BLOOMBERG: Shell U.S. Capline Oil Pipeline Shut After Hurricane: “The Capline pipeline transports up to 1.2 million barrels a day of crude oil from the Gulf of Mexico and imported from overseas. It runs more than 650 miles (1,040 kilometers) from St, James, Louisiana to Patoka, Illinois, according to Shell.”: (Update1): Wednesday 31 August 2005

Aug. 31 (Bloomberg) -- Royal Dutch Shell Plc, Europe's second-biggest oil company, said its Capline crude oil pipeline connected to Gulf of Mexico offshore production was shut because of power failures after Hurricane Katrina swept through the area.

``The Shell-operated Capline Pipeline system did not incur damage from Hurricane Katrina, but is currently down due to multiple pump stations that are without power,'' Shell said in a statement on its Web site dated yesterday.

The Capline pipeline transports up to 1.2 million barrels a day of crude oil from the Gulf of Mexico and imported from overseas. It runs more than 650 miles (1,040 kilometers) from St, James, Louisiana to Patoka, Illinois, according to Shell.

Hurricane Katrina has shut 1.4 million barrels of daily crude-oil output, according to the U.S. Minerals Management Service, which manages offshore resources. Platforms in the Gulf account for about 30 percent of U.S. output.

Four pipelines carrying refined oil products between New Orleans and Baton Rouge, Louisiana are also shutdown, the Shell statement said. The system is not operating because of power outages and a lack of supply from refineries closed by the hurricane, it said.

Eight refineries in Louisiana and Mississippi were closed during the weekend, halting at least 1.79 million barrels a day of capacity.

Hurricane Katrina devastated parts of Louisiana, Mississippi and Alabama, killing dozens of people, cutting off power to 2 million and leaving most of New Orleans flooded by water as deep as 20 feet. U.S. and state officials say it may be the nation's worst natural disaster.

To contact the reporter on this story:

Hector Forster in Tokyo at hforster@bloomberg.net.

Last Updated: August 30, 2005 21:43 EDT

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