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

U.S. Rail Exec: ‘Fossil Fuels Are Dead’

Huffington Post: The CEO of freight railroad CSX Corp., one of the largest U.S. haulers of coal, warns that the days of transporting and burning coal are numbered. “Fossil fuels are dead,” Hunter Harrison told analysts Wednesday, according to media reports. “That’s a long-term view. It’s not going to happen overnight. It’s not going to […]

July 20, 2017 Read More →

In Echo of 1990s Tobacco Industry Litigation, California Governments Sue Oil and Coal Companies

San Francisco Chronicle: Two Bay Area counties and a Southern California city concerned about rising sea levels sued 37 of the world’s biggest oil and coal companies Monday, claiming the fossil fuel giants should pay for damages wrought by climate change—a first-of-its-kind challenge that some liken to the high-stakes litigation of the tobacco industry in […]

July 18, 2017 Read More →

Steep Losses for Prominent Institutional Investors in Collapse of $2 Billion Oil and Gas Fund

Wall Street Journal: A $2 billion private-equity fund that borrowed heavily to buy oil and gas wells before energy prices plunged is now worth essentially nothing, an unusual debacle that is wiping out investments by major pensions, endowments and charitable foundations. EnerVest Ltd., a Houston private-equity firm that focuses on energy investments, manages the fund. […]

July 17, 2017 Read More →

‘Markets Will Dwarf Policy’ for Exporting U.S. Oil and Gas to Europe

Georgi Kantchev and Lynn Cook in the Wall Street Journal: President Donald Trump is touting his policies to boost energy production and exports as a bulwark against Russia. But some industry observers say the U.S. shale boom—which reshaped world markets for crude oil and natural gas before Mr. Trump took office—has only limited impact on Russia’s […]

July 14, 2017 Read More →

Editorial: ‘Keystone XL Pipeline Runs Afoul of the Law of Supply and Demand’

Editorial Board of the St. Louis Post-Dispatch: The company that is building the controversial Keystone XL pipeline no doubt wishes Energy Secretary Rick Perry had been right last week when he explained the law of supply and demand. At a coal-fired power plant in West Virginia on Thursday, Perry dismissed worries about the future of […]

July 13, 2017 Read More →

Wall Street Investors Are ‘Enabling’ Crude Oil Glut

Bradley Olson and Alison Sider in the Wall Street Journal: Easy Wall Street cash is leading U.S. shale companies to expand drilling, even as most lose money on every barrel of oil they bring to the surface. Despite a 17% plunge in prices since April, drillers are on pace to break the all-time U.S. oil production […]

July 10, 2017 Read More →

IEEFA Update: Wonder Where Electricity-Generation Markets Are Going? Follow the Money

The Renewables Sector Is No Longer the Experimental Space It Was

“Coal is dead,” Jim Barry, the global head of BlackRock‘s infrastructure investment group, said in a recent interview with the Australian Financial Review. “Anyone who’s looking to take beyond a 10-year view on coal is gambling very significantly,” Barry told the AFR for an article that is notable not just for what it says but […]

Oil Giant Total SA Sees a Not-So-Distant Future Beyond Oil

Wall Street Journal: France’s Total SA, one of the world’s largest oil companies, like its peers Exxon Mobil Corp. and Royal Dutch Shell PLC, was built to service the world’s massive demand for crude oil. Betting that demand will peak in the next few decades, Mr. Pouyanné wants to turn his company into one of […]

June 14, 2017 Read More →

IEEFA Update: Pulling Out of the Global Climate-Risk Accord Is Trump’s Biggest Business Blunder Yet

Pursuing Politics Over Economics Is a Dead End

Whatever one thinks of the politics around the Trump administration walking away from the Paris climate accord, it’s a bad business move. By going back on the agreement, the administration is damaging the U.S. economy on several fronts. First, it means the U.S. will be stepping back from a new global era in energy production […]

Shareholders in ‘Major Rebuke’ to Exxon on Its Climate-Risk Obfuscation

Wall Street Journal: Exxon Mobil Corp. shareholders delivered a major rebuke to the oil giant Wednesday, calling for the company to share more information about how climate change and regulations could impact its operations. The climate proposal won the support of 62% of shareholders who cast ballots at Exxon’s annual meeting, a powerful symbol that […]

June 1, 2017 Read More →