Shell (SHEL) Pipeline's Oil Spill Pollutes Niger Delta Farms
Shell plc’s (SHEL) facility in Nigeria suffered a new oil spill. This resulted in contamination of farmland and a river, disrupting the livelihoods of fishermen and agricultural families in the Niger Delta.
On Jun 11, a leakage from the 180,000-barrel-per-day pipeline was detected at Eleme in Rivers State in south Nigeria. Four days later, Shell Petroleum Development Company of Nigeria Limited confirmed the incident in an official statement.
The leakage, which lasted about a week, is being looked into by Nigerian officials and Shell's local subsidiary. The volume of spillage has not yet been quantified.
Activists refer to this leak as a "major one" despite the fact that spills are common in the area, owing to vandalism and poor pipeline maintenance.
Over the years, Shell has fought several legal disputes centered around oil spillage in the Niger Delta, an area plagued by pollution, conflict, and corruption pertaining to the oil and gas sector. The majority of leaks, according to Shell, are the result of crude oil theft and pipeline vandalism.
According to Idris Musa, the director-general of National Oil Spill Detection and Response Agency, although the leak has been contained, efforts to address the spill's fallout at farms and the nearby Okulu River have stagnated.
Zacks Rank & Key Picks
Shell is one of the primary oil supermajors, a group of U.S. and Europe-based big energy multinationals with operations across the world. Currently, Shell carries a Zack Rank #3 (Hold).
Some better-ranked stocks for investors interested in the energy sector are Evolution Petroleum Corporation EPM, NGL Energy Partners LP NGL and RGC Resources Inc. RGCO. While Evolution Petroleum sports a Zacks Rank #1 (Strong Buy), both NGL Energy Partners and RGC Resources carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Evolution Petroleum is an independent energy company. It was formed to acquire and develop oil and gas fields and apply both conventional and specialized technology to accelerate production, particularly in low-permeability reservoirs. EPM has witnessed an upward earnings estimate revision for 2023 and 2024 in the past 60 days.
NGL Energy Partners, headquartered in Tulsa, OK, is a limited partnership operating a vertically-integrated propane business with three operating segments — retail propane, wholesale supply and marketing, and midstream. NGL has witnessed an upward earnings estimate revision for 2024 in the past 30 days.
RGC Resources is a holding company that offers energy and associated products and services through its operational subsidiaries — Roanoke Gas Company and RGC Midstream, LLC. RGCO has thousands of customers through its natural gas distribution companies that serve the Roanoke Valley and Bluefield, Virginia and West Virginia areas.
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