US' Bodman says BP may only have to shut half Prudhoe Bay field

US' Bodman says BP may only have to shut half Prudhoe Bay field

Washington (Platts)--8Aug2006

US Energy Secretary Samuel Bodman Tuesday said BP may not need to take
offline the entire 400,000 b/d Prudhoe Bay field on the Alaska North Slope,
adding that West Coast crude stocks could help fill any supply gap for
refiners in that region.

BP said Sunday it was forced to shut down Prudhoe Bay because of severe
corrosion in pipelines that serve the field.

Speaking to reporters, Bodman said 200,000 b/d of Prudhoe Bay production
may be able to stay online. BP is "looking hard" at a "parallel program" that
will allow that production to go ahead while repairs are ongoing, he said.

The federal government thinks BP should evaluate whether taking the
entire field offline is "the best course of action," Bodman said. "Taking down
the entire field is a big decision." BP has not decided whether it would take
this course of action, he added.

Lost Prudhoe Bay production can be made with supplies from the Strategic
Petroleum Reserve and production from other countries, including Saudi Arabia
and Colombia and Mexico, Bodman said. He said he had not received any requests
for SPR crude. US crude supplies are in "pretty reasonable" shape, Bodman
said.

Bodman said West Coast stocks were higher than a year ago, at 55 million
barrels, up 5 million barrels. He said refined products are already being
diverted to the USWC to make up for any potential shortfall.

Bodman said he has spoken with officials from both BP and West Coast
refiners.

--Mike Schmidt, mike_schmidt@platts.com

For more news, request a free trial to Platts Inside Energy at
http://insideenergy.platts.com or subscribe now at
http://www.platts.com/infostore/product_info.php?cPath=23_33&products_id=61

Please visit: www.platts.com

Their coverage of energy matters is extensive!!.