Newsletter Daily

IEEFA Research

IEEFA Update: IEA, Still Behind the Curve, Nonetheless Indicates Rising Stranded-Asset Risk in Fossil-Fuel Holdings

A Not-So-Distant Future in Which Thermal-Fired Electricity Generation Declines Precipitously

The International Energy Agency, out with its annual energy-markets forecast, “World Energy Outlook 2016,” remains behind the curve but not as far behind as it was. A history of IEA underestimation of technology change has been partially remedied in this new report, but the agency’s solar and wind forecasts can at best be described still […]

Read More →

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 […]

Read More →

IEEFA Report: Three Timely Takeaways on 2016 Global Energy Transformation

An Acceleration to Renewables, Faster-Than-Expected Shifts Regionally and Nationally, Growing Risk for Investors Who Lag Behind

Three notable takeaways emerge from the rapid transformation of the global energy economy, as we detail in a new paper we published today as the landmark Paris Agreement officially goes into effect. The global transition to renewables is accelerating. Change is happening faster than expected. Those left behind in this transition face growing financial risk. […]

Read More →

IEEFA Exxon: Telltale Crossover in Late 2014 Marks Where a Major Oil Stock Began to Go South

A Decoupling From the Larger Stock Market 2 Years Ago Portends a Future in Which the World’s Biggest Oil Company Will Be Smaller and Will Not Pay Out as Much in Shareholder Distributions

The world is moving in fits and starts but with gathering momentum toward a more diversified, low-carbon energy mix. The evidence is all around us. One exhibit, of many, is in the report we published this week—“Red Flags on Exxon: A Note to Institutional Investors”—which includes the chart here: ExxonMobil Financial Performance, 2006 – 2015 […]

Read More →

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 […]

Read More →

IEEFA Global: A $51 Billion Gap (and a $51 Billion Opportunity) in BRICS Nations’ Renewable Energy Development

How to Meet the Goal? Through "Blended Finance" Where Public Funds Unleash Private Money

Here, in one chart, is an IEEFA picture worth a thousand words. While some $130 billion was invested last year in renewable-energy development in the BRICS countries—Brazil, Russia, India, China, and South Africa—billions more are required if these countries are to meet their commitments to climate-change mitigation policies. The four countries, in all, have announced […]

Read More →

IEEFA Europe: Blueprint for a Lignite Phase-Out in Germany

Foundation-Based Approach to Closure and Clean-Up; New Czech Owners of Vattenfall Assets in Lausitz Can Afford to Foot the Bill; a Timeline That Helps Local Communities Prepare for Transition

The recent “sale” by the Swedish state-owned utility Vattenfall of its German lignite assets throws a harsh light on a dark paradox: the continued use of the world’s most carbon-intensive fuel by a country with some of the most ambitious targets to tackle climate change. The deal transfers a cluster of lignite mines and their […]

Read More →

IEEFA Texas: The Beginning of the End for Coal-Fired Electricity Across One of the Biggest Power Markets in the U.S.

Report Finds Seven Plants Emblematic of a Fading Industry

We published a research report today describing how the coal-fired electricity industry in Texas is in decline and unlikely to recover in the face of rising competition from other energy sources. Our report—“The Beginning of the End: Fundamental Changes in Energy Markets Are Undermining the Financial Viability of Coal-Fired Power Plants in Texas”—looks specifically at […]

Read More →

IEEFA Report: A Cynical Re-Regulation Strategy in West Virginia

FirstEnergy’s Machinations Around the Pleasants Power Station Are Designed to Shift Risk to Ratepayers

In seeking to get the West Virginia Public Service Commission to allow it to sell all or a portion of its Pleasants Power Station, Ohio-based FirstEnergy Corp. is following a strategy of re-regulation that stands to benefit shareholders at ratepayer expense. The coal-fired 1,300-megawatt Pleasants plant is currently owned by a FirstEnergy deregulated subsidiary, Allegheny […]

Read More →

IEEFA Ohio: Damn Tradition, Bailouts Are Where It’s At

Update: FirstEnergy Piles Insult Onto Billions of Dollars in Injury by Threatening to Move Its Headquarters From Akron

