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Archive for Monday, August 7, 2006

Alaskan oil field is shut down

August 7, 2006

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— 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.

A prolonged shutdown would be a major blow to domestic oil production, but even a short one could be crippling to Alaska's economy.

A 400,000 barrels of oil per day production drop could mean approximately $4.6 million per day lost to the state.

Comments

b_asinbeer 8 years, 4 months ago

75x55--

Name me one instance when someone from Hezbollah has killed or done harm to anyone on US territory?

Think before you talk. That'll help.

just_another_bozo_on_this_bus 8 years, 4 months ago

When supply goes down, prices go up. BP will just have less of the overall market share.

"Think what one al Qaeda or Hezbollah operative in a big truck could have done -"

That's a pretty tough spot for a terrorist attack. They'll go for something much easier and more spectacular.

BTW, Hezbollah hadn't engaged in any form of terrorism in over a decade. There are even reports that the "raid" that supposedly instigated this latest war happened in Lebanon, and not in Israel. While the current rocket raids on Israel certainly rate as terrorism, so do the much more deadly and destructive strikes by Israel in Lebanon, which provoked Hezbollah's recent rocket attacks.

ASBESTOS 8 years, 4 months ago

"While the current rocket raids on Israel certainly rate as terrorism, so do the much more deadly and destructive strikes by Israel in Lebanon, which provoked Hezbollah's recent rocket attacks."

PURE BS. Hizbullah is NOT a "State", it is at best a political party. As for their "Hezbollah hadn't engaged in any form of terrorism in over a decade." That is BS too, What do you call the sucicide bombers?

HOw about lying about Qana? How about rockets killing civilians in Israel? Those have been coming into Israel for the PAST DECADE from Lebanon. Unprovaked kidnapping in ISRAEL TERRITORY was just the last straw.

just_another_bozo_on_this_bus 8 years, 4 months ago

Kevin-- It may have been "US territory" in some sense, but they were military personnel, attacked by militants defending their own national territory, which means that it was not terrorism.

just_another_bozo_on_this_bus 8 years, 4 months ago

The Marines were there to prop up the very unpopular US-backed government, not to "keep the peace."

None of those Marines should have been there, none deserved to die, and while any such act of violence deserves condemnation, by definition, it was not terrorism.

Wilbur_Nether 8 years, 4 months ago

bialystocknbloom wrote: "I don't understand why BP limiting their production would affect other companies' prices as well...".

Supply-and-demand. As the supply of an item diminishes, the market will bear a higher price for that item. Rational, self-interested suppliers will raise their prices on that item to what the market will bear.

ksmoderate 8 years, 4 months ago

Wilbur_Nether:

Yes, you are unfortunately dead-on. The gas prices will continue to rise, since Americans seem to still buy as much gas as they used to. Oh, how I crave public transportation! Out here in the boonies we have no choice but to drive to get anywhere.

How much fuel is consumed at an average NASCAR race?

freudian_slip 8 years, 4 months ago

I admit that I speak out of ingorance. Why do we not utilize our own oil production before going to outside sources? Why are we selling most of this bp oil to Japan?

Steve Jacob 8 years, 4 months ago

"Think what one al Qaeda or Hezbollah operative in a big truck could have done - probably wouldn't have even needed to 'martyr' themselves to knock this one out."

One oil-processing plant in Abqaiq, Saudi Arabia holds 8% of the world's oil supp;y, so that would be the biggest target.

hottruckinmama 8 years, 4 months ago

i have a feeling there are going to be a lot of people living on beans and cornbread and bologna before this winter is out. that and a lot of hard work is how my grandparents survived the depression. guess i could do it too if i had to. i don't mind the work or the cornbread and beans-but i could do with out the bologna.

hottruckinmama 8 years, 4 months ago

yeah rightthinker it wouldn't be pleasant for sure. now conman why you makin' fun of hee haw? that was one good show.

hottruckinmama 8 years, 4 months ago

have you seen the reruns on cmt lately conman? i'm glad their showing them. sat. night we had to be home by 6:30(?) to watch hee haw..those were the days.

hottruckinmama 8 years, 4 months ago

yep had to watch the waltons every thur. night. and we couldn't ever miss all in the family and carol barnett later on sat night. sure did beat most of the crap that passes for tv today.

hottruckinmama 8 years, 4 months ago

so do you really think this could lead to some sort of a national crisis? $3.00 a gallon is really putting the bite on some people. $3.50 or $4.00 seems just unthinkable. and i don't even want to think about heating oil this winter. maybe this ol' hot summer weather isn't so bad after all.

