BP Shuts Down Major Pipeline, Crude Oil Tops $76 Barrel
BP Shuts Down Major Pipeline, Crude Oil Tops $76 Barrel
A severely corroded pipeline has forced BP to “shut shipments from the nation’s biggest oilfield, removing about 8 percent of daily U.S. crude production.” The annoucement pushed prices for U.S. crude oil over $76 a barrel, a near record. With two wars raging in the Middle East, how long until oil hits $100 a barrel?
Soaring oil prices create severe political problem for President Bush in an election year. Moments ago, Fox News reported that the Bush administration has indicated it “will supply emergency oil [from the Strategic Petroleum Oil Reserve] to refiners if they request it.”
Tommorow marks the one year anniversary of the Energy Policy Act, legislation that gave away billions to big oil but made little investment in alternative fuels. President Bush promised that bill would “take pressure off price for American consumers.”
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76 Responses to “BP Shuts Down Major Pipeline, Crude Oil Tops $76 Barrel”
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*rubbing hands together ina truly evil manner*
Hey guys, if we don’t maintain the pipelines, we can shut ‘em down for emergency repairs…gas prices would naturally have to rise. Heh.
August 7th, 2006 at 10:14 amI’m curious, what are commenters here paying for gas nonw? I’m paying $3.03.
August 7th, 2006 at 10:16 amYeah - that’s the ticket!
August 7th, 2006 at 10:16 amLet’s let the pipeline fall into disrepair; then we can legitimately shut it down, raising prices even further.
We have to make our money while we can, the public is beginning to turn on us oil barons!
$3.19 here, suburban Chicago.
August 7th, 2006 at 10:16 am$3.01 in Northern New Jersey.
August 7th, 2006 at 10:23 amHigher oil prices was the goal of the Cheney/Bush Cabal.
Territory acquisition was the goal of Israel.
MISSION ACCOMPLISHED !!!
August 7th, 2006 at 10:23 am$3.19
August 7th, 2006 at 10:26 am2.99 in New Jersey
August 7th, 2006 at 10:28 amThis morning I saw $2.95 in northern Georgia.
August 7th, 2006 at 10:34 am87 oct. is about $2.90 here in the N.W.
August 7th, 2006 at 10:34 amIt varies by 8 cents or so on a daily basis.
We have one vehicle, very small gas miser.
As soon as possible I will eliminate buying gasoline, and be very happy to do so.
A corroded pipeline?
The hell you say . . . .
Prices are going up?
Imagine that . . . . sky-high record profits just aren’t quite enough.
Gas? I don’t need no stinking gas! Honda Hybrid + bicycle= mobility
August 7th, 2006 at 10:37 amPrice in Seattle suburbs last two weeks bouncing back and fourth between $3.09 to $3.19..More car pooling on the way….I only buy $20.00 worth a month so I will just have to curb a few more weekly runs to the store…..LOL….Lieing thieves all the oil companies..Blessings
August 7th, 2006 at 10:43 amIt’s called being stupid. BP shuts 8% US oil pumped and Chimpy has pissed off Iran who threatens to take oil to $150 a barrel, unless we let them make nuclear progress. Great way to paint yourself into a corner Chimpy boy.
August 7th, 2006 at 10:44 amThe republicans gave away billions to the oil companies, but did they use the money to make sure that production would be met?
I dont think so. They used it to gain more cash so they could make sure their retiring directors made off like bandits.
August 7th, 2006 at 10:45 amPrice in Seattle suburbs last two weeks bouncing back and fourth between $3.09 to $3.19..More car pooling on the way….I only buy $20.00 worth a month so I will just have to curb a few more weekly runs to the store…..LOL….Lieing thieves all the oil companies..Blessings
Comment by Sharon Cox — August 7, 2006 @ 10:43 am
I’ve taken the plunge this winter. Installing a hyper efficient wood burning stove for heating. Roughly $300 to heat a 4 bedroom house in Sweden for 6 winter months, with temperatures of -20 in December and January.
It should reduce our annual electrical bill by 25% …. and we can harvest trees grown (and renewed) directly on the property. Take a step people, energy saving lights anything …. but do something, you’ll feel better for it:-)
August 7th, 2006 at 10:47 amThe only way to force “oil junkies” to give up their “drug” is to make it economically unobtainable, and since I don’t drive far on a daily basis, bring it on.
