Russia to build crypto mining hub in Africa

Energy News Beat

Russian supplier of Bitcoin mining solutions BitСluster is building a 120-megawatt (MW) data center in Ethiopia, the company has announced on its website.

According to a press release issued on Thursday, the facility will be located in the capital city of Addis Ababa, on the territory of the Kilinto high-voltage substation, and will comprise 30,000 square meters.

The commissioning of the new data center will take place in January 2024, BitСluster said, noting that transformers are currently being connected.

The report highlighted that the engineering and technical conditions of the data center meet the requirements of the most modern mining devices.

“100% of the data center’s electricity comes from renewable energy sources, specifically from the Grand Ethiopian Renaissance Dam, the largest hydropower project in Africa, with a capacity of 5.15 GW,” the press release reads.

The new energy infrastructure of the Kilinto high-voltage substation will reportedly ensure “uninterrupted power supply to the facility with the expected uptime 99%.”

BitCluster pointed out that the scale of the project allows it to be a full-cycle service center, thereby saving time and money on fixing faulty devices in-house, which makes mining more efficient.


READ MORE:
Remote mountain kingdom secretly mining bitcoin – Forbes

“Ethiopia, with its hydropower potential, will undoubtedly become a new place of attraction for global mining,” co-founder of BitCluster Sergey Arestov projected.

 

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US weekly LNG exports down to 22 cargoes

Energy News Beat

US liquefied natural gas (LNG) exports decreased in the week ending December 20 compared to the week before, according to the Energy Information Administration.

The agency said in its weekly natural gas report that 22 LNG carriers departed the US plants between December 14 and December 20, six vessels less compared to the week before.

Moreover, the total capacity of these LNG vessels is 82 Bcf, the EIA said, citing shipping data provided by Bloomberg Finance.

Average natural gas deliveries to US LNG export terminals were essentially unchanged week over week, averaging 14.6 Bcf/d, according to data from S&P Global Commodity Insights.

Natural gas deliveries to terminals in South Louisiana increased by 1 percent (0.1 Bcf/d) to 9.1 Bcf/d, while natural gas deliveries to terminals in South Texas increased by 2 percent (0.1 Bcf/d) to 4.3 Bcf/d.

The agency said that natural gas deliveries to terminals outside the Gulf Coast were essentially unchanged at 1.2 Bcf/d.

Cheniere’s Sabine Pass plant shipped eight cargoes and the company’s Corpus Christi facility sent four shipments during the period under review.

The Freeport LNG terminal shipped four cargoes, and Sempra Infrastructure’s Cameron LNG terminal shipped three cargoes during the week under review.

Also, the Cove Point LNG terminal shipped two cargoes, and Venture Global’s Calcasieu Pass shipped one cargo.

The Elba Island LNG facility did not ship cargoes during the week under review.

One LNG vessel with a carrying capacity of 3 Bcf docked for off-loading at the Everett LNG terminal in Boston Harbor in Massachusetts between December 13 and December 20, the agency said.

This report week, the Henry Hub spot price rose 16 cents from $2.33 per million British thermal units (MMBtu) last Wednesday to $2.49/MMBtu this Wednesday, the agency said.

Moreover, the price of the January 2024 NYMEX contract increased 11.2 cents, from $2.335/MMBtu last Wednesday to $2.447/MMBtu this Wednesday.

According to the agency, the price of the 12-month strip averaging January 2024 through December 2024 futures contracts increased slightly to $2.564/MMBtu.

The agency said that international natural gas futures decreased this report week.

Bloomberg Finance reported that weekly average front-month futures prices for LNG cargoes in East Asia decreased $2.47 to a weekly average of $13.30/MMBtu.

Natural gas futures for delivery at the Dutch TTF decreased 84 cents to a weekly average of $10.89/MMBtu.

In the same week last year (week ending December 21, 2022), the prices were $34.420MBtu in East Asia and $34.99/MMBtu at TTF, the EIA said.

 

The post US weekly LNG exports down to 22 cargoes appeared first on Energy News Beat.

 

3 Podcasters Walk in a Bar – Episode 41

Energy News Beat

3 Podcasters Walk in a Bar – Episode 41

 

Highlights of the Podcast:

03:16 – The conference of the past

05:30 – The president of the UK put in a very good note

08:50 – The Crude Truth for the energy transition

12:03 – The EIA put out those rules

13:48 – The average coal-fired power plant generates

17:42 – Nuclear power coordination is going to be a game-changer

19:27 – The fastest bomber ever built

21:09 – The most unbelievable historical coincidence in energy history

24:32 – Chevrolet looking to invest more than $14 billion

25:55 – Russia and China involvement in Venezuela

 

With 3 unique personalities, backgrounds, and one horrible team sense of humor, it makes for fun talks around the energy markets.

David Blackmon is a Forbes author and currently writes Energy Absurdities of the Day. He has several active podcasts with ….. His industry leadership is evident, but a dry, calm way of expressing himself adds a different twist.

R.T. Trevillon is the podcast host of The Crude Truth filmed in Fort Worth Texas and runs an oil and gas E&P company. Pecos Country Operating has been in business for ….years and has a constant commitment to all of their stakeholders and is actively working in this oil and gas market.

Stu Turley is the co-podcast host of the Energy News Beat Podcast. While Stu is a legend in his own mind, [email protected]

With 3 unique personalities, backgrounds, and one horrible team sense of humor, it makes for fun talks around the energy markets.

David Blackmon is a Forbes author and currently writes Energy Absurdities of the Day. He has several active podcasts with ….. His industry leadership is evident, but a dry, calm way of expressing himself adds a different twist.

R.T. Trevillon is the podcast host of The Crude Truth filmed in Fort Worth Texas and runs an oil and gas E&P company. Pecos Country Operating has been in business for ….years and has a constant commitment to all of their stakeholders and is actively working in this oil and gas market.

Stu Turley is the co-podcast host of the Energy News Beat Podcast. While Stu is a legend in his own mind, [email protected]

 

Real Estate Investor Pulse

1031 Exchange E-Book

ENB Top News 
ENB
Energy Dashboard
ENB Podcast
ENB Substack

 

David Blackmon LinkedIn

DB Energy Questions 

The Crude Truth with Rey Trevino

Rey Trevino LinkedIn

Energy Transition Weekly Conversation

David Blackmon LinkedIn

Irina Slav LinkedIn

Armando Cavanha LinkedIn

Follow Stuart On LinkedIn and Twitter

If you have any questions, please reach out to us. We want to answer all questions, and if you have what it takes to be a podcast host and you want your show reach out.

