Govenors criticize national energy policy

I can not help but think that part of the pipeline problem is a lack of maintenance. That's unforgiveable.

BBB


The pipe line scandal is finally seeing the light of day. It turns out that the Congress also is to blame. When they approved the drilling for oil and the pipe line in Alaska, the Congress failed to establish maintenance standards and enforcement.

BBB

Aug. 8, 2006, 8:23PM
BP's blues
Failure to adequately maintain vital North Slope oil link is the oil giant's latest blunder



Since the explosion at BP's Texas City refinery that killed 15 workers last spring, the company has been on a roll, with almost all of the motion downhill. Now consumers are paying the penalty as corroded pipelines operated by BP from Alaska's massive Prudhoe Bay field have been shut down for emergency repairs. The field provided 8 percent of domestic oil production, and the cutoff could could cause gasoline prices to spike 10 cents or more at the pump.

The problem could have been foreseen and dealt with in a less disruptive manner had the pipelines been adequately maintained. The widespread corrosion was discovered by the operator only after federal regulators ordered it to inspect the lines following the worst pipeline breach since pumping operations began there in 1977.

BP says it will replace 16 miles of corroded pipeline. The cutoff of Prudhoe oil could last for months.

BP officials concede a so-called smart pig maintenance device, which can detect sludge and corrosion, had not been used to inspect the lines since the company took over operations in 1992. BP apparently tried to use one in 1998, but it was blocked by sludge. Oilfield experts say the larger Trans-Alaskan Pipeline is tested monthly. BP relied on ultrasound testing that failed to pinpoint accumulating sludge and corrosion.

The shutdown was triggered by the discovery of a small oil leak in one line. However, in March another corroded line operated by BP spilled 267,000 gallons of oil onto the frozen tundra. Federal law enforcement agents are investigating the incident.

In addition to those problems and the Texas City refinery disaster, BP was embarrassed by U.S. regulators' charges that company propane traders had tried to illegally manipulate the market in 2004.

BP North America Chairman Bob Malone expressed his company's regrets for the shutdown at an Alaskan press conference, saying "on behalf of the BP Group, I apologize for the impact it is having on the nation and the state of Alaska." BP's chief executive, John Browne, was already in Alaska on an image-mending visit when the Prudhoe shutdown was announced.

Members of the House Energy and Commerce Committee expressed outrage that BP had not taken measures to protect U.S. energy security. "It is appalling that BP let this critical pipeline deteriorate to the point that a major production shutdown is necessary," said the ranking Democrat on the committee, John Dingell of Michigan. U.S. environmental officials also said they were concerned with the company's progress in inspecting its pipelines.

BP's advertising portrays the company, whose U.S. operations are based in Houston, as environmentally sensitive, safety-conscious and committed to investing in alternative forms of energy. BP's self-praise is being overwhelmed by its chronically disastrous performance on the ground.

If BP expects to enjoy the confidence of its American customers, it needs to start solving its problems before they reach the stage where apologies, fines and funerals are necessary.

BBB
Congress is finally getting around to establishing pipe line maintenance standards (see below link). Nothing was done until the March 2006 oil spill. ---BBB

http://petrochemical.ihs.com/news-06Q3/phmsa-pipeline-testing.jsp

BBB -- Thanks for the story. It seems that maintenance is always forgotten.