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Imperial Oil (IMO) Faces Scrutiny for Slow Spills Reporting

Imperial Oil Ltd (IMO) faces increased environmental oversight in Alberta's oil sands, as the Canadian federal government takes action against the company's delayed reporting of toxic spills.

Over the years, the company has been involved in a number of controversies related to its environmental impact, particularly in the area of oil sands development in Alberta. Recently, there has been a growing concern regarding the environmental damage caused by oil spills in the region. This has prompted the Canadian government to take action to improve the industry’s oversight.

In response to these incidents, the government has taken steps to improve oversight of the industry. In 2022, it introduced new regulations that require companies operating in the oil sands to provide detailed spill prevention and response plans, as well as submit regular reports on the same. The government has also increased funding for environmental monitoring and research in the region, with a focus on improving our understanding of the impact of oil sands development.

The Canadian federal government is taking action to improve environmental oversight in Alberta's oil sands after Imperial Oil and the provincial regulator delayed toxic spill reporting. Environment minister, Steven Guilbeault, has proposed a joint working group with the oil company to address concerns regarding the spills. Both IMO and the regulator have been asked to testify at the House of Commons Standing Committee on Environment and Sustainable Development. Two spills from a storage pond were not reported to the federal government and nearby indigenous communities until nine months after the first spill occurred. The federal ministry of Environment and Climate Change Canada has expressed serious concern over the lack of communication.


Imperial Oil has been subject to criticism in the past for its environmental record and it has acknowledged the need to improve its performance in this area. In recent years, the company has taken steps to reduce its greenhouse gas emissions, including investing in renewable energy and improving the efficiency of its operations. IMO has also been working to improve its spill prevention and response capabilities by investing in new technology and training programs.

The issue of oil sands development and its impact on the environment is a complex one, with no easy solutions. However, improved oversight and regulation of the industry are key to minimizing the risks of environmental damage and protecting the communities that rely on the affected waterways for their livelihoods. The company plays an important role in this process and its efforts to improve environmental sustainability should be encouraged.

Zacks Rank and Key Picks

Currently, Imperial Oil carries a Zacks Rank #3 (Hold). Investors interested in the energy sector might look at some better-ranked stocks like NGL Energy Partners NGL, sporting a Zacks Rank #1 (Strong Buy), and Energy Transfer ET and Helix Energy Solutions Group HLX, each holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here

NGL Energy Partners: The company is worth approximately $367.70 million. Its shares have increased 19.5% in the past year.

NGL is a limited partnership company that operates a vertically-integrated propane business with three segments — retail propane, wholesale supply and marketing, and midstream.

Energy Transfer LP: The company is valued at around $37.10 billion. It delivered an average earnings surprise of 11.43% for the last four quarters and its current dividend yield is 10.18%.

ET currently has a forward P/E ratio of 8.41. In comparison, its industry has an average forward P/E of 9.20, which means the company is trading at a discount to the group.

Helix Energy Solutions Group:The company is valued at around $1.10 billion. In the past year, its stock has increased 52.7%.

HLX currently has a forward P/E ratio of 11.01. In comparison, its industry has an average forward P/E of 11.20, which means the company is trading at a discount to the group.

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