Over the past couple months, there have been a few oil spills in Canada. While it is never good news when these sort of things happen, the attention they are getting from both the media and political opposition are making it even more difficult to get new oil pipelines up and running. The oil sands industry in rough shape because of a lack of takeaway capacity, so it looks like the Canadian government is stepping in to hopefully ease some of this resistance through some tougher regulations on pipeline companies.
With Transcanada's (NYSE:TRP) Keystone XL pipeline still up in the air and other companies hoping to get oil sands to the West Coast for export, these measures will ensure that any spill from a pipeline, regardless of size, is exclusively paid for by the pipeline companies. Also, these companies will need to show that they have the financial capability to support $1 billion in cleanup and litigation expenses in the event of a spill. What does this mean for pipeline companies? Tune into the video below where Fool.com contributor Tyler Crowe takes a look at these new regulations and how it will change the way pipelines do business in Canada.
Fool contributor Tyler Crowe has no position in any stocks mentioned. The Motley Fool recommends Spectra Energy. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.