Global crude oil prices spiked by over US$4 per barrel yesterday after news came in that a major pipeline in Minnesota had exploded and caught fire, killing two workers. The pipeline carries oil from Saskatchewan, Canada to close to Chicago, United States, and this oil represents 16% of America’s total oil imports.
The section of the pipe that exploded was undergoing maintenance at the time to address a pinhole leak first identified three weeks earlier, and patched at the time with a metal sleeve. On Wednesday, the entire section was removed and replaced with a new one. When oil was reintroduced on Thursday morning, oil leaked where the new section joined the pre-existing pipe, triggering the fatal explosion.
The fire was extinguished later the same day.
The line is split between four separate pipes. After the explosion, all four pipes were shut down, resulting in the global price surge, but this subsided for the most part after it became clear that the three undamaged pipelines had returned to normal operation, restoring 80% of the line’s capacity, and that the accident pipe is expected to be back in use in a matter of days.
“There were no problems found in that area where the leak occurred,” reporters were told by Larry Springer, spokesman for Enbridge, the Canadian company that owns the line. High-tech equipment had been through the line in 2006 to check for any signs of problems.
Embridge identified the deceased as Dave Mussati Jr. and Steve Arnovich, both of whom were contract workers based in Superior, Wisconsin. The damaged section of pipe is in Clearbrook, which is approximately 350 miles Northwest of Minneapolis.
Embridge metallurgists have been sent to examine the failed section in an effort to determine the cause of the accident. Other Embridge workers are working to clear spilled oil from the site. It is expected that once this is complete, the pipe will return to service. Crude oil trading closed yesterday slightly above original prices.
Creative Commons Attribution 2.5
Rate this post:
(No Ratings Yet)
Loading ...
Stumble It!
