Crude Oil ( ) Brent Crude ( ) Natural Gas ( ) S&P 500 ( ) PHLX Oil ( )
Current XOM Stock Info

Damaged pipeline calls for alternative oil transport solutionXOM California Oil Spill

An emergency request made by ExxonMobil (ticker: XOM) to use tanker trucks to haul crude oil following the rupture of an oil pipe carrying its crude from offshore has been denied by officials in California. Santa Barbara County’s Planning and Development director rejected Exxon’s emergency permit application, saying it did not meet the requirements for expedited review, reports the Associated Press.

Normally, XOM moves its crude through ten miles of pipe owned by Plains All American (ticker: PAA) from its three offshore rigs to the California coast. Exxon asked California officials to use trucks to transport the crude instead since one of the pipes ruptured on May 19, forcing the company to shut off flows through the line.

Environmental groups praised the Santa Barbara County decision, saying moving the crude by truck was an unsafe solution. “Trucking a million gallons of crude oil a day down winding coastal highways is a recipe for another disaster,” said Kristen Monsell, an attorney for the Center for Biological Diversity.

The Western States Petroleum Association said the decision “reflects an unfortunate lack of understanding of, or sensitivity to, the energy realities California faces,” and said the state would have to import more crude oil to meet its needs.

ExxonMobil spokesman Richard Keil said the company is reviewing other options. The company can reapply through the regular permitting process, the Planning and Development officials said.


Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.