Crude prices rise on Alaskan pipeline outage

10 January 2011 07:22  [Source: ICIS news]

SINGAPORE (ICIS)--Crude futures rose more than $1/bbl on Monday before retreating, following the shutdown over the weekend of the Trans-Alaska pipeline which transports 12-15% of US oil output.

At 11:15 GMT, February NYMEX light-sweet crude futures were trading at $88.88/bbl up 85 cents/bbl from the previous close. Earlier, the US crude hit a session high of $89.98/bbl, up $1.95/bbl.

February Brent on London’s ICE futures was trading at $93.90/bbl, up 57 cents/bbl from the previous close, after hitting a session high of $94.70/bbl, up $1.37/bbl.

The Trans-Alaska pipeline was shut down on Saturday morning after a leak was discovered at a Pump Station at Prudhoe Bay.

No indications as to when the pipeline will restart have been received.

Producers have been forced to reduce output to 5% of the average daily output of around 620,000 bbl/day.

The 800 mile long Trans-Alaska Pipeline System (TAPS), which has been in operation since 1977, moves crude oil from the North Slope oil fields in Alaska to the northern most ice-free port at Valdez in Alaska. The pipeline crosses three mountain ranges and over 800 rivers and streams.

TAPS is operated by Alyeska Pipeline Service Company of which BP has a 46.93% stake, ConocoPhillips has a 28.29%, ExxonMobil 20.34%, Koch 3.08% and Chevron 1.36%.

“We have a significant amount of resources, tools and personnel on site at Pump Station 1 responding to this event,” said Tom Barrett, Alyeska President in a company statement.

“Our goal is to engineer and implement a solution so that we can safely return the pipeline to service as quickly as possible.”

($1 = €0.78)

To discuss issues facing the chemical industry go to ICIS connect

By: James Dennis
+65 6780 4359

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly