A contentious dispute has erupted between Canadian energy company Enbridge and Michigan Governor Gretchen Whitmer over the continued operation of the Line 5 pipeline that transports oil between Ontario and Michigan. Whitmer has ordered the line shut down citing environmental concerns. The Canadian government has filed a legal brief in support of Enbridge, who insist that the line’s continued operation is safe.
The Fraser Institute examines the situation facing Canada in the event of a shutdown and finds that the consequences would be devastating for both the economy and the environment. As Jairo Yunis and Elmira Aliakbari outline, Line 5 supplies western Canadian crude to Ontario’s four operating refineries and provides almost half of Ontario’s crude oil and natural gas. Employment for 5,000 people is directly affected by Line 5, and another 23,000 are indirectly affected in Sarnia alone.
Quebec would also suffer. Line 5 is a critical supply source that delivers about two-thirds of the crude oil refined and consumed in the province.
“Simply put, a shutdown of Line 5 will threaten the energy supply of Canada’s two most populous provinces and will lead to job losses and spikes in energy prices that would increase the cost of almost everything, from food to driving cars to heating homes.”
Alternatives to the pipeline, transport by oil and rail, have much worse environmental concerns attached to them. Compared to pipelines, the risk of spills were twice as high by rail and 10 times higher by truck.
