Closed Alaska oil field could hike prices
Corrosion, small spill leads to loss of 400,000 barrels a day.
ANCHORAGE, Alaska (AP) -- In a sudden blow to the United States' oil supply, half the production on Alaska's North Slope was being shut down after BP Exploration Alaska, Inc. discovered severe corrosion in a Prudhoe Bay oil transit line.
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 is 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.
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.
Corrosion, small spill leads to loss of 400,000 barrels a day.
ANCHORAGE, Alaska (AP) -- In a sudden blow to the United States' oil supply, half the production on Alaska's North Slope was being shut down after BP Exploration Alaska, Inc. discovered severe corrosion in a Prudhoe Bay oil transit line.
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 is 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.
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.