Corrosion, oil spill prompt shutdown of Alaskan oil field
By: Heartland News
ANCHORAGE, Alaska - Analysts say the discovery of severe corrosion in an Alaskan oil transit line could cause oil prices to shoot up by ten dollars a barrel.
BP Exploration Alaska announced Sunday it would have to cut production because of severe corrosion in a transit line.
Prices Monday on the Asian stock exchange were already up nearly a $1.25 a barrel.
BP officials say they'll have to shut down half the production at Alaska's North Slope to fix the problem. Industry officials say that could cause oil to shoot up by ten-dollars a barrel.
BP Exploration Alaska officials say it will take days to shut down the Prudhoe Bay oil field.
Once the shutdown is complete, it's expected to reduce oil field production by 400-thousand barrels a day.
In a prepared statement, BP America Chairman and President Bob Malone says the company regrets that it's necessary to take the action. And he says the company apologizes to the nation and to Alaska "for the adverse impacts it will cause."