Sunday, August 06, 2006

Wake Up Call

Excerpt ::::::::

BP begins shutdown of Prudhoe Bay oil field

The Associated Press

Published: August 6, 2006 Last Modified: August 6, 2006 at 05:15 PM

ANCHORAGE, Alaska (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.

Oil Surges to $76 After BP Shuts Alaska Field, Largest in U.S.

Aug. 7 (Bloomberg) -- Crude oil surged 1.7 percent to $76 a barrel after BP Plc shut Alaska's Prudhoe Bay field, the largest in the U.S., because of corrosion in a pipeline.
An inspection completed in July found a leak in a pipeline, London-based BP said in a statement today. The shutdown will take ``days'' to complete, a company spokesman said. The BP- operated Prudhoe Bay field produces 400,000 barrels a day, about 8 percent of U.S. production.

``Prudhoe Bay is a sizeable flow and is key to the U.S. market,'' said Anthony Nunan, assistant general manager for risk management at Mitsubishi Corp. in Tokyo. ``It should have a fairly big effect,'' on supplies.

Crude oil for September delivery rose as much as $1.24, or 1.7 percent, to $76 a barrel in electronic trading on the New York Mercantile Exchange. The contract traded at $75.97 at 11:08 a.m. in Singapore.

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