Oil industry

IEEFA Research

IEEFA U.S.: Shortage of high-quality sites threatens future Bakken oil and gas production

IEEFA U.S.: Shortage of high-quality sites threatens future Bakken oil and gas production

Decline in top-tier wells forces shift to less-productive Bakken oil and gas regions

November 3, 2021 (IEEFA) — A shortage of high-quality drilling sites poses a long-term risk to oil production in the Bakken formation, according to an analysis by the Institute for Energy Economics and Financial Analysis (IEEFA). Since the Bakken boom began 13 years ago, producers have focused on core areas where horizontal wells provide easier […]

IEEFA U.S.: Skyrocketing plastics prices a major concern for public health, economy

IEEFA U.S.: Skyrocketing plastics prices a major concern for public health, economy

An ‘essential industry’ to the U.S. economy runs in the dark

October 18, 2021 (IEEFA) — Despite its growing importance to the U.S. economy, the nation’s plastics industry remains a heavily concentrated sector taking advantage of an opaque, unregulated price-setting mechanism to bolster profits for major oil and gas companies, as well as plastic producers. The sector, which has increased prices throughout the year, was deemed […]

IEEFA: Guyanese oil deal tax incentives raise income reporting concerns

IEEFA: Guyanese oil deal tax incentives raise income reporting concerns

Government pays annual income taxes for ExxonMobil, Hess and CNOOC

September 28, 2021 (IEEFA) — Guyana is giving tax breaks worth at least USD$1.7 billion over five years to three of the world’s largest oil companies, according to a report by the Institute for Energy Economics and Financial Analysis (IEEFA). Tax concessions granted to ExxonMobil, Hess and the China National Offshore Oil Company (CNOOC) by […]

and September 28, 2021 Read More →
IEEFA: $5.1 billion spend on offshore gas exploration until 2027 could have fostered 2.5GW of renewable capacity and 4,800 jobs

IEEFA: $5.1 billion spend on offshore gas exploration until 2027 could have fostered 2.5GW of renewable capacity and 4,800 jobs

The government is increasing issuance of gas exploration permits in the offshore sector ignoring risks imposed by global decarbonisation

20 September 2021 (IEEFA Australia): Increasing issuance of exploration permits over production, the Australian government has given the green light to oil and gas giants including Santos and Woodside to potentially spend $AUD5.1 billion throughout the next six years on risky offshore exploration activities despite industry-low success rates and the global energy transition, finds a […]

IEEFA: Despite strong Q2, ExxonMobil upstream continues to underwhelm

IEEFA: Despite strong Q2, ExxonMobil upstream continues to underwhelm

Exxon’s U.S. upstream division makes up little ground in the Permian Basin

August 9, 2021 (IEEFA) – ExxonMobil’s U.S. upstream operations have yet to regain their footing after a decade of turmoil. While the second quarter of 2021 was the company’s best in years, ExxonMobil has invested $61.5 billion on U.S. upstream capital projects since 2013, only to report $5.3 billion in cumulative losses. These losses may […]

IEEFA: ExxonMobil contract leaves Guyana out of oil gains

IEEFA: ExxonMobil contract leaves Guyana out of oil gains

A loophole allows ExxonMobil consortium to reduce profits to Guyana for oil discoveries that may never be developed

July 29, 2021 (IEEFA) – In a deal with ExxonMobil, Hess and China National Offshore Oil Company, Guyana was promised robust revenues from its recently discovered oil reserves in exchange for covering all development costs for the projects. However, the deal is one-sided, benefitting ExxonMobil and its partners and leaving Guyana and its people out […]

IEEFA: EVN delivers strong 2020 financial performance by optimizing Vietnam’s dynamic generation mix

IEEFA: EVN delivers strong 2020 financial performance by optimizing Vietnam’s dynamic generation mix

Further spending needed on grid infrastructure

29 July 2021 (IEEFA Vietnam): Vietnam’s state utility Electricity of Vietnam (EVN) came through 2020 in surprisingly good financial health compared to many Southeast Asian peers, according to a new report from the Institute for Energy Economics and Financial Analysis (IEEFA), which analyzed EVN’s recently released 2020 financial statements. “In a year when most regional […]

and July 30, 2021 Read More →

IEEFA: Uncertainty surrounds U.S. liquefied natural gas export projects in emerging Asia

Significant market risks and shifting U.S. policies could undermine LNG project ambitions in the region

July 8, 2021 (IEEFA) ⎼ Potential trade and climate policy shifts in the U.S. are raising questions about the viability of several ambitious liquefied natural gas (LNG) projects planned for emerging Asian markets, according to a recent report by the Institute for Energy Economics and Financial Analysis (IEEFA). New LNG import project sponsors in the […]

IEEFA U.S.: ExxonMobil touts Permian Basin success but achieves mixed results

IEEFA U.S.: ExxonMobil touts Permian Basin success but achieves mixed results

Data suggests that ExxonMobil is underperforming in the Permian Basin

June 9, 2021 (IEEFA) – ExxonMobil’s claims that its Permian Basin oil and gas reserves are world-class will need the immediate attention of the new board, according to a new analysis by the Institute for Energy Economics and Financial Analysis (IEEFA). In recent investor presentations, ExxonMobil has highlighted the superior performance of its oil wells […]

