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Politics : Sioux Nation -- Ignore unavailable to you. Want to Upgrade?

To: CalculatedRisk who wrote (75659)	8/7/2006 1:46:38 PM
From: manalagi	Read Replies (1) \| Respond to of 361341

Crude heads for record close, above $77 No complaint if you own oil stocks (except XOM, COP, BP).

To: CalculatedRisk who wrote (75659)	8/7/2006 8:39:32 PM
From: Wharf Rat	Read Replies (1) \| Respond to of 361341

BabyPeanut on Monday August 07, 2006 at 5:12 PM EST I fully respect DantesPeak's statements: peakoil.com After further review of the situation, I think the Prudhoe Bay collection system stoppage is much worse than I originally thought. To review: this shutdown concerns only the pipeline collection system for Prudhoe Bay so far - which is about half of the total input to the Alaskan pipeline. It is now being revealed that there was severe corrosion - possibly across the entire collection system due to a significant amount of sludge. Sludge is partly water and compounds, such as sulfur, which causes internal corrosion. The sludge may also have traveled into the Alaska pipeline system over time and also corroded that. However, no one at this time is saying that the main Alaska Pipeline is corroded, but it may be at least partially. It is conceivable most of the Prudhoe Bay collection system will have to be replaced or repaired, and even with more efficient pipeline construction methods and favorable weather, this could take one year. Logically, if there is corrosion damage to the main Alaskan pipeline, it would be better to fix it now while half of all the collection fields are closed - rather than close the entire pipeline down later for repairs. However logic may not prevail in the post peak oil US (if anything, IMO we have passed the worldwide peak in extractable light sweet crude), and due to the need for gasoline along the western coast of the US, the main pipeline may not be shutdown. I anticipate starting in about 5 days (3 days to shut down, 3 to refine/ship, less one day past already), a gasoline shortage in the western states and Hawaii will materialize and last for about 10 to 20 days. After then, the first shipments of new barge/tankers contracts will arrive in the West. Wholesale gasoline prices in the west may go 20, 30, or even 40 cents higher than the east for a few weeks until supplies even out across the country. Welcome to the slippery down slope of PO. I would like to add that the ensuing fuel shortages will perhaps have an impact on industrialized food production in California which may cause a ripple effect into food production and availability. theoildrum.com