Oil industry

IEEFA Research

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 […]

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 […]

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

Read More →

More News and Commentary

The Exxon Email Trail

Associated Press: Democratic Massachusetts Attorney General Maura Healey is asking Exxon Mobil to preserve all alias email accounts of company executives. Massachusetts and New York are investigating whether Exxon misled investors and the public about the risks climate change posed for the oil and gas company. Monday’s letter comes after it was disclosed former Exxon […]

Read More →

Statoil: In Global Energy Transition, ‘Winners Will Provide Energy With the Lowest Cost and Carbon Footprint Possible’

Wall Street Journal: Norway’s state-owned oil giant Statoil ASA said it was rebalancing its business model so far toward renewables and cleaner fossil fuels that the company’s value would rise even if the world’s governments took drastic actions to limit carbon emissions. In a stress test the company published in its sustainability report Friday, Statoil […]

Read More →

A Global Decoupling From Fossil Fuels

Utility Dive: Stricter emissions regulations, a decline in the use of coal, cheaper natural and the rise of clean energy have all helped keep global emissions flat since 2014. The progress has been apparent. According to the IEA, 2016 emissions in the United States were at their lowest level since 1992, almost a quarter century […]

Read More →

Reputational Risk to Dakota Access Pipeline Lenders

It has been a tough year for Wells Fargo: in the third quarter of 2016, it became apparent that since around 2011, its employees had opened up to 1.5 million deposit accounts and issued 500,000 credit card applications for unsuspecting clients, without getting customers’ authorisation. The scandal led to lawsuits, thousands of layoffs and US$190mn […]

Read More →

Reputational Risk to Dakota Access Pipeline Lenders

Global Trade Review: It has been a tough year for Wells Fargo: in the third quarter of 2016, it became apparent that since around 2011, its employees had opened up to 1.5 million deposit accounts and issued 500,000 credit card applications for unsuspecting clients, without getting customers’ authorisation. The scandal led to lawsuits, thousands of […]

Read More →

Exxon’s Latest Headline-Risk Wrinkle: Rex Tillerson’s Secret Emails

InsideClimate News: While he was chief executive of ExxonMobil, current secretary of state Rex Tillerson used an alias email account for eight years to discuss climate change and the risks it posed to the company’s business, according to investigators for New York Attorney General Eric Schneiderman. Those investigators say the company concealed the shadow emails […]

Read More →
IEEFA Conference: Market Change Has Momentum

IEEFA Conference: Market Change Has Momentum

‘We WILL Price Emissions and We WILL Move to a Low-Carbon Economy’

IEEFA’s three-day Energy Finance 2017 Conference in New York began Tuesday with opening remarks that framed the global energy transition in terms of market-driven realities with momentum that will overcome status-quo opposition. “We will price emission and we will move to a low-carbon economy,” said Bob Litterman a founder of Kepos Capital and a former […]

Read More →
IEEFA Exxon: White House’s Endorsement Is Just More Evidence of Distress

IEEFA Exxon: White House’s Endorsement Is Just More Evidence of Distress

Stock Hits 52-Week Low; Turnaround Plan Is Questionable; Buyers Beware

ExxonMobil’s deteriorating financial condition is on full view today after its stock opened at a 52-week low on news of lower oil prices. Investors, it’s safe to say, have met the company’s recent announcement of new capital investment with skepticism. ExxonMobil’s stock has now fallen by 15 percent just since this past December, a period in […]

Read More →

Oil Companies Extend Losses

Wall Street Journal: Oil prices extended losses Thursday to hit a three-month low after higher-than-expected buildup in U.S. crude inventories raised doubts over whether OPEC cuts will be enough to sap brimming stores of oil around the world. Two days of a sharp selloff have broken the calmest period for oil prices in more than […]

Read More →

IEEFA Update: Global Energy-Finance Transition Gains Steam

Electricity-Generation Technologies of the Past Century Are Growing Increasingly Unappealing to Investors

[Editor’s note: This column is taken from a speech last month to the Australian Senate on its inquiry into the retirement of coal-fired power stations] Good afternoon and thank you for allowing me the opportunity to speak on the critically important topic of Australian coal-fired power station retirements, particularly as it relates to energy system […]

Read More →