Wabasca straining Exxon Mobil Corporation (NYSE:XOM) – Keystone XL pipeline plan on the line

by James Karedelli | Monday, Apr 1, 2013 | 3989 views

Northern, WI 04/01/2013 (usastockreport) – The Exxon Mobil Corporation (NYSE:XOM) (Current: $90.91, Up by 0.89%) pipeline leak that was carrying Canadian Wabasca Heavy crude from Patoka, Illinois to Nederland, Texas spilled thousands of barrels into Arkansas which led to evacuation of 22 homes in the vicinity. The area around the breach in the pipeline has not been excavated yet and the company cannot estimate the time it would take for repairs to be completed until that is done. The cause of the incident is not clear either said Alan Jeffers the Exxon spokesperson.

Heavy crude heavy damage
Even as the oil is being cleaned out, environmentalist groups are vociferously opposing the Keystone XL line development plan. This pipeline was also meant to carry Canadian crude from the tar sands to the refining hub on the Gulf Coast. The cleanup operation was a massive one. There were 15 trucks on the site and 33 storage tanks for temporary storage of the oil. All the oil that was on the street has been removed though some dampness and slick remains on the surface. The Democratic Party is of the opinion that the heavy crude oil is highly corrosive in nature and transporting this across states is a high risk proposition.

It is hazardous to the environment and an accident such as the Arkansas one can leas to a heavy load on the taxpayer. Incidentally, it was just last month that Exxon Mobil Corporation (NYSE:XOM) was asked to pay a fine to the tune of $1.7 million over safety violation over a pipeline leak that had occurred in the Yellowstone river in July 2011.

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