Sunday August 6, 11:23 PM EDT
ANCHORAGE/NEW YORK (Reuters) - Oil producer BP Plc on Sunday began shutting down the biggest oil field in the United States, Alaska's Prudhoe Bay, after discovering a small pipeline leak, cutting output by 400,000 barrels per day and sending oil prices soaring by more than $1 a barrel.
The closure, which BP said would last until it can inspect its whole pipeline system and ensure no risk to the environment, is the latest incident to hit its key Alaskan operations and another blow to BP's U.S. image following a deadly refinery explosion last year and a trading scandal.
Prudhoe Bay, which pumps about 8 percent of U.S. domestic crude oil, is operated by a BP-led group that includes oil majors ConocoPhillips and Exxon Mobil Corp.
"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," newly appointed BP America Chairman and President Bob Malone said in a statement.
The outage, which will cut global daily oil output by about half a percent, sent U.S. crude oil futures 1.6 percent or $1.19 higher to $75.95 a barrel as dealers fear it will put more strain on a supply chain already working at near capacity.
cont'd @ finance.myway.com
 |
