BP announced on Monday that the corrosion that caused it shut down the huge Prudhoe Bay oil field is so severe that it will have to replace 16 miles of pipeline. BP said the work could shut down Prudhoe Bay oil field months. BP will have to replace most of the 22 miles of transit pipeline at Prudhoe Bay, which produces about 2.6 percent of the nation’s daily supply, or about 400,000 barrels a day.

Bob Malone, chairman of BP America, said that worst-case, it could take weeks or months to replace the pipelines. But the company said it will try to bring network back into operation as they are repaired.

The shut down has sent oil prices up more than $2 a barrel and gasoline futures rose, indicating that the market expects prices at the pump to increase further.

## Source: Forbes ##

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