Oil Supply Shock Ontario-Quebec comingIf Cruella De Ville has her way in Michigan, Ontario and Quebec are soon going to be in a lot more pain. Trudeau like Nero will play violin and blame Harper, and Legault will say he doesnt want "dirty" oil anyway. As for Ford well...BN#$@$%&. That is the cost of killing Energy east. I am sad to say that I hope she is successful. People deserve a good wake up call.
1:14 AM EST, 01/07/2021 (MT Newswires) -- Desjardins on Thursday warned Ontario and Quebec could face an oil-supply shortage if Michigan Governor Gretchen Whitmer carries through on threats to shutdown Enbridge's (ENB.TO) Line 5 pipeline, after she moved to end the line's easement beneath the Strait of Mackinac.
"In Canada, as if COVID-related challenges were not enough, an energy supply shock is rising to the fore as a non-negligible risk," the financial cooperative said in a note. "On November 13th, Michigan Governor Gretchen Witmer announced that Enbridge had been given 180 days to stop running petroleum products through the 67-year old Line 5 pipeline in the Straits of Mackinac. Currently, the federal government and a number of provinces are mounting pressure on the US and the state of Michigan to avoid the shutdown. Line 5 is a 645-mile pipeline originating in Superior, Wisconsin, and ending in Sarnia, Ontario. It transports up to 540,000bbl/d of light crude oil, light synthetic crude and natural gas liquids. Line 5 supplies ~55% of the propane used in Michigan and serves as a conduit to supply eastern Canada (the majority of NGLs in Sarnia come through Line 5). The shutdown would create significant shortages, with Enbridge indicating Ontario might be 45% short of its crude oil supply needed for its refineries. The pipeline also supplies 40%-50% of the oil used by Quebec refineries as it is an important source of supply for the Line 9 pipeline running from Ontario to Quebec. There would also be a material impact on Western producers where the supply originates. Even though alternative modes of transportation would be employed (i.e. rail, truck, ship), the cost effects would lead to energy price spikes in the two largest provinces, with effects akin to a tax hike, at a time when all hopes are for the economy to start recovering from the second wave of COVID-19."