Oil Pipeline Crisis

Apparently pipelines used to carry oil in Alaska are getting to the point where they are in serious need of repairs caused by corrosion. In recent times leaks have been found and production lowered to half at BP's Alaskan facility which is said could send oil prices through the roof. With most of the worlds oil infrastructure including oil pipelines being over 30-40 years old rust and corrosion could be the next big factor in pushing up the price of fuel.

Pipeline crisis 'could halve flow of oil
"he price of crude oil could hit $300 (£158) a barrel if BP's pipeline corrosion crisis in Alaska turns out to be an endemic problem for the industry, according to the leading oil industry analyst Matthew Simmons.

Mr Simmons, a US-based industry commentator and financier, said BP's discovery of unexpectedly severe corrosion in its pipelines at Prudhoe Bay, Alaska, could just be the tip of the iceberg. He described the sudden emergence of the issue as the "Pearl Harbour Day" for energy".

The Independant

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