August 7th, 2006 at 10:48 amThe price is never coming back down, so get used to it and sell any gas-guzzling dinosaurs you own.
With a four cylinder engine, you can achieve 25 MPG in the city! Yet, to look around at so many brain-dead soccer moms slogging around in 8 MPG suv’s MAKES NO SENSE.
Remember, our soldiers are dying because of your SHITTY gas mileage. Now that’s just plain inconsiderate, isn’t it?
#2 zooey: Price of gas in toronto ontario canada is about $4.46 after converting liters to gallons and canadian dollar to U.S.$.
August 7th, 2006 at 10:48 amWish I was paying what you are paying.
BTW: The Strategic Petroleum Oil Reserves contains about only 36 days of oil for America.
More car pooling on the way….
Nah … never mind the car pooling. Remote working!!!! DO IT!! Your IT department knows how to set you up, and doesn’t even the US have tax breaks?
August 7th, 2006 at 10:50 amMeanwhile, Iraqis are being killed for not diapering their goats. Thanks Dear Leader!
August 7th, 2006 at 10:51 amShould I put another log on the fire or do I care if I’m screwing up the atmosphere? What’s a hillbilly to do?
August 7th, 2006 at 10:52 amAnd I assume we are supposed to believe they honestly didn’t see this one coming? Wonder what they’ve been spending the billion $$$ profits on? Obviously not maintenance! Yeah, I’m definitely filing this away with all the other excuses as to why gas prices MUST go up, even when there is no actual shortage, or the cause of it seems avoidable or even deliberate.
August 7th, 2006 at 10:54 amOne day last week BP jumped their price to $3.15 per gallon while everywhere else it was around $2.95 in my area in Ohio. The next day, they lowered it back to $3.03 when the rest of stations raised theirs to that level. The old game of “raise it alot and then lower it a little” to get a net higher price and everyone feels grateful.
August 7th, 2006 at 10:54 am#2 zooey: Price of gas in toronto ontario canada is about $4.46 after converting liters to gallons and canadian dollar to U.S.$.
Comment by tablogloid — August 7, 2006 @ 10:48 am
Just did the same for Swedish Kronor. We are looking at $6 per Gallon. Mind you, our Daihatsui Cuore does 45-50 miles to the gallon and we hardly use the sucker.
http://www.daihatsu.com/catalogue/cuore/index.html
August 7th, 2006 at 10:55 amThe Democrats plan to ease the burden of the cost of gasoline- ADD MORE TAXES to every gallon sold to boost the government coffers. Way to go there liberal democrats. Why is it when oil companies profit off their product and use some of that money to explore and exploit new sources of oil everybody cries but when the government seeks to exploit profits and extort taxes (to who knows what end) liberals think it is a good idea.
August 7th, 2006 at 10:59 amyou cannot help the average joe suffering from high gas prices by adding more taxes to every gallon. Even you leftards should be able to figure that out…try it it’s called common sense.
Don’t forget about the big birthday party Bush threw for the energy bill.
August 7th, 2006 at 11:01 amPlease start drilling in ANWAR, the Florida coast, and anywhere else in America. It is time for cheap oil again!!!
August 7th, 2006 at 11:03 amyou cannot help the average joe suffering from high gas prices by adding more taxes to every gallon. Even you leftards should be able to figure that out…try it it’s called common sense.
Comment by I Hate Liberals — August 7, 2006 @ 10:59 am
In Sweden we pay double the tax on fuel that the US does. For that exact reason cars (such as ours) we very low fuel consumption, or pure ethanol/methane cars and hybrids are very common.
Additionally Sweden generates 25% of its electricity from renewables. This situation did not simply spring into being. High energy taxes are a critical instrument for the government to massage people away from high energy solutions.
In the EU we use 50% of the energy per capita used in the US, much of this is as a direct result of the high taxation regime you are complaining about. Were you already were we are, you wouldn’t need to import any oil .. AT ALL.
It’s worked here, why can’t it work in the US?
August 7th, 2006 at 11:06 amAmusing little rant “I Hate”.
Doesn’t have shit to do with todays reality, the massive giveaway to big oil, opening the spigots, the culpability of the GOP majority or Bushco, but hell, you managed to get ‘leftards’ in it.
good job.