Also, sponsor slots are available. There is excellent reach with the four podcasts.

DB Energy Questions 

David Blackmon LinkedIn

The Crude Truth with Rey Trevino

Rey Trevino LinkedIn

The Energy News Beat Podcast

Stu Turley LinkedIn

 

Video Transcription edited for grammar. We disavow any errors unless they make us look better or smarter.

3 Podcasters Walk in a Bar – Episode 41

 

Stuart Turley [00:00:14] Hello Everybody, Do you ever heard that crazy cotton pickin uncle, sitting there at a Christmas party, and all of a sudden he starts telling a joke. These three guys walk into a bar even though the other two guys were walking into that bar my name is Stu Turley President CEO of the sandstone group. I got me some cool cats here today.

David Blackmon [00:00:33] Where.

Stuart Turley [00:00:34] Looking around, Hey, I got David Blackmon, David Blackmon is a legend in my mind.

David Blackmon [00:00:41] Yeah.

Stuart Turley [00:00:42] Incredible. This guy is a Forbes contributing author. He’s on Telegram. He’s on The Daily CALLER. He’s on the energy transition. He is on the energy question, which is going through the roots. How are you man?

David Blackmon [00:00:55] I’m just lovely. Happy to be here at the flying saucer in downtown Fort Worth. With all of our adoring fans here in attendance and a lot of live music playing. Talking about the end of COP 22.

Stuart Turley [00:01:08] I just took

David Blackmon [00:01:10]  They’re still messing around the level of what he’s doing now.

Rey Treviño [00:01:12] Yeah

Stuart Turley [00:01:13]  I just turned, we are in a bar.

David Blackmon [00:01:18] Yes, we are, turn it over to RT.

Stuart Turley [00:01:20] We have RT. RT. You’re actually the human on this crew. And this is RT. He’s one of them big dogs over there at the PECOS operating, he has the Crude truth. Not only does he talk about crude truth, he is crude. All you have to do is go to search on his website. Crude truth and it comes out number one on Google and tells you you’re an animal. Welcome.

Rey Treviño [00:01:46] Thank you, Stu, as always. And yes, we are live here today at once again, back at the flying saucer. It’s great to be back with you guys. Is guilty since we did an episode actually live from location here at the bar. So again, shout out to the flying saucer. Thank you guys very much for the opportunity. And yeah, so don’t get shifty waitresses.

Stuart Turley [00:02:07] Oh, absolutely. Hey, I’ll tell you COP28. has been driving me hilariously nuts. And I did the they were going to have any kind of deal. And finally everybody was standing up there on who got the oil to get rid of fossil fuels. But it’s not really that way.

David Blackmon [00:02:25] No.

Stuart Turley [00:02:25] And I’ve been hearing this side over here going that and David what did they come up with?

David Blackmon [00:02:31] Not much, they came up with some vague language about what is what is it transitioning away from fossil fuels. That was the language they landed on. Instead of saying we’re going to phase out fossil fuels, which was the language that John Kerry and Al Gore and all the activists wanted, I’m not really all that sure what the difference is, other than transition away was obviously seen as more open to interpretation by the countries that didn’t want to agree or dare to agree to any deal at all. And so that’s where they ended up. And, you know, whatever. I mean, it just makes this like pretty much every other cop. The conference of the past, the only two out of the 28 that have, you know, that anyone remembers are the COP three conference that took place in Kyoto in 1999. And then, of course, the Paris conference at which the Paris Accord was struck in 2015. Those are the only two anybody ever talks about. And two years from now, nobody will be talking about this conference either.

Stuart Turley [00:03:41] Well, you know, I got a call from the staff at Dubai and they they want to know about what to do with Kerry because he tried to fly himself down the toilet because they didn’t have it. So they’ve never seen one that big before, Now RT. That was pretty far.

David Blackmon [00:04:01] I don’t even know what it means. And it Was funny.

Stuart Turley [00:04:03]  So when you sit back and you go, Wait a minute, we’re going to say there’s a Ronald Stein is I love.

David Blackmon [00:04:18] He is a.

[00:04:18] And calls me up when we do a podcast and you know, hey, they don’t make bombs at a windmill. I love you, Ronald, if you’re watching. Yeah. It’s true

David Blackmon [00:04:31] Well, they don’t. That’s true.

Rey Treviño [00:04:32] That’s so true. And, you know, I had a great opportunity to talk to David this morning about that big deal that came across last night there that they’re going to transition away from fossil fuels. And it’s nothing more than just something like David said, There was nothing more than just a way for them to feel good about themselves when they all left. COP 28 this year.

David Blackmon [00:04:52] Yeah,.

Rey Treviño [00:04:53] I think the nuclear stuff that happened last week, a cop 28 was very big. I’m definitely, I’m definitely pro nuclear.

David Blackmon [00:05:02] Oh, me too. Yeah.

Rey Treviño [00:05:03] Oh, but as far as the whole point to cop 28 is to be with climate change and to do things positive for the earth. So they ended it, quote unquote. And what they felt was a big bang by saying we’re going to transition out of oil and gas. Well, great. We’ve been trying to do that working for 30 years. And I’m glad you said earlier we’ve already spent trillions of dollars trying to do that.

Stuart Turley [00:05:27] And the president put in a very good note, the president of the UK put in a very good note, and he said, when transparently responsible,.

David Blackmon [00:05:37] Yeah,.

Stuart Turley [00:05:37] I thought so.

David Blackmon [00:05:38] And that’s and that’s just part of what’s going to happen in every country. They’re going to they’re going to say, well, we’ll transition away as soon as we can afford to do that, you know, maybe in the 23rd century or I mean, you know, Uganda’s transition away is going to be different than Peru’s transition away. And America’s is going to be different from England’s. And China is a name. We’re going to worry about it. And so it’s just it’s it’s it’s meaningless. It’s just hot wind and. Word. Salad.

Stuart Turley [00:06:10] One salad.

David Blackmon [00:06:11] Word salad. Kamala Harris might as well written That a great. She was. There. Maybe that’s why. Yeah, That explains it. Yeah

Stuart Turley [00:06:19] And then at midnight, you interviewed Grace Stanke. I thought that was vampire.

Rey Treviño [00:06:24] Oh, yeah. That was a while back last week. Yeah.

Stuart Turley [00:06:27] Oh, yeah. And I’ve got another one for you guys. I interviewed all believers. You said the head of the Energy to Save Alliance. She’s the CEO. And what what a concept? I was sitting there trying to think, Wait a minute. I never even thought of this. Why not save the energy? And that way you don’t have to produce it. They go out and they work with regulations. They work with everybody to try to save energy. That way it helps to keep the load off the grid class acid rain. I mean, she tells me you’re going to love it as well.