hottruckinmama 8 years, 4 months ago

yeah i'm afraid its gonna be one h*ll of a mess. we'll all probably have to "root, hog or die" as my grandpa used to say. i dunno. i think people will be to busy trying to survive to even worry about much about politics.

hottruckinmama 8 years, 4 months ago

i've never been a big hillary fan. and wouldn't vote for her if she ran. i think sen mccain would be good. he seems to be a good man and sensible too.

hottruckinmama 8 years, 4 months ago

i'm kind of hoping that we end up with someone who's family has never been in the white house before and that includes kennedy's (for sure) clinton's or bush's. i think maybe we need a fresh start. if its to be a republican that doesn't mean it will be a bad thing either. frankly i'm not sure the democrats have anyone who can win anyway.

laughingatallofu 8 years, 4 months ago

Like Ann Coulter is mainstream, right, Arminius? (Bet you were on the front row when she came to Kansas). Someone that you identify with, just as you identify with "mainstream Kansans"? If that's the case, what a messed up state Kansas is.

as_I_live_and_breathe 8 years, 4 months ago

Posted by holygrailale (anonymous) on August 7, 2006 at 10:56 p.m. (Suggest removal)

The face of America in Iraq:

=======================================

Investigator: U.S. soldier poured kerosene on raped, slain Iraqi

Monday, August 7, 2006; Posted: 9:17 p.m. EDT

BAGHDAD, Iraq (CNN) -- One of the U.S. soldiers accused of raping and killing an Iraqi and slaying her family told investigators that after the killings he poured kerosene on the girl's bullet-ridden body, according to testimony Monday in a military hearing.

Holy, why would you call THIS the face of America???? that IS ridiculous.....

I'm in no way saying that ANY person should do this to another human being but to say that is what ALL the service men and women are doing is despicable.

BAD CALL Doll....

as_I_live_and_breathe 8 years, 4 months ago

Seems to me that if the pipe line if broken, we should fix it... jobs anyone? and earlier someone asked why we don't drill for oil in our own country? great question. I think it's bad for the ecology or something like that....

as_I_live_and_breathe 8 years, 4 months ago

Holy, they do that to their women all the time... to them children and women are chattel.

again not in any way condoning what happened... but to say that they are appalled and that that is why muslims are bull goose looney ..... I don't think so....

Agian to paint the entire military with this brush is BAD.

as_I_live_and_breathe 8 years, 4 months ago

What basis do I say Muslims are bull goose looney????....

Front page head lines... Time Magazine, Newsweek etc. articles, CNN, MSNBC, the words that come out of their mouth.....

Ok Not ALL muslims are nuts but several of their leaders are. call me crazy...but insisting that an entire race of people have to be eliminated before you'll quite bombing innocent people makes you dangerously insane in my book. i'd trust a marine over a muslime about any day...

So swbsow.... i suppose if the bad apple thing is appropriate then that would make all muslims bad right?

as_I_live_and_breathe 8 years, 4 months ago

lol That is exactly what I said.....

I don't deny muslims the possiblity of their assumptions.

I do deny that the face of America is a rapist.

I deny that our purpose there is to rape and kill as many of them as we can....

they cannot deny that infidels deserve death, it's in their book.

they cannot deny that they use innocent people, suicide bombers, to kill other innocent people ON PURPOSE. (I know you're going to say that's what bush is doing by sending troops there.... we target military they do not)

I believe, based on conversations I have had with people who have spent time there that on the whole, life will be better for women and children there because of us. Muslim men won't think so. they like their women under their thumbs. which is why a campaign of .... compassion or what ever it is that anti war people think we should be doing instead of fighting will never work... they don't want to move ahead. they don't want education, they don't want equality.... They dont' want MTV or American Idol.... they want all jews dead and all infidels burning in hell. and the ones who think that need to be stopped... and the americans who rape kids needs to stop too.... but muslims go first.

as_I_live_and_breathe 8 years, 4 months ago

Posted by holygrailale (anonymous) on August 9, 2006 at 9:33 a.m. (Suggest removal)

In today's world, information is a very hard thing to supress. Information is also a lot cheaper than training and engaging American soldiers.

I think it's easier than you think. they don't allow education for women or kids, they don't have a "free press", "free radio" they get thier 'information' from one or two tv or radio channels and that is heavilly monitored. What we call "information" they call 'propoganda' .....

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