August 7th, 2006 at 11:07 amThe problem with conserving oil with high prices is that it kills those who can’t afford it. Let’s do what all good lefties do, support gas rationing. Lets all suffer equally.
August 7th, 2006 at 11:09 amLet’s do what all good lefties do, support gas rationing. Lets all suffer equally.
Comment by west virginia hillbilly
Or, you could try feeling less “entitled” to your gas guzzling ways and buy a sensible mileage car. Who “rations” gas these days? What?
August 7th, 2006 at 11:12 amConservatives enjoy suffering?
That explains a lot.
August 7th, 2006 at 11:13 amCorroded pipeline? WTF?? I guess BP had no money in the coffers for routine preventative maintenance. These asshats ought to be hauled before Congress for threatening national security.
August 7th, 2006 at 11:14 am# 30 We use 27 gals of gas a month. And you?
August 7th, 2006 at 11:15 amRighties have argued that drilling in ANWR will have minimal environmental impact, and I’m sure big thinkers like commenter “I Hate Liberals” will tell us how responsible BP has been to shut down the Prudhoe Bay site as soon as they discovered the leak (unknown at this time if that’s true). If that’s a sign of being responsible, then ANWR is certain to have the same problem eventually if set up for drilling.
Here’s some common sense, lib hater. If the right-wingers had listened to liberals 30 years ago on the issue of conservation, cafe standards and alternative fuels, petoleum would be a non-issue. But then I guess you wouldn’t have anything to complain about.
August 7th, 2006 at 11:15 amSounds more like #33hillbilly is rationing NOT lefties. What was your point? That you’re a liberal?
August 7th, 2006 at 11:16 amSince the hurricane season has been pretty quiet so far, the oil companies had to think of another way to boost their profits this summer. And of course, since they are the war criminal Bush‘s real “constituents†— and the ones who put him in office — he won’t lift a miserable finger to do anything about it.
August 7th, 2006 at 11:19 amThe point is, lets conserve nonrenewables through rationing.
August 7th, 2006 at 11:24 amAll the companies who operate pipelines are required to continuously test the “thickness” of the pipe walls using ultrasound type technology. When they find that corrosion has eaten away a certain percentage of the wall, they have to take action to prevent a bursting incident.
August 7th, 2006 at 11:25 amWierd as it sounds, BP is doing the right thing here. The timing might be suspect, they do these readings periodically, so they probably have known there was a corrostion problem for some time.
The real lesson here, in my mind, is our utter dependence on this non-renewable resource.
Take a google at the Tesla motors site, and see some new lithium battery technology at work. Car is pricey, to be sure, but the technology is proceeding apace.
Oil is for lubrication, not for fuel!
My typing skills seem to have corrosted!
August 7th, 2006 at 11:27 amboycot Exxon,all it takes is crossing to the other side of the street to fill up and its so rewarding ! Its like voting everytime you go to the pump ,and you can check our progress by watching the dow jones .Exxon was the largest profit taker in history recently and within the last few months has already fallen to #2 ,from the top space !Tell 10 people to tell 10 people to tell 10 people to boycot Exxon ! Don’t wait till november to cast your vote ! Do it today !!!
August 7th, 2006 at 11:37 amThe point is, lets conserve nonrenewables through rationing.
Comment by west virginia hillbilly — August 7, 2006 @ 11:24 am
That is head in arse talk. The global integrated economy would be totally dislocated if we tried something as Stalinesque as rationing.
There are plenty of alternatives for people to use, but they are uneconomical because the don’t have the economies of scale are a centuries investment in distribution infrastructure behind them.
What you need to do is wean people off high energy devices by taxing energy use and fossil fuels directly, and subsidising renewables. Then the market will take it’s natural course, which is the path of least resistance, only now the cheapest option is the renewable, low energy option. Eventually subsidies won’t even be required once the alternatives scale up.
It’s working everywhere it’s been tried. So why not the US?
August 7th, 2006 at 11:43 amThe point is, lets conserve nonrenewables through rationing.
Comment by west virginia hillbilly — August 7, 2006 @ 11:24 am
That is head in arse talk. The global integrated economy would be totally dislocated if we tried something as Stalinesque as rationing.
There are plenty of alternatives for people to use, but they are uneconomical because the don’t have the economies of scale, or a centuries investment in distribution infrastructure behind them.
