IEEFA Research

IEEFA Investor Memo ExxonMobil (XOM): Company Is an ‘Outlier’ in How It Reports Write-offs on Canadian Oil Sands Assets

Loss Accounting ‘Largely Overlooked by Industry Analysts;’ Full Transparency Could Affect Balance Sheet by $22 Billion

April 17, 2017  (IEEFA.org) – The Institute for Energy Economics and Financial Analysis (IEEFA) today published an investor memo questioning whether ExxonMobil has appropriately accounted for its recent write-off of billions of barrels of Canadian oil sands assets. In “ExxonMobil Investment Note,” IEEFA outlines how ExxonMobil remains the exception in the oil industry in its […]

April 17, 2017 Read More →

IEEFA Exxon: Telltale Crossover in Late 2014 Marks Where a Major Oil Stock Began to Go South

A Decoupling From the Larger Stock Market 2 Years Ago Portends a Future in Which the World’s Biggest Oil Company Will Be Smaller and Will Not Pay Out as Much in Shareholder Distributions

The world is moving in fits and starts but with gathering momentum toward a more diversified, low-carbon energy mix. The evidence is all around us. One exhibit, of many, is in the report we published this week—“Red Flags on Exxon: A Note to Institutional Investors”—which includes the chart here: ExxonMobil Financial Performance, 2006 – 2015 […]

October 27, 2016 Read More →
IEEFA Report: Red Flags on ExxonMobil: Core Financials Show a Company in Decline

IEEFA Report: Red Flags on ExxonMobil: Core Financials Show a Company in Decline

Potentially Irreversible Slide; Falling Revenues, Rising Debt, Shrinking Capex, Weak Cash Balances Add to Growing Reputational Risk Tied to Climate-Change Controversy; ; Institutional Investors Owe Their Shareholders a Fiduciary Review

CLEVELAND, Oct. 26, 2016 (IEEFA.org) — The Institute for Energy Economics and Financial Analysis (IEEFA) published a report today that indicates deep financial weaknesses at ExxonMobil (XOM) and suggests the company is in potentially irreversible decline. The report—“Red Flags on ExxonMobil (XOM)”—by IEEFA Director of Finance Tom Sanzillo, cites key metrics that include a 45 […]

October 26, 2016 Read More →
Report: ‘A Constellation of Risks’: How Public Accountability Is Slowing Tar Sands Development

Report: ‘A Constellation of Risks’: How Public Accountability Is Slowing Tar Sands Development

Material Risks: How public accountability is slowing tar sands development (pdf) By: Tom Sanzillo (IEEFA), Lorne Stockman (Oil Change International), Deborah Rogers (Energy Policy Forum), Hannah McKinnon (Oil Change International), Elizabeth Bast (Oil Change International), and Steve Kretzmann (Oil Change International)

October 29, 2014 Read More →
Briefing note: Fossil fuels, energy transition, and risk

Briefing note: Fossil fuels, energy transition, and risk

Briefing note: Fossil fuels, energy transition, and risk (pdf) By Tim Buckley,  Director of Energy Resource Studies, Australasia, IEEFA

April 18, 2014 Read More →

More News and Commentary

IEEFA Update: Climate Risk, the Oil Industry, ExxonMobil, Rex Tillerson …

The Energy-Policy Story Is Snowballing

President Trump’s flamboyant withdrawal from the Paris Agreement dealt a reputational and economic blow to the U.S., where energy policy is becoming a bigger story than ever. A major but not entirely unrelated subplot is emerging out of an angry-shareholder vote demanding  that ExxonMobil, the biggest oil company in the world, show more accountability in how it […]

Shareholders in ‘Major Rebuke’ to Exxon on Its Climate-Risk Obfuscation

Wall Street Journal: Exxon Mobil Corp. shareholders delivered a major rebuke to the oil giant Wednesday, calling for the company to share more information about how climate change and regulations could impact its operations. The climate proposal won the support of 62% of shareholders who cast ballots at Exxon’s annual meeting, a powerful symbol that […]

June 1, 2017 Read More →

IEEFA Update: Shareholder Vote on Exxon Mobil’s Climate-Risk Transparency Suggests a Larger Opening

Fiduciaries Who Embrace Their Responsibilities Will Look Beyond Fossil Fuels

A shareholder vote today on a proposal that would require Exxon Mobil to be more open about the climate risks facing the company is an exciting moment in activist-investor history. Mainstream institutional investors are joining with climate activists in a call for more truth in how Exxon Mobil manages—or mismanages—climate risk. Shareholders are asking specifically […]

IEEFA Energy-Swamp Watch: Discord Within the Fossil-Fuel Industry Over What to Do Now

Wrangling, and Uncertainty, Over the Paris Agreement on Climate Change

The Washington Energy Swamp is becoming a quagmire as arguments bubble up among coal, oil, and gas interests about whether the U.S. should withdraw from the Paris Agreement on Climate Change. With the Trump administration in power, the fossil-fuel industry now has the keys to the kingdom. Yet its giants appear confused and in disarray. […]

BlackRock and Vanguard Consider Pressing Exxon to Disclose Climate Risk

Wall Street Journal: BlackRock Inc. and Vanguard Group are weighing a vote in favor of an investor proposal that would seek to pressure the oil giant to conduct a climate “stress test” to measure how regulations to reduce greenhouse gases and new energy technologies could impact the value of its oil assets, the people said. […]

May 25, 2017 Read More →

A Growing Consensus That Peak Oil Demand Is in Sight

Wall Street Journal: The world’s largest oil companies are girding for the biggest shift in energy consumption since the Industrial Revolution: After decades of growth, global demand for oil is poised to peak and fall in the coming years. New technologies that improve fuel efficiency are starting to push down the amount of gasoline and […]

May 22, 2017 Read More →

On the Blogs: ‘Big Oil Is Getting Smaller’

Climate News Network: Big oil is getting smaller. Many of the oil services companies that are employed when new fields are being developed have been laying off workers, and oil companies have been writing down their assets. The problem is the persistent low price of oil. Despite the best efforts of OPEC, the organisation representing the […]

May 17, 2017 Read More →

U.S. Rejects Exxon Play for a Waiver to Do a Deal With Russia

Wall Street Journal: The announcement Friday comes as the White House pushes to firm up the president’s foreign-policy and domestic agenda as he nears his 100th day in office next week. Mr. Trump’s decision to block Exxon Mobil, until the end of last year headed by Secretary of State Rex Tillerson, also shows how efforts […]

April 24, 2017 Read More →

IEEFA Update: Exxon Sends Investors Down a Russian Rabbit Hole

Well-Timed Ploy to Divert Attention From Balance-Sheet Rot Eating Away at World’s Biggest Oil Company; Public Relations Plum for Putin; Another Blow to Shareholders

News comes today that ExxonMobil is applying for a U.S. government waiver on sanctions against the Kremlin that are keeping the company from developing new oil reserves in Russia. The sanctions in question, imposed in response to Russia’s annexation of Crimea in 2014, specifically forbid U.S. corporate deals with Rosneft and specifically named the head of the […]

April 20, 2017 Read More →

Changing Energy Markets Mean Trouble for ExxonMobil Finances

Public News Service (Virginia): Oil giant ExxonMobil is in a sharp decline that some are calling irreversible – in part due to deep changes in world energy markets. Once among the largest companies in the world, Exxon’s revenue peaked at nearly $500 billion, but last year, it was less than half that. Tom Sanzillo, director […]

April 20, 2017 Read More →