US may open emergency oil reserve

WASHINGTON: The US government said on Monday that it would take a "serious look" at requests from refiners to tap the nation's emergency oil stockpile after BP said it was shutting down a critical Alaskan pipeline.

"If there are any requests for loans from refiners the department will take a serious look at those requests," Department of Energy (DoE) spokesman Craig Stevens said.

The Strategic Petroleum Reserve, an emergency stockpile which is only meant to be tapped in times of national crisis, currently holds 688 million barrels of oil.

The SPR was last opened up to refiners after devastating hurricanes ravaged US oil installations a year ago.

British energy major BP said it was shutting down the biggest oilfield in the United States to tackle a pipeline leak, driving up oil prices on prospects that US output might fall by as much as eight percent.

When complete, the shutdown will cut Alaska North Slope production by 400,000 barrels per day, BP said in a statement.

In response, New York oil prices soared above 76 dollars a barrel in New York Monday.

Prudhoe Bay accounts for about half of Alaska's total oil output and about eight percent of total US production, according to the DoE.

Energy Secretary Samuel Bodman "has directed his staff to get in touch with BP and affected refiners," Stevens added.