Major Alaskan Oil Field Shutting Down

Ask News ^ | 8/6/06 | mary pemberton

[grandpa jones]

ANCHORAGE, Alaska (AP) - Half the oil production on Alaska's North Slope was being shut down Sunday after BP Exploration Alaska, Inc. discovered severe corrosion in a Prudhoe Bay oil transit line.

BP officials said they didn't know how long the Prudhoe Bay field would be off line. "I don't even know how long it's going to take to shut it down," said Tom Williams, BP's senior tax and royalty counsel.

Once the field is shut down, in a process expected to take day, BP said oil production will be reduced by 400,000 barrels a day. That's close to 8 percent of U.S. oil production as of May 2006 or about 2.6 percent of U.S. supply including imports, according to data from the U.S. Energy Information Administration.

[P-Marlowe]

Um, and, what exactly is the purpose of that ? (Just curious)

What is the meaning of life?

[farlander]

Well, I haven't been to the mountain top with a guru in a cave in a while... I'm sure the answer has changed since.

[redhead]

"Not to be a party pooper but if that section of pipeline is showing severe corrosion it calls into question the integrity of the entire line. Also, I'm betting they don't have spare pipe sitting around for repairs. I'm afraid this could take longer than a few days."

Don't forget: The pipeline is over thirty years old. Every time they send the pig down the line to clean out the buildup of paraffin, they wear the pipe a little. The steel is about 3/4" thick, but in a situation like this, every milimeter counts. What would you rather have: A few days' shutdown while they repair a portion that no longer meets exacting specs, or a major oil spill sometime in the future, shutting down the whole system for God knows how long? And, I wouldn't be a bit surprised to learn that they do keep spare pipe around for repairs, just in case, and have had it there since the line was built. (been here since before construction, actually...)

[redhead]

"This is not the Main North Slope to Valdez Line but a smaller line (one of several) that brings oil from the different gathering centers to the main line."

#2 son, who works in Prudhoe Bay, just called to tell us this. Scratch previous post.

[redhead]

"of course, I think all that is bunk, that the oil companies are ruthless and could care less if our economy sinks to third world levels, as long as they are fat and happy...."

How much sense does THIS make?? They can stay fat and happy with the biggest consumer nation in the world reduced to third-world status?? Riiight...

[P-Marlowe]

Well, I haven't been to the mountain top with a guru in a cave in a while... I'm sure the answer has changed since.

The answer is Forty two.

"Forty-two!" yelled Loonquawl. "Is that all you've got to show for seven and a half million years' work?"

"I checked it very thoroughly," said the computer, "and that quite definitely is the answer. I think the problem, to be quite honest with you, is that you've never actually known what the question is."

[Candor7]

Just trying to have a mass exodus of Republicans to Vermont.

We can use all we can get.

[houeto]

Pipeline capacity is the big bottleneck...

Yup, but refining capacity is the bigger bottleneck. Pookie had a cartoon a few mornings ago showing every President back to Nixon addressing America saying we NEED to do something. Priceless!

[farlander]

Yes, you are, of course, correct.

[P-Marlowe]

Yes, you are, of course, correct.

[NotJustAnotherPrettyFace]

Guess I won't be buying BP Amoco gas anytime soon.

[tortoise]

I would settle for someone in power accelerating the US Geological survey so we can find out what's there.

If there is anything of value out there, the USGS does not need to do squat -- the companies will spend the money. And with split estate land, there is not much to impede them.

[tortoise]

it seems the general consensus around here that the Big Oil companies are all good, and should not be criticized for lessing the standard of living of so many millions and millions of people, why they bask in their billion dollar smug little profits....

Right. They should just give away their product at a price you set.

Or instead of that communist nonsense, you can come to grips with the fact that these oil companies sell their oil into a global market with many players. Why should they sell it to you for $30/bbl when they can get $75/bbl from a buyer in another country? Things cost what they cost and you have to pay what the market is willing to pay.

It is not the fault of the oil companies that the major reserves of the US are untouchable, thereby restricting supply. They would drill it in a heartbeat given the chance. It would reduce the price but they would make it up in volume.

[Always Independent]

Well you know the oil companies said that they have been reinvesting in infrastructure with alot of the profits they have been making over the last couple of years. Or have they? Corrosion in the pipeline does take time but shouldn't these lines be inspected at regular intervals? Wouldn't the corrosion have been revealed sooner? I would at least call to see there inspection records to know if they were somewhat negligent in maintenance of the lines. I also think that traders supply scares is getting old and they need a new reason for high price supports. Neither Iran or Venezuela wants to hold back anything from the market now with the price they are getting for a barrel. Just my take.

[reformedliberal]

We burn wood, too. Wood prices have risen $12/cord here due to the cost of gasoline. We own woods, but cutting three cords a year while working isn't really feasible, is dangerous work and it isn't all hardwood.

The propane we use for backup heat in the house, all the heat in the workshop and for hot water has gone up, as well. So has our electricity, even though the power plant is coal fired, because the railroads have a monopoly and don't deliver enough for our needs, forcing the Electric Cooperative to purchase whatever it can at whatever price is being asked.

We have two businesses that require electricity and hot water. DH works 45 miles away, three days a week.

We drive a Ford Focus (35 mpg), have a very efficient propane furnace in the most used portion of the workshop, have replaced 80% of the light bulbs w/compact fluorescents, use cold water for washing clothes and otherwise conserve as much as possible. However, this effects everyone and everything we all do. It effects our customers' discretionary income as well as our own. It increases all costs for all goods.

You can't keep the lights on with wood.

[xzins]

In principle I agree with you. There's nothing wrong with bargaining in a market for the best price. In my mind, though, that assumes a free market.

Oil is not a free market. First, there is OPEC, a cartel. Cartels are not interested in free markets. Next, there is government intervention in many forms....corporate welfare, regulations, deals, taxes, etc.

I consider ownership of the chain from the refinery to the pump to be an invitation to monopoly, but many don't agree with me on that. It would be like owning everything in the chain from the farm to the cash register with food and marking up Frosted Flakes on the shelf at night if the market price of corn goes up or down.

In any case, though, I think free markets are a good thing. One could scarcely claim, in regard to oil, that there is a free market.

[netmilsmom]

>>We are. Pipeline capacity is the big bottleneck, but it takes time to drill the wells and build the production infrastructure.<<

So are we doing it or sitting on it?

[pabianice]

Sigh. That's the end of developing more oil in the Arctic Wildlife Refuge. The tree-kissers will ride this for the next 20 years.

[pabianice]

I'm still trying to catch-up with E = IR...

[pabianice]

On the other hand... since the Dems have blocked other Alaska drilling, the Repubs (if they knew what they were doing) would be trumpeting this as the reason oil will jump to $90/barrel. But the Repubs are incompetent. Looks like Speaker Pelosi can start measuring for new drapes.