Murkowski ‘concerned’ about impact of Alaska oil pipeline shutdown

Sen. Lisa Murkowski (R-Alaska) said she’s worried about how the shutdown of the Trans Alaska Pipeline after discovery of a leak will affect oil prices and the economy of her state, which is tethered to the oil industry.

Murkowski, the top Republican on the Senate Energy and Natural Resources Committee, spoke over the weekend with Alyeska Pipeline Service Co. President Thomas Barrett about the leak at a pumping station that prompted the shutdown that began Saturday.

It has forced oil producers on Alaska’s North to cut most output. Alyeska operates the 800-mile pipeline, owned by a consortium of oil companies including BP and ConocoPhillips.

“While I am relieved, for the moment, that the leak appears to be contained and has not resulted in a release into the environment, I remain concerned about the potential impact both on oil prices and Alaska’s economy of even a short-term shutdown of the pipeline,” Murkowski said in a statement Sunday evening.

“The integrity of the trans-Alaska oil pipeline is paramount to our nation’s energy security and a spill of any size is a major issue that must be fully corrected to maintain the confidence of the American people,” she added.

Crude oil prices rose over 2 percent before retreating Monday, Reuters reports.

The pipeline carries roughly 15 percent of the country’s domestic oil production, and the shutdown is the latest headache for BP, the largest oil producer on Alaska’s North Slope. The company’s share price dropped in London on Monday, Bloomberg reports.

The pipeline was shut down after oil was discovered in the basement of a pumping station. Crews recovered roughly nine to 10 barrels of oil by Sunday morning, which is believed to account for 90 percent of the oil in the basement area, Alyeska said Sunday.

“Engineers are evaluating options, including developing a plan to bypass the affected piping in order to safely restart the pipeline,” the company said, adding there have been “no injuries or apparent impacts to the environment as a result of this incident.”

The leak appears to come from below-ground, concrete-encased piping that leads to the basement of the booster pump building, the company said.