News

After months of political grandstanding and embarrassing missteps from New York Attorney General Eric Schneiderman and his allies, the Wall Street Journal reported yesterday that the Securities and Exchange Commission (SEC) is stepping in to take a closer look at how ExxonMobil assesses the value of its proven reserves, a topic that’s gotten a lot of attention across the entire industry in light of the low-commodity price environment in which we find ourselves today.

Exxon has welcomed the SEC’s investigation, noting that the agency is the “appropriate” entity to investigate its accounting and reporting practices, whereas Schneiderman’s office is not. As Politico reported:

Exxon Mobil today welcomed as “appropriate” the SEC’s inquiry into its accounting practices in what appeared to be a subtle jab at New York Attorney General Eric Schneiderman, who has drawn the oil and gas industry’s ire for pursuing multiple avenues of investigation against the company.

Reuters went even further than Politico, suggesting that Schneiderman, realizing he was up a certain creek without a paddle, may have asked the SEC to bail him out:

“Legal scholars have said Schneiderman’s casting about over the last year suggested he did not have strong case to press in court or use to force the company into a settlement. With the SEC now stepping in, Schneiderman could take credit for creating the impetus for the inquiry without having to win a case.” (emphasis added)

Translation: ExxonKnew is dead. Bill McKibben, a leader in the ExxonKnew campaign, clearly still hasn’t gotten the memo, as he took to Twitter proclaiming, “Whoa—Apparently the SEC has joined the #exxonknew investigation,”...