News that the largest oil field in the United States, BP's Prudhoe Bay in Alaska, is being shut down is bad news for those who want to reduce our dependence on foreign oil. Prudhoe Bay represents 8% of U.S. oil production and a full 10% of BP's worldwide daily production.
Crude prices are up nearly $2 per barrel on the news. Hopefully hurricane season will be more modest this year, or else there will be even more pressure on energy prices going forward. Supply constraints might be mitigated slightly given that crude supplies are fairly high and countries like Saudi Arabia have said they can offset some of the lost production in Alaska.
Just what we need... more Mideast oil...