Oil industry

IEEFA Research

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 […]

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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 […]

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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

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More News and Commentary

North Dakota Oil Production Falls

Daniel J. Graeber for UPI: A regulator in North Dakota said low oil prices were in part behind the decline in crude oil production, last reported at its lowest level since early 2014. The North Dakota Industrial Commission reported crude oil production in September, the last full month for which it has data, at 971,658 […]

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‘Ironically,’ Dakota Access Pipeline Risks Defeat by Low Prices and Oil Infrastructure Glut

Chris White for the Daily Caller: The Dakota Access Pipeline is at risk of becoming an abandoned project due to historically low oil prices, according to a report published Wednesday by an energy research firm. The report, “The High-Risk Financing Behind the Dakota Access Pipeline: A Potential Stranded Asset in the Bakken Region of North […]

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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 →

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 […]

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IEEFA Report: Dakota Access Pipeline Driven by ‘High-Risk Financing’ in Overbuilt Region; Little-Known Economic Weaknesses in Controversial Project

Developer, Facing Likelihood of Missing Deadline, May Be Required to Renegotiate Contracts; Depressed Global Oil Prices Stand to Render New Capacity ‘Superfluous’

CLEVELAND, Nov. 16, 2016 (IEEFA.org) — The Institute for Energy Economics and Financial Analysis today published a report noting weaknesses in the financing behind the Dakota Access Pipeline and questions  around the long-term usefulness of the project. The report—“The High-Risk Financing Behind the Dakota Access Pipeline: A Potential Stranded Asset in the Bakken Region of […]

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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 […]

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IEEFA Exxon: A Company in Need of More Accountability at the Top

As Directors Ponder CEO's Successor, Will They Seek a Much-Needed Change in Meeting Performance Standards?

ExxonMobil has been reducing its cash returns to investors over the past few years, a trend we highlighted in our report last week, “Red Flags on Exxon Mobil,” but has still paid out far more to investors than standard financial metrics would support.  Indeed, all indicators, including the company’s recent announcement that it will likely de-book […]

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IEEFA Exxon: Why the Abrupt Revision on Reserves?

Oil Giant Owes Investors Answers, and Much More Transparency

The headline news out of ExxonMobil’s third-quarter earnings call last week bears repeating: If low prices persist during the fourth quarter of 2016 then as much as 4.6 billion barrels of the company’s oil reserves in Canada and North America would no longer qualify as proven reserves.   This makes ExxonMobil the latest in a […]

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Exxon Widens Its Fight Against Climate-Change Disclosures

David Hasemyer for InsideClimate News: Attorneys for ExxonMobil have revealed a plan to ratchet up pressure on state attorneys general who have vowed to hold Exxon and fossil fuel companies accountable for their conduct on climate change. Exxon attorney Theodore Wells told a New York judge that the company is working on deposing at least […]

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IEEFA Exxon: The Problems Are More Than Cyclical

All Signs Point to Low Oil Prices Going Forward

Some stock analysts say the problems afflicting ExxonMobil are cyclical, which would mean that a spike or increase in oil prices are on the horizon and that the company will move back into the black across the board when that happens.  But the fact is that a rebound in oil prices is unlikely. Independent assessments—from […]

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