Exxon's Pipeline Spill Could Cost Investors

Updated

ExxonMobil's recent oil spill from its Pegasus crude pipeline in Mayflower, Ark., could cost investors in a number of industries. The White House Council on Environmental Quality is expected to release new standards this spring that could make LNG exportations and pipeline project approval more difficult, and with an estimated 12,000 barrels of oil flooding neighborhoods in Arkansas, the federal government will take a closer look at possible environmental regulations.

TransCanda's Keystone XL pipeline will be the first big project that could feel the ramifications from this recent spill. However, investors in Canadian oil-sands producers, such as Suncor Energy , could also be affected as the discount in Western Canadian Select crude benchmark could widen to WTI prices. With $38 billion in North American pipeline projects expected this year, a more stringent approval process will add significant headwinds to the energy midstream space.

For more details, check out the following video.


There are many different ways to play the energy sector, and The Motley Fool's analysts have uncovered an under-the-radar company that's dominating its industry. This company is a leading provider of equipment and components used in drilling and production operations and is poised to profit in a big way from it. To get the name and detailed analysis of this company that will prosper for years to come, check out the special free report: "The Only Energy Stock You'll Ever Need." Don't miss out on this limited-time offer and your opportunity to discover this company before the market does. Click here to access your report -- it's totally free.

The article Exxon's Pipeline Spill Could Cost Investors originally appeared on Fool.com.

Joel South, Taylor Muckerman, and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement