ANCHORAGE, Alaska – The shutdown of a large Alaska oil field because of a small leak in one of the pipes is raising questions about whether there are more widespread problems in other pipelines used to transport oil throughout the United States.
For decades, some critics charge, lax government regulation combined with corporate unwillingness to make costly repairs has allowed corrosion and other wear-and-tear issues to fester.
“I think all the pipelines are in trouble regardless of who operates or who owns them,” said Dan Lawn, who previously worked for the Alaska Department of Environment Conservation and is now with the Alaska Forum for Environmental Responsibility, a watchdog group.
The concerns extend beyond corrosion in the pipes, said Stan Stephens, president of the Prince William Sound Regional Citizens Advisory Council, which was formed by federal mandate after the Exxon Valdez spill to advise the industry about potential environmental problems.
Stephens also worries about general maintenance of the aging pipeline system, as well as environmental and safety issues with shipping and storage. He charges that the government has not done enough to force companies to maintain the system.
“They have a system that just fails to just really do a good job of oversight,” Stephens said. “There’s nobody like the state and federal government that’s forcing them to do the right thing.”
Earlier this week, BP PLC said it would shut down Prudhoe Bay, which is the biggest oil field in the nation, because of a small leak and severe pipeline corrosion. Energy officials have said the pipeline repairs are likely to take months, curtailing Alaskan production into next year.
The Prudhoe Bay oil field operated by BP accounts for 8 percent of domestic output.
Fadel Gheit, senior energy analyst with Oppenheimer &Co., says it’s clear that not everyone in the industry has subjected their pipelines to rigorous corrosion checks.
But he thinks this shutdown will serve as a wakeup call, forcing everyone to rethink and ultimately improve their practices. He likens it to the deadly car crashes that eventually prompted widespread use of seat belts.
“We are going to see more and more companies making routine exams,” he said. “Unfortunately, it took an accident to get people to pay attention.”
But in the meantime, there are still concerns about what this recent leak will mean for the short-term oil supply. Dean, the BP spokesman, said the company is working with suppliers to get replacement pipeline quickly to the site.
BP has approached the Japanese firm JFE Holdings Inc. and other steel producers about buying 18-inch pipe to replace the corroded sections at Prudhoe Bay, said David Belvin, senior technology manager of sales and service at JFE’s Houston office.
Belvin said the company is asking for deliveries in September, which will be a challenge.
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