BP Shutdown Puts Pressure on Gas Prices

[Omaha Steve]

Full story: http://apnews.excite.com/article/20060808/D8JC8AC89.html

BP Shutdown Puts Pressure on Gas Prices
Email this Story

Aug 8, 8:36 AM (ET)

By MARY PEMBERTON

ANCHORAGE, Alaska (AP) - The fast rise in oil prices after BP's announcement that it was shutting down one of its biggest oil fields for repairs that could take months appeared to have leveled off Tuesday morning.

Oil prices fell in several markets, but the price was still more than $1 above last week, putting pressure on prices at the pump.


Oil transit and other pipelines run past the area affected by a March 2, 2006, 200,000 gallon oil leak, Friday, Aug. 4, 2006, on Alaska's North Slope near Prudhoe Bay. BP Exploration Alaska Inc. began shutting down the Prudhoe Bay oil field Sunday after the discovery of unexpectedly severe corrosion and a small spill from a Prudhoe Bay oil transit line. (AP Photo/Al Grillo)


Light sweet crude for September delivery on the New York Mercantile Exchange slipped 33 cents to $76.65 a barrel in electronic trading by midday in Europe. September Brent at London's ICE Futures exchange fell 40 cents to $77.90 a barrel.

BP said it discovered corrosion so severe that it will have to replace 16 miles of pipeline at the huge Prudhoe Bay oil field. The news Monday put pressure on prices at the pump during the peak summer driving season and prompted the government to consider dipping into its emergency stockpile.

[FloridaPat]

1. 80% of that oil goes to Asia and the rest to CA, WA, & OR.

To open the emergency stockpile means one thing - time to pour more money into the oil company's pockets when * refills it at $100 a barrel