Trans-Alaska pipeline system A group of motorcyclists ride past
the Trans-Alaska pipeline system, operated by BP Photograph: Al
Grillo/AP
BP shares slid nearly 2.5% this morning after the company shut a
major Alaskan pipeline that carries around 12% of America's oil
output.
The Trans-Alaska pipeline system, which carries oil from the
Prudhoe Bay field, was closed on Saturday following the discovery
of a leak. The incident is expected to drive up oil prices, and
could mean motorists face even higher costs at the pumps.
Prudhoe Bay is America's largest oil reserve. The leak occurred at
a pumping station at Alaska's North Slope, and will force BP to
shut down 95% of oil production at the site. The company has
described the leak as "a significant event" and it is not clear
how long it will take to restart production.
Prudhoe Bay will typically produce 630,000 barrels of oil each day
– equivalent to around 40% of the UK's daily consumption.
The price of a barrel of US crude oil rose by almost 1% to $89.92
this morning, as traders reacted to the unexpected drop in
supplies.
BP was the biggest faller in the FTSE 100 when trading began,
dropping as much as 12p to 480.7p. This eroded some of the
recovery since the Deepwater Horizon disaster last April, which
sent BP's shares tumbling from 650p to 296p.
Prudhoe Bay is mainly owned by BP, ConocoPhillips and ExxonMobil,
with BP operating the Trans-Alaska pipeline system. The area is a
major resource for BP, with the company planning to build a new
pipeline to tap Alaska's gas reserves,