Oil industry

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 Analysis: The Economic Frailties and Rickety Finances Behind the Dakota Access Pipeline

IEEFA Analysis: The Economic Frailties and Rickety Finances Behind the Dakota Access Pipeline

Shippers Are in a Position Now to Renegotiate Contracts; Oil Prices Have Tanked Since Deals Were Signed; Long-Term Outlook for Project is Deeply Uncertain

Construction of the Dakota Access Pipeline has sparked considerable public controversy, bringing national attention to issues that include tribal sovereignty and risks to drinking water. Less publicized are the project’s financial weaknesses, and the fact the pipeline may represent a substantial overbuilding of the Bakken’s oil-transport infrastructure. The report that we released today in partnership […]

November 16, 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 →
Comments on Proposed Consolidated Federal Oil and Gas and Federal and Indian Coal Valuation Reform, ONRR-2012-0004-0024

Comments on Proposed Consolidated Federal Oil and Gas and Federal and Indian Coal Valuation Reform, ONRR-2012-0004-0024

COAL SOLD FOR EXPORT SHOULD NOT BE EXEMPT FROM FEDERAL ROYALTY PAYMENTS

Comments on Proposed Consolidated Federal Oil and Gas and Federal and Indian Coal Valuation Reform, ONRR-2012-0004-0024 By Tom Sanzillo, Director of Finance, Institute for Energy Economics and Financial Analysis

May 7, 2015 Read More →

More News and Commentary

Hurdles Remain for Keystone XL

Hurdles Remain for Keystone XL

SNL: TransCanada Corp. finally secured the last major permit for its Keystone XL pipeline after a battle that lasted most of a decade, but it is an open question whether the company will build it after weighing legal, commercial and even new regulatory risks. While the C$8 billion Keystone XL project could yield at least […]

November 22, 2017 Read More →

‘No Economic Rationale’ in Keystone Go-Ahead

Los Angeles Times: Following years of political controversy that demanded the attention of two presidents, the Nebraska Public Service Commission on Monday declared that the proposed Keystone XL pipeline was in the public interest but the 275-mile route it approved through the state was not the one preferred by TransCanada, the pipeline developer. By a […]

November 21, 2017 Read More →

ConocoPhillips Won’t Invest in Projects That Require $50 or Higher Oil Prices to Profit

Financial Times: ConocoPhillips, the largest US exploration and production company, has ruled out investing in projects that need an oil price of $50 or higher to make a profit, as it attempts to raise shareholder returns after years of poor profitability. Ryan Lance, Conoco’s chief executive, said the company was seeking “returns over growth.” He […]

November 20, 2017 Read More →

Big Oil, ‘Unloved and On Sale’

Sydney Morning Herald: Big Oil is under pressure, unloved and on sale. Energy giants from Exxon Mobil to Royal Dutch Shell are struggling back to their feet after a three-year oil slump, while also fighting to prove they can survive for decades to come amid an accelerating shift to clean energy. So getting dumped by […]

November 17, 2017 Read More →

$1 Trillion Norwegian Fund Weighs Dropping Oil and Gas Stocks

Dow Jones: Norway’s sovereign-wealth fund said on Thursday it may stop buying oil and gas stocks, a move that would deprive the energy sector of investment from a $1 trillion asset manager. The Norwegian central bank, which uses the fund to invest the proceeds of the country’s oil industry, said that investing money back into […]

November 16, 2017 Read More →

Oil Majors Are Shifting Billions Into Renewables

Bloomberg News: The world’s biggest oil companies are closing more clean energy deals as pressure to diversify their businesses mounts and growth accelerates among green technologies. Oil majors more than doubled the number of acquisitions, project investments and venture capital stakes, to 44 in 2016 from 21 the year before, according to research published Tuesday […]

October 25, 2017 Read More →

Danish Oil and Natural Gas Is Getting Out of Oil and Natural Gas

Wall Street Journal: A company whose name stands for Danish Oil and Natural Gas is getting out of both businesses. Dong Energy Denmark’s majority state-owned energy company, is selling off its last oil and natural-gas fields in a deal expected to close by the end of September. The billion-dollar-plus sale is part of a broader […]

October 2, 2017 Read More →

More Climate Risk to Oil Majors in 2 New Lawsuits Reminiscent of Tobacco Litigation

Reuters: California cities San Francisco and Oakland filed separate lawsuits against five oil companies on Wednesday seeking billions of dollars to protect against rising sea levels they blamed on climate change, according to public documents. The lawsuits, filed in state courts in San Francisco and Alameda Counties, alleged Chevron Corp, ConocoPhillips, Exxon Mobil Corp, BP […]

September 21, 2017 Read More →

Total SA: Another Oil Major Veers Into Renewables

Financial Tribune: Oil major Total moved forward with its plan to expand in the renewable energy sector on Tuesday with investments in EREN RE and Greenflex. Total said it was buying a 23% stake in renewables company EREN RE for $285 million and added it could later acquire full control of the business, Reuters reported. […]

September 20, 2017 Read More →

Renewables to account for 85% of global electricity by 2050

PV Magazine: A new report from DNV GL forecasts a bright future for renewable energy, predicting that by 2050 electricity demand will increase 140% to become the largest form of energy consumed, and that 85% of this electricity will be generated from renewable sources. Industry analysts DNV GL predict that solar will be a leading […]

September 14, 2017 Read More →