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BP to keep the oil flowingOil giant to boost production in western half of Prudhoe Bay
YOUR E-MAIL ALERTS(CNN) -- The western half of Alaska's giant Prudhoe Bay oil field can stay in production while corroded pipes in the eastern half are replaced, BP America announced late Friday -- cutting in half the potential impact on U.S. oil supplies. After inspecting five key miles of lines in the western part of the field, the company determined they could be operated safely while work continues to replace 16 miles of corroded lines, BP America, which operates the field, said in a statement. The western lines will be monitored around the clock. "The results have been encouraging and have increased our confidence in the operational integrity of this pipeline," said Bob Malone, BP America's president and chairman, in the statement. "With greatly enhanced surveillance and response capability, I am confident we can continue to safely operate the line." The western side of Prudhoe currently produces 150,000 barrels of oil a day, and production should rise to 200,000 after completion of a planned maintenance shutdown, the company said. Before the eastern side was shut down this week, Prudhoe's total production was 400,000 barrels a day, accounting for about 8 percent of U.S. crude production. BP America announced Sunday that it was shutting down Prudhoe after discovering that feeder lines, which take oil from wells to the main trans-Alaska pipeline, were severely corroded. The problem was discovered during an inspection ordered after an oil spill from a BP pipeline earlier this year. The announcement caused a spike in oil prices amid fears that the shutdown could cause shortages, particularly along the U.S. West Coast, which is dependent on Alaskan crude. It also left state officials in Alaska, which gets 86 percent of its revenue from oil taxes, scrambling to plug an unexpected financial hole. Gov. Frank Murkowski ordered a hiring freeze and said some budgeted projects would be deferred. BP America began an intensive inspection of pipes on the western side of the field, trying to see if a total shutdown could be avoided. In its Friday statement, the company also said it was exploring "interim options" for restoring at least some production from the eastern side of the fields while the pipes are replaced. The work will be completed early next year. 
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