MAJOR U.S. PIPELINE MAY BE CLOSED SEVERAL DAYS
The operator of a major U.S. crude oil
pipeline, shutdown because of flood damage, said it may be
several days before repairs are made and the system is
functioning again.
    Dan Stevens, manager of public and government affairs at
Texaco Inc <TX>, operator of the pipeline through its
subsidiary Texaco Pipeline Co, said the company hopes repairs
will begin in about five days and expects it to take several
more days to complete.
    "At this point we are lining up what we know we need, to get
the job done," Stevens said, adding that the timing for repairs
will depend on the damage to the pipeline which is difficult to
assess because of flooding on the Red River.
    The pipeline was shipping roughly 225,000 barrels of crude
oil per day, or about 55 pct of its capacity during the 30 days
preceding its shutdown on Saturday, Stevens said.
    The pipeline was shut down from Cushing, Okla, to Witchita
Falls, Kan, on Saturday due to an undetermined leak at the Red
River crossing, near the Oklahoma/Texas border, because of
severe rains, a spokesman for Texaco said.
    Stevens said it was reasonable to suggest the pipeline
could operate at full capacity when it reopens in order to make
up for the shortfull but cautioned they will talk with
customers to determine their requirements.
    Oil analysts and traders said they were not sure if the 
shutdown will continue to raise U.S. oil prices.
    Monday, after Texaco confirmed that the pipeline had been
closed, West Texas Intermediate crude in the spot market and on
New York Mercantile Exchange's energy futures complex rose 20
cts a barrel.
    Stevens said it was reasonable to suggest the pipeline
could operate at full capacity when it reopens in order to make
up for the shortfull but cautioned they will talk with
customers to determine their requirements.
    Oil analysts and traders said they were not sure if the 
shutdown will continue to raise U.S. oil prices.
    Monday, after Texaco confirmed that the pipeline had been
closed, West Texas Intermediate crude in the spot market and on
New York Mercantile Exchange's energy futures complex rose 20
cts a barrel.
 Reuter