IEEFA U.S.: FERC neglects energy needs in pipeline decisions

IEEFA urges reevaluation of federal guidelines for new construction

May 25, 2021 (IEEFA) — The Institute for Energy Economics and Financial Analysis is urging the Federal Energy Regulatory Commission (FERC) to reevaluate its pipeline certification guidelines. In their current form, commission guidelines allow it to rely solely on the existence of applicants’ business contracts to certify the necessity of constructing new interstate gas pipelines, […]

More News and Commentary

Brazil economic minister warns Petrobras poses stranded asset risk

Reuters: Brazilian Economy Minister Paulo Guedes said on Wednesday that state-run oil company Petrobras (PETR4.SA)should be privatized before it becomes irrelevant and oil loses value, suggesting the government could use the sale proceeds to reduce poverty. Citing the ongoing processes to privatize state-run power company Eletrobras (ELET6.SA) and postal-service firm Correios, Guedes said the same […]

December 2, 2021 Read More →

Shell mulls return to Libya with solar project, new oil and gas fields

Reuters: Royal Dutch Shell is considering a return to Libya with a plan to develop new oil and gas fields and infrastructure, as well as a solar project, two sources said, a decade after exiting the North African country because of unrest. The plan, details of which were seen by Reuters, marks a rare new […]

November 30, 2021 Read More →

Vietnam mulls power plan changes to curb LNG, boost renewables

S&P Global Platts ($): Vietnam is looking to reduce the share of fossil fuels, including natural gas and coal, in its future energy mix, while renewables will rise in line with its recent net zero pledge and as securing global funding for fossil fuel projects becomes harder. The Vietnamese government on Nov. 19 held a […]

November 24, 2021 Read More →

Boston becomes latest U.S. city to divest from fossil fuel industry

Boston Globe: Mayor Michelle Wu of Boston signed a measure to divest city funds from the fossil fuel industry on Monday, adding Boston to the small number of major US cities that have taken the step to combat the climate crisis. After running on a Green New Deal for Boston — and advocating for divestment […]

November 23, 2021 Read More →
IEEFA U.S.: Pioneer, other independents top supermajor production in Permian Basin
and

IEEFA U.S.: Pioneer, other independents top supermajor production in Permian Basin

ExxonMobil, Chevron lag Permian independent production despite claims of leadership

November 15, 2021 (IEEFA)—Although the Permian Basin is an important upstream growth target for Chevron and ExxonMobil, independent operators are the dominant producers in the area, according to an analysis by the Institute for Energy Economics and Financial Analysis (IEEFA). While ExxonMobil and Chevron have portrayed themselves as leaders in the Permian, the IEEFA analysis […]

and November 22, 2021 Read More →

Trillions of fossil assets potentially stranded, accounting battles loom

Wall Street Journal ($): At the end of 2019, General Motors Co. announced a $1 billion investment to produce a new generation of Chevrolet Colorado and GMC Canyon pickup trucks at its factory in Wentzville, Mo. Just over a year later, GM said it would go all electric by 2035. Analysts are worried that some […]

November 22, 2021 Read More →

IEEFA: The Goldilocks predicament: For oil and gas, there are no “just right” prices

Low oil and gas prices killed profits, but high prices are killing demand

North America’s oil and gas sector is patting itself on the back for dramatic improvements in its financial performance last quarter. With prices at a seven-year high, fossil fuel companies are finally generating cash—and stock market investors are rewarding them with rising equity prices and glowing reviews. But today’s market has also exposed a long-term […]

SEC shift on shareholder resolutions victory for environmental activists

S&P Capitol IQ ($): With the 2022 proxy season ramping up, a recent decision by U.S. Securities and Exchange Commission staff to return more influence to investors has already yielded some early shareholder successes. The SEC issued a legal bulletin Nov. 3 that rescinded restrictions the Trump administration imposed on shareholder resolutions. Over the course […]

November 19, 2021 Read More →

IEEFA U.S.: New Mexico pushes plan to pivot from heavy dependence on oil and gas industry

Report urges diversifying to shift from boom-and-bust cycles driven by fossil fuels

New Mexico has announced a major realignment of its economic development program that calls for reducing reliance on oil and gas production. One of its six major goals is to shift the economy from its dependence on just a few key industries, including government, retail, and oil and gas. The plan represents an important and […]

November 18, 2021 Read More →

Equinor, East-West plan 3 gigawatts of offshore wind in South Korea

offshoreWIND: Equinor and its partner Korea East-West Power (EWP) have signed a Memorandum of Understanding (MoU) to cooperate on 3 GW of offshore wind projects in South Korea. Equinor said it would use its new floating wind technology, Wind Semi, for its projects in South Korea as it had been developed specifically for Korean waters […]

November 17, 2021 Read More →