An ExxonMobil Corporation (XOM)-operated pipeline running into the Yellowstone River in south central Montana ruptured last Friday, spilling hundreds of barrels of crude oil into the river. The company has closed down the pipeline, which is linked to the Billings facility, and has isolated the affected segment.
ExxonMobil estimated that as many as 1,000 barrels of crude spilled into the Yellowstone River from the 12-inch pipeline, which was operated by ExxonMobil Pipeline Company. With a capacity of shipping 40,000 barrels a day, the pipeline runs about 70 miles (112 kilometers) from Silvertip in south-central Montana to Billings.
Right now, the company is as much concerned about the cause of the leak as it is about the consequences. ExxonMobil is evidently busy with clean-up procedures along the 10 miles downriver from the site.
Although an ExxonMobil spokesman confirmed that the spill is confined within a 10-mile area, the company is searching for traces of oil along the river. The company is also desperately trying to allay the ill-effects of the rupture on the adjoining communities and check related risks to the environment.
ExxonMobil has shown its concern for the neighboring farm fields and the trout fishing industry. The company also affirmed that local residents and public water systems remain unaffected by the blowout. Being well aware of the crisis that the incident can lead to, the company remains focused toward health and safety issues of its employees as well as the regional population.
Billings facility is one of seven refineries of the oil giant within its U.S. operated territories. Each year the unit delivers approximately 450 million gallons of gasoline, diesel fuel and propane from crude it obtains in Wyoming and Alberta, Canada. Another U.S. oil giant, ConocoPhillips (COP), also produces gasoline, diesel fuel and other transportation fuels at Billings facility to cater to Montana, Wyoming, Utah, Colorado and Washington customers.
Irving, Texas-based ExxonMobil Corporation is the world’s largest publicly traded oil company, engaged in exploration and production of oil and natural gas, refining and marketing of petroleum products, manufacturing of chemicals, and other energy-related businesses.
We maintain our long-term Neutral recommendation for the company, which also retains its Zacks #3 Rank (short-term Hold rating).
CONOCOPHILLIPS (COP): Free Stock Analysis Report
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