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The Alaska pipeline starts at the frozen edge of the Arctic Ocean. It stretchessouthward across the largest and northernmost state in the United States, ending at a remote ice-free seaport village nearly 800 miles from where it begins. It is massive in size and extremely complicated to operate. The pipe is 4 feet in diameter, and up to 2 million barrels (or 84 million gallons) of crude oil can be pumped through it daily. The pipeline cost approximately $8 billion and is by far the biggest and most expensive construction project ever undertaken by private industry. In fact, no single business could raise that much money, so 8 major oil companies formed a consortium in order to share the costs. Each company controlled oil rights to particular shares of land in the oil fields and paid into the pipeline-construction fund according to the size of its holdings. How many companies shared the costs of constructing the pipeline?

Correct answer: C. Eight

  • A. Three
  • B. Four
  • C. Eight
  • D. Twelve

Explanation

The passage mentions that eight major oil companies formed a consortium to share the construction costs.

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