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November 29, 2007

Explosion and Fire at Largest Oil Pipeline Between US and Canada

Cause unknown at this time, 2 employees killed.

The timing is pretty bad. We are coming to the strongest demand period for crude with the approach of the northern winter," said Mark Pervan of ANZ.

The Enfield lines supplied 1.5 million bpd in the 3rd quarter of this year. Some capacity has been restored but officials did not say how much. Even if other oil producing nations increase supply, there aren't a lot of ways to get that crude to landlocked Midwestern refineries. There is some unused capacity on other lines.

The article also notes that Canada is the largest supplier of foreign crude oil to the US, and most of it is delivered through this system.

OOPS UPDATE: I got the name wrong, it's Enbridge. Two of the four lines are operating, a third is being inspected. The one where the fire occured had been shut down for maintenance, so hopefully minimal impact. Early reports say the third line could be operational again in a few days.



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posted by Dave In Texas at 10:09 AM

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