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


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

Pipeline Stocks Tank After U.S. Tax Break Is Rescinded

Bloomberg News: Pipeline stocks plunged after federal regulators ruled that master-limited partnerships can no longer receive a credit for income taxes they don’t pay. Williams Cos. was the biggest decliner in the S&P 500 Index, dropping as much as 12 percent, while the Alerian MLP Index, which tracks 40 partnerships, had its worst day in […]

March 16, 2018 Read More →

Statoil, in Rebranding, Drops ‘Oil’ From Its Name

Bloomberg News: Statoil ASA, Norway’s biggest petroleum company, will change its name to Equinor as it seeks to broaden its energy reach beyond oil and gas production. “The world is changing, and so is Statoil,” said Chairman Jon Erik Reinhardsen in a statement. “The biggest transition our modern-day energy systems have ever seen is underway, […]

March 15, 2018 Read More →

Schwarzenegger Takes a Tobacco-War Approach in New Legal Strategy to Force Oil Industry Responsibility

Politico: Arnold Schwarzenegger’s next mission: taking oil companies to court “for knowingly killing people all over the world.” The former California governor and global environmental activist announced the move Sunday at a live recording of POLITICO’s Off Message podcast here at the SXSW festival, revealing that he’s in talks with several private law firms and […]

March 13, 2018 Read More →

IEEFA Op-Ed: The Time to Reason With Oil Majors Has Passed

‘Shareholder Engagement’ Looks More and More Like a Cynical Ritual That Values Talk Above Action

When French insurance group Axa announced it was selling its coal assets in 2015, the question emerged whether rivals including Allianz, Aviva, Zurich and others would divest too. Some did, and some did not. A broader question also surfaced: would public and private investors now look to sell down all their investments related to fossil […]

March 8, 2018 Read More →

ExxonMobil’s Abandoned Ventures Weigh on Company’s Financials

Reuters: ExxonMobil Corp’s (XOM.N) $200 million write-down last month on abandoned ventures in Russia – once its next big frontier – points to challenges facing Chief Executive Darren Woods in his second year leading the world’s largest publicly traded oil producer. Some of the biggest bets taken by his predecessor Rex Tillerson, now the U.S. […]

March 7, 2018 Read More →

IEEFA Op-Ed: Shareholders Need Not Be in Denial Like ExxonMobil Is

An Oil Major That Seems Unable to Acknowledge Climate Risk

ExxonMobil has prepared a new climate report in response to shareholder concerns about climate change, and the verdict is in: If you were hoping that ExxonMobil would seriously address the issue, you’ll be disappointed. Climate risk may be real, according to the report. But it says it won’t affect Exxon’s bottom line. In ExxonMobil’s 2018 […]

and February 26, 2018 Read More →

Latest Financials at Oil Majors Indicate Rising Shareholder Risk

Nasdaq.com: Energy stocks have sold off over the past week, pulled down by both the broader financial turmoil and some poor earnings figures from top oil companies. As of Thursday, benchmark oil prices are off more than 7 percent from their cyclical peaks reached a little more than a week earlier. The spike in volatility […]

February 9, 2018 Read More →

IEEFA Update: Red Flags Around ExxonMobil’s Q4 and 2017 Earnings

Oil Prices Rise … and Profits Stumble

ExxonMobil’s reporting on Q4 and FY 2017 earnings last week comes in a year when per-barrel oil prices for the company rose by 28%, as financial performance fell short of analysts’ expectations.  (While average West Texas Intermediate prices rose 19% in 2017, Exxon’s own “annual realization” around crude-oil data indicate a 28% year-over-year increase. More […]

and February 6, 2018 Read More →

Shareholders Seek More Detail in Exxon’s Acknowledgement of Climate-Policy Risk

Reuters: Exxon Mobil Corp said on Friday that it expects global oil demand to drop sharply by 2040 if regulations aimed at limiting the impact of greenhouse gas emissions on climate are fully implemented. Under this scenario, Exxon projected world oil consumption will drop 0.4 percent annually to 2040 to about 78 million barrels per […]

February 5, 2018 Read More →

IEEFA Op-Ed: Cuomo Is Right on Fossil Fuel Divestment

Oil Stocks are Not the Reliable Performers They Used to Be; Divestment Would Improve Pension Fund Portfolios

Gov. Andrew Cuomo has taken a big, bold step in the fight against global warming, calling for the state pension fund to divest from oil and gas stocks. It’s also a fiscally prudent step, protecting both the state pension fund and the state budget. Retirees needing financial security, young people facing a chaotic climate, and […]

January 4, 2018 Read More →