David Blackmon [00:07:05] You know what? It just occurred to me, it took me a minute to absorb it, but he just was complaining about. It having been a week since he talked to Miss America.

Stuart Turley [00:07:13] Right.

David Blackmon [00:07:16] I admit, This guy. I don’t even know what to do. How am I in the same room with this guy?

Stuart Turley [00:07:19] I don’t know. He’s a you’re legend in my mind. I mean, the legend.

David Blackmon [00:07:24]  This is the most interesting man in energy right here.

Rey Treviño [00:07:26] That’s a lie

Stuart Turley [00:07:30] That could be a new graphic that we have. You know, I’m the most interesting man in the world.

David Blackmon [00:07:38] Exactly, That’s what I’m saying that I don’t. Always talk to Miss America, but when I don’t. They Complain about it

Stuart Turley [00:07:43]  For the staff, I want a new advertisment for RT.

Rey Treviño [00:07:49] No,.

Stuart Turley [00:07:50] I’m the most interesting podcast host, and and.

Rey Treviño [00:07:53] No, thats a. I think There’s some other people that could take that title, but I could give up any time. This is our podcast to promote. And so.

Stuart Turley [00:08:12] I’m the kid with the pork chop. I am so ugly. I got to have the pork chop around my neck just to have the dog playing it. So, you know, it’s like I pay you guys that,.

Rey Treviño [00:08:25] You know what you talk about that. Isn’t there some for our listeners out there and our viewers that don’t know we’re gonna be at Nape?

Stuart Turley [00:08:33] Yes.

Rey Treviño [00:08:33] And I think there’s another group that’s going to have to be out there in NAPE, and I think they’re either paying people to be on their show. Something like that. But.

Stuart Turley [00:08:43] We don’t train.

Rey Treviño [00:08:44] On our body, but we are going to have a booth and we are inviting anybody that wants to be on the Crude Truth for the energy transition, the energy question, or more importantly, the daily energy news beat, which will be coming live from NAPE, please, you know, reach out. We’d love to talk to you, but know what a week it’s been. Yes, I had the opportunity last week to interview this. Grace. Thank you again. And I tell you what, with people like her well into the future with, I guess, Gen-X or Gen-Z,

David Blackmon [00:09:19] Gen Z. Gen Z.

Rey Treviño [00:09:19] We’re headed in a great place. I mean, oil and gas is going away for 100 years. So me and my son, we don’t got to worry about that. But man, if you can’t sit here and see that energy and nuclear is not the crude future, then you’re you’re living under a rock.

David Blackmon [00:09:36] Yeah, we have to have a lot more nuclear. And by the way, you speaking of Gen Z, I, I had a conversation just yesterday with a young man who’s a graduate student at Boston College University, heading up a research group there on the energy transition , He’s one of smartest people I’ve ever talked to about energy. He’s he’s got his minds exactly in the right place. He understands what all the real issues are, what all the real problems are. And he’s working on real solutions and not all this pie in the sky nonsense. And it was just it was I won’t say his name because it might embarrass him, but it was really refreshing to know that that kind of research is happening at our universities. And these these young people, they’re getting I mean, obviously, this young man has had a tremendous education and what’s happening in this transition. And so that just really bodes well for the future. And, you know, for my grandkids generation.

Rey Treviño [00:10:31] I’m excited, you know, as I continue as a lot of people go back to school right now and it’s just really.

Stuart Turley [00:10:39] First or second grade,.

Rey Treviño [00:10:41] Repeating that second grade,.

Stuart Turley [00:10:42] Repeating. Jethro Bodine.

David Blackmon [00:10:44] Remedial remedial.

Rey Treviño [00:10:45] You know. So I remember when when I graduated from high school and I went to college, they made me take an entrance exam. I didn’t take math class our senior year in high school in Texas, so.

Stuart Turley [00:11:01] I failed that test.

Rey Treviño [00:11:06] But, you know, I. We take a test in Math and I’m like, I would take a Math in a year. Actually, you know, I spent over a semester taking remedial math class all year long. I mean, but anyway, no, I’m back in college right now, and there are so many people out there that truly have common sense.

David Blackmon [00:11:25] Yeah.

Rey Treviño [00:11:26] I just feel like they’re really overpowered and overshadowed by those that are more than just yellow banjo, that squeaky wheel, you know, you’ll always get students. And unfortunately, that looks bad on colleges across the nation. Right. But no, I get back to what they were saying. There are the great people out there that are really caring and looking forward to the future in a way that we can provide clean, sustainable energy along with natural gas and nuclear.

Stuart Turley [00:11:55] Let me ask this, because there were only two nuclear countries have signed on to that deal. How I read something. Not only did the EIA put out those rules at 3 a.m. so the country would have some some thing, you know, that was it went and launched what we thought was an air act and it was legislation for regulation. It was all. But we’re on the nuclear thing. I saw a article put out by Secretary Granholm, and I still say that if they ever if Larry Fetterman, their kid, would be in front of that. So, yes. That being said, that there was all this money.

Rey Treviño [00:12:44] Is not going to just go away. It’s not going to go anywhere.

Stuart Turley [00:12:47] Okay.

David Blackmon [00:12:48] I think,. Again, I don’t. Know what that means, but it made me laugh. So it’s

Stuart Turley [00:12:51]  Right. I’m sitting here And I saw something from Granholm and GranHolm said that they’re going to put all of their money in the state.

Rey Treviño [00:13:04] Yeah.

David Blackmon [00:13:04] Yeah. Which is a complete waste of money. But anyway,.

Stuart Turley [00:13:06] You know. Pensions, where everything is right now and you can do you’ve interviewed somebody with molten sand.

David Blackmon [00:13:16] Molten salt reactor down at Abilene Christian University in three different universities working on this research project that is going to have this nuclear reactor on the campus of Abilene Christian University, incredibly safe, safer than any other technology out there. And they’re going to be generating 500 megawatts of electricity within the next three years.

Rey Treviño [00:13:39] And it’s the size of a refrigerator, correct?

David Blackmon [00:13:42] It’s the size of a refrigerator.

Rey Treviño [00:13:43] And how much power would it be able to get?

David Blackmon [00:13:45] 500 megawatts, which is about half as much as the average coal fired power plant generates. You know. Typical coal plants, one gigawatt natural gas plant, big natural gas plant is one gigawatt.

Stuart Turley [00:14:00] I know it’s big.

