Oil industry

IEEFA Research

IEEFA U.S.: Frackers continue to underperform

Investor wariness grows on weak third-quarter results

Dec. 5, 2018 (IEEFA) — While oil prices rose and production increased, U.S. oil-and-gas fracking companies continued nonetheless to bleed money in the third quarter of this year, according to a research brief published today by the Institute for Energy Economics and Financial Analysis. The brief—“More Red Flags on Fracking: Weak Third-Quarter Results as Cash […]

December 5, 2018 Read More →
IEEFA report: Effects of long-running oil-purchase scandal undermine privatization and contract-reform initiatives at PREPA

IEEFA report: Effects of long-running oil-purchase scandal undermine privatization and contract-reform initiatives at PREPA

A scheme that contributed to utility’s ruin and a pattern of whistleblower suppression; Potential new grounds for bondholder claims in bankruptcy proceeding; ‘History is repeating itself in Puerto Rico’

July 18, 2018, SAN JUAN (IEEFA) — A long-running practice in which Puerto Rico’s public utility bought low-quality oil at high-quality prices has been mostly ignored in Gov. Ricardo Rosselló’s privatization of the Puerto Rico Electric Power Authority (PREPA). A report published today by the Institute for Energy Economics and Financial Analysis (IEEFA) — “Multibillion-Dollar Oil […]

IEEFA report: Fund trustees face growing fiduciary pressure to divest from fossil fuels

Oil, gas, and coal industries are seen as ‘increasingly speculative;’ Sector will continue to be weighed down by lackluster rewards and daunting risks; A ‘proper financial response’ is due

July 10, 2018 (IEEFA) — A paper published today by the Institute for Energy Economics and Financial Analysis details the growing rationale for divesting from the fossil fuel industry. The paper—“The Financial Case for Fossil Fuel Divestment”—is aimed primarily at trustees of investment funds that continue to hold stakes in a sector that is freighted […]

IEEFA report: ‘Canada’s Folly’ could drive national budget deficit 36% higher while ensuring Houston-based Kinder Morgan a 637% gain

IEEFA report: ‘Canada’s Folly’ could drive national budget deficit 36% higher while ensuring Houston-based Kinder Morgan a 637% gain

Purchase of stalled Trans Mountain Pipeline would benefit Texas company at expense of taxpayers; Call for full public disclosure; C$11.6 billion in completion costs for ‘a pipeline project that is unnecessary’

June 26, 2018  (IEEFA)— Canada could see its budget deficit grow by more than a third with the national government’s purchase of the Trans Mountain Pipeline from Houston-based Kinder Morgan, according to a report published today by the Institute for Energy Economics and Financial Analysis. The report —“Canada’s Folly: Government Purchase of Trans Mountain Pipeline Risks […]

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

On the blogs: Fracking controversy on the rise in Argentina

OPSur: German photojournalist Stefan Borghardt was detained and beaten and had his equipment confiscated by police because of taking photographs of the Treater oil waste treatment plant in the town of Añelo. Borghardt was reporting on fracking in Argentina, particularly the Vaca Muerta megaproject. The Treater plant is used by the oil companies YPF, Total, […]

January 17, 2019 Read More →
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IEEFA Argentina: Los contratiempos en el plan de utilizar las reservas de petróleo y gas de Vaca Muerta para impulsar la economía

Perforador independiente se retira; no hay postores para la nueva oferta

Los funcionarios argentinos están atribuyendo gran parte de la recuperación económica del país a la atracción de inversión extranjera para explorar, bombear y vender petróleo y gas desde la región de Vaca Muerta en la provincia de Neuquén a un nuevo conjunto de clientes globales. La cuestión para Argentina es si sus problemas económicos minarán […]

and January 17, 2019 Read More →
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IEEFA Argentina: Setbacks in plan to use Vaca Muerta oil and gas reserves to kickstart economy

Independent driller drops out; no bidders for new offering

Argentine officials are pinning much of the country’s economic comeback on attracting foreign investment to find, pump and sell oil and gas from the Vaca Muerta region in Neuquén Province to a new set of global customers.  The question for Argentina is whether its economic problems will undermine its ability to develop the Vaca Muerta […]

IEEFA update: 2018 ends with energy sector in last place in the S&P 500

IEEFA update: 2018 ends with energy sector in last place in the S&P 500

2019 expectation is for more investment with lower returns

The stock market went to hell in December. And when it got there, it found that the energy sector had already moved in, signed a lease and decorated the place. One cannot minimize the impact of the overall year-end market decline on energy sector stocks, which went down along with every other sector. For example, […]

January 2, 2019 Read More →

IEEFA U.S.: Frackers continue to underperform

Investor wariness grows on weak third-quarter results

Dec. 5, 2018 (IEEFA) — While oil prices rose and production increased, U.S. oil-and-gas fracking companies continued nonetheless to bleed money in the third quarter of this year, according to a research brief published today by the Institute for Energy Economics and Financial Analysis. The brief—“More Red Flags on Fracking: Weak Third-Quarter Results as Cash […]

December 5, 2018 Read More →

Low oil prices to test U.S. fracking companies

The Wall Street Journal ($): The rapid decline of U.S. oil prices will test the claim of fracking companies that they can now prosper at $50 a barrel or less, a price level they have found challenging in the past. For years, the companies behind the U.S. oil and gas boom, including Noble Energy Inc. […]

December 4, 2018 Read More →

IEEFA U.S.: ExxonMobil goes back large into risky Canadian oil sands

Two years after writing down its reserves, XOM subsidiary Imperial invests again

ExxonMobil’s (“XOM”) Canadian subsidiary Imperial Oil has announced its intention to invest C$2.6 billion[1] in the Aspen mines, an oil sands project in Alberta, Canada. This is big news. In February 2017, the company formally de-booked 4.6 billion barrels of reserves in the Canadian oil sands, 19% of XOM’s worldwide reserves. The Aspen announcement was […]

November 29, 2018 Read More →
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IEEFA Update: Oil and gas industry caught in a capex conundrum

Invest in the future or return cash to shareholders?

The oil and gas industry confronts a host of challenges that would have been inconceivable a decade ago: weak cash flows, meager profits, slumping stock values, volatile revenues, unreliable demand growth, and rising competition from renewables, to name just a few. The industry now faces a quandary. Should companies continue to invest in new drilling […]

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IEEFA update: In Exxon lawsuit, another indication of growing oil-industry peril

Risks outweigh potential rewards; Fossil fuel stocks grow increasingly speculative

The lawsuit filed yesterday by New York’s attorney general against Exxon Mobil is a stark indication of just how risky investing in oil and gas companies has become. The lawsuit asserts that the company defrauded shareholders by downplaying the business risk of climate change, and litigation poses obvious financial risk. It may even expose ExxonMobil—and […]

and October 25, 2018 Read More →

Investors push for consolidation in shale oil and gas sector

Wall Street Journal ($): A private-equity firm is urging oil producer Resolute Energy Corp. to merge with a rival, the latest salvo in a growing campaign by some investors to force shale drillers to consolidate. Kimmeridge Energy Management Co. told Resolute’s board of directors in a letter Friday that it was stepping up call for […]

October 22, 2018 Read More →