On Mon, 07 Aug 2006 06:54:14 -0400, Harry Krause
wrote:


Oil Surges Above $76 as BP Shuts Alaska Field, Largest in U.S.

Aug. 7 (Bloomberg) -- Crude oil surged above $76 a barrel, recording its
biggest gain in two weeks, after BP Plc said it will shut Alaska's
Prudhoe Bay field, where 8 percent of U.S. oil is produced.

The closure of the largest oil field in the U.S. because of pipeline
corrosion and a leak will cut supplies to West Coast refineries during
the country's peak demand for gasoline. ``Shutting down the field will
take days to complete,'' BP said today.

``What BP is telling you is a greater problem with the whole of the
Alaskan oil infrastructure,'' said Mark Tinker, head of strategy at
Execution Ltd. in London.

Crude oil for September delivery rose as much as $1.79, or 2.4 percent,
to $76.55 a barrel in electronic trading on the New York Mercantile
Exchange. The contract traded at $76.53 at 11 a.m. in London. Brent
crude oil for September settlement gained $1.34, or 1.8 percent, to
$77.51 on the ICE Futures exchange in London.

``The discovery of this leak and the unexpected results'' of recent
pipeline tests ``have called into question the condition of the oil
transit lines at Prudhoe Bay,'' BP America Chairman and President Bob
Malone said today.

- - -

The "discovery" of the leak...the "unexpected results" of pipeline
tests? What a crock. They don't keep close daily watch on an asset that
produces 8% of U.S. oil?

Damn French.
--
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***** Have a Spectacular Day! *****
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John