Shell

IEEFA Research

IEEFA: Oil supermajors made $20.5 billion in 2020 but spent $49.9 billion to please investors

IEEFA: Oil supermajors made $20.5 billion in 2020 but spent $49.9 billion to please investors

Five largest private-sector oil supermajors have dropped more than a half-trillion on shareholders over last decade

March 4, 2021 (IEEFA) —The world’s five largest private-sector oil and gas companies collectively spent $29.4 billion more on shareholder payouts than they generated from operations, according to a new report by the Institute of Energy Economics and Financial Analysis (IEEFA). The five supermajors—ExxonMobil, Chevron BP, Total and Shell—generated $20.5 billion in free cash flow, […]

, and March 4, 2021 Read More →
IEEFA U.S.: Frackers cut capex to $5.8 billion during third quarter, lowest level in a decade

IEEFA U.S.: Frackers cut capex to $5.8 billion during third quarter, lowest level in a decade

Free cash flow surges as capital reductions may mark beginning of end for shale boom

December 8, 2020 (IEEFA) —Facing low prices and weak demand, a cross-section of 33 shale-focused oil and gas producers cut their capital expenditures (capex) to their lowest level in more than a decade, according to an analysis released today by the Institute for Energy Economics and Financial Analysis. Thirty-two of the 33 companies cut capex […]

, , and December 8, 2020 Read More →
IEEFA U.S.: Appalachian frackers report $504M in negative free cash flow despite capex slashing

IEEFA U.S.: Appalachian frackers report $504M in negative free cash flow despite capex slashing

Tide of red ink shows little sign of ebbing any time soon for shale-focused regional gas producers

December 3, 2020 (IEEFA)—Even after cutting their capital expenditures (capex) by more than one-third from the previous year, nine shale-focused gas producers in Appalachia spent a half-billion dollars more during the third quarter on drilling and building projects than they earned from selling oil and gas. Capex investments during the third quarter were the lowest […]

, , and December 4, 2020 Read More →

IEEFA update: Australia’s gas-led recovery is flogging a dead horse

With LNG worse for the climate than coal, Australia must adjust to our export markets shrinking

With polluting emissions from LNG 13% higher than gas, and Australia’s primary export destinations targeting net zero emissions and therefore less dirty LNG, Australia’s gas-led recovery is looking increasingly like the Australian government is ‘flogging a dead horse’. Australia’s core export markets for LNG, coal and iron ore – Japan, South Korea and China – […]

November 3, 2020 Read More →
IEEFA update: ExxonMobil’s financials indicate slide under CEO Darren Woods’s leadership

IEEFA update: ExxonMobil’s financials indicate slide under CEO Darren Woods’s leadership

Profits, cash and shareholder return slip compared with rivals using company’s own performance metrics

October 28, 2020 (IEEFA) — A close look at ExxonMobil’s financial performance metrics compared with its peers reveals significant slippage during Chairman & CEO Darren Woods’s tenure (2017-2019) even before the coronavirus pandemic, according to a briefing note released today by the Institute for Energy Economics and Financial Analysis (IEEFA). IEEFA analysts found that the […]

, and October 28, 2020 Read More →
IEEFA U.S.: Plummeting oil and gas prices leave New Mexico’s budget short by hundreds of millions of dollars

IEEFA U.S.: Plummeting oil and gas prices leave New Mexico’s budget short by hundreds of millions of dollars

Industry problems hit before the pandemic, were made worse by it and will persist even after the economy improves

October 20, 2020 (IEEFA) — After years of benefitting from record oil and gas revenues, global markets are signaling the beginning of the end of New Mexico’s financial reliance on fossil fuels. Leases, royalty payments and taxes from the oil and gas industry have directly accounted for as much as 30 percent of the state’s […]

and October 20, 2020 Read More →
IEEFA: Canadian assessment of LNG ‘rising tide’ would drown balance sheets in red ink

IEEFA: Canadian assessment of LNG ‘rising tide’ would drown balance sheets in red ink

Hope springs eternal for Chinese demand but reality suggests bleak forecast for new projects

October 19, 2020 (IEEFA)— The Conference Board of Canada, an Ottawa-based research organization, has doubled down on a bad hand, according to an analysis by the Institute for Energy Economics and Financial Analysis. The Conference Board’s report, A Rising Tide: The Economic Impact of B.C.’s Liquified Natural Gas Industry, claims an expansion of the British […]

and October 19, 2020 Read More →
IEEFA: ExxonMobil financial performance slides from industry leader to laggard

IEEFA: ExxonMobil financial performance slides from industry leader to laggard

Company’s own metrics reveal slippage compared with oil major peers

October 15, 2020 – An analysis released today by the Institute for Energy Economics and Financial Analysis (IEEFA) reveals lagging performance by ExxonMobil under the leadership of Chairman & CEO Darren Woods. IEEFA analysts detail how the company racked up deeper or more rapid declines based on three critical financial metrics it has long used […]

and October 15, 2020 Read More →
IEEFA U.S.: Investors in gas-fired projects in largest regional power system face substantial risks

IEEFA U.S.: Investors in gas-fired projects in largest regional power system face substantial risks

Eleven PJM projects under development may fail to prove financially viable

October 5, 2020 (IEEFA) — The landscape for developers of natural gas-fired power plants in the nation’s largest regional power system has shifted dramatically over the last decade, according to a joint study by the Applied Economics Clinic and the Institute for Energy Economics and Financial Analysis. The Pennsylvania-New Jersey-Maryland (PJM) system coordinates the flow […]

