| Topic: |
Politics > Politics-USA |
| User: |
"Harry Hope" |
| Date: |
08 Aug 2006 05:55:27 AM |
| Object: |
Pipeline Closing May Last for Months |
BP discovered corrosion in the transit lines only after the U.S.
Transportation Department ordered their inspection following a spill
of up to 270,000 gallons in March.
It was the biggest spill in North Slope history, and has become part
of a criminal investigation into the company's Alaskan operations.
From The Associated Press, 8/8/06:
http://apnews.excite.com/article/20060808/D8JC0KAG1.html
BP: Pipeline Closing May Last for Months
By MARY PEMBERTON
ANCHORAGE, Alaska (AP) -
BP said Monday it discovered corrosion so severe that it will have to
replace 16 miles of pipeline at the huge Prudhoe Bay oil field - work
that could shut down the nation's single biggest source of domestic
crude for months and drive gasoline prices even higher.
Oil prices climbed more than $2 a barrel on the news, and gasoline
futures rose, too.
The West Coast is expected to be squeezed particularly hard, and the
government is considering releasing oil from its emergency stockpile
to ease the crunch.
BP PLC (BP) said it will have to replace most of the 22 miles of
so-called transit pipeline at Prudhoe Bay, which produces about 2.6
percent of the nation's daily supply including imports, or about
400,000 barrels a day.
BP, the world's second-largest oil company, discovered the extent of
the corrosion with tests that were ordered by the federal government
after a big oil spill last March at Prudhoe Bay, situated above the
Arctic Circle, 650 miles north of Anchorage.
The oil company said it was surprised to find such severe corrosion,
and had gone 14 years without using a device called a "pig" to clean
out its lines because it did not believe it was necessary.
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.
"BP deeply regrets it has been necessary for us to take this drastic
action," Malone said.
BP operates the Prudhoe Bay oil field for itself and for other oil
companies, namely ConocoPhillips and ExxonMobil. Prudhoe Bay and other
oilfields 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.
BP officials said they did not immediately know how much it would cost
to replace the lines.
The company made $7.3 billion in profit during the most recent
quarter.
__________________________________________________________
Harry
.
|
|
| User: "DanDan" |
|
| Title: Re: Pipeline Closing May Last for Months |
08 Aug 2006 09:01:28 AM |
|
|
The impact is only 8% of the oil output in the USA but if the
hurricanes hit in the Gulf of Mexico how dramatic will be the affect on
the USA? Will interest rates rise due to this?
Mabon Dane
.
|
|
|
| User: "Bob" |
|
| Title: Re: Pipeline Closing May Last for Months |
08 Aug 2006 09:50:38 AM |
|
|
"DanDan" <dandan1@h2009.com> wrote in message
news:1155045688.151222.317520@i42g2000cwa.googlegroups.com...
The impact is only 8% of the oil output in the USA but if the
hurricanes hit in the Gulf of Mexico how dramatic will be the affect on
the USA? Will interest rates rise due to this?
Mabon Dane
If gasoline prices rise significantly, the economy
would slow, and the fed would most likely reduce
interest rates.
.
|
|
|
| User: "" |
|
| Title: Re: Pipeline Closing May Last for Months |
08 Aug 2006 12:49:21 PM |
|
|
Bob wrote:
"DanDan" <dandan1@h2009.com> wrote in message
news:1155045688.151222.317520@i42g2000cwa.googlegroups.com...
The impact is only 8% of the oil output in the USA but if the
hurricanes hit in the Gulf of Mexico how dramatic will be the affect on
the USA? Will interest rates rise due to this?
Mabon Dane
If gasoline prices rise significantly, the economy
would slow,
The economy is already slowing.
It went from a 5.6% growth in the first quarter to a 2.5% growth in the
second quarter.
and the fed would most likely reduce
interest rates.
.
|
|
|
| User: "Lamont Cranston" |
|
| Title: Re: Pipeline Closing May Last for Months |
08 Aug 2006 01:30:00 PM |
|
|
wrote:
Bob wrote:
"DanDan" <dandan1@h2009.com> wrote in message
news:1155045688.151222.317520@i42g2000cwa.googlegroups.com...
The impact is only 8% of the oil output in the USA but if the
hurricanes hit in the Gulf of Mexico how dramatic will be the affect on
the USA? Will interest rates rise due to this?
Mabon Dane
If gasoline prices rise significantly, the economy
would slow,
The economy is already slowing.
It went from a 5.6% growth in the first quarter to a 2.5% growth in the
second quarter.
and the fed would most likely reduce
interest rates.
....except for the fact that inflation is increasing.
.
|
|
|
| User: "Bob" |
|
| Title: Re: Pipeline Closing May Last for Months |
08 Aug 2006 02:25:25 PM |
|
|
"Lamont Cranston" <Lamont.Cranston@TheShadowKnows.com> wrote in message
news:44d8d828$1_2@x-privat.org...
mordacpreventor@hotmail.com wrote:
Bob wrote:
"DanDan" <dandan1@h2009.com> wrote in message
news:1155045688.151222.317520@i42g2000cwa.googlegroups.com...
The impact is only 8% of the oil output in the USA but if the
hurricanes hit in the Gulf of Mexico how dramatic will be the affect on
the USA? Will interest rates rise due to this?
Mabon Dane
If gasoline prices rise significantly, the economy
would slow,
The economy is already slowing.
It went from a 5.6% growth in the first quarter to a 2.5% growth in the
second quarter.
and the fed would most likely reduce
interest rates.
...except for the fact that inflation is increasing.
Agreed. If the fed sees problem inflation, they
will definately increase interest rates.
.
|
|
|
|
|
|
|
|
|
Related Articles |
|
|
