We Have The Technology ...

Yeah, we should be able to trust them to drill in ANWR safely ...

BP, the world's second-largest oil company, began shutting down the pipelines on Monday and said it would replace 16 miles of the 22 miles of transit pipeline it operates in the Prudhoe Bay field following a leak discovered Sunday. ...

BP discovered corrosion in the transit lines only after the Department of Transportation ordered their inspection following a 270,000 gallon spill in March at another section of the field.

Transit lines move the oil to flow stations for transport down the trans-Alaska pipeline for shipment 800 miles south to Valdez, where it's shipped to the Lower 48 aboard tankers.

BP officials said the line where the leak was found was last checked for weakness using a technology called a "smart pig" in which a device is sent down the tubes to assess pipeline integrity in 1992.

BP had not done a routine maintenance "pigging" on its transit lines because they didn't think it was necessary because those lines carry clean crude from which water was removed.

Steve Marshall, president of BP Alaska, said the company believed ultrasonic testing of pipeline wall thickness was an acceptable substitute on those lines.

In hindsight, he said, that has proven not to be sufficient.

"Clearly, we are already in the process of adjusting considerably our corrosion program," Marshall said, adding that the company will significantly increase its maintenance and surveillance of the transit lines both now and when they are replaced. The company is spending $72 million this year to inhibit corrosion, up from $60 million last year.

The aging pipeline system on the North Slope has been fraught with problems lately. BP, which posted a net profit of $7.3 billion for the three months ending June 30, operates the Prudhoe Bay field.

In March, BP was blamed for the rupture of a pipeline at the same Prudhoe Bay field, leading to an extension of a criminal investigation into the company's management of its Alaskan operations.

Steve Marshall, president of BP Exploration Alaska Inc., said tests Friday indicated that there were 16 anomalies in 12 areas in an oil transit line on the eastern side of Prudhoe Bay. Tests found losses in wall thickness of between 70 and 81 percent. Repair or replacement is required if there is more than an 80 percent loss.

BP also said Sunday that workers found a small spill of about 4 to 5 barrels, which has been contained and is being cleaned up.

Having the technology that would theoretically allow for clean drilling and transport of oil is one thing. Having a cost/benefit analysis that prompts corporate managers to use that technology is another. Having the proper regulatory environment to prompt them to continue to use that technology, and to catch their own mistakes is a third.

Not that we have any reason to think that the large oil industries might be willing to take advantage of lax regulation to increase profits at public expense. Oh, wait, yes we do:

While U.S. oil companies blame the global oil market for high gasoline prices and claim record profits to boot, a close analysis of pricing suggests it's not so simple: The run-up at the pump also comes from domestic refining, which is largely controlled by Big Oil.

In consultation with several economists, The Associated Press examined pricing trends since 1999, which was the starting bell for the modern era of pricier gasoline. It found evidence that:

• The portion of gas prices tied to refining has ballooned all on its own, apart from oil.
• The suspicion of frustrated drivers is correct: After upward spikes, the price of gasoline drops back more slowly than the price of oil - and someone pockets the difference.

Today wasn't the first day I put gas into my tank that cost over $3 a gallon. I'm not too happy to know that it won't be the last, either. Most of BP's Prudhoe Bay production comes to the West Coast, so I expect I'll be seeing prices rise even higher.

By the way, did you happen to notice that the 'significant' increase in BP's corrosion program for this year will be less than 1 percent of their quarterly profit from April, May and June? Hmm.