BP Oil plc (BP) announced that it was shutting down its Prudhoe Bay oil field in Alaska following the discovery of a small leak and corrosion in a pipeline, according to this WashingtonPost.com article.
With oil prices already under severe pressure with the high demand that the uncertainity of the wars in Iraq and Israel and Lebanon, this news sent the price of a barrel to $76, up more than a dollar.
The leak and wall-thinning was found in a 22-mile long transit pipeline while routine maintenance was being conducted. BP is already facing a criminal investigation over a large spill in March at the same oil field.
They had this to say about the oil field closure:
"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," said a statement from Bob Malone, president and chairman of BP America.
"However, the discovery of the leak and the most recent" maintenance runs have "called into question the condition of the oil transit lines at Prudhoe Bay," he said. "We will not resume operation of the field until we and the government regulators are satisfied that they can be operated safely and pose no threat to the environment."
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