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Re: [hreg] Emailing: news: Major Alaskan Oil Field Shutting Down (BP)

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  • Ariel Thomann
    Don t stand in front of the fan; it s about to hit. Ariel - We are all Human beings here together. We have to help one another, since otherwise there is NO
    Message 1 of 2 , Aug 6 8:51 PM
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      Don't stand in front of the fan; it's about to hit.

      - We are all Human beings here together. We have to help one another, since otherwise
      there is NO ONE who will help.
      - All countries need a NO REGRETS strategic energy policy. Think ahead 7 generations.

      > AT&T Worldnet Service - Top News - Major Alaskan Oil Field Shutting DownPerhaps now BP
      > can let the Sunshine in! BP also has a grip on Solar Energy!
      > Member Services
      > Top News
      > Major Alaskan Oil Field Shutting Down
      > Updated 11:04 PM ET August 6, 2006
      > In a sudden blow to the nation's oil supply, half the 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 days, 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.
      > The shutdown comes at an already worrisome time for the oil industry, with
      > supply concerns stemming both from the hurricane season and instability in
      > the Middle East.
      > "We regret that it is necessary to take this action and we apologize to
      > the nation and the State of Alaska for the adverse impacts it will cause,"
      > BP America Chairman and President Bob Malone said in a statement.
      > A 400,000-barrel per day reduction in output would have a major impact on
      > oil prices, said Tetsu Emori, chief commodities strategist at Mitsui
      > Bussan Futures in Tokyo.
      > "Oil prices could increase by as much as $10 per barrel given the current
      > environment," Emori said. "But we can't really say for sure how big an
      > effect this is going to have until we have more exact figures about how
      > much production is going to be reduced."
      > Malone said the field will not resume operating until the company and
      > government regulators are satisfied it can run safely without threatening
      > the environment.
      > Officials at BP, a unit of the London-based company BP PLC, learned Friday
      > that data from an internal sensing device found 16 anomalies in 12
      > locations in an oil transit line on the eastern side of the field.
      > Follow-up inspections found "corrosion-related wall thinning appeared to
      > exceed BP criteria for continued operation," the company said in a
      > release.
      > Workers also found a small spill, estimated to be about 4 to 5 barrels. A
      > barrel contains 42 gallons of crude oil. The spill has been contained and
      > clean up efforts are under way, BP said.
      > "Our production while all this is in place is going to be marginal," said
      > Will Vandergriff, spokesman for Gov. Frank Murkowski. "That presents some
      > technical problems because it's a high capacity line and it's meant to be
      > filled."
      > Vandergriff said he did not know exactly what potential problems a sudden
      > drop in oil flow might cause the pipeline. Alyeska Pipeline Co. officials
      > could not immediately be reached for comment.
      > A prolonged shutdown would be a major blow to domestic oil production, but
      > even a short one could be crippling to Alaska's economy.
      > According to forecast figures from the Alaska Department of Revenue, a
      > 400,000 barrels of oil per day production drop would mean approximately
      > $4.6 million per day lost to the state. That is money going to both the
      > state treasury and the state's oil wealth savings account, the Alaska
      > Permanent Fund.
      > "That starts adding up to big bucks in a hurry," said House Finance
      > Co-Chairman Mike Chenault, R-Nikiski. "It could start having a disastrous
      > effect on the state as early as today."
      > BP said it was sending additional resources from across the state and
      > North America to hasten the inspection of the remaining transit lines.
      > About 40 percent of the lines have been inspected.
      > BP previously said it would replace a 3-mile segment of pipeline following
      > inspections conducted after up to 267,000 gallons of oil spilled onto the
      > frozen ground about 250 miles above the Arctic Circle in March.
      > House Speaker John Harris said it was admirable that BP took immediate
      > action, although it's sure to hurt state coffers.
      > "This state cannot afford to have another Exxon Valdez," said Harris,
      > R-Valdez.
      > The Exxon Valdez tanker emptied 11 million gallons of crude oil into
      > Prince William Sound in 1989, killing hundreds of thousands of birds and
      > marine animals and soiling more than 1,200 miles of rocky beach in
      > nation's largest oil spill.
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