Domenici Expresses Concern Over BP Suspending Production in Prudhoe Bay
August 7, 2006
11:33 AM
Senate Energy & Natural Resources Chairman Pete V. Domenici expressed concern today over the news that BP is suspending production at its Prudhoe Bay oilfield due to a small spill and corrosion of BP’s pipelines. The shutdown means a temporary loss of as much as 400,000 barrels of oil per day, which is 8 percent of U.S. oil production and 2.6 percent of U.S. supply, including imports. The price of both oil and gasoline began rising shortly after BP made the announcement.
Chairman Domenici’s statement:
“I am troubled by BP’s announcement of this small spill and severe corrosion in its Prudhoe Bay oil transmit line. And, I am very concerned over the loss, even temporarily, of Prudhoe Bay oil. Prices are already spiking on speculation of the production loss. I am concerned about the pocketbooks of families, many of whom travel in August, and for our businesses that rely on affordable and reliable energy supplies.
“I am continuing to work with the House on an OCS bill that is acceptable to both houses of Congress. This problem, like the hurricanes last fall, underscores the pressing need to expand domestic oil and gas production. We are living too close to the supply margins and have been for too long.
“While both houses are working to expand production, we expect the private sector to sharply step up its investment in its own critical infrastructure. BP announced two weeks ago that its second quarter earnings rose 30 percent to a record $7.32 billion. Extensive corrosion to a pipeline of such importance to our economy is unacceptable. I urge BP’s management to address swiftly this very serious infrastructure problem.”