What we need to do is wean people off high energy devices by taxing energy use and fossil fuels directly, and subsidising renewables. Then the market will take it’s natural course, which is the path of least resistance, only now the cheapest option is the renewable, low energy option. Eventually subsidies won’t even be required once the alternatives scale up.
It’s working everywhere it’s been tried. So why not the US?
August 7th, 2006 at 11:45 amOil Cartels use any excuse to raise the price of crude oil and therefore the price of gasoline at the pumps > they want 5 bucks a gallon for it, so by end of 2007 expect that price to occur!
August 7th, 2006 at 11:50 amEither I am having a ‘Deja’ Vu’ memory, or I’m just nuts, but I’d swear that I first heard about the leaking pipeline story WEEKS ago, during some show on Air America Radio. Some ‘Eco’ group in Alaska, that monitors the oil production industry, in hopes of avoiding the next “Exxon Valdeze” (sp) disaster. They were the ones who broke the story. And it seems that BP was aware of the leaking, but they felt that the leaking wasn’t that bad, not losing TOO much, yet. So they kept on pumping it, and did some ‘cosmetic work’ on the pipeline, to make it look like they were trying to fix it. BP must have gotten word that they were out of time, and the story was going to come out, so they make it like they were acting responsibly, but they were really covering their backsides instead. Well, that is what I can remember.
August 7th, 2006 at 11:53 amCyra - my bad on my previous post - check out this article from March 21…
August 7th, 2006 at 12:10 pmhttp://www.commondreams.org/headlines06/0321-06.htm
While I am not pleased about the higher gas prices, I think BP taking steps now, to avoid a future catastrophe is a good thing. We don’t need another exxon Valdez, in Alaska, or a similar disaster. I huge rupture would most likely effect the US economy even more then simply closing down for repairs.
August 7th, 2006 at 12:11 pmProgs and libs should be happy. The higher the oil prices, the higher the gasoline prices, and the less people tend to drive, creating less greenhouse gases. See, free markets work!
August 7th, 2006 at 12:13 pm#45-RU- Gosh, THANK YOU for finding that article! I’m NOT crazy! I knew I had heard about this before today, but since I was unable to recall where it came from, I just couldn’t swear to it. You are so cool! Thanks again! :)
August 7th, 2006 at 12:21 pm“Soaring oil prices create severe political problem for President Bush in an election year.”
But, on a money-making level Bush/Cheney and all other oil families can’t really complain, right?
Afterall, high oil prices is means the Bush family just makes more money… certainly there are a handful or oil families like Bush and the Bin Ladens who have got to be happy about this..
August 7th, 2006 at 12:31 pmWe are never going to see “cheap gas” again. If anyone thinks, that oil prices will come down, they are dreaming. Time to switch, before it is a crisis, that destroys our country.
August 7th, 2006 at 12:32 pmBTW the RNC is telling people that Democrats plan on raising the cost of Gas… which is utter bulls**t.
still, expect a lot of people to be out here repeating this lie and calling it “common sense.”
for any conservatives who haven’t noticed:
1) The price of gas is already higher than ever, thanks to Republicans!
August 7th, 2006 at 12:39 pm2) The unmaintained pipeline is proof to the LIE of Republican policies that Give Oil Companies our tax dollars so the “Market can lead to improvements and upgrades.”
In WI we are paying $3.25 a gallon.
August 7th, 2006 at 12:58 pmAnywhere from $3.13 to $3.29 or so a gallon. I would expect to see it go up by the end of the day.
August 7th, 2006 at 1:01 pmI’m curious, what are commenters here paying for gas nonw? I’m paying $3.03.
Comment by Zooey — August 7, 2006 @ 10:16 am
$2.87 - $2.95 for reg unleaded in NE Tenn. As of yesterday.
August 7th, 2006 at 1:02 pmabout $3.15-$3.25 in VT.
August 7th, 2006 at 1:07 pm“Howdy, ya’ll” from Dallas.
Phillips 66:
87 octane $2.88
89 octane $2.99
93 octane $3.09
Or, right across the street you could pay $0.10 MORE per gallon at Hexxon/Mobil. Yes, they’ll rip you off, right in broad daylight for all to see.
August 7th, 2006 at 1:11 pmwhy would bush even want to lower oil prices? he is a business man afterall, and high prices just means he and his friends just make more moolah!
