Crude-oil prices initially jumped but tapered while Congress balked at BP's news that 400,000 barrels of Prudhoe Bay oil output would go offline during repairs to 16 miles of pipeline. BP decided to continue oil production from the western side of the field. Oil on Nymex fell from some $79 per barrel to approximately $73 in a week. Zacks Equity Research senior energy analyst Sheraz Mian called the shutdown at Prudhoe Bay "a very real supply shock," as it had the potential to snatch up to 16% of West Coast oil supply. "The critical question now will be for how long this major field stays [partially] offline. A clear announcement by the field's operator (BP) with respect to the resumption of supplies should go a long way towards calming the markets down." For more on this, see the September issue of Oil and Gas Investor. For a subscription, call 713-260-6441.

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