As BP shuts down its corroding pipelines in Alaska's North Slope, some analysts are wondering why the problem wasn't caught sooner and say that the company's problems foreshadow a larger mess with the world's aging oil infrastructure.
"It was almost guaranteed to happen," said Charles Clusen, director of the Alaska project for the Natural Resources Defense Council. "These companies have not been putting the money into infrastructure up there."
The action shuts in 400,000 barrels of oil, or 8 percent of U.S. domestic production, at a time when tight supply and surging demand have magnified the effects of geopolitical tensions.
http://money.cnn.com/....
The government Tuesday raised its forecast for the average price of oil in August by $3 a barrel, citing July's heat wave and decreased production from the closure of BP's oilfield in Alaska's North Slope.
The news caused a bump in oil prices, The energy agency also said things won't get any better for consumers in the short run.
"Significant relief from the high crude oil and gasoline prices is not likely to occur soon," the report said. "The current tight market must also cope with strong gasoline demand, which typically reaches its seasonal peak in August, and the traditionally more active months of the hurricane season."
http://money.cnn.com/....
I am sick of being lied to and scammed! Now I will explain how and why will scare you!
these oil companies drilling here have no motivation to put money into preventive maintenance. Quite the opposite in fact! You'll understand why! More digging for oil will now be supposedly justified! More of you tax dollars will be asked for by oil companies for superstructure updates and to expedite the repairs but you can bet your coast will not go back down!
$5 per gallon at the pump is coming rapidly closer and will be a reality as that is the magic figure needed to make America oil independent! $5 per gallon at the pump is where the price has to be before it is economically profitable to capture Canadian oil sand and America's shale oil. http://www.dailykos.com/....
* America alone has more oil reserves than the entire world combined!
* Think about this too! Maybe that is why Bush is not concerned with destroying the middle east?
** In the end result, this is why there is no real effort for a viable alternative for oil and Bush once again is merely lying about his efforts, concerns, and desires. This is just one more of the erroneous facades of concern in Bush's politics of Deception!
James Joiner
Gardner, Ma
www.anaveragepatriot.com