Processing Magazine

Alaska Oil Pipeline Restarts

January 18, 2011

Reuters reports that Alaska''s crude oil pipeline resumed operations on Monday, restoring the flow of about 12-percent of U.S. oil production nearly a week and a half after the line was shut due to a leak. A bypass line to circumvent the leak was completed earlier on Monday and operators are expecting to ramp up throughput to 500,000 barrels per day (bpd) within 24 hours. Producers including BP, ConocoPhillips and Exxon Mobil do not yet have permission to resume normal output, but will gradually increase output over the coming days. The leak, discovered on January 8, had forced Alaska''s oil producers to slow output to a trickle, helping drive oil prices to near $100 a barrel, their highest in two and a half years.