David Blackmon [00:14:01] It’s it’s not only if an understand it, to be honest with you, I talked to him and and I don’t understand. But but there’s the the molten salt technology, the thorium technology. There’s several other different technologies that are being developed. And it’s all so advanced, so safe, and there’s no radiation created. And it’s just it it’s just the answer to everything. Because you can create these reactors instead of having to put them 400 miles away in the countryside of the Permian Basin and build 400 miles worth of transmission lines to get it over here to Fort Worth, you just put it right here in downtown Fort Worth.

Stuart Turley [00:14:42] Three and a half billion would pay for a lot of that.

David Blackmon [00:14:46] Yeah. Yeah. And you know, the problem with wind and solar that no one wants to talk about or think about is you have to build trillions of dollars worth of new transmission lines to move the electricity from from where the big farms are out in the countryside into these market centers in the big cities. And, you know, nobody has the money to do that. The money is not. There for. All of that. And even if you do that, the battery technology is not there to reliably back it all up and store the energy for use when the weather’s not ideal and the sun’s not shining. So nuclear’s the obvious answer. And the fact that the environmentalist community continues to demonize the nuclear energy and refuses to admit that is just the clearest example you could have that this transition, all this subsidy for wind and solar and electric vehicles is about a huge transfer of wealth and not really about the environment.

Rey Treviño [00:15:47] Yeah because if they really want if the government really cared, they would be investing those billions in the nuclear.

David Blackmon [00:15:53] Right.

Rey Treviño [00:15:53] And the natural gas. And they’re not doing that.

David Blackmon [00:15:55] And they’re not doing it.

Rey Treviño [00:15:56] You know,.

Stuart Turley [00:15:56] I will say there is a place for wind and solar and it’s not just the bottom of the sea because the whales have a to right. There is a place where, things are still there. I’m all about it. It’s the technology and it’s sustainable. Without money. I’m all in.

Rey Treviño [00:16:15] Oh, well, yeah, no. Plus, that’s rich, you know, here. Fort Worth Eagle Mountain Lake Regatta is a great sailboat that goes on every year. So we need wind to watch the good sailboat races for sure. I mean, so do I get it? I get it with no pulling power. No, it is. I get it.

David Blackmon [00:16:33]  Again. I don’t even know what that means, but it made me laugh.

Stuart Turley [00:16:35] I understand.

David Blackmon [00:16:38] Actually, I. Know what it means, yeah

Stuart Turley [00:16:39]  Tell them they just released their new cargo carrier and then they announce their landing gear for it. And that is a nuclear powered cargo ship that is longer than the Empire State Building, which is that’s a lot of COSCO goods coming across. Man, I always watch Batman. That’s cool. And then the number of LNG carriers coming out is great for saving maritime waste and the dual fuel. LNG is a huge market right now.

David Blackmon [00:17:14] Yeah, and that’s going to continue to expand because the the, the new generation of diesel, the low sulfur, low carbon diesel that they’ve been trying to to put into these ships is much more expensive and it’s it’s really raised a lot of costs for all kinds of consumer goods you know because the feels more expensive.

Rey Treviño [00:17:36] You figured this I wish we would have thought of it here in America, but that nuclear power coordination is going to be a game changer. You know, the whole reason why the Navy uses nuclear killer is because they’re going to hold more stuff.

David Blackmon [00:17:55] And you can stay off the sea indefinitely.

Rey Treviño [00:17:58] And Yes,.

David Blackmon [00:17:58] Right. I mean, all of our submarines, most all of our aircraft carriers and I don’t know about the smaller classes of ships. I think they’re still mostly diesel. But, you know, there’s no reason not to use nuclear technology and for maritime purposes. And again, it’s the reason that it has been. The industry has been stymied, goes all the way back to Three Mile Island and the inability to overcome the false messaging in the news media about radiation and all that.

Stuart Turley [00:18:29] I believe it was an extension for 100 years. I believe that was the.

David Blackmon [00:18:35] Auto canyon over in California.

Stuart Turley [00:18:37] They can’t find it. I’ll have to backtrack how many years, but either 18 or over. That’s nice.

Rey Treviño [00:18:43] Well, you know, here’s the question.

Stuart Turley [00:18:45] I’m happy, by the way.

Rey Treviño [00:18:47] No, no. Okay. You guys, along with my father and brother, both younger than my father. And I will say that I’m sorry. All you all remember having to do nuclear drills. Growing up,.

Stuart Turley [00:18:59] I do.

David Blackmon [00:19:00] Vaguely.

Rey Treviño [00:19:01] Yeah Okay.

David Blackmon [00:19:02] We had to do them when I was in first grade.

Rey Treviño [00:19:04] Yeah. And, you know, of course, what good was it? Was

David Blackmon [00:19:08] The other one. Gonna do it that made everybody feel better?

Rey Treviño [00:19:10] Yes

Stuart Turley [00:19:10] My dad sat on the alert facility for 20 years, I believe, and he had to sit there with a nuke under his airplane and wonder whether or not he was going to take off. And he had targets that he was going to bomb while he was in a B 58 oscillator, the fastest bomber ever built. They’ve never built one that’s any faster. And it was all of growing up in that environment. Sorry to tell you, I grew up in it.

Rey Treviño [00:19:38] Well, okay. Do you think the nuclear is going to take what I would call a close this transition? Because a lot of people remember the death and destruction that nuclear had.

Stuart Turley [00:19:50] That joke, podcasters out there, you know, that most transition A brief right in.

Rey Treviño [00:19:57] What? Well, I mean, is when when Moses saw the prophecy that he couldn’t go across and that entire generation had wandered around. Well, not necessarily the wandering around, but Jacob took all the next generations. So I’m wondering, as Grace Stanke continues, if they’re going to not think about all the things that you guys had to deal with, how dangerous nuclear is.

David Blackmon [00:20:24] He’s saying we’re as old as Moses and that what we’re getting to here.

Stuart Turley [00:20:27] I’m stuck on the raft. You know, his mom put him in the river and she said that. And then I went to a sidetrack when. When he was putting all the animals on there, too. Oh, that’s better. Oh, yeah,.

David Blackmon [00:20:40] That was Noah.

Rey Treviño [00:20:41] All I’m trying to say is this. I think as time goes on, it’ll get more friendly for Nuclear because people will remember all the names.

David Blackmon [00:20:49] Yes. I think everybody my age and older dies. Then nuclear is going to be a deal. Because they want nobody to remember Three Mile Island.

Stuart Turley [00:20:58] Okay.

David Blackmon [00:20:59] And and China syndrome.

Rey Treviño [00:21:01] No, Okay.

