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

More Climate Risk to Oil Majors in 2 New Lawsuits Reminiscent of Tobacco Litigation

Reuters: California cities San Francisco and Oakland filed separate lawsuits against five oil companies on Wednesday seeking billions of dollars to protect against rising sea levels they blamed on climate change, according to public documents. The lawsuits, filed in state courts in San Francisco and Alameda Counties, alleged Chevron Corp, ConocoPhillips, Exxon Mobil Corp, BP […]

September 21, 2017 Read More →

Total SA: Another Oil Major Veers Into Renewables

Financial Tribune: Oil major Total moved forward with its plan to expand in the renewable energy sector on Tuesday with investments in EREN RE and Greenflex. Total said it was buying a 23% stake in renewables company EREN RE for $285 million and added it could later acquire full control of the business, Reuters reported. […]

September 20, 2017 Read More →

Renewables to account for 85% of global electricity by 2050

PV Magazine: A new report from DNV GL forecasts a bright future for renewable energy, predicting that by 2050 electricity demand will increase 140% to become the largest form of energy consumed, and that 85% of this electricity will be generated from renewable sources. Industry analysts DNV GL predict that solar will be a leading […]

September 14, 2017 Read More →

In Montana Ruling, a Risk to Fossil-Fuel Expansion

Bloomberg BNA: A district court decision stopping the expansion of a Montana coal mine provides a blueprint for environmental advocates to block other coal, oil, and gas projects across the country. “The decision has national significance, and it can and will be applied in other cases that we are bringing to challenge the federal government’s […]

September 14, 2017 Read More →

Harvard Study Concludes Exxon Misled Investors on Climate Risk

InsideClimate News: A comprehensive, peer-reviewed academic study of ExxonMobil’s internal deliberations, scientific research and public rhetoric over the decades has confirmed empirically that the oil giant misled the public about what it knew about climate change and the risks posed by fossil fuel emissions, the authors said on Tuesday. The paper confirms the findings of […]

August 23, 2017 Read More →

Setback to Kinder Morgan’s Canadian Oil Sands Pipeline Project

Reuters: British Columbia will not allow Kinder Morgan Canada Ltd to begin work on public land for its Trans Mountain pipeline expansion until it “meaningfully” consults aboriginal communities, provincial officials said on Thursday.  The $5.5 billion project through British Columbia, which secured federal government approval last year, would almost triple the capacity of the current […]

August 11, 2017 Read More →

On the Blogs: The Oil Sector Has a Jobs Problem Too

ThinkProgress: After six months of regulatory rollback, Trump has done almost nothing that will create jobs on oil fields or offshore rigs. That’s because low oil prices, not environmental protections, are stunting job growth, and Trump’s push to nix federal regulations and expand drilling will only make oil cheaper. Foreign producers have flooded the market, […]

August 11, 2017 Read More →

Keystone XL Completion Still 3 Years Out, if Completion Is in the Cards

InsideClimate News: It will be close to three years, at least, before oil could possibly be moving through the controversial Keystone XL pipeline—if the pipeline is completed at all. Company officials now concede that after battling protests and regulatory hurdles for nearly a decade, market forces could scuttle the project. Canadian pipeline giant TransCanada first […]

August 10, 2017 Read More →

Oil Majors’ Shareholder Dividends Are at Risk, Exxon’s Included

Wall Street Journal: Major oil companies seem to have moved through the stages of grief about low prices, finally arriving at acceptance. During the latest round of sector earnings delivered in recent days, Royal Dutch Shell ’s RDS.B 0.22% boss Ben van Beurden even said oil could be “lower forever”: BP said Tuesday it is […]

August 2, 2017 Read More →

IEEFA Update: A Growing Sense Across Energy Markets, and Among Market Players, That Change Is Gaining Pace

Peak Oil Demand; a Blockbuster Wind Deal; Battered Coal

Two stories this week got some bombshell play still ricocheting around. First was Royal Dutch Shell Chief Executive Ben van Beurden saying the company, second only to Exxon Mobil among the oil majors and the biggest energy outfit in Europe, sees peak demand for oil occurring sooner than anticipated, contrary to the comparatively stodgy and widely […]

July 28, 2017 Read More →