REPORT: Energy security for Canada and the United States<\/h2>\n\n\n\n
In considering the potential effects of a possible shutdown of Line 5, witnesses focused on secure energy supplies, transportation adjustments and limitations, shortages of energy products, price changes, job losses, and Canada\u2019s relations with Michigan and some other U.S. states.<\/em><\/p>\n\n\n\n Canada\u2019s Minister of Natural Resources<\/a>, the Canadian Chamber of Commerce<\/a> and the Canadian Propane Association<\/a> maintained that Line 5 contributes to secure energy supplies for Canada and\/or the United States. Canada\u2019s Minister of Natural Resources<\/a> stated that Line 5 supplies four refineries in Ontario and two in Quebec. Moreover, the Canadian Chamber of Commerce<\/a> said that central Canada\u2019s supplies of gasoline, heating fuel and jet fuel depend on Line 5, while Canada\u2019s Minister of Natural Resources<\/a> and Enbridge<\/a> observed that Line 5 supplies 55% of Michigan\u2019s propane needs. The Canadian Propane Association<\/a> highlighted that Line 5 is the only pipeline that supplies propane to Southern Ontario. According to Saskatchewan\u2019s Minister of Energy and Resources<\/a>, the Enbridge Mainline \u2013 of which Line 5 is a part \u2013 is the \u201conly real pipeline egress\u201d for that province\u2019s energy producers.<\/p>\n\n\n\n The Canadian American Business Council<\/a>, Canada\u2019s Building Trades Unions<\/a> and the Canadian Propane Association<\/a> commented that a shutdown of Line 5 would increase the number of trucks, railcars and\/or barges that carry energy products through certain parts of Canada and the United States. Natural Resources Canada<\/a> asserted that, in the event of a shutdown, \u201capproximately 2,100 tanker trucks per day leaving Superior and heading east across Michigan, and roughly 800 railcars travelling on Michigan’s rails,\u201d would be required to transport the products that are moved by Line 5. In the view of the Canadian Chamber of Commerce<\/a>, \u201cup to 2,000 tanker trucks or 800 railcars a day would be needed to absorb the displaced product.\u201d Canada\u2019s Building Trades Unions<\/a> provided an estimate of \u201cupwards of 2,000 trucks a day or 800 railcars,\u201d while Enbridge<\/a> mentioned \u201c15,000 dedicated trucks per day\u201d or \u201c800 extra railcars a day.\u201d<\/p>\n\n\n\n Alberta\u2019s Minister of Energy<\/a> noted that, if Line 5 shuts down, refineries in Montreal would have a number of options for sourcing their energy inputs: rail or truck from Western Canada; tankers from various countries, including members of the Organization of the Petroleum Exporting Countries; or a pipeline from Portland, Maine. HEC Montr\u00e9al\u2019s Pierre-Olivier Pineau<\/a>, who appeared before the Special Committee as an individual, claimed that a shutdown of Line 5 could restart the \u201cvirtually unused\u201d pipeline from Portland to Montreal.<\/p>\n\n\n\n The Canadian Chamber of Commerce<\/a> contended that increased train and truck traffic due to a shutdown of Line 5 would lead to higher shipping costs, greenhouse gas emissions, and congestion for Canadian and U.S. commuters. As well, the Laborers\u2019 International Union of North America<\/a> suggested that greater truck congestion resulting from such a shutdown would have a \u201csignificantly detrimental\u201d effect on at least some sectors that rely on just-in-time parts delivery, including automotive. According to the Laborers\u2019 International Union of North America<\/a>, some legislators in Michigan are concerned that more demand for trucks and trains to transport petroleum products could negatively affect the agricultural sector. Canada\u2019s Minister of Natural Resources<\/a>, Enbridge<\/a>, the Canadian Chamber of Commerce<\/a> and the Sarnia Construction Association<\/a> commented that alternative modes of transportation would not be as safe as Line 5.<\/p>\n\n\n\n Enbridge<\/a> and the Canadian Propane Association<\/a> thought that \u2013 in the short term \u2013 it would be difficult, if not impossible, for alternative transportation methods to ship both their current products and the volume of crude oil and natural gas liquids currently moved by Line 5. Alberta\u2019s Minister of Energy<\/a> predicted that a shutdown of Line 5 would create a \u201cbottleneck\u201d of oil in \u201cthe Midwest,\u201d thereby limiting the flow of up to 400,000 barrels per day of Alberta\u2019s oil.<\/p>\n\n\n\n According to Enbridge<\/a>, if Line 5 shuts down, refineries in Ontario and Quebec, as well as in Indiana, Michigan, Ohio and Pennsylvania, would be unable to obtain the volumes of crude oil and natural gas liquids that they need. Consequently, Enbridge asserted that a shutdown would lead to gasoline, diesel, jet fuel, propane and butane shortages in those provinces and states. Both Canada\u2019s Minister of Natural Resources<\/a> and the Canadian American Business Council<\/a> maintained that a shutdown would cause a propane shortage of more than 750,000 gallons per day in Michigan.