Author Archive: Tom Sanzillo

Director of Finance Tom Sanzillo has 30 years of experience in public and private finance, including as a first deputy comptroller of New York State, where he held oversight over a $156 billion pension fund and $200 billion in municipal bond programs.

IEFFA Puerto Rico: New natural gas deal fits same old pattern for choosing contractors

Lack of transparency, subversion of planning process, award to small company with questionable track record all sound familiar

The government of Puerto Rico is moving forward with plans to convert two units at the San Juan power plant from oil to natural gas. The Puerto Rico Electric Power Authority (PREPA) plans to contract with a third party that will make the necessary upgrades to the power plant to convert it and invest in […]

and January 22, 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: 2018 ends with energy sector in last place in the S&P 500

IEEFA update: 2018 ends with energy sector in last place in the S&P 500

2019 expectation is for more investment with lower returns

The stock market went to hell in December. And when it got there, it found that the energy sector had already moved in, signed a lease and decorated the place. One cannot minimize the impact of the overall year-end market decline on energy sector stocks, which went down along with every other sector. For example, […]

January 2, 2019 Read More →

IEEFA update: Norway’s recognition of a declining oil and gas sector sends a message

Early warnings of long-term economic and fiscal downturn require action now

The government of Norway has identified a problem that will preoccupy it for the next fifty years, and that should also cause the rest of the world to sit up and pay attention. THE PROBLEM:  The revenues and dividends from Norway’s vast oil and gas holdings that have fueled the country’s economy and balanced its […]

December 21, 2018 Read More →

IEEFA update: Norway moves to invest in unlisted renewable energy

When the world’s biggest fund speaks, the markets listen

Norway’s pension fund, the Government Pension Fund Global (GPFG), has launched a modest investment initiative in unlisted renewable energy infrastructure. And the truth is, when GPFG, the world’s largest sovereign wealth fund, makes a modest investment, it is anything but modest. GPFG, worth more than $1 trillion, has historically strayed only infrequently from a conservative […]

December 17, 2018 Read More →

IEEFA Puerto Rico: Backroom natural gas deals threaten to displace public renewable energy plans

What’s real: legislative initiatives or private contracting?

Can Puerto Rico’s recent legislative progress on renewable energy withstand an onslaught of special interests supporting economically unsupportable, fiscally damaging and environmentally destructive natural gas proposals? A fragile consensus has emerged from the recent Puerto Rico legislative session and a parallel energy planning process being carried out by the Puerto Rico Electric Power Authority (PREPA), […]

December 3, 2018 Read More →

IEEFA U.S.: ExxonMobil goes back large into risky Canadian oil sands

Two years after writing down its reserves, XOM subsidiary Imperial invests again

ExxonMobil’s (“XOM”) Canadian subsidiary Imperial Oil has announced its intention to invest C$2.6 billion[1] in the Aspen mines, an oil sands project in Alberta, Canada. This is big news. In February 2017, the company formally de-booked 4.6 billion barrels of reserves in the Canadian oil sands, 19% of XOM’s worldwide reserves. The Aspen announcement was […]

November 29, 2018 Read More →

IEEFA Update: Oil and gas industry caught in a capex conundrum

Invest in the future or return cash to shareholders?

The oil and gas industry confronts a host of challenges that would have been inconceivable a decade ago: weak cash flows, meager profits, slumping stock values, volatile revenues, unreliable demand growth, and rising competition from renewables, to name just a few. The industry now faces a quandary. Should companies continue to invest in new drilling […]

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 →