Oil industry

IEEFA Research

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

IEEFA op-ed: Colorado’s pension fund shouldn’t bank on the future of oil and gas

Past performance is no guarantee of future success

By adopting a fossil-free portfolio strategy as has been urged, the Public Employees Retirement Association of Colorado would be doing right by its 560,000 members, ensuring steadier investment returns as the oil and gas industry faces continued uncertainty and decline. In a paper commissioned by the Independent Petroleum Association of America, an anti-divestment consultant and […]

September 18, 2018 Read More →
IEEFA update: Six real-world rebuttals to divestment naysayers
and

IEEFA update: Six real-world rebuttals to divestment naysayers

A tendency among academics to overlook the burgeoning risk in fossil fuel holdings

Academic arguments against divesting from the oil and gas sector are just that—academic—and those who make them ignore the underperformance of the sector and the array of mounting risks it faces. The principal objections of divestment detractors—that divestment will either cause institutional investment funds to lose money or undermine their ability to meet their objectives—are […]

and September 12, 2018 Read More →
IEEFA update: Divestment 101
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IEEFA update: Divestment 101

A 10-point FAQ primer on a new mindset around energy sector holdings

The fast-moving evolution of the energy sector is changing investor minds and altering capital market flows. This shift raises as many questions about where things are going as it does about the status quo. A report we published earlier this summer—“The Financial Case for Fossil Fuel Divestment”—takes a stab at addressing the topic practically and […]

and

IEEFA update: The investment rationale for fossil fuels falls apart

An outdated mindset that no longer lives up to its hype

For decades, the fossil fuel sector literally fuelled the global economy and powered the world’s investment markets. This is no longer the case. The long-standing and now outdated investment thesis around fossil fuels—that such holdings would make large and reliable annual contributions to institutional funds—has crumbled. The sector now lags the broader market, and the […]

‘What made Exxon special is fading’

Wall Street Journal: For decades it was the very model of a modern supermajor, but Exxon Mobil ’s edge over the rest of Big Oil is slipping and probably will continue to do so. In the past year, for example, Exxon’s shares have trailed those of each of its global peers—Shell, BP, Chevron and Total […]

July 30, 2018 Read More →

Median energy/utility CEO pay package: $9.6 million

Axios: The energy sector is bucking a corporate trend. Across all major industries, CEOs running S&P 500 companies cumulatively made $10 billion in 2017 — 44% higher than what is usually reported — when you factor in their gains from the stock market, according to an Axios analysis of Securities and Exchange Commission filings. Yes, […]

July 26, 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 […]

Wood Mackenzie sees peak oil coming in 20 years

Financial Times ($): One of the world’s most influential oil consultancies has forecast that global oil demand will peak within 20 years, as a “tectonic” shift in the transport sector towards electric cars and autonomous vehicles gathers pace. Wood Mackenzie, which works closely with companies across the energy industry, said in its long-term outlook that […]

July 18, 2018 Read More →

‘Exxon, once a “perfect machine,” is running dry’

Wall Street Journal: Exxon faces a number of challenges, including investigations of its accounting and tax practices as well as lawsuits by cities and states seeking funds to pay for the effects of climate change. Its biggest problem is one the giant has seldom faced in its 148-year history: It isn’t making as much money […]

July 16, 2018 Read More →

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 […]