, and October 5, 2020 Read More →
IEEFA U.S.: Capex cuts fail to stem gusher of red ink for Appalachian frackers

IEEFA U.S.: Capex cuts fail to stem gusher of red ink for Appalachian frackers

Nine major E&P companies collectively lost more than $1 billion over past year

September 10, 2020 (IEEFA) — Even after cutting capital expenditures to their lowest quarterly point in more than six years, nine Appalachian shale-focused gas producers continued to hemorrhage money, reporting more $134 million negative free cash flows in the second quarter of 2020.  Together, they have spilled $1.1 billion in red ink over the past […]

, , and September 10, 2020 Read More →

More News and Commentary

IEEFA: Oil supermajors made $20.5 billion in 2020 but spent $49.9 billion to please investors
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IEEFA: Oil supermajors made $20.5 billion in 2020 but spent $49.9 billion to please investors

Five largest private-sector oil supermajors have dropped more than a half-trillion on shareholders over last decade

March 4, 2021 (IEEFA) —The world’s five largest private-sector oil and gas companies collectively spent $29.4 billion more on shareholder payouts than they generated from operations, according to a new report by the Institute of Energy Economics and Financial Analysis (IEEFA). The five supermajors—ExxonMobil, Chevron BP, Total and Shell—generated $20.5 billion in free cash flow, […]

, and March 4, 2021 Read More →

Shell says its oil production, carbon emissions have peaked

Bloomberg: Royal Dutch Shell Plc said its carbon emissions and oil production have peaked and will decline in the coming years as the company laid out a detailed plan for its transition to cleaner energy. In a sign of how much the petroleum industry has shifted away from its mantra of growth and exploration, Shell […]

February 11, 2021 Read More →

Green hydrogen commercialization coming faster than anyone forecast—Wood Mackenzie

Greentech Media: Green hydrogen is set to play a substantive role in the overall energy mix with its development likely to happen faster than anyone predicts, according to a new report by Wood Mackenzie. The 2050: The Hydrogen Possibility report details how the project pipeline has grown nine-fold since October 2019 to a staggering 26 […]

February 5, 2021 Read More →

Shell buys controlling stake in 300MW floating wind farm off the Irish coast

Bloomberg: Royal Dutch Shell Plc agreed to buy a 51% stake in an Irish project to develop a floating wind farm in the Celtic Sea. Simply Blue Energy’s Kinsale venture will develop the Emerald floating wind farm, with 300 megawatts of capacity initially and the potential to scale up to 1 gigawatt. The companies didn’t […]

January 28, 2021 Read More →

Rising climate risks prompt S&P to begin review of oil majors’ credit ratings

Bloomberg: Big Oil suffered a fresh setback after one of the most influential rating companies warned it may cut the credit score of Exxon Mobil Corp., Royal Dutch Shell Plc and a plethora of other major energy companies due to “greater industry risk” associated with climate change. The move by S&P Global Ratings comes as […]

January 27, 2021 Read More →

Shell plans $3.5-$4.5 billion writedown, raising yearly total to more than $22 billion

Reuters: Royal Dutch Shell on Monday said it will write down the value of oil and gas assets by $3.5 billion to $4.5 billion following a string of impairments this year as it adjusts to a weaker outlook. In an update ahead of its fourth quarter results on February 4, Shell said the post-tax charge […]

December 21, 2020 Read More →
IEEFA U.S.: Frackers cut capex to $5.8 billion during third quarter, lowest level in a decade
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IEEFA U.S.: Frackers cut capex to $5.8 billion during third quarter, lowest level in a decade

Free cash flow surges as capital reductions may mark beginning of end for shale boom

December 8, 2020 (IEEFA) —Facing low prices and weak demand, a cross-section of 33 shale-focused oil and gas producers cut their capital expenditures (capex) to their lowest level in more than a decade, according to an analysis released today by the Institute for Energy Economics and Financial Analysis. Thirty-two of the 33 companies cut capex […]

, , and December 8, 2020 Read More →

Equinor, RWE join Dutch green hydrogen development effort

Reuters: German utility RWE and Norwegian oil and gas firm Equinor have joined an initial phase of a Dutch project to produce “green” hydrogen by using offshore wind power. The NorthH2 project, launched in February by Dutch Gasunie, Groningen Seaports and Shell, will use electricity to produce hydrogen from water avoiding carbon dioxide (CO2) emissions […]

December 7, 2020 Read More →
IEEFA U.S.: Appalachian frackers report $504M in negative free cash flow despite capex slashing
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IEEFA U.S.: Appalachian frackers report $504M in negative free cash flow despite capex slashing

Tide of red ink shows little sign of ebbing any time soon for shale-focused regional gas producers

December 3, 2020 (IEEFA)—Even after cutting their capital expenditures (capex) by more than one-third from the previous year, nine shale-focused gas producers in Appalachia spent a half-billion dollars more during the third quarter on drilling and building projects than they earned from selling oil and gas. Capex investments during the third quarter were the lowest […]

, , and December 4, 2020 Read More →

Oil industry writedowns top $80 billion mark in past year

Reuters: The world’s top energy companies have slashed the value of their oil and gas assets by around $80 billion (60.05 billion pounds) in recent months after revising lower the long-term outlook for fuel prices in the wake of the coronavirus epidemic and the energy transition. Exxon Mobil, the largest U.S. oil company, announced on […]

December 2, 2020 Read More →
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