David Blackmon [00:21:04] So let’s talk about. Three Mile Island for a second. So but this is like the most unbelievable historical coincidence in energy history is the fact that the China Syndrome movie starring Jane Fonda and Kris Kristofferson came out the week before Three Mile Island happened. If flopped at the box office, nobody went and saw this movie. It really wasn’t that good a movie. Three Mile Island happened and the China Syndrome became the biggest grossing movie in 1979 and was was in the theaters for a full year. Right. And and that event in 1979, that’s 44 years ago is still killing and hampering the expansion of the nuclear power industry in the United States today. and it’s all because of a damn movie.

Stuart Turley [00:21:53] I want your opinions on this because this the House just voted to sanction Russia, not to ban Russian uranium. That’s 12% of our uranium and to our nuclear fleet. I mean, we just shot ourselves in the Bahamas.

David Blackmon [00:22:11] Why does Russia own 20% of our uranium, by the way?

Stuart Turley [00:22:14] Yeah.

David Blackmon [00:22:15] Because Hillary Clinton gave it to sold it to.

Stuart Turley [00:22:19] She’s. He’s right here. Right here. Go ahead.

David Blackmon [00:22:30] Anyway. Arkansas. Come in my way

Stuart Turley [00:22:30]  You know, all the Whitewater files were in the Oklahoma City office of the Oklahoma City bombing. So I just kind of find that.

David Blackmon [00:22:40] I don’t know anything about that.

Stuart Turley [00:22:42] So if you’re going to go and throw us all on the rebels, we might as well just pack up and go off that whitewater grab. I was.

Rey Treviño [00:22:50] I was a when that what happened when.

Stuart Turley [00:22:52] You were just thinking about toys,

David Blackmon [00:22:54] Just so everybody knows I did not commit suicide by shooting myself in the back of the head with a shotgun.

Stuart Turley [00:23:01] But you did. As long as you don’t go hunting with Cheney. You’re Okay

David Blackmon [00:23:05] I never go hunting with anyone named Cheney.

Stuart Turley [00:23:07] No,.

David Blackmon [00:23:08] No,.

Stuart Turley [00:23:08] No. That’ll get you shot.

Rey Treviño [00:23:13] And those are facts of life from 3 podcasters.

Stuart Turley [00:23:16] Okay we’re all we are.

David Blackmon [00:23:19] I have no idea. Where we go

Stuart Turley [00:23:21] Squirrel.

David Blackmon [00:23:23] Squirrel.

Stuart Turley [00:23:24] There is one. Oh, no, that’s the scarf. The lady’s got her shirt. I thought that was a squirrel. Okay. The one thing that I do. We just signed a ban on the uranium.

Rey Treviño [00:23:35] Yeah.

Stuart Turley [00:23:36] We need to find out if Pelosi is investing in uranium, because while she’s invested investment, I think we need.

David Blackmon [00:23:47] To go buy it. Yeah, you’re probably late.

Stuart Turley [00:23:49] RYou’re not offering stock tips, by the way, but if Pelosi listening here. Would you please call the show.

David Blackmon [00:24:00] One 800 Call Stu.

Rey Treviño [00:24:10] You know, I think that this guy was starting to show jitters and we haven’t done a show in person.

David Blackmon [00:24:14] Yeah.

Rey Treviño [00:24:15] So you know

David Blackmon [00:24:17] At Least we talked about COP28.

Rey Treviño [00:24:18] Talked Cop28,  top five nuclear,.

Stuart Turley [00:24:20] telegram  and moses

David Blackmon [00:24:26] Moses? Where we we have moses tops, Yeah,.

Rey Treviño [00:24:28] But also, you know, I will say this with Chevrolet looking to invest more than $14 billion in the Permian. next year $12 billion.

David Blackmon [00:24:38] Yeah, 12. I think.

Rey Treviño [00:24:39] 12 billion in the Permian next year.

Stuart Turley [00:24:41] 12, 12 five. And I’ll read you.

Rey Treviño [00:24:47] Oil. Gas isn’t going anywhere. Well, okay. They just bought hers and they’re still going to still have 12 billion to deploy next year. Oil, gas isn’t going anywhere and they won’t be investing in oil and gas if they didn’t think they were going to make money.

David Blackmon [00:25:00] So when they bought Hess, did you think do you reckon they thought they’d be doing business with Maduro instead of Guyana?

Rey Treviño [00:25:07] You know, what about that? What about that? That’s a great point. I’m thinking to bring up the fact that, you know, Venezuela particular has crosshairs on Guyana right now.

David Blackmon [00:25:17] Well, they’re threatening anyone.

Rey Treviño [00:25:19] Yes. But they’re

Stuart Turley [00:25:23] Are you going to that stool podcast, what’s a podcast,.

David Blackmon [00:25:27] Here.

Stuart Turley [00:25:28] Yeah, well, part of the wellhead is a permanent.

David Blackmon [00:25:36] You know, maybe it’s time to wrap up.

Stuart Turley [00:25:39] One of your last thoughts. Here is your last are.

David Blackmon [00:25:41] Maduro won’t invade because the US isn’t going to let him.

Stuart Turley [00:25:45] What are your last thoughts?

Rey Treviño [00:25:47] Really?

David Blackmon [00:25:48] Yeah.

Stuart Turley [00:25:48] Yeah. No,.

Rey Treviño [00:25:48] With Stanke

David Blackmon [00:25:50] Monroe. Doctrine, baby.

Rey Treviño [00:25:50] Okay,You heard it here first. By David Blackmon.

David Blackmon [00:25:55] Too Much Russia and China involvement in Venezuela. And that’s really the motivating factor.

Stuart Turley [00:26:00] Okay. All those in favor.

Rey Treviño [00:26:03] I want I will say this all. Speaking of your show, the energy transition in the last couple of weeks has been great. I know. I said it last week. I read it again. Please come back soon.

Stuart Turley [00:26:14] I talked to her this morning, by the way.

Rey Treviño [00:26:15] Well, good. Good to hear from listeners out there that don’t watch it or listen every. It’s almost every Monday morning, almost every Monday morning at 8 a.m. So.

David Blackmon [00:26:28] Fixing to do it again next Monday, too.

Rey Treviño [00:26:30] Yes

Stuart Turley [00:26:30] Yes. And I’m only for all those listeners out there. I am only learning that sit that is Irina sit. All right. With that, this is a three podcasters. We got David Blackmon, RT Traviño. And I’m Stu Turley yell, scream and hug your family. We’ll see you next time.

 

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Inflationary Aspects of Spiking Corporate Profits by Major Industry: Starting All Over Again, Good Lordy!

