ALASKA OIL SHUTDOWN - CA OILS MAY BENEFIT
BP to shut down Prudhoe Bay oil field
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(Updates with background, details)
NEW YORK (MarketWatch)-Energy major BP PLC (BP) said Sunday it would shut down 400,000 barrels a day - or about half - of Alaska North Slope oil production after discovering severe corrosion in an oil transit line.
Specifically, BP said it would shut down Alaska's Prudhoe Bay field, the largest producing oil field in the U.S, whose discovery in 1968 sparked the Alaskan oil rush and led to the construction of the Trans-Alaskan Pipeline System.
BP's action - largely preemptive - came after the Anglo-American oil giant found that part of the pipeline had already leaked an estimated 4 to 5 barrels of crude oil. It comes just months after more than 200,000 gallons of oil spilled from BP-operated pipeline on the North Slope, the largest spill in the history of the hydrocarbons province.
"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 President Bob Malone said in a press release. "We will not resume operation of the field until we and government regulators are satisfied that they can be operated safely and pose no threat to the environment."
BP said it would "take days" to complete the shutdown and is mobilizing additional resources from across Alaska and North America to speed inspection of the rest of the transit system. BP didn't provide guidance as to when Prudhoe Bay production could be restarted, and a BP spokesperson wasn't immediately available for comment.
North Slope oil production usually averages about 800,000 b/d but has been lower in recent weeks due to problems with the Trans-Alaskan Pipeline System. Oil supplies remain tight globally, and the loss of 400,000 b/d could lead to price spikes on the U.S. West Coast, which relies on Alaska for most of its crude.
Prudhoe Bay is part of the Greater Prudhoe Area. BP has a 26.4% stake in the venture. Other shareholders include Exxon Mobil Corp. (XOM) with 36.4% and ConocoPhillips (COP) with 36.1%.
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Maybe OXY and BRY and PXP will benefit according to article.
Any other Ca oils you can think of? TIA.
By the way, does CVX have a good bit of CA production? |
