Shell USA: BP Oil Shutdown Doesn’t Merit New Pipeline Regulations

MarketWatch – The discovery of severe corrosion in BP PLC’s (BP) Prudhoe Bay pipeline system doesn’t warrant the introduction of new U.S. regulations, Royal Dutch Shell PLC’s (RDSB.LN) top U.S. executive said Tuesday.

BP earlier this month shut off about half of crude oil production from Alaska’s Prudhoe Bay, the largest producing field in the U.S., after finding a small oil spill caused by unexpectedly worn-out pipelines.

“The regulations are appropriate,” said Shell Oil Co. President John Hofmeister while speaking at an infrastructure security conference here. “The judgment of the methodology and technology relied upon was not sufficient, but I don’t think its warrants a complete review of regulatory authority. We have a robust system.”
MarketWatch