Closure Sees Problems for North American Oil Companies
Oil prices in the US are at risk at rising to over $100 per barrel from the current price that falls below $90 a barrel after the Trans Alaska Pipeline was closed following a leak.
Apparently the leak, in a conservation region has not had a negative impact on the environment or on wildlife that live in the area; however US and Canadian citizens could feel the pain of rising oil prices.
The plant in question has fallen victim to many failures and shut downs over the years, largely owing to the temperature, which stays at around four degrees Fahrenheit throughout the year. Problems have included power failures, gale force winds which have caused disruption to the loading of oil into oil tankers.
The closure has come at a crucial time when much of the northern hemisphere is suffering from a colder than normal winter and is in desperate need of extra fuel supplies to heat thousands of homes and businesses.
Residents along the west coast will feel the impact the most as refineries in this region receive most of their continuous supply of crude oil from the Trans Atlantic Pipeline. If another source of crude oil was to replace supplies going into the west coast and the rest of North America, the process could take more than two months to get supplies up to their usual capacity. Refineries may have to turn to emergency fuel suppliers for support.
Although Alyeska who own and oversee the running of the Trans Atlantic Pipeline say this is just a short term problem that can be traced back to the weather, they admit that they do not know how long the closure will last and how it will indirectly effect oil production in North America.
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