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OIL AND GAS
Michigan advocates lay out alternatives to controversial Line 5
by Daniel J. Graeber
Washington (UPI) Jan 18, 2018


An advocacy group said it was advising Michigan leaders on how to close a pipeline system spanning the two peninsulas, but doing without it won't be easy.

Part of a regional network of pipelines, Line 5, runs through Michigan's Upper Peninsula, through the turbulent Straits of Mackinac and then east to Ontario. In December, waves as high as 9 feet were recorded and an agreement with the state says Enbridge has to shut the line down during sustained periods of inclement weather.

Line 5 is part of a broader network of pipelines and can carry as much as 540,000 barrels of oil per day. Under agreements with the state, the company needs to conduct a study on the feasibility of building a new system in the Straits of Mackinac and ways to mitigate risk.

A coalition of advocacy groups said the pace was too slow and outlined steps it said were needed to shut down the 65-year-old Line 5 network for good. Dealing primarily with propane for Michigan's sparsely populated Upper Peninsula, the group said smaller pipelines, rail and trucks could help bridge the supply gap.

For oil, a smaller pipeline for the Lower Peninsula, or some combination of truck and rail, could backstop supplies.

James Clift, the executive director of the Michigan Environmental Council, said in statements emailed to UPI that Enbridge wasn't doing its part to ensure the network is secured.

In August, the Michigan State Police, Departments of Environmental Quality and Natural Resources, and the Michigan Agency for Energy said they were concerned by gaps in the protective coating on parts of Line 5 in the straits, at least one of which was caused when Enbridge installed new supportive anchors. Recent inspections revealed dozens of gaps across the span of the pipeline.

"Adopting this plan is an opportunity for the state to be transparent and ensure our Great Lakes are protected from a devastating oil spill," Clift said.

The advocacy groups added that Line 5 is a shortcut through Michigan for refineries in Ontario. Sandy Fielden, the director of oil and products research for Morningstar, said it's correct to say the system primarily serves the Canadian market, but the region as a whole would need to replace the 450,000 barrels of oil from someplace, namely U.S. shale oil reserves.

"Replacing those supplies would require a new pipeline to be built on land that would have its own implications," he told UPI. "In other words, the shortcut would require an alternative long way around to replace."

Michigan already has some of the highest prices for gasoline in the country, thanks in part to a fuels tax that went into effect last year. The Michigan Agency for Energy said modeling done for Line 5 provisions, from abandoning the pipeline system altogether to building a new one, range from a $2.13 per gallon increase to 1 cent, respectively.

OIL AND GAS
Norway speaks of record interest in offshore oil and gas
(UPI) Jan 17, 2018
With new licenses mostly in the North Sea, the Norwegian government said it secured its reputation as a predictable oil and gas producer in its latest auction. The government concluded its annual auction for oil and gas licenses, handing out 75 new awards for the continental shelf. "The number of licenses is the highest ever awarded in a licensing round on the Norwegian continent ... read more

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