Monday, April 8, 2013

Exxon Mobile (XOM) and the story of Oil

Although oil prices in the United States edged down slightly last week, all eyes are on Exxon Mobil (XOM) and the messy spill in Arkansas. 

The Pegasis pipeline, carrying thousands of barrels of Canadian Wabasca Heavy crude, ruptured near Mayflower, Arkansas and forced forty homes in the area to be evacuated. Though the pipeline rupture has since been patched, the cleanup and the other inevitable consequences are still being dealt with. In Arkansas, two local residents have filed a lawsuit against Exxon Mobil for the spill, claiming the rupture happened because the capacity was increased in 2009 but wasn’t adequately maintained. 

On Wall Street, the share price dipped dramatically on Friday and hasn’t shown any bounce back. And finally in Washington D.C., some environmentalists are pointing to the spill of the Pegasis pipeline and warning that the proposed Keystone XL pipeline could potentially cause the same problems.

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