Oil industry

IEEFA Research

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, […]

IEEFA U.S.: Energy transition to renewables likely to accelerate over next two to three years

IEEFA U.S.: Energy transition to renewables likely to accelerate over next two to three years

Coal, gas set to become biggest losers as renewable generation climbs quickly

March 31, 2021 (IEEFA) — The speed and scope of the energy transition to renewables will pick up pace over the next two to three years, according to the Institute for Energy Economics and Financial Analysis’ U.S. Power Sector Outlook 2021. Solar and battery storage adoption is enjoying almost exponential growth, and wind and solar […]

IEEFA: Frackers produce positive cash flows in 2020 with deep capital expenditure cuts

IEEFA: Frackers produce positive cash flows in 2020 with deep capital expenditure cuts

Beleaguered fracking sector generates $1.8 billion cash flow, but only after $20 billion cuts in capex

March 24, 2021 (IEEFA)—A cross-section of 30 shale oil and gas producers marked the first full year of positive free cash flows since the fracking boom began—but only after deep cuts to capital expenditures that raise troubling questions about the industry’s future. The report by the Institute for Energy Economics and Financial Analysis (IEEFA) found […]

IEEFA U.S.: Proposed Formosa, Louisiana petrochemical complex financially unviable

IEEFA U.S.: Proposed Formosa, Louisiana petrochemical complex financially unviable

IEEFA finds significant financial, market, regulatory and political risks for multibillion-dollar ‘Sunshine Project’ in Louisiana’s ‘Cancer Alley’

March 23, 2021 (IEEFA) ⎼  A report released today by the Institute for Energy Economics and Financial Analysis (IEEFA) details the financial, legal, social and public opposition risks of Taiwan-based Formosa Plastics Group’s proposed petrochemical complex in St. James Parish, Louisiana. IEEFA finds that the project will begin operations at a time of market oversupply, […]

More News and Commentary

Chevron plans more ambitious climate approach to thwart hedge funds

Wall Street Journal ($): Chevron Corp. CVX +0.03% is preparing to defend itself against a potential challenge from activist investors like the one that roiled Exxon Mobil Corp. XOM -0.38% earlier this year, according to people familiar with the matter. In recent weeks, Chevron executives met with representatives of Engine No. 1, the investment firm […]

September 3, 2021 Read More →

Japan and Russia ink deal to cooperate on climate change fight efforts

Reuters: Japan and Russia on Thursday agreed to work together on hydrogen and ammonia production, the Japanese industry ministry said on Thursday, longtime partners in oil and natural gas shift the focus to cleaner alternatives to fossil fuels. Japanese Industry Minister Hiroshi Kajiyama and Russian Energy Minister Nikolai Shulginov signed a statement on cooperation after […]

September 3, 2021 Read More →

Iraq urges other OPEC nations to move to renewable energy production

The Guardian: The finance minister of Iraq, one of the founding members of the global oil cartel Opec, has made an unprecedented call to fellow oil producers to move away from fossil fuel dependency and into renewable energy, ahead of a key Opec meeting. Ali Allawi, the deputy prime minister and finance minister of Iraq, […]

September 1, 2021 Read More →

DNV: Fossil fuels to still make up half of energy mix by 2050

Upstream Online: Fossil fuels are not going anywhere fast and will account for half of the primary energy mix in 2050, according to DNV’s Energy Transition Outlook 2021, published on Wednesday. Natural gas will maintain its current position with around 25% of the total, although oil demand is forecast to halve, while coal will decrease […]

September 1, 2021 Read More →

Sinopec plans $4.6 billion in hydrogen spending by 2025

Reuters: China’s Sinopec Corp plans to spend 30 billion yuan ($4.6 billion) on hydrogen energy by 2025 as the state oil and gas major pivots to producing natural gas and hydrogen as part of becoming a carbon-neutral energy provider by 2050. Asia’s biggest oil refiner said on Monday it plans to become China’s largest company […]

August 30, 2021 Read More →

Santos sued by shareholders over fossil expansion despite claims

The Guardian: A shareholder activist group is taking Australian oil company Santos to court over its claims it produces “clean fuel” and plans to reach net zero emissions by 2040. Papers were filed against Santos – Australia’s second largest independent oil company – on Thursday by the Environmental Defenders Officers acting on behalf of the […]

August 26, 2021 Read More →

Denmark, Costa Rica seek countries willing to speed end of oil and gas

Reuters: Denmark and Costa Rica are trying to forge an alliance of countries willing to fix a date to phase out oil and gas production and to stop giving permits for new exploration, government ministers said and documents showed. Burning fossil fuels is the main source of the greenhouse gas emissions heating the planet, but […]

August 25, 2021 Read More →

Large-scale floating offshore wind farms gaining attention in Japan

CNBC: RWE Renewables and Kansai Electric Power have signed an agreement that will see the two businesses “jointly study the feasibility of a large-scale floating offshore wind project” in waters off Japan’s coast. In a statement issued Monday, RWE Renewables’ Sven Utermöhlen said his firm saw “great potential for floating wind farms worldwide — but […]

August 25, 2021 Read More →

Major oil companies flaring Permian gas without required permits

Reuters: Oil producers such as Exxon Mobil (XOM.N) and Royal Dutch Shell (RDSa.L) are burning off gas in the largest oil field in the United States without required Texas state permits, the environmental group Earthworks said in a report on Thursday. Energy producers flare gas, an unwanted by-product of oil extraction, when they cannot transport […]

August 20, 2021 Read More →

CNOOC sets renewable energy target of 5,000 megawatts by 2025

South China Morning Post: After making a foray into offshore wind power, CNOOC now plans to develop onshore solar and wind farms as part of its diversification from oil and gas. The Chinese offshore oil and gas giant was actively pursuing renewable energy projects with a goal to build up annual capacity of at least […]

August 20, 2021 Read More →