Whitmer acts to protect fuel supply; do same for Line 5
Good for Gov. Gretchen Whitmer for recognizing the connection between reliable supplies of energy and the financial well-being of her Michigan constituents.
Whitmer issued an executive order declaring an energy emergency due to a fire at a BP oil refinery in Indiana that supplies roughly a quarter of gasoline and diesel fuel used in the state.
She and three other Midwestern governors successfully petitioned the Environmental Protection Agency to move ahead by more than two weeks the Sept. 15 timeline for switching to the cheaper fall gasoline blend. The governor also lifted some rules on supply transportation to give truckers greater flexibility in delivering fuel.
Whitmer’s move should help mitigate the impact of the refinery closure. No date has been given for its reopening.
The incident at the Indiana facility is a reminder of the fragility of the nation’s petroleum supply chain. There is very little back-up capacity.
A major oil refinery has not been built in the United States since 1976. Meanwhile, refining capacity fell by more than 5% during the pandemic. Currently, U.S. refineries are operating at well above 90% capacity and have little ability to pick up the slack when a refinery goes down.
Any such disruption in gasoline and diesel production sends a price shock through the system.
That hurts consumers, and it’s also not so great for a governor running for reelection in a year in which soaring prices are the No.1 concern of voters.
Michigan motorists have been seeing a steady drop in fuel prices over the past few weeks. It’s too early to tell whether Whitmer’s directives will be enough to offset any possible cost surge from the refinery shutdown.
Hopefully, Whitmer’s awareness of the impact of supply squeezes on the cost of living for Michigan residents will prompt her to reconsider her efforts to shutdown the Line 5 petroleum pipeline, which carries Canadian petroleum products across the Straits of Mackinac to Michigan, the Midwest and southern Canada.
If Whitmer is successful, the cost to consumers would dwarf what they might expect from the temporary refinery closure.
Shutting down Line 5 could cost Michigan consumers $2.2 billion a year, according to a study from the Consumer Energy Alliance, a group representing energy, business and labor interests.
Despite the green energy dreams of its politicians, Michigan still runs on oil and gas. When supplies of those resources are restricted, either through natural causes or policy decisions, it hurts Michiganians in their wallets.
Gov. Whitmer acted to limit that pain from the Indiana refinery fire, and deserves credit for doing so. She should apply the same practical reasoning in deciding the fate of Line 5.
— Detroit News



