Alaskan Pipeline Shutdown Will Cost Drivers - Hawaii News Now - KGMB and KHNL

Alaskan Pipeline Shutdown Will Cost Drivers

Paul Tossetti Paul Tossetti
Fereidun Fesharaki Fereidun Fesharaki
The Alaska Oil Pipeline may be off-line for months, experts predict The Alaska Oil Pipeline may be off-line for months, experts predict

HONOLULU (KHNL) - Another heads up for drivers, the pain at the pump could soon get much worse. Gas prices are expected to jump because an Alaskan oil company has shut down, in order to replace a corroded pipeline. 

BP Oil Company is the nation's single biggest source of domestic crude oil. It pumps out about 400,000 barrels a day.

But now, it will be offline for weeks, maybe even months.

"The petroleum market is a world-wide system. You pinch it in one place, it effects everybody" says energy expert Paul Tossetti.

The ripple- effect is sure to be felt here in Hawaii, where drivers continue to pay the most for gas in the nation. Local analysts say, it is just a matter of days before we see the increase at the pump.

"i think by thursday, friday the impact will be seen as the shut down will be complete and the prices will begin to rise probably approaching 80 dollars a barrel, 10-15 cents may be seen within a week or so" says Fereidun Fesharaki.

The current national average is just under $3.05 per gallon. Here in Hawaii, the average price is significantly higher -- at $3.37 per gallon.

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