Major Alaskan Oil Field Shutting Down

[MSGT]

ANCHORAGE, Alaska Aug 6, 2006 (AP)— BP Exploration Alaska, Inc. began shutting down the Prudhoe Bay oil field Sunday after discovering unexpectedly severe corrosion and a small spill from a transit pipeline.
Prudhoe Bay represents about half of Alaska's oil production and about 8 percent of U.S. production, according to the U.S. Energy Information Administration.
Company officials said it would take days to shut down the oil field. Once completed, it's expected to reduce oil field production by 400,000 barrels a day.




http://abcnews.go.com/Business/wireStory?id=2280814



http://apnews.myway.com/article/20060807/D8JBAG9G0.html

[DeclinetoState]

This will give the oil companies a reason to raise our gas prices, and environmentalists one to bitch about plans to go into ANWR.

[MSGT]

Oil touched $76 a barrel on Monday after producer BP shut down the biggest oilfield in the United States indefinitely, while anxiety about Middle East supply continued to run high.U.S. light, sweet crude oil <CLc1> was up $1.24 at $76.00 a barrel by 0447 GMT, after an earlier high of $76.02, or a 1.65 percent jump, on news of the field's closure. London's Brent <LCOc1> was up 98 cents at $77.15 a barrel.
"The BP field is a sizable stream and this is just another thing. The world is already concerned about supplies and this is just adding to concerns," said Tony Nunan, a risk manager at Mitsubishi Corp. in Tokyo.

"BP is the main thing and Iran is in the background. It's a good thing Chris did not become a hurricane."






http://today.reuters.com/news/articlenews.aspx?type=businessNews&storyid=2006-08-07T045221Z_01_SP991_RTRUKOC_0_US-MARKETS-OIL.xml&src=rss&rpc=23

[Beowulf]

Oil investors look for any reason to raise the price. Enough is enough!

[Suzie]

Breaking News Monday, August 7, 2006, 11:33 AM PDT


ANCHORAGE, Alaska (AP) BP PLC says it will replace 73 percent of the pipeline from Prudhoe Bay oil field which could be closed for weeks or months.


Breaking News Alerts may be sent before a story is available on Yahoo! News. A story should be published shortly. Search for related news on Yahoo! News Search.

[Rhino]

Doesn't matter to the chicken littles in the oil market. They never let facts get in the way of a good panic.

[ConspiracyBuff]

so glad Im not driving right now.

[TSawyer2112]

I was under the impression that oil companies performed regular internal and external inspectons of these oil pipelines. I'm no oil industry "expert", but an internet search on "Pipeline Inspection" appears to yield quite a bit of info on services and equipment available for such tasks. Perhaps BP should spend less money on their touchy-feely commercials featuring all these seemingly thoughtful and concerned environmentally-concious individuals and more money on keeping their pipelines in order so as not to cause environmental and economic disaster. With all that's going on, they picked a heck of a time to suddenly discover the need for maintenance. :smirky:

[Beowulf]

Shame on BP! Anyone and everyone knows that anything mechanically held together and/or mechanically operating needs maintenance.

And Buff, I'm glad I only fill up once, maybe twice a month now. Doesn't hurt as bad as it once did.

[BuckeyeMike]

You guys hit on the very thing I thought of as soon as I read this....where is the preventative maintenance? Are there PM crews? Are they STILL working for BP after this? I think somebody is blowing smoke up our collective asses...and will, of course, get away with it! Gotta keep those F**king shareholders happy....screw the customer.....

[DesertFox]

Next come the tiresome Congressional hearings, with Waxman and Kennedy lying thru their teeth pontificating about eeeeevil oil. If we're REALLY luck we might get to hear Bush tell us how we're addicted to oil again -- one just hopes he doesn't have on a cardigan sweater when he does.

[Rhino]

The oil gushed from the pipeline at a spot where it dips to ground level to allow caribou to cross, and has led industry critics and environmental groups to question whether BP is saving money on maintaining its network of wells, pumps and pipelines crisscrossing the tundra - a complaint the company vigorously denies.

As oil is increasingly transported through environmentally sensitive areas by pipeline, the dangers posed by poorly maintained rotting pipes has become increasingly clear.

Exploration Alaska, the BP subsidiary that operates the pipeline from which more than 910,000 litres of oil has leaked, has recently been fined more than $1.2m (£635,000) for its poor environmental safety record.

The company has now been told it cannot restart pumping oil until it the entire pipeline has been inspected and repaired. Employees claim that they repeatedly warned that money-saving cutbacks in routine maintenance and inspection had dramatically increased the chances of accidents or spills.http://www.commondreams.org/headlines06/0321-06.htm

[Rhino]

According to BP, it was inspection and preventive maintenance that uncovered the problem.

The decision follows the receipt on Friday, August 4 of data from a smart pig run completed in late July. Analysis of the data revealed 16 anomalies in 12 locations in an oil transit line on the eastern side of the oil field.

In response to the inspection data, BP conducted follow up inspections of anomalies where corrosion-related wall thinning appeared to exceed BP criteria for continued operation. It was during these follow up inspections that BP personnel discovered a leak and small spill estimated at 4 to 5 barrels.http://www.bp.com/genericarticle.do?categoryId=2012968&contentId=7020563

[Riverboat]

one just hopes he doesn't have on a cardigan sweater when he does.Just make sure it isn't a yaller one.