alaskan pipelineIn what could be accounted as the most distressing news of the year, BP has started closure of a major Alaskan pipeline due to corrosion on Sunday. The closure of this 250-square-mile Prudhoe Bay oil field would reduce oil production by 400,000 barrels a day — accounting for about 8% of U.S. production or 2.6% of daily U.S. supplies including imports.



The worst part is that the oil field might remain shut for weeks or even months. On Monday, the nations average gasoline price for regular stood at $3.038 a gallon- 3 cents lesser than post-Katrina. Though some refiners are confident of beating this crisis, the Energy Department has declared that it will consider releasing oil from the government’s emergency supplies if the need arises.



It is inevitable that gasoline price would topple within the next few days. Nevertheless, the quick word of caution from the company has already readied many companies to deal with the crisis.



Via: usatoday.com

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