Energy News Beat

Inflation is like so not defeated? Jacking up prices faster than costs are rising creates stunning profits. Strong demand sees to it that companies can do it.

By Wolf Richter for WOLF STREET.

Overall corporate pre-tax profits (excluding the Federal Reserve Banks), jumped by 3.4% in Q3 from Q2, and by 5.5% year-over-year, to a record seasonally adjusted annual rate of $3.45 trillion, fueled by profit spikes in a number of industries whose figures the Bureau of Economic Analysis released today, and we’ll get to them in a moment.

The BEA’s measure of “corporate profits” broadly track profits from current production by all businesses that have to file corporate tax returns, including LLCs and S corporations, plus some organizations that do not file corporate tax returns. It’s based on income tax data from the IRS and on financial statement data filed with the SEC.

During the surge of inflation in 2021 and 2022, price increases were outstripping cost increases by extraordinary margins, hence the spike in profits. Then there was a lull in Q1 and Q2 this year, and now it’s starting all over again:

The inflation aspects.

Surging profitability during a period of big inflation is a sign that companies have leveraged inflation to their advantage, hiking prices much faster than their costs went up, and thereby doing their part in fueling inflationary momentum. And they’re able to do it because their customers are willing to pay those whatever-prices.

Interestingly, the surging labor costs have so far not made a dent into these profit spikes, and they might not if companies can continue to jack up their prices faster than their costs go up, including labor costs, which is precisely how inflation is nurtured and propagated.

First some definitions.

IVA: The “inventory valuation adjustment” removes “profits” derived from inventory cost changes. Profits from inventory are more like a capital-gain than profits from current production.

CCAdj: The “capital consumption adjustment” converts the tax-return measures of depreciation (based on historical-cost accounting) to measures of consumption of fixed capital, based on current cost with consistent service lives and with empirically based depreciation schedules.

Capital gains & dividends received are excluded to show business profits from current production, rather than financial gains.

Profits by industry.

Profits by financial domestic Industries rose by 2.0% in Q3 from Q2, to a seasonally adjusted annual rate of $710 billion, the second highest behind the record in Q1, and was up by 23% year-over-year.

These are domestic profits by all financial companies except the Federal Reserve Banks (FRBs): banks and bank holding companies, other credit intermediation and related activities; securities, commodity contracts, and other financial investments and related activities; insurance carriers and related activities; and funds, trusts, and other financial vehicles.

Their customers are paying for those profits by paying higher prices, fees, insurance premiums, etc., which contribute to the still hot inflation in services.

Profits in durable-goods manufacturing spiked by 7.8% in Q3 from Q2, and by 18.5% year-over-year to a record seasonally adjusted annual rate of $400 billion. This amounts to a 100% spike in profits from just before the pandemic.

These industries produce computers, electronics, motor vehicles, trailers, machinery, fabricated metals, electrical equipment, appliances, components, and other durable goods.

Profits in nondurable-goods manufacturing rose by 1.1% in Q3 from Q2, to a seasonally adjusted annual rate of $344 billion, after having dropped in the prior two quarters. Compared to a year ago, profits were down by 10%.

These industries produce food, beverages, and tobacco products; petroleum products (including gasoline and diesel), coal products; chemical products; and other nondurable goods.

Profits in the retail trade, incl. Ecommerce, spiked by 5.9% in Q3 from Q2 and by 30.6% year over year, to a seasonally adjusted annual rate of $374 billion.

Inflation is a wonderful profit-generator when demand is so strong and customers so befuddled with the inflationary mindset that companies can raise their prices much faster than their costs go up.

And our drunken sailors, as we have called them facetiously and lovingly all year, are eagerly playing along, splurging and dropping money left and right, armed with per-capita disposable incomes that have outpaced inflation by a wide margin this year:

Profits in wholesale trade rose by 2.3% in Q3 from Q2, to a seasonally adjusted annual rate of $233 billion, the first increase after three quarters of declines. Compared to a year ago, profits were down by 13%:

Profits in information spiked by 3.0% in Q3 from Q2, and by 15.7% year-over-year, to a record seasonally adjusted annual rate of $193 billion. The layoffs in this industry in 2022 and early 2023 likely helped bring costs down and boost profits.

Information is a relatively small sector with only about 3 million employees, so compared to its small size, it’s hugely profitable. It includes web search portals, data processing, data transmission, information services, software publishing, motion picture and sound recording, broadcasting including over the Internet, and telecommunications. Some of the tech and social media companies are in this sector.

Profits in transportation & warehousing plunged by 8.1% in Q3 from the record in Q2, to a seasonally adjusted annual rate of $117 billion. Year-over-year, profits were up by 3.6%.

Profits in the huge category of “other nonfinancial” industries jumped by 4.8% in Q3 from Q2, to a seasonally adjusted annual rate of $845 billion. Year-over-year, profits were up by 1.0%. But they’re still below the record of Q2 2022.

Includes mining; construction; real estate and rental and leasing; professional, scientific, and technical services (where some of the tech and social media companies are); administrative and waste management services; educational services; health care and social assistance; arts, entertainment, and recreation; accommodation and food services; agriculture, forestry, fishing, and hunting; and other services, except government.

This category is responsible for inflation in healthcare, concert tickets and other entertainment, lodging, eating out, construction, etc. And after the lull, it’s starting all over again:

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China Bans Exports of Some Rare-Earth Processing Technology

Energy News Beat

China will halt the export of a range of rare-earth technologies, potentially making it harder for the US and other western nations to bolster supplies of strategic raw materials.

Beijing put technology for making rare-earth metals and rare-earth magnets on a list of items can’t be transfered overseas, according to a document from the Ministry of Commerce. The move by the world’s dominant supplier of the minerals comes as its geopolitical rivals rush to cut reliance on materials produced in China.

The new rules don’t affect shipments of rare-earth products themselves, but may be intended to frustrate efforts to develop the industry outside China.

Critical metals are coming under the spotlight more as Western nations increasingly view supplies as a matter of national security — especially as the global energy transition stokes fears of potential shortages in the future.

The US is spearheading a drive to reduce China’s stranglehold over flows of minerals from rare earths to lithium and cobalt. President Joe Biden’s flagship climate legislation includes rules aimed at generating more supply domestically or from allied nations. China has responded with restrictions on the export of gallium, germanium and graphite.

While Biden’s landmark legislation and Europe’s Critical Raw Materials Act promise to unlock new funding for prospective suppliers, Beijing’s latest salvo underscores the technical challenges that Western producers could face in developing refining processes that China has come to master over the decades.

