Professor Elam

Monday Sept 19, 2016

So really what are your reserves worth?

In a world where the price of oil can lose over 70% of its value  in a few months, that is a good question. There is yet another article on Exxon's lack of write downs.

And a couple of professors are quoted as saying that is a tough call if the values were conservatively estimated when originally booked.

Exxon's CEO boldly declares this policy does not let managers off the hook by writing assets down.

Yet Chevron, no wild eyed speculator, has booked $2.6 B in write downs, and Shell took $3.7 billion.

The NY Attorney General gave up on his attack on Exxon's unwillingness to embrace climate change.

So he changed tracks and is now pursuing this angle. I doubt he cares what he can prove guilty as long as he can come up with something. This is regulation run amok.