Pipe Dreams Leave U.S. Energy Firms Caught in Climate Trap

SEATTLE (Oil Monster): In remote northern Michigan a propane shortage in early 2014 caused prices to nearly double, squeezing about half of the families there who rely on the fossil fuel to heat their homes.

Glenda Bowler remembers her son fitting a wood stove at his restaurant as an alternative to propane, which reaches Michigan's Upper Peninsula via a 645 mile (1038 km) pipeline.

"Everybody's thermostats got turned down, and you turned to supplemental, like wood or electric to help. I'm old, so I can't go cut wood," the 68-year-old said.

Now the future of the Enbridge Inc owned line supplying the region is under threat, as climate activists widen their campaign to cut U.S. fossil fuel dependency from new pipelines to the refurbishment or expansion of older ones.

"To speed up the extraction of what remains is an insane strategy because we need to have something that replaces that energy source in the future and we don't have it as long as people are continuing to rely on oil," Anne Woiwode, co-chair of the Sierra Club's Michigan chapter, said.

But as authorities worldwide face the challenge of a smooth transition to a lower-carbon future, energy firms are wrestling with investment decisions to keep their businesses running and prevent supply disruptions.

Enbridge had to temporarily close its Line 5 this summer after damage was discovered, boosting calls for the 67-year-old line carrying crude oil, propane and liquid fuels to Canada through the sensitive Straits of Mackinac, to be shut down.

Nearly half the oil and gas pipeline miles that crisscross the United States are at least 50 years old. And even though the world's largest fuel consumer is starting to rely more on renewables, fossil fuels still provide almost all of its road fuel and natural gas accounts for about 40 per cent of electricity generation.

Michigan Governor Gretchen Whitmer this month revoked a decades-old easement allowing the Enbridge line to operate, saying that its location and age means it poses a major risk and vowing to shut it after a transition period.

Roughly 43 per cent of pipeline miles for hazardous liquids, which includes crude oil, were installed pre-1970, while 55 per cent of gas transmission pipeline miles were installed before 1970, according to the U.S. Department of Transportation.

Courtesy: www.economictimes.com