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

Bipartisan Florida Opposition to Offshore Drilling Plans

McClatchy: Florida’s congressional delegation, citing the state’s vibrant tourism industry, delivered a unanimous, bipartisan and stern message of opposition to offshore energy exploration during a hearing on Capitol Hill on Thursday. Congressional Republicans and Democrats took turns blasting the idea of putting fossil-fuel development near the state’s 825 miles of pristine beaches in order to […]

May 18, 2018 Read More →

Institutional Investors Warn Industry That ANWR Development Is a ‘High-Risk Gamble’

The Guardian: Investors managing more than $2.5 trillion have warned oil firms and banks to shun moves by the US president, Donald Trump, to open the Arctic national wildlife refuge (ANWR) to drilling. Companies extracting oil and gas from the wilderness area in Alaska would face “enormous reputational risk and public backlash”, the investors say […]

May 15, 2018 Read More →
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IEEFA Update: As ExxonMobil Doubles Down on Oil and Gas, Investors Go Elsewhere

A Company With No Plan for a Less Carbon-Intensive World

Even with the recent rebound in oil prices that accelerated after President Trump announced the U.S. would re-impose sanctions against Iran, energy companies no longer dominate the stock market like they once did. In 1980, seven of the ten largest companies in the S&P 500 were oil companies. Today, ExxonMobil is the only remaining oil […]

Oil-Rich Nigeria Looks to Renewables to Meet Massive Electricity Needs

Reuters: Faced with a population boom that has sent carbon emissions soaring and stretched power supplies to breaking point, oil-rich Nigeria is turning to renewable energy in a big way. Africa’s most populous country needs more than 10 times its current electricity output to guarantee supply for its 198 million people—nearly half of whom have […]

May 4, 2018 Read More →

Editorial: Nexus of Energy World Is Shifting—From Texas and Oil Toward Asia and Renewables

Houston Chronicle: You’ve got to wonder if they call it Dezhou Chai in Shanghai. That’s Mandarin for Texas Tea, by the way, and traders in China have set up their own pricing market for the stuff — crude oil. The establishment of a new trading price shows how the growing Asia-Pacific markets are becoming a […]

April 30, 2018 Read More →

Court Forces BLM to Delay Oil And Gas Lease Sales Over Climate Change Concerns

Associated Press: U.S. officials delayed lease sales on federal oil and gas reserves beneath more than 160 square miles of public and private lands in eastern Montana in response to a recent court ruling on climate change, a U.S. Bureau of Land Management spokesman said Wednesday. The 223 lease parcels had been slated for sale […]

April 26, 2018 Read More →

Fund Managers Say Oil Firm Valuations at Risk From Climate Change

Reuters: LONDON—A survey of 30 fund managers with collectively more than 13 trillion pounds ($18 trillion) in assets under management shows that 89 percent think climate change risks will impact oil company valuations “significantly” in the next five years. This represents a doubling on last year of fund managers who saw climate risks impacting oil […]

April 26, 2018 Read More →

Major Oil Companies Aren’t the Investment They Used to Be

Bloomberg: For generations of investors, ExxonMobil Corp. has been a cornerstone of fund managers’ portfolios alongside the biggest names in corporate America. Not so much anymore. From leading the S&P 500 Index a decade ago, the company has dropped to the ninth-largest in a top 10 now dominated by technology giants. Its rivals Royal Dutch Shell […]

April 25, 2018 Read More →

BP Commits to Zero Net Emissions Growth

Houston Chronicle: BP said Monday that it will hold greenhouse gas emissions from its operations at or below its 2015 levels in the years ahead as the world’s biggest oil companies prepare for a lower carbon future that could threaten their businesses. The British oil major released an “Advancing the Energy Transition” report that detailed […]

April 17, 2018 Read More →

Bipartisan Resistance Among Governors and Members of Congress to Zinke, Trump Drilling Plans

PRI: After the Trump administration announced plans to expand offshore oil and gas drilling to nearly the entire U.S. coastline, Interior Secretary Ryan Zinke quickly followed up with another announcement exempting Florida from the new plans. Now, a growing number of Republican and Democratic governors and legislators from coastal states are demanding the same exemption. […]

April 16, 2018 Read More →