Welcome to the latest edition of the Energy Recap. As most readers probably already know, on Thursday, Nov. 16, TransCanada (NYSE:TRP) had to shut down part of its Keystone pipeline after 5,000 barrels of oil leaked in South Dakota. The spill happened just days before Monday’s expected decision from Nebraska officials regarding whether or not to approve the company’s construction proposal in their state.
The most recent reporting noted that,
“Nebraska state officials said … [the leak] won’t affect their imminent decision to approve or deny a route for the related Keystone XL project, proposed by TransCanada Corp. The decision will be based solely on testimony and documents during public hearings over the summer and from more than 500,000 public comments.”
Of course, there’s the environmental impact that will have to be dealt with – which is certainly most important to those living in the surrounding community. The cause of the leak is unknown at this point, but whatever the reason, it’s a huge problem that will take at least several weeks to clean up. According to IFLScience.com,
“Even if the spill does not pollute the aquifer, it will stoke opposition to Keystone XL, now back on the agenda since President Trump overturned Obama’s ban. It is also bad news for other oil pipelines, like the nearby Dakota Access, which had a much smaller leak of its own back in May.”
As might be expected, shares of TransCanada took a hit after the oil leak was reported. Traders also are awaiting news on how long Keystone will be shut down, which could have a negative effect on TRP.
So, what’s your take on this news? Do you think the spill and any subsequent fallout will continue to weigh on TRP? And what about its possible effects on other oil pipelines, both current and future? Please leave us your thoughts in the comments section below.
Energy Articles of Note
“Transocean: Is Deepwater Doomed?” By Vladimir Zernov