BP Exploration Alaska, Inc. began shutting down the Prudhoe Bay oil field after finding unexpected corrosion and spills along transit pipelines. The decision will remove 400,000 barrels of oil a day (8% of US oil production) from the market after the shutdown is complete. That is sure to sharply increase oil prices at a time when the cushion between supply and demand is razor-thin. There is no word on when repairs will be completed.
Corrosion and spills, by the way, don’t sound very encouraging for those claiming that drilling can occur in the Arctic National Wildlife Refuge without damaging that pristine wilderness.
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