Until relatively recently, there were barely any rare-earth refineries at all outside of China. That means its companies and researchers have built a substantial technological and practical advantage in how to extract and process rare earths, while expertise elsewhere has lagged.

The ban-list includes technology for separating rare earths as well producing metal and magnets. Technology for mining, ore-dressing and smelting was listed as “restricted,” rather than banned.

China’s grip over the global rare-earths market first gained broad international attention in 2010, when China imposed tight restrictions on exports. The US, European Union and Japan eventually forced Beijing to overturn the measures via the World Trade Organization. But concerns about its dominance have lingered as Western suppliers faced commercial, technical and environmental setbacks in developing alternative supplies.

China accounted for more than two-thirds of mined rare earths last year, and is home to as much as all global refining capacity, according to US government figures. The country also dominates the supply of rare-earth magnets, the main product deployed in manufactured goods.

Source: Bloomberg 

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Angola Quitting OPEC Is More Critical Than It Seems

Energy News Beat

The three most dangerous words in the oil market are “OPEC is dead.” The oil cartel’s obituary has been written many, many times — and always prematurely. The almost non-stop departure of member countries during the past decade – Indonesia in 2016, Qatar in 2019, Ecuador in 2020 — have provided ample opportunity to prepare eulogies, all of them a waste of words.1

So is the exit of Angola, announced on Thursday, anything but another blip for OPEC? At first glance, it’s irrelevant. But it has deeper implications for the bloc that go beyond what it means for global crude supplies.

Inside OPEC, power is measured in millions of barrels a day. Angola doesn’t pump many, and there’s little chance it would produce more in the foreseeable future. According to the International Energy Agency, Angola pumped almost 1.1 million barrels a day in November, down 45% from a peak of more than 1.9 million barrels in 2010. Moreover, the nation is already at full capacity. Contrast that with Saudi Arabia, which produces about 9 million barrels, less than its 12.5 million potential.

The departure of an OPEC nation would worry those who remain inside the cartel — and anyone else bullish on oil prices — if that country could rapidly boost production by tapping its spare capacity, or develop new oilfields over time. But Angola cannot do either. There’s no more output available, and there aren’t foreign investors knocking at its door to fund exploration and development.

Whether inside or outside OPEC, the heyday of Angola’s petroleum industry is behind it. As such, its exit mirrors the limited impact of previous departures. Indonesia, Qatar and Ecuador haven’t altered the global supply and demand balance since they quit the organization.

But the walkout does signal some troubling developments for the oil club. The announcement, with the government in Luanda openly expressing its frustration with the cartel, sheds some light on an open secret: Lots of OPEC member countries are less than happy about the direction the group has taken over the last few years under the leadership of Saudi Arabia.

The view, expressed always in private, is that Riyadh is trying to keep oil prices too high, close to $100-a-barrel, which is propping up rivals, notably the US shale industry. If OPEC continues doing so, sooner or later it would have to cut production even more, ceding more market share. Other OPEC members would be happy with oil prices lower, in the $60-to-$70 range. That complaint comes along another one: Riyadh, under its Energy Minister Prince Abdulaziz bin Salman, isn’t listening to the concerns from others, trying to bully any dissident views into submission.

The key country to watch isn’t Angola, but the United Arab Emirates, which recently won a hard-fought campaign against Riyadh to secure a higher OPEC production level. I don’t think Abu Dhabi is done. During the campaign, Emirati diplomats went as far as questioning the value of OPEC membership. My belief is that those briefings were more a tool in the campaign to secure a quota increase than a real threat. But it shows that everything isn’t rosy inside the cartel. The UAE not only has ample spare capacity – it pumps 3.1 million and probably can do 4 million – but also foreign backing to invest in new oilfields that would boost production capacity to as much as 5 million barrels.

The departure of Angola makes it more likely that Riyadh will have to let the UAE to produce, over time, even more oil. The risks for OPEC start in Luanda — but ultimately end more dangerously in Abu Dhabi.

Source: Bloomberg: Javier Blas

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Exxon Mobil: Merger With Pioneer And Expected Rising Oil Prices (Rating Upgrade)

Energy News Beat
Exxon Mobil is set to acquire Pioneer Natural Resources, which will increase its oil and gas sales and make it the largest player in the Permian Basin.
The oil market balance is expected to be influenced by voluntary production cuts from OPEC+ countries and concerns over slowing global demand.
The forecast for Brent oil prices has been lowered, but overall, Exxon Mobil’s financial results are expected to improve with the acquisition and increased oil and gas margins.

Investment thesis

We have covered the stock before, and since last quarter several things have changed, most importantly:

Exxon Mobil Corporation and Pioneer Natural Resources jointly announced a definitive agreement under which Exxon Mobil will acquire Pioneer;
We

Russia extended a voluntary 0.5 mb/d reduction in crude oil and petroleum product exports.
OPEC+ will voluntarily reduce oil production in Q1 2024

Concerns over slowing demand weigh on oil prices

Invest Heroes

Invest Heroes

Invest Heroes

EIA

expectations of lower demand for natural gas in the US, which will be in part mitigated by rising demand in some other regions;
lower oil production in 3Q 2023, which created a low base effect.

Invest Heroes

the reduction of the forecast for oil prices from $96.2/bbl to $86.4/bbl for 4Q 2023, and from an average of $100/bbl to $92.7/bbl for 2024;
the reduction of the forecast for gas prices from $2.64/thousand cubic feet (Mcf) to $2.55/Mcf for 2023, and from an average of $3.41/Mcf to $3.26/Mcf for 2024;
the decrease of oil product prices on the heels of falling oil prices.

Invest Heroes

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PXD achieved 100% cube development in 2022 in the Midland Basin, where Exxon Mobil refined the approach back in 2019. Cube development requires detailed planning and therefore capital investment to apply it, but then delivers a 30-50% higher NPV than other state-of-the-art approaches. Exxon Mobil noted that its widespread utilization of this approach sets XOM’ apart from its competition, and the acquisition of Pioneer, which has also fully moved to using cube development, is in line with Exxon Mobil’s well development strategy.
PXD has a low cost of oil and gas production compared to industry averages, which consequently will help XOM reduce production costs in the Permian Basin, and potentially other oil and gas production locations, through technology sharing with Pioneer, particularly their achievements in water recycling.
We expect to see Exxon Mobil’s oil and gas margins increase, not only because of potential new capacity, but also because of the years of experience of people that are optimizing and managing refineries and chemical plants to get the most out of that capacity.

