What pipeline problem?

Lost in the fallout from BP’s shut-down at Prudhoe Bay is the fact that the system is getting better, and oil supplies are growing.

(Fortune Magazine) — Big news stories have a way of morphing into emblems. Killer hurricanes represent global warming’s arrival. CEO convictions symbolize corporate greed run amuck. But what happens when a news event is just a news event – when the tip of the iceberg is just a glob of floating ice?

Consider Prudhoe Bay, Alaska, and the brouhaha surrounding BP’s troubled oil pipeline there. On Aug. 6, BP announced it would close 22 miles of oil transit lines for extensive repairs, sidelining some 400,000 barrels a day of Alaskan oil production. Days later BP backtracked a bit, saying it would be a partial shutdown affecting only 200,000 barrels a day.

The pipeline was the site of a major spill in March, and subsequent inspections revealed severe corrosion. Critics weren’t surprised: Workers had raised safety concerns before, and BP (Charts) acknowledged the pipeline hadn’t undergone a “smart pig” inspection since 1992. (Named for the squealing noise they once made, “pigs” are devices used to scrape off buildup or, in the case of high-tech “smart pigs,” test for wear and tear.)

Standard operating procedure is for pipelines to be smart-pigged once every five years, says Kirk Langford, head of transmission pipeline inspection for oil-services firm Baker Hughes.

Fortune