BP shuts down largest U.S. oil field

[Canuck_Buck]

Wonderful ???[8D]


MSNBC staff and news service reports
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Updated: 17 minutes ago
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[/align][/align]ANCHORAGE, Alaska - In what could be another blow to consumers already hard hit by high energy costs, oil company BP scrambled Monday to assess pipeline damage that has shut down shipments from the nation"™s biggest oil field, removing about 8 percent of daily U.S. crude production.

http://www.msnbc.msn.com/id/14219844/?GT1=8404

Because of the disruption of supplies, the Energy Department is prepared to provide oil from the government"™s emergency supplies if a refinery requests it.

[kevin1]

They're already talking about reopening the "lending" program of the SPR to keep the domestic refineries humming , and OPEC has said that they will increase production enough to cover the shortfall , so there should be no effect at the pump . Even if there is the increase should be no more than about 10 cents based on the small amount of oil that this pipeline contributes to the world oil supply .

[JoshKeller]

and yet it just jumped over $2 in the past 24 hours per barrel. [:@]

[Sswpriz]

Just another reason to have us bend over !!!!

[CalHunter]

Now if the U.S. would get off the dime and increase our refining capacity.

[James B]

Like I have always said, they control the supply and demand. If the hurricanes won't co-operate find or create an oil leak. No problem. One way or the other and one reason or another, they have prices going their way, they have no competition, they control even the alternate energy sources. We won't get a break from home grown fuels as long as the oil companies have any part in it. Like someone said, bend over and try to smile. If you are on a fixed income, things are gonna go downhill fast from here on out.

[Tazman]

My understanding of the oil in Alaska is that it is high sulfer content oil and our refineries can not refine it because they are designed to refine what is called "sweet" crude oil which is very low in sulfur content as a result the vast majority of the Alaskan oil is sold to ***an. There will be an impact on our oil prices but not on the availabilty of it.

[Canuck_Buck]

Most of the crude oil produced out of Alaska's North Slope each day goes to refineries in Washington, California and Hawaii, said Joe Sparano, president of the Western States Petroleum Association, a trade group based in Sacramento, California.

BP operates the Prudhoe Bay oil field for itself and for other oil companies, including ConocoPhillips and Exxon Mobil. Prudhoe Bay and other oil fields on Alaska's North Slope feed oil into the 800-mile trans-Alaska pipeline. The North Slope produces approximately 800,000 barrels a day; Prudhoe Bay accounts for half of that.

http://www.cnn.com/2006/US/08/08/oilfield.shutdown.ap/index.html

Bob Malone, chairman of BP America, said that in a worst-case scenario, it could take weeks or months to replace the pipelines. But the company said it will try to put portions of the network back into operation as they are repaired.

"We estimate it could take between 2-3 months to get it back on line," Bruce Lanni, an industry analyst with A.G. Edwards, wrote in a research note. "However, there are no assurances that it will return to current capacity, given the complexities and age of the reservoirs."

[Champlain Islander]

Crude prices will rise as a result of the closing and thegovernment will release reserves to fill the void. Mark my words..when the void is filled the prices will stay high. It always seems to be something that keeps the prices rising.

[petasux]

We topped 3.00 a gallon here yesterday, highest its been at the pump in this area so far.