The formal investigation is examining Exxon’s longstanding practice of not writing down the value of its oil and gas reserves when prices fall.
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The Securities and Exchange Commission (SEC) is reportedly investigating Exxon on allegations that the company is not accounting for the longterm risks of climate change.
The SEC’s new investigation has deepened the scrutiny of Exxon’s…
The SEC probe follows a similar one from New York’s attorney general.
Other U.S. energy companies collectively have written down the value of their drilling assets by $177 billion previous year, and an additional $15 billion in the first quarter of 2016, according to estimates by IHS Energy.
United States oil corporation ExxonMobil is to have its assets examined by the Securities and Exchange Commission, after questions have emerged about how they are reported by the company.
PwC did not respond to requests for comment.
Led by NY state’s top prosecutor, Eric Schneiderman, they are examining whether Exxon misled investors and the public on the impact of climate change on its business.
“The federal government is joining the courageous state attorneys general, and they’re all following the trail of clues that began with powerful investigative journalism”, McKibben said, referencing reporting by the Los Angeles Times andInside Climate News which first brought what is now known as the #ExxonKnew scandal to the public’s attention. Under New York’s Martin Act, the attorney general has extraordinary powers.
“Right now Exxon is betting everything it has on the failure of the world to solve the climate crisis”, said Annie Leonard, executive director of environmental advocacy group Greenpeace.
While many companies, investors and analysts agree that many industries will be affected as countries move to reduce emissions, there remains considerable debate about the extent of the impact.
Exxon has also ardently defended its record of climate research against critics, as well as its view the use of fossil fuels will grow in coming decades, which corresponds to the predictions of major global energy forecasters.
Critics say the SEC hasn’t done enough to force companies to tell investors more about their exposure to climate change. With “familiar persons” saying that reserves have now become a central part of both the SEC and the Attorney General’s fact-finding.
The company is working with the SEC, said Alan Jeffers, a spokesman for Exxon.
Exxon Mobil has proven to be the most resilient oil and gas producer in the downturn.
That includes the question of whether the company is employing a realistic estimate for carbon pricing that could make conventional petroleum assets uneconomical to produce.
One Month Ago Analyst Ratings: The Company has received mean Analyst rating of 2.92 from polled analysts at Reuters One Month Ago.
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When the price of oil plunges, as it has in the past two years, all of the largest oil companies in the world write down their losses.
