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

BlackRock and Vanguard Consider Pressing Exxon to Disclose Climate Risk

Wall Street Journal: BlackRock Inc. and Vanguard Group are weighing a vote in favor of an investor proposal that would seek to pressure the oil giant to conduct a climate “stress test” to measure how regulations to reduce greenhouse gases and new energy technologies could impact the value of its oil assets, the people said. […]

May 25, 2017 Read More →

A Growing Consensus That Peak Oil Demand Is in Sight

Wall Street Journal: The world’s largest oil companies are girding for the biggest shift in energy consumption since the Industrial Revolution: After decades of growth, global demand for oil is poised to peak and fall in the coming years. New technologies that improve fuel efficiency are starting to push down the amount of gasoline and […]

May 22, 2017 Read More →

Pushback Against ‘Faulty Premise’ of Energy Policy Under Trump

The Hill: Renewable energy groups on Tuesday pushed back against a Department of Energy power sector review that they say threatens wind, solar and other industries. In a letter to Energy Secretary Rick Perry, the groups said the agency’s study on the electric grid is “based on a faulty premise” that the growing renewable energy […]

May 17, 2017 Read More →

On the Blogs: ‘Big Oil Is Getting Smaller’

Climate News Network: Big oil is getting smaller. Many of the oil services companies that are employed when new fields are being developed have been laying off workers, and oil companies have been writing down their assets. The problem is the persistent low price of oil. Despite the best efforts of OPEC, the organisation representing the […]

May 17, 2017 Read More →

Keystone Backers ‘Reassess’ Market for Pipeline

Associated Press: TransCanada Corp. is reassessing whether oil producers in North Dakota and Montana are still interested in shipping crude through its long-delayed Keystone XL pipeline. The Calgary-based company’s announcement this month comes with the Keystone XL still needing approval of its proposed route through Nebraska and with the Dakota Access, which was designed to […]

May 16, 2017 Read More →

BlackRock Inc. Succeeds in Passage of Occidental Petroleum Shareholder Resolution: ‘The Climate Is Changing and So Are Investor Expectations of How Companies Should Respond’

Reuters: BlackRock Inc said on Friday that it voted in favor of a successful shareholder proposal calling for more climate change reporting by Occidental Petroleum Corp (OXY.N), in the first sign the world’s largest asset manager was backing up its tough new talk on environmental matters. Backers of the resolution called its passage a major […]

May 15, 2017 Read More →

Urging State-by-State Strategy, 3 Senators Introduce a Bill to End American Fossil-Fuel Dependence by 2050

Washington Post: Sens. Jeff Merkley (D-Ore.), Bernie Sanders (I-Vt.) and Edward J. Markey (D-Mass.) introduced legislation Thursday that calls on the U.S. to transition off fossil fuels by 2050, hoping to spur action on the state and local level, even as the Trump administration pushes for expanded coal, oil and natural gas production. The 100×50 […]

April 28, 2017 Read More →

Skepticism Among Investors on Energy Policy Reversal Pushed by White House

Forbes: The 45th President of the United States might think climate change is a hoax invented by the Chinese, but there is a fair chance that the investors who put money into his hotels and casinos think it is rather more serious than that. New research from the Asset Owners Disclosure Project (AODP) reveals that […]

April 27, 2017 Read More →

IEEFA Update: Exxon Sends Investors Down a Russian Rabbit Hole

Well-Timed Ploy to Divert Attention From Balance-Sheet Rot Eating Away at World’s Biggest Oil Company; Public Relations Plum for Putin; Another Blow to Shareholders

News comes today that ExxonMobil is applying for a U.S. government waiver on sanctions against the Kremlin that are keeping the company from developing new oil reserves in Russia. The sanctions in question, imposed in response to Russia’s annexation of Crimea in 2014, specifically forbid U.S. corporate deals with Rosneft and specifically named the head of the […]

April 20, 2017 Read More →

Changing Energy Markets Mean Trouble for ExxonMobil Finances

Public News Service (Virginia): Oil giant ExxonMobil is in a sharp decline that some are calling irreversible – in part due to deep changes in world energy markets. Once among the largest companies in the world, Exxon’s revenue peaked at nearly $500 billion, but last year, it was less than half that. Tom Sanzillo, director […]

April 20, 2017 Read More →