly beneficial position, well certainly relative to Europe, because their choke hold of natural gas is very significant. But we have the same problem in fuels that the supply chains have, which is that the oil and gas companies are not flipping the switch as quickly as the demand requires.'

According to the lawmakers, the administration's move to terminate Line 5's operation is part of a move to 'appease environmental groups'.

Their claims are echoed by Jason Hayes, director of environmental policy at the Mackinac Center for Public Policy, who alleges that Biden's energy policies and work on Line 5 is 'just one more example of being divorced from reality.'

'They're planning to power an industrial nation like the United States on solar panels and wind turbines,' Hayes told Fox News.

'I hope it doesn't end like this, but where I see it going is unfortunately the same thing that happened in February in Texas: People freezing in their homes.

He continued: 'Most of the time when it's extremely cold or there's a real bad polar vortex situation, typically it's pretty cloudy and there's not a lot of wind.'

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A group of lawmakers issued a letter to Biden on Thursday, arguing in favor of Line 5



Jason Hayes, director of environmental policy at the Mackinac Center for Public Policy, (pictured) echoed the legislators' claims and argued that Biden's energy policies and work on Line 5 is 'just one more example of [the administration] being divorced from reality'

The energy expert also noted that production of solar panels and wind turbines still requires 'oil, natural gas, nuclear and even coal'.

Additionally, proponents of the pipeline allege that the negative impacts of its termination exceed access to fuel and energy prices.

They claim its termination would 'trigger an international spinoff' with Canada.

'The 1977 Transit Pipelines Treaty between the United States and Canada has ensured the uninterrupted transportation of energy products across the border for decades,' Latta and his co-authors wrote.

'Given the strained relations between our two countries brought on by the termination of the Keystone XL pipeline and the prolonged shutdown of cross-border travel due to COVID-19, now is not the time to worsen this critical diplomatic partnership.'

Biden's Administration canceled the Keystone XL pipeline - which ran from Alberta, Canada to Steele City, Nebraska and carried 830,000 barrels of oil each day - in January. The controversial move prompted uproar, especially when the administration waived sanctions against a pipeline for Russia to ship energy to Germany.

The legislators believe terminating Line 5 and breaking another treaty with Canada would ultimately be detrimental to the countries' relationships.

Meanwhile, all twelve of Michigan's federally recognized tribes also called on the president last week, urging him to move forward with the state's efforts to shutdown the pipeline.

'The Governor, the Attorney General, and our Tribal Nations need your Administration's help,' the tribes wrote Friday in a letter obtained by the Detroit Metro Times. '… During your campaign, you promised that you would heed our concerns and act to protect our fundamental interests.'



Meanwhile, all twelve of Michigan's federally recognized tribes also called on the president last week, urging him to move forward with the state's efforts to shutdown Line 5 (pictured)

Whitney Gravelle, president of Bay Mills Indian Community, argues that the tribes were promised the right to fish, hunt and gather in the Great Lakes Anishnaabe area in 1836 when they ceded the lands.

The tribes also argues that their treaty supersedes the Canada agreement.

'We possess rights and interests in the integrity of the Great Lakes that date back to time immemorial, and that are protected by solemn treaties with the United States long predating the agreement Canada rests on,' the letter states.

'We view Line 5 as an existential threat to our treaty-protected rights, resources, and fundamental way of life as Anishinaabe people of the Great Lakes.'

Sources say the Biden Administration has yet to make a decision regarding the operation of Line 5.

Crude awakening on Line 5

By ZI-ANN LUM and SUE ALLAN
POLITICO
11/04/2021 

WELCOME TO OTTAWA PLAYBOOK. We are your hosts, ZI-ANN LUM and SUE ALLAN. Today, we have news on Line 5. Courtesy POLITICO’s team in Glasgow, we have a reality check on that $130 trillion climate promise. Plus, we catch you up on Canada-U.S. phone calls and visits.


FILE - In this Thursday, Nov. 12, 2020, file photo provided by the Michigan Office of the Governor, Gov. Gretchen Whitmer addresses the state during a speech in Lansing, Mich. Whitmer's office took legal action Friday to force the shutdown of Enbridge's Line 5 pipeline by revoking the easement that allows an underwater section to run through the Straits of Mackinac. (Michigan Office of the Governor via AP, File) | Michigan Office of the Governor via AP, File

GIDDY UP — Sources tell POLITICO’s BEN LEFEBVRE the White House is doing a deep data dive on understanding how potentially shutting down Enbridge’s Line 5 pipeline would impact fuel prices in and around Michigan.

Revoking the pipeline’s permits would please environmentalists and Michigan Gov. GRETCHEN WHITMER. Citing environmental concerns, the Democrat campaigned on a promise to shut down the pipeline that delivers crude oil, light synthetic crude and natural gas liquids from Alberta to Ontario through Wisconsin, the Great Lakes and Michigan.

The issue landed in the White House after Canada’s decision to invoke the 1977 Pipeline Transit treaty a month ago to ensure the continued operation of the 68-year-old pipeline.

“The Canadians have forced their hand,” an oil industry source with knowledge of the effort tells POLITICO. They described the U.S. Department of Energy as holding “ongoing discussions” to determine Line 5’s impact on markets. “They won’t have to take a position tomorrow, but they will have to take one soon.”

White House National Climate Adviser GINA MCCARTHY met with pipeline opposition groups in mid-October where Line 5 was raised. “They’re playing things close to their chest,” said one person who was at the meeting. “But we expect them to announce something after Build Back Better passes.”

Evoking the treaty means bilateral negotiations are on the horizon. Global Affairs spokesperson LAMA KHODR says the pipeline is a “top priority” for Canada and that Canadian officials were seeking to enter formal negotiations with the U.S. “as soon as possible.” Khodr declined to provide additional details because the matter is “ongoing.”

The pipeline transport is the primary way to get Alberta oil to Ontario and Eastern Canada. Conservative members of a House special committee that studied the pipeline warned in an April report: “There is no immediate way to replace the 540,000 barrels a day of crude oil and natural gas liquids moved by Line 5.” According to Natural Resources Canada, shutting the pipeline down would require a fleet of 2,100 tanker trucks and 800 railcars to travel through Michigan every day to make up for the loss.

— Two new players: Foreign affairs, headed by new Minister MÉLANIE JOLY, is running point on the file which has become an irritant to bilateral relations. What’s a better gift for a new appointment (paging newly confirmed U.S. Ambassador to Canada DAVID COHEN) than a hot potato?

WORKING ON THE RELATIONSHIP — JOLY shared some phone time with U.S. Secretary of State ANTONY BLINKEN on Wednesday. She spoke to The Star’s SUSAN DELACOURT soon after. Joly told Delacourt she’s been doing a lot of talking, including calls with RALPH GOODALE, KIRSTEN HILLMAN, DOMINIC BARTON, STEPHANE DION and FRANK McKENNA.

Blinken and ex-Foreign Affairs Minister MARC GARNEAU also shared a call Wednesday.

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