August 7th, 2006 at 1:16 pm#46 Krazny, yes I agree. But don’t think that BP is being responsible on its own. There was a rupture in March spilling 270,00 Gallons, and BP is only taking steps to inspect this time because the feds are forcing them.
August 7th, 2006 at 2:24 pmTrue regular maintenence has been “deferred.” However, BP and the other producers here in Alaska, are sending a very loud message to the Alaska legislature (in special session) about the pending oil and natural gas tax proposal currently under debate. More fear tactics. The shut down for inspection and repairs is long overdue OR it could have waited another week. The timing is too convenient.
August 7th, 2006 at 2:25 pmI thought the left was vehemently opposed to drilling in Alaska. Why are you upset about this portion of our daily supply no longer being available? Making certain that we have little or no access to Alaskan supply is what you have been working towards all along! I would think you would be celebrating. The article makes it quite clear that price and availability are inextricably linked. The left has done everything in its power to reduce availability, to make the job of oil producers more difficult, more expensive and less efficient. For this reason, your criticism of George Bush over the price of oil/gasoline reveals the most ludicrous, despicable hypocrisy on your part. Amazing how utterly shameless the left is.
August 7th, 2006 at 2:31 pmWhatever dumpuppy, your logical disconnect is stunning.
Mick I didn’t realize there was a pending bill in the Alaska legistlature about oil and natural gas tax. Frankly I was under the impression, that the Alaskan government was pretty much under the thumb of the energy producers. It always seems that Ted Stevens (r) alasks is willing to shill for them anyway.
August 7th, 2006 at 2:48 pmit’s so easy for republicans to blame “those” liberals for all their own failures. get a clue! high gas prices are here on the republican watch! we have the single most industry-friendly government ever… they even let big oil draft the energy policy!
this is what republicans have been telling us is the sure way to a “good deal” for US Consumers.
well… $3 a gallon and going up is what you get
you can run and point fingers, but you can’t hide from the truth of your wrong-mindes policies.
August 7th, 2006 at 2:54 pmHere in Maine, gas is $3.05. Heating oil is starting to climb, as August is the last month of our summer, before heading into the fall season. By September, we could be turning on our heat at night, if the weather starts turning cold. Oil will probably be going for over $3 a gallon, even before winter hits.
August 7th, 2006 at 3:04 pmOldpuppy,
You are correct, the damn liberals were against oil drilling in Alaska, claiming that ruptured pipelines could harm the environment. You and I know that could never happen. And, yes, they have no pity on the downtrodden oil producers who had to squeak by with 10 billion dollars in profits.
Silly moonbat liberals.
August 7th, 2006 at 3:24 pmoldpuppy-
cry me a river
August 7th, 2006 at 3:36 pmLast time I bought gas, it was 2.85, here in Flagstaff, AZ. That was last Thursday. I won’t be buying again for another 2 weeks.
August 7th, 2006 at 3:58 pmgee, i didn’t want to read the entire thread, and i don’t know if someone already mentioned this: but the vast majority of northslope oil goes to Asia not to the US. This pipeline feeds Japan and China, with some going to Hawaii. In essence, the oil is not for US consumption.. Being that as it may, Japan and China have the economic resources to buy off the oil from us to make up for what they don’t get, and this will increase the competitive market price.
August 7th, 2006 at 4:15 pmInteresting point spyder, and no it was not brought up previously. No matter what, any even minor change will cause an oil price spike, and this is a far from moderate change.
August 7th, 2006 at 4:21 pm[…] (h/t - Think Progress) […]
August 7th, 2006 at 6:13 pmThanks everyone for the gas prices — from everywhere!
August 7th, 2006 at 9:51 pm$3.40 - $3.50/Gallon in Brooklyn, NY.
August 8th, 2006 at 7:07 amThe tax bill currently in front of the senate, already passed the house, would obligate Alaska notBP or the other producers on the slope to pay 80 to 90% of the repair and maintenanceof pipeline expensese. This legislation has been in the works for 2+ years. BP certainly has know of the problems and hoped to shift the financial burder. Bummer the March spill and federal oversight (as weak as it is) put this under the spot light. Gas today is $2.89/gal.
August 8th, 2006 at 1:21 pmFuel Saving Devices And Technology
Interesting - because that is the same thing I found out last Thursday.
March 21st, 2008 at 9:02 amtaxes oil gas producers
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