BP restart of Prudhoe Bay oil field may take months

NEW YORK (MarketWatch) — The restart of crude oil production at the BP PLC-operated (BP) Prudhoe Bay field in Alaska could take months as the Anglo-American energy major works to diagnose and repair problems in a pipeline system.

BP said late Sunday it had begun the shutdown of Prudhoe Bay, the largest producing oil field in the U.S. accounting for 8% of domestic output, after discovering severe corrosion along a transit line.

The unprecedented move in Alaska’s North Slope hydrocarbons province sparked a rally in energy prices and elicited a response from the Organization of Petroleum Exporting Countries, which said it would be able to cover the shortfall of 400,000 barrels a day.

The U.S. West Coast is highly dependent on crude supply from Prudhoe Bay. The legendary oil field has been producing since 1977 and hit peak output of about 1 million barrels a day in the late 1980s. Since then, the field has been in gradual decline.

MarketWatch