Broken Pipeline Pushes Oil Prices Higher
(NEW YORK) -- The 800-mile Trans-Alaska Pipeline, which carries 650,000 barrels per day, has shut down oil shipments from the North Slope to the Valdez Marine Terminal due to an apparent oil leak on Saturday.
The leak was discovered this weekend in the first of the pipeline's pumping stations. Since the discovery, the leak has reportedly been contained to a basement in the pumping station, and about 10 barrels from the leak have been recovered.
According to the Alyeska Pipeline Service Co., the pipeline is working at only five percent of total capacity because of the shutdown. As a result, oil traders are pushing oil prices 1.5 percent higher on Monday (near $90 a barrel).
Much of the West Coast of the U.S. relies on the 12 percent of U.S. oil production pushed through the pipeline.
Engineers are developing a plan to attempt to bypass the affected pipe and analysts believe the shutdown should be short-lived.
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