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The Wall Street Journal: Oil News Roundup: August 11, 2006 4:53 p.m.


Oil futures edged higher on the New York Mercantile Exchange, ending the day at $74.35 a barrel, a day after losing $2 a barrel on worries that news of a terrorist plot targeting major airlines could hurt demand for jet fuel.

Here’s Friday’s roundup of energy-related news:

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PRUDHOE PRICE RISES: BP said the cost to repair and replace leaking pipelines at Prudhoe Bay, the nation’s largest oil field, could be about $170 million. Yesterday, Reuters reported the tab could be $100 million. And it could keep growing: The company said its estimate was only a rough first guess. BP also said it would decide today whether to keep the western part of the field operating. Previously, it had said it would wait until next week to make that announcement.

•Exxon’s Force Majeure: Exxon Mobil joined ConocoPhillips in declaring force majeure on oil from the Prudhoe Bay field, a warning it may not be able to fulfill promised oil deliveries. Both companies share the field with BP, which has said it will not have to declare force majeure.

•Coping With Shortages: The world is dealing quite nicely so far with the loss of about one million barrels a day of oil from Alaska and Nigeria, the International Energy Agency said.

•Michelin Pumps Up Prices: French tire maker Michelin, beset by surging energy and raw-material costs, said Friday it is increasing prices of the tires it sells to car manufacturers by between 6% and 8%.

•Different This Time: Gushing fuel prices have preceded several recessions in recent decades. In The Wall Street Journal Online’s Econoblog, two economists debate why no recession has followed the latest price spike — yet, anyway.

•Governor Protests: Rhode Island Governor Don Carcieri, a Republican, sent a letter to President Bush calling for an end to federal subsidies and tax breaks for oil companies and calling for a windfall profits tax on the industry. Mr. Carcieri is running for re-election. and its sister non-profit websites,,,,,, and are owned by John Donovan. There is also a Wikipedia feature.

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