<\/p>\n\n\n\n The Canadian Propane Association<\/a> underlined that a \u201cprolonged\u201d shutdown of Line 5 would have \u201csevere and lasting consequences\u201d for the supply of propane to Ontario, Quebec and Atlantic Canada. As well, the Canadian Propane Association<\/a> remarked that 25% and 45% of propane that is \u201cmarketed\u201d in Ontario and Quebec, respectively, is used by hospitals, schools and firms. The Canadian Propane Association<\/a> concluded that, if a shutdown occurs, \u201cfacilities\u201d in rural areas of Eastern Canada might encounter \u201cgreat difficulties.\u201d<\/p>\n\n\n\n Canada\u2019s Building Trades Unions<\/a> said that a shutdown of Line 5 would increase the price of gas, propane and petrochemical products that are used in manufacturing, and Enbridge<\/a> estimated that the price of propane would rise by 38 cents per gallon in Michigan. In the view of Local 663<\/a> of the United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry of the United States and Canada, fuel costs could potentially triple. Alberta\u2019s Minister of Energy<\/a> claimed that, due to the expected \u201cbottleneck\u201d of oil in the Midwest, the shutdown would put downward pressure on the price that Alberta\u2019s oil producers would receive for their sales of that commodity.<\/p>\n\n\n\n In the opinion of Canada\u2019s Minister of Natural Resources<\/a>, thousands of jobs \u201con both sides of the border\u201d depend on Line 5. Canada\u2019s Minister of Natural Resources<\/a>, Ontario\u2019s Associate Minister of Energy<\/a>, the Canadian Chamber of Commerce<\/a> and the Laborers\u2019 International Union of North America<\/a> observed that Line 5 directly or indirectly supports more than 20,000 jobs in Sarnia.<\/p>\n\n\n\n Canada\u2019s Building Trades Unions<\/a> believed that Line 5\u2019s shutdown could potentially cause 25,000 job losses, and the Explorers and Producers Association of Canada<\/a> noted \u201csignificant negative consequences\u201d for U.S. jobs. From a sectoral perspective, the Laborers\u2019 International Union of North America<\/a> stated that the shutdown could affect jobs in such sectors as automobiles, cosmetics and medical supplies, and Local 663<\/a> of the United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry of the United States and Canada mentioned \u2013 including in relation to certain small businesses \u2013 job losses and the closure of operations in such sectors as oil and gas, electronics, automobile manufacturing, agriculture, cosmetics, sporting goods, pharmaceuticals and medical supplies.<\/p>\n\n\n\n While witnesses did not identify any study of the number of jobs that would be affected in each province due to a shutdown of Line 5, the Laborers\u2019 International Union of North America<\/a> indicated that job losses would occur in Alberta, Ontario and Quebec, as well as in Michigan, Ohio, Pennsylvania and Wisconsin. Moreover, Canada\u2019s Minister of Natural Resources<\/a> described Line 5 as a \u201clifeline\u201d for Quebec\u2019s petrochemical sector, including two refineries in that province, as well as refineries in Ohio. According to Enbridge<\/a>, it does not have an estimate of the number of jobs that would be lost in sectors in Quebec that would be affected by a shutdown.<\/p>\n\n\n\n In pointing out that energy integration and \u201ccritical trading relationships\u201d are \u201cimportant for jobs and economies on both sides of the [Canada\u2013U.S.] border,\u201d Alberta\u2019s Minister of Energy<\/a> asserted that a shutdown of Line 5 would \u201cthreaten\u201d the province\u2019s relationship with Michigan, and perhaps other U.S. states. According to Saskatchewan\u2019s Minister of Energy and Resources<\/a>, a shutdown would \u201cshut off\u201d a \u201ccrucial means of keeping families working and warm, businesses and crucial sectors powered, and successful cross-border relationships thriving.\u201d The Mayor of Sarnia<\/a> contended that Michigan\u2019s Governor has damaged the state\u2019s relationship with Ontario and \u201cborder cities.\u201d<\/p>\n\n\n\n A Parliamentary committee has looked at what would happen if the United States goes through with Michigan’s threat to cripple the Canadian economy by unilaterally shutting down the Line 5 pipeline.<\/p>\n","protected":false},"author":9,"featured_media":84396,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2],"tags":[89],"class_list":["post-81655","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oil-gas","tag-pipeline"],"acf":[],"yoast_head":"\n![\"\"](\"https:\/\/resourcework2.devstudio.work\/wp-content\/uploads\/2021\/04\/us-canada-1024x745.jpeg\")
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