Phoenix Associates Land Syndicate (fka PBLSQ)

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Major Alaskan oil field shutting down

By MARY PEMBERTON, Associated Press Writer 17 minutes ago
Link :
http://news.yahoo.com/s/ap/20060807/ap_on_bi_ge/oil_field_shutdown
Once the field is shut down, in a process expected to take days, BP said oil production will be reduced by 400,000 barrels a day. That's close to 8 percent of U.S. oil production as of May 2006 or about 2.6 percent of U.S. supply including imports, according to data from the U.S. Energy Information Administration.

The shutdown comes at an already worrisome time for the oil industry, with supply concerns stemming both from the hurricane season and instability in the Middle East.

"We regret that it is necessary to take this action and we apologize to the nation and the State of Alaska for the adverse
impacts it will cause," BP America Chairman and President Bob
Malone said in a statement.
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A 400,000-barrel per day reduction in output would have a major impact on oil prices, said Tetsu Emori, chief commodities strategist at Mitsui Bussan Futures in Tokyo.

"Oil prices could increase by as much as $10 per barrel given the current environment," Emori said. "But we can't really say for sure how big an effect this is going to have until we have more exact figures about how much production is going to be reduced."

Malone said the field will not resume operating until the company and government regulators are satisfied it can run safely without threatening the environment.
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