Author Archive: Kathy Hipple

Financial Analyst Kathy Hipple is a founding partner of Noosphere Marketing and the finance professor at Bard’s MBA for Sustainability. She worked for 10 years with international institutional clients at Merrill Lynch and then served as CEO of Ambassador Media.

IEEFA update: Get out now — Norway’s fossil fuel epiphany

Divesting fossil fuel stocks challenges conventional wisdom on economic future of oil and gas industry

Norway’s Government Pension Fund Global (GPFG), the world’s largest sovereign wealth fund, has decided to “sell.” They have announced plans to divest from 134 oil and gas exploration and production companies held in its US$1 trillion investment fund. The fund will continue — at least for now — to hold onto the stocks of large, […]

IEEFA/Sightline Institute update: Chevron’s Permian refrain – “Wait ‘til next year”

Despite booming production, negative cash flows projected through 2020

It is a refrain uttered by sports fans at the end of every losing season: Wait ‘til next year. Only this time, it is coming from Chevron, one of the world’s largest private sector oil producers. The oil and gas giant is now admitting that its enormous bets on the Permian Basin will continue to bleed […]

IEEFA Argentina: El Gobierno no puede sufragar los subsidios a productores de petróleo y gas de Vaca Muerta

IEEFA Argentina: El Gobierno no puede sufragar los subsidios a productores de petróleo y gas de Vaca Muerta

El plan del gobierno argentino para explotar las reservas masivas de petróleo y gas en Vaca Muerta, en el norte de Patagonia, confronta un obstáculo mayor. El éxito del plan requiere que el gobierno argentino subsidie los costos iniciales del desarrollo, pero enfrenta penurias fiscales y recién anunció planes para recortar los subsidios. Como resultado, […]

and February 19, 2019 Read More →

IEEFA update: Andrew Cuomo got it right on New York’s fracking ban

Despite opponents’ fears, ban likely saved investors billions

New York State, under the leadership of Governor Andrew Cuomo, instituted a ban on hydraulic fracturing (fracking) in 2014. Not surprisingly, the ban was hotly contested. Opponents had portrayed fracking as a silver bullet that would create jobs and promote economic development.  They predicted the state’s citizens would regret Cuomo’s decision. A retrospective analysis of […]

IEEFA/Sightline analysis: The fracking depreciation dodge

Accounting tricks hide the industry's biggest secret: it’s a losing game.

The US oil and gas boom continued in full force during 2018. By year’s end, America’s oil and gas output reached record highs, squeezing the nation’s net petroleum imports to their lowest point since the early 1970s. But this production frenzy came at a tremendous financial cost. Despite the highest oil prices since 2014, fracking-focused […]

IEEFA Argentina: Government cannot afford subsidies for Vaca Muerta oil and gas producers

Failure to achieve energy plan likely

The Argentine government’s plan to develop the massive Vaca Muerta oil and gas reserves in northern Patagonia has hit a major obstacle. The success of the plan requires the Argentine government to subsidize most of the development costs initially.  But the Argentine government is in fiscal distress and has recently made it known that it […]

and February 8, 2019 Read More →

IEEFA Argentina: Los contratiempos en el plan de utilizar las reservas de petróleo y gas de Vaca Muerta para impulsar la economía

Perforador independiente se retira; no hay postores para la nueva oferta

Los funcionarios argentinos están atribuyendo gran parte de la recuperación económica del país a la atracción de inversión extranjera para explorar, bombear y vender petróleo y gas desde la región de Vaca Muerta en la provincia de Neuquén a un nuevo conjunto de clientes globales. La cuestión para Argentina es si sus problemas económicos minarán […]

and January 17, 2019 Read More →

IEEFA Argentina: Setbacks in plan to use Vaca Muerta oil and gas reserves to kickstart economy

Independent driller drops out; no bidders for new offering

Argentine officials are pinning much of the country’s economic comeback on attracting foreign investment to find, pump and sell oil and gas from the Vaca Muerta region in Neuquén Province to a new set of global customers.  The question for Argentina is whether its economic problems will undermine its ability to develop the Vaca Muerta […]

IEEFA update: How should shareholders react to New York’s ExxonMobil lawsuit?

Time to hold management accountable

Acting New York State Attorney General Barbara Underwood has sued ExxonMobil for fraud, alleging the company misled investors about how its current and future profitability was—and will be—shaped by climate change. The Attorney General’s case tests legal compliance. ExxonMobil shareholders face a different test. The lawsuit charges that ExxonMobil, in effect, kept at least two […]

and October 29, 2018 Read More →

IEEFA update: In Exxon lawsuit, another indication of growing oil-industry peril

Risks outweigh potential rewards; Fossil fuel stocks grow increasingly speculative

The lawsuit filed yesterday by New York’s attorney general against Exxon Mobil is a stark indication of just how risky investing in oil and gas companies has become. The lawsuit asserts that the company defrauded shareholders by downplaying the business risk of climate change, and litigation poses obvious financial risk. It may even expose ExxonMobil—and […]

and October 25, 2018 Read More →