Call me old-fashioned, but I’ve always thought investor-owned electric utilities were set up to provide power to consumers who paid for what they got.    In states where electricity is deregulated, utility companies compete for customers—just like any other business does. And in states where utilities are regulated, public-utility commissions determine how rates are set […]

Read More →

More News and Commentary

China and India Will Step in Wherever U.S. Renewable Investment Slips

Maria Gallucci for Mashable: China and India stand to benefit if America’s progress on clean energy slips under President-elect Donald Trump, energy experts say. Trump has vowed to gut U.S. climate policies that favor wind, solar and other lower-emissions technologies and instead revive the struggling coal sector. But the world’s energy market is moving in […]

Read More →

North Dakota Project Stands to Add to Pipeline Glut

Daniel J. Graeber for UPI: If the pipeline isn’t completed by Jan. 1, the project consortium may have to revisit some of the contracts for shipping oil through the 1,110-mile pipeline. The institute said further that crude oil prices being about 50 percent lower than they were at the height of the U.S. shale era […]

Read More →

Renewables Are a Winner in Global Energy Transition; Coal Is the Loser

John Schwartz for the New York Times: The annual report of the I.E.A., which is based in Paris, noted that renewable energy was booming, with more capacity added in 2015 than for coal, oil and nuclear power combined. Still, fossil fuels will have a substantial role to play in the global energy mix for many […]

Read More →

On the Blogs: Trump’s ‘Empty Rhetoric’ on Coal Markets

Andy Roberts for CleanTechnica.com: While Trump means to help, he may not have the means to help. A divided U.S. citizenry is similarly reflected in its divided government, leaving the president just one reliable tool in his arsenal — sole executive action. But while executive action is a tool often used by presidents, it is […]

Read More →

Wall Street Coal Analysts Skeptical of Comeback

Bill Holland for SNL Beta: Despite his campaign promises, Donald Trump will not be able to revive the U.S. coal industry absent a sharp spike in natural gas prices, as he loosens environmental regulations on oil and gas pipelines, a pair of analysts have been telling their clients since the election. Trump’s plan to loosen […]

Read More →

Microsoft Signs Wyoming-Kansas Power Deal, Expanding Its Reliance on Renewable Energy

Chris Martin for Bloomberg News: Microsoft Corp. committed to its largest wind-power purchase to date with a deal to buy 237 megawatts of capacity from projects in Wyoming and Kansas. Allianz Risk Transfer AG’s Bloom Wind Project in Kansas and Black Hills Corp.’s Happy Jack and Silver Sage wind farms in Wyoming will provide all […]

Read More →

On the Blogs: Trump’s Sound and Fury Against Renewables May Signify Little

Peter Fairley by MIT Technology Review: “At the end of the day what Trump says and what is actually implemented are two completely different things,” says Yuan-Sheng Yu, an energy analyst with Lux Research. Still, Yu authored one of the darkest forecasts on renewable energy under Trump’s leadership. His report, issued last week, projected that […]

Read More →

Army Corp of Engineers Calls for More Study on Dakota Access Pipeline

Rebecca Hersher for NPR: The U.S. Army Corps of Engineers said Monday that it needs more information before it can decide whether to allow the Dakota Access Pipeline to be built along its planned route. In a joint statement by the U.S. Army and Department of the Interior, the Corps announced it had finished a […]

Read More →

Exelon Pushes for Illinois State Subsidies for Its Coal and Nuclear Plants

Kari Lyderson for Midwest Energy News: Illinois legislators today introduced a long-awaited massive energy bill that would provide subsidies to keep nuclear plants and coal plants running and introduce a controversial demand charge, along with fixing the state’s Renewable Portfolio Standard, increasing energy efficiency investments and other measures. For more than a year, Exelon has […]

Read More →

New York Town’s Post-Coal Transition Seen as Model for Colstrip, Montana

Eric Tegethoff for Public News Service Montana: Although the fate of the Environmental Protection Agency’s Clean Power Plan is up in the air now that Donald Trump has been elected president, at least part of Colstrip’s coal-fired power plant is still likely to close by 2022. Peter DeJesus, field coordinator for Western New York Area […]

Read More →