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 […]

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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 […]

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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

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More News and Commentary

New U.S. Bills to Loosen Regulation of Fossil-Fuel Companies

Amy Harder and Dave Michaels for the Wall Street Journal: One measure repeals a Securities and Exchange Commission rule, completed in June, which requires energy companies to report payments to foreign governments for the right to develop oil, natural gas and mineral assets. The other measure repeals an Interior Department rule, finished in December, which […]

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ExxonMobil’s Many Woes

Bradley Olson for the Wall Street Journal: Exxon Mobil Corp. said Tuesday it wrote down the value of more than $2 billion in U.S. assets, departing from decades-long practice amid an investigation by securities regulators, as the world’s largest publicly traded oil company posted its lowest yearly earnings in 20 years. The move follows an […]

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New Pipeline Standoff Brewing, This Time in Oklahoma

Dale Denwalt for the (Oklahoma City) Oklahoman: Native American and environmental activists have vowed to block a planned crude oil pipeline, hinting at a standoff in Oklahoma reminiscent to the months long Dakota Access Pipeline protest. Once built, the $900 million Diamond Pipeline will carry sweet crude oil from a national transport hub in Cushing […]

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Another Dismal Earnings Report for Exxon

Joe Carroll for Bloomberg News: After resisting the industry trend of discounting the value of oil and natural gas fields that turned into money-losers amid the 2 1/2-year market slump, Exxon capitulated on Tuesday and took a $2 billion hit on the value of some Rocky Mountain gas. For Exxon, it was the ninth straight […]

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The 21st Century Is Conspiring Against Old Energy Companies Like Exxon

Steve LeVine for Quartz: Never mind possible disruptions from a change in social tastes. Exxon is doubling down on tradition, with a zeal that harkens back to a time when oil was the undisputed commodity of the moment and the future. Yet, notwithstanding these blockbuster discoveries, Exxon has been struggling. The strains include the most […]

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IEEFA Update: More Weaknesses Seen in Companies Behind the Dakota Access Pipeline Project

A Proposed Sale Is Delayed, Developers’ Revenues Are Down, Credit Ratings Are Poor, and Cash Is in Short Supply

The closer one examines the financial position of the companies behind the Dakota Access Pipeline project, the weaker they look. We outlined some of the imminent deadline risk around the project in a report we published a few weeks ago (“The High-Risk Financing Behind the Dakota Access Pipeline”), noting how the developers are facing a […]

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On the Blogs: A Call for More Transparency on the Dakota Access Pipeline

Clark Williams-Derry for Sightline Institute: The company behind the Dakota Access Pipeline (DAPL) owes its investors a straight answer: does it face a January 1 contractual deadline with its shippers, or doesn’t it? Company spokespeople have told the court that they do, but told the press that they don’t. Now, with less than two weeks […]

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IEEFA Energy Swamp Watch: An Oil-Industry Bailout Is in the Works in Washington

Rex Tillerson’s Objective as Head of U.S. Foreign Policy Would Be to Orchestrate a Worldwide Price Increase

Rex Tillerson, after 10 years at the helm of ExxonMobil, is leaving behind a company with much lower revenues than when he took over, higher long-term debt, lower payouts to shareholders and declining cash reserves. ExxonMobil during Tillerson’s tenure has also had to scale back its oil-reserve numbers as a prolonged oil price decline has […]

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Coal, Oil and Gas Industries See an Ally in Pick to Lead Interior Department

Christopher Coats and Molly Christian for SNL: Rep. Ryan Zinke, President-elect Donald Trump’s choice to head the U.S. Department of the Interior, would provide energy producers with an ally and leaves environmental advocates wary about the future of production on federal land. Zinke, R-Mont., is likely to try to reverse Obama administration Interior policies often […]

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Oil Industry Faces a Demand Squeeze

Georgi Kantchev for the Wall Street Journal: After years of healthy growth fueled by low prices and Asia’s expanding appetite, demand for oil next year could increase at its slowest pace since 2014, some analysts say. That could douse a major oil rally sparked by the Organization of the Petroleum Exporting Countries’ agreement, along with […]

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