• 4 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 7 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 15 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 14 hours Old - New Kim: Nuclear Negotiations With U. S. Will Never Resume Unless Washington Changes Its Position
  • 1 hour IMO 2020 could create fierce competition for scarce water resources
  • 11 hours IMO2020 To scrub or not to scrub
  • 14 hours India After Elections: Economy And Hindu Are The First Modi’s Challenges
  • 7 hours Theresa May to Step Down
  • 6 hours Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 17 mins Apartheid Is Still There: Post-apartheid South Africa Is World’s Most Unequal Country
  • 7 mins Total nonsense in climate debate
  • 11 hours Devastating Sanctions: Iran and Venezuela hurting
  • 3 hours IRAN makes threats, rattles sabre . . . . U.S. makes threats, rattles sabre . . . . IRAQ steps up and plays the mediator. THIS ALLOWS BOTH SIDES TO "SAVE FACE". Then serious negotiations start.
  • 227 days Epic Fail as Solar Crashes and Wind Refuses to Blow
  • 13 hours Compensation For A Trade War: Argentina’s Financial Crisis Creates An Opportunity For China
  • 8 hours Level-Headed Analysis of the Future of U.S. Shale Oil Industry
The Single Most Bullish Indicator For Oil

The Single Most Bullish Indicator For Oil

Crude futures saw some headwinds…

Families Abandon the Town of Mayflower, Arkansas after Exxon Oil Spill

On March the 29th 2013, an ExxonMobil pipeline carrying heavy crude oil from Canada’s oil sands ruptured in a quiet neighbourhood of Mayflower, Arkansas, spilling between 5,000 and 7,000 barrels of oil.

Whilst the clean-up began almost immediately, the neighbourhood of Northwood has now become a prime example of why so many US property owners fight to prevent oil companies laying pipelines across their land.

It is now eight months since the spill and nearly half of the residents of Northwood have put up their houses for sale as they look to escape the area and begin their lives anew. April Lane, a community health worker who was helping the spill victims, said that “the area is blanketed with 'For Sale' signs,” with 29 of the development’s 62 homes on the market, of already sold to ExxonMobil under their buy-out program.

Related article: How Effective are Anti-Oil Protests?

Mayflower, Arkansas for sale signs

ICN report that some people were forced to sell their homes because oil had settled into the foundations, weakening their structural integrity and forcing them to be demolished. Other people chose to leave the area worried about the potential health effects of the spill, or the affect that it could have on local property value.

Unfortunately, for the same reason people want to sell their homes, others don’t want to buy. Ryan Senia, a 30-year old bachelor who bought his home in 2009, explained that “it’s like selling a salvaged car—nobody wants to buy it.”

The only entity willing to pay is ExxonMobil itself, who has already bought 20 of the 29 homes up for sale.

Related article: North Dakota in Spotlight after Oil Spill

Kim Burks, an estate agent with Crye-Leike, said that the Northwood neighbourhood “had beautiful resale value before the oil spill—one of the only areas in Mayflower with nice, new homes like that.” Unfortunately if sellers aren’t willing to accept Exxon’s money for their homes, it is going to be very difficult to find any other interested parties.

Glen Rega, another agent from Crye-Leike, said that they are “in an ambiguous situation that's never happened before. I'm sure once the first buyer goes in there and doesn't have any issues, then more will see the value that's there.”

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News