Invest Heroes

Invest Heroes

Invest Heroes

the increase of the fair EV/EBITDA multiple from 5.3x to 6.2x. Given the new outlook for the oil market balance and the new, lower forecast for oil prices, we assume that the world is entering a phase of lower oil prices, which follows a lengthy period of high prices. Therefore, the current reduced multiple for XOM reflects the cycle of lower oil prices;
the shift of the FTM valuation period by one quarter forward.

Invest Heroes

Source: Seekingalpha.com

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TotalEnergies to sell part of Seagreen wind farm for £552m

Energy News Beat

TotalEnergies (XPAR: TTE) has agreed to sell 25.5% of Seagreen, Scotland’s largest offshore wind farm, in a £552m deal with Thailand national oil firm PTTEP.

The French energy major said the deal implies an enterprise value of $4.3bn, more than 13 times the expected average EBITDA of the project over the next five years.

Seagreen, which became fully operational in October, lies around 14 miles from the Angus coast.

Following the deal, TotalEnergies will retain 25.5%, alongside operator SSE Renewables (49%) and PTTEP with 25.5%.

TotalEnergies and PTTEP have also signed a memorandum of understanding to explore joint renewable energy opportunities.

CEO of TotalEnergies Patrick Pouyanne said: “After a long history of partnership in gas production in Thailand, we are delighted to welcome PTTEP as a shareholder partner in the Seagreen offshore wind farm alongside SSE, which marks a first step in our collaboration with PTTEP in renewable energies.

“This transaction is a new milestone in the implementation of our transition strategy and will contribute to reaching our 12% profitability target in Integrated Power business.”

Seagreen includes 114 turbines with enough generation to power more than 1.6 million homes, which TotalEnergies said was the equivalent of more than two-thirds of homes in Scotland.

Montri Rawanchaikul, CEO of PTTEP, said: “PTTEP is also very delighted to extend its partnership and collaboration with TotalEnergies in offshore wind as well as other potential renewable energy to foster mutual business growth in the future.

“The success also marks a significant step for PTTEP in diversifying into the high-growth potential clean energy sector for a sustainable future.”

SSE Renewables took over from TotalEnergies as operator once the development phase ended and Seagreen became fully operational in October.

Source: Energyvoice.com

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Russia to seize energy assets from ‘unfriendly’ European countries

Energy News Beat

Russian President Vladimir Putin has signed decrees granting his government power to confiscate and forcibly sell off billions of dollars worth of assets belonging to European energy firms to new state-approved owners.

In a decree published Wednesday, the Kremlin mandated the creation of new Russian-run companies to take over shares in the colossal Yuzhno-Russkoye oil and gas field, currently owned by Austria’s OMV and Germany’s Wintershall. The two European energy giants, both from countries that Moscow claims are “unfriendly” in the wake of its full-scale invasion of Ukraine, together hold a 60 percent stake in the drilling site in Russia’s icy far north.

While the companies will theoretically be compensated for their investment, the amount they receive from the sale will be determined by the Russian state, in a move that marks the biggest asset seizure in the country’s recent history.

Earlier this year, the Kremlin laid out a legal framework for the expropriation of foreign-owned assets as it seeks to shore up its economy in the face of Western sanctions. Following the decision, former Russian oil and gas tycoon Mikhail Khodorkovsky, who had his own energy empire dismantled and was jailed as a result of his opposition to Putin, told POLITICO there were now no legal protections for foreign firms.

“There are no guarantees for the safety of investments anywhere, but Vladimir Putin’s regime has demonstratively built an illegitimate and lawless state,” he said at the time.

Many Western energy firms have announced their total withdrawal from Russia since the start of the war in February 2022, including the U.S.’s Exxon Mobil and Norway’s Equinor. However, others such as Shell, BP, TotalEnergies and Wintershall have found the practicalities of wrapping up their business in the country and clawing back their funds challenging.

Experts warn that a lack of Western investment, coupled with embargoes on key hardware and technologies for oil and gas exploration and drilling, mean Russia’s flagship fossil fuels sector is likely to face a long-term decline in productivity, despite sanctions loopholes and high prices for oil and gas.

Meanwhile, the Kremlin has already confiscated assets belonging to Western firms like Danone and Carlsberg in the wake of their decisions to leave the market, handing the windfall to close allies of Putin and their families.

Source: Politico.eu

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YET ANOTHER MAJOR CAR MANUFACTURER HITS PAUSE ON EV DEVELOPMENT

Energy News Beat

The demand from the Biden administration and Gavin Newsom to make every car an EV in the near future suffered another devastating blow on Tuesday.

In October, Ford announced it was pulling the plug on a massive, $12 billion investment in electric car design and production. That came after the company announced massive losses on each EV it builds, thanks to enormous R&D costs and minimal consumer demand.

Then a group of nearly 4,000 car dealerships wrote a letter to Biden asking him to stop his relentless push for more electric cars. Citing low and declining interest in electric vehicles and the costs of retrofitting dealerships to handle charging infrastructure for cars no one wants, the dealers asked the administration to stop proposed changes to force manufacturers into making more of them.

Now one of the largest luxury car brands is also pressing pause on its EV strategy thanks to collapsing interest.

Audi’s new CEO announced Tuesday that the company would be imposing a “slowdown” in EV production and development to “avoid burdening” factories and dealerships, according to Electrek. Audi initially had announced that out of 20 new models through 2026, 10 would be electric. Instead, it’ll now be focusing more heavily on hybrids and internal combustion cars.

Biden’s rules working flawlessly, as always.

EV Demand Predictably Slows

It was always farcical to believe, as Biden and his allies on the political left do, that electric cars would achieve widespread adoption immediately.

While EV’s do have some advantages, namely fewer maintenance requirements, they come with enormous hurdles. Unless car buyers live in a house with a garage and are able and willing to pay for the installation of a home charger, they’re forced to rely on the public charging network.

And while Tesla’s figured out how to quickly build widespread charging infrastructure, no one else has. And Tesla’s chargers aren’t exactly fast, or uncrowded.

Electrify America and other national networks are slow to build, often full, don’t work, and even when charging at full speed, require 30 to 60 minutes to fully charge most electric cars. That also ignores the issues of battery degradation and loss of range that result from repeatedly charging them. Lack of repairability, difficulty in finding and transporting components, and the massive increase in accessible electricity make EV’s arguably less “sustainable” than other car options.

None of that’s stopped Biden or Newsom from demanding manufacturers lose money on cars no one buys. As more and more of them simply say no, it raises the question of if and when they’ll stop their nonsensical rules.

Based on their response to the border crisis and other major issues, the answer is likely never.

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