Incomplete Question on Prudhoe Bay
With all the buzz about how the Prudhoe Bay pipeline will be shut down, the big question for many is how long will it take to repair 16 miles out of a total of 22 miles of pipeline? BP has given an answer "weeks or months," which is not very helpful. Six weeks? Six months? Could you be more ambiguous?!
But there's a more important question that the media is not asking. If tests found losses in wall thickness of between 70% and 81% in the Prudhoe Bay pipeline, what's happening with the TransAlaska pipeline? That's EIGHT HUNDRED miles long. The corrosion in Prudhoe Bay pipeline caught people by surprise. Could sections of the TransAlaska be suffering from the same problem?
America's oil infrastructure needs a lot of work; this won't be the last thing that breaks unexpectedly. All the more reason I'm sticking to my initial target for oil at $88 per barrel; my one-year target is $100.
But there's a more important question that the media is not asking. If tests found losses in wall thickness of between 70% and 81% in the Prudhoe Bay pipeline, what's happening with the TransAlaska pipeline? That's EIGHT HUNDRED miles long. The corrosion in Prudhoe Bay pipeline caught people by surprise. Could sections of the TransAlaska be suffering from the same problem?
America's oil infrastructure needs a lot of work; this won't be the last thing that breaks unexpectedly. All the more reason I'm sticking to my initial target for oil at $88 per barrel; my one-year target is $100.
Check out my new gold and energy blog at MoneyAndMarkets.com
posted by Sean Brodrick @ 3:26 PM
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