The United States isn’t Considering Canadian Oil Pipeline Shutdown, Claims White House

CALGARY (Bloomberg)– The White House pledged to talk about a crucial pipeline that lugs Canadian crude via Michigan with the northern neighbor, emphasizing the United States is not considering a shutdown of the conduit the state’s governor wants to be shuttered.

The U.S. and Canadian governments will certainly “engage constructively” on the future of Enbridge Inc.’s Line 5 pipe, the White House principal deputy press secretary, Karine Jean-Pierre, said at a briefing Tuesday.

“These arrangements as well as discussions between both nations should not be viewed as anything more than that, and also definitely not an indication that the United States government is considering shutdown,” she said. “That is something that they are not willing to do.”

The remarks assisted in elucidating the position of the Biden administration in an escalating quarrel between Michigan Governor Gretchen Whitmer, a Biden ally, and Enbridge. Supposition the U.S. was considering a shutdown of the line that supplies gas and oil to the Midwest sparked strong criticism from Republicans at a time when energy prices are rising due to limited materials.

The line is additionally a pivotal conduit of oil for refineries in Ontario and Quebec, which drew the attention of Justin Trudeau’s government. Canadian officials have called the continuous operation of the pipe nonnegotiable. Also, Canada recently invoked provisions of a 1970s treaty to safeguard the line’s operation, elevating the conflict to an international degree.

President Joe Biden has taken a firmer stance than his predecessor on oil pipelines, canceling the questionable Keystone XL task, which would undoubtedly have assisted shipping Canadian crude to U.S. refineries on his initial day in office. However, supporting Whitmer on closing Line 5 can elevate fuel prices in Michigan, a critical electoral state, as well as would undoubtedly sour connections with Canada.

Whitmer claims Line 5 is a danger to the Great Lakes because it goes across the Straits of Mackinac and also can spill oil right into the waterway. Enbridge has thus far resisted the order, leaving the two sides to eliminate their differences in Federal court.

The Calgary-based pipe giant has said its project to develop a tunnel to house the pipe under the lakebed will make it much safer. The tunnel project is currently under review by the United States Army Corps of Engineers.

Read the original article on World Oil.