California Governor Schwarzenegger on Wednesday directed state officials to prepare for the possible oil shortage caused by the closure of the BP pipeline in Alaska.

"In light of the closure of the BP pipeline in Alaska, Gov. Schwarzenegger directed the California Energy Commission (CEC) to closely monitor gas prices to ensure propriety in the transportation fuels market for Californians who already pay among the highest gas prices in the nation," the Governor's Office said in a statement e-mailed to Xinhua.

Additionally, the CEC will work with California refineries to assess the potential impacts this event may have on California fuel supplies and prices, said the statement.

The Governor also requested that the federal government expedite repairs to the pipeline and asked that shipments from the U.S. Strategic Petroleum Reserves be prioritized for the West Coast should requests be made.

In a letter to Secretary of Energy Samuel W. Bodman, the governor voiced grave concern over the announcement of the London- based BP (British Petroleum) to shut down its 400,000 barrel-a-day Alaskan oil field operations.

BP said on Tuesday the shutdown was intended to repair corrosion in the transit pipeline that moves crude oil from the field.

"The prompt and safe return of this crucial source of supply to full operation is critical," said Schwarzenegger. "A major disruption in an already tight oil market could have severe economic consequences for the millions of California consumers, who already pay the highest gas prices in the nation."

In 2005, Alaskan North Slope crude oil accounted for over 20 percent of the crude oil supplied to California refineries, and the BP pipeline accounts for approximately 10 percent of that total. The remainder of California's supply comes from in-state and foreign productions.

Alaskan supplies are a key factor in the world oil market, and this disruption has the potential to significantly raise the price Californians pay for crude oil purchased from other suppliers, said the governor.

"I urge your prompt investigation into the maintenance of these pipelines so that they may be returned to full and safe operation as quickly as possible," he said in the letter.

"State and federal government must also vigilantly monitor the markets to ensure that all price fluctuations as a result of this event are related to the pipeline closure and not a result of companies taking advantage of the situation," the governor said.

The Department of Energy has pledged to accept requests for emergency oil loans from the nation's Strategic Petroleum Reserve to help offset the loss of Alaskan supplies.

But oil from the Strategic Petroleum Reserve could take one to three weeks to get to the West Coast because the crude cannot be transported directly to the region by pipeline.

Source: Xinhua