Canadian Pipeline Fire
Oil prices soar as blaze hits Canadian pipeline sending crude oil to the U.S. An explosion in northern Minnesota has forced Enbridge the shut down four pipelines. The pipeline system serves major refineries in Ontario, Canada, as well as the Great Lakes regions, and delivers approximately 2.2 million barrels per day.
Two repair workers were killed late Wednesday night as fire broke out along a pipeline in northern Minnesota, which carries crude oil from Saskatchewan to the Chicago area. The pipeline was shutdown briefly, and most of the pipeline was returned to service. The section damaged by the fire is expected to be back up in a couple days.
The Enbridge pipeline is actually four separate conduits, and two were restarted Thursday morning, and the third line was not damaged by the fire.
Global oil markets reacted to news of the fire, and the price went up by nearly $4 dollars a barrel, however an offer by the U.S. government to release oil from the Strategic Petroleum Reserve, if needed, helped calm the markets back down.
OPEC's output meeting is scheduled next week in Abu Dhabi, and it is not certain whether the cartel will increase production. The Saudi oil minister still states that high oil prices do not reflect the supply vs. demand situation, but several OPEC members have stated that the cartel may be willing to boost output to bring oil prices down.
Posted on Thursday, November 29, 2007 at 11:18PM
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