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The “Electric Vehicle Revolution” Is DOA – In Texas we call that “DRT – Dead Right There”

Energy News Beat

In Texas we call that “DRT – Dead Right There” – Stu Turley

In the early days of the push for electric vehicles to replace gas-powered vehicles, they were novelties used for virtue signaling. As the push from government leftists ramped up quickly, millions worldwide jumped onboard willingly or reluctantly as it appeared that an EV future was inevitable.

Now that the market has matured, challenges are evident. Electric vehicles are unreliable. They are expensive to repair. The infrastructure to power them is insufficient today even though they only make up a tiny percentage of what’s on the road. Behind all of these roadblocks is an underlying reality: Far fewer people are joining the climate change cult than the powers-that-be had hoped.

Force-feeding us through regulations, incentives, and massive ESG bullying campaigns have failed miserably. Now, the chickens are coming home to roost for a fearmongering industry that couldn’t deliver on any of their promises. Is the “Electric Vehicle Revolution” dying?

No. It was dead before it got here.

Audi is joining U.S. automakers in slashing production of EVs. On the retail side, Ford dealers are backing away from even offering EVs. Reports of coming challenges for EV drivers are making the Christmas news cycle. This isn’t the future that climate change cultists were promised and it’s impacting faith in the movement.

Below is an article highlighting the worst indicator of them all: Lack of used EV enthusiasm. Vehicles with staying power enjoy popularity through all stages of existence. They sell well when they’re bought or leased new. They then sell well again as program vehicles, certified pre-owned, or plain old used cars. Some, particular trucks, enjoy extended usefulness as owners sink money and effort into keeping them on the roads for decades. With EVs, none of those scenarios are panning out. The results have been predictable as EV graveyards have started popping up across the western world. Here is the article generated from corporate media reports by Discern Reporter…

Demand for Used Electric Vehicles Is Even Lower Than for New

The transition away from traditional combustion engine vehicles is encountering a new challenge: reluctance among buyers to purchase used electric vehicles (EVs), thereby undermining the market for both new and pre-owned EVs.

In the $1.2 trillion secondhand market, prices for battery-powered cars are declining more rapidly than their combustion-engine counterparts. Several factors contribute to this trend, including the absence of subsidies, a wait-and-see approach for better technology, and ongoing deficiencies in charging infrastructure. Intense competition, fueled by Tesla Inc. and Chinese models, has triggered a price war, impacting the values of new and used cars alike, thereby jeopardizing profits for companies like Volkswagen AG and Stellantis NV.

As the majority of new vehicles in Europe are leased, automakers and dealers are grappling with plummeting valuations, leading to increased borrowing costs to recoup losses. This strategy, in turn, is dampening demand in European markets that were at the forefront of the shift away from fossil fuel-powered vehicles. In response to declining resale values, major buyers of new cars, including rental firms such as Sixt SE, are scaling back on EV adoption.

The challenges are expected to escalate next year when many of the 1.2 million EVs sold in Europe in 2021, under three-year leasing contracts, enter the secondhand market. How companies address this issue will be crucial for their financial performance, consumer confidence, and the broader goal of decarbonization, aligning with the European Union’s plan to phase out sales of new fuel-burning cars by 2035.

There is a lack of demand for used EVs, posing a hindrance to the overall cost-of-ownership narrative. Companies can divert EVs to mobility offerings and ride-sharing startups, but limited demand from these businesses remains a challenge. Unwanted combustion cars often end up in Africa, but the poor charging infrastructure in that region restricts the market for EVs. The situation in China, where lucrative subsidies led to abandoned EVs, serves as a cautionary tale.

Early signs of trouble emerged when Tesla aggressively reduced prices earlier this year, initiating a price war that eroded profitability for some and exacerbated losses for others. Secondhand EV prices experienced a significant decline, around one-third, in the year through October, compared to a mere 5% decline in the overall used car market.

In Germany, a key auto market, the slowdown in new EV orders is leading to a surplus of used models, impacting the secondhand market. This trend is particularly pronounced for EVs, with more units remaining on lots for extended periods, categorized as “risk inventory.” Prices need substantial reductions to attract customers to consider EVs, creating challenges for dealers and manufacturers.

Handling secondhand EVs presents a unique challenge as there are no standardized tests to determine the quality of a battery, which constitutes around 30% of an EV’s value. Manufacturers are exploring new battery technologies, such as solid-state batteries, to bring down costs, increase range, and facilitate faster charging.

Despite some EVs performing well in the secondhand market, consumer hesitation remains, and manufacturers are actively working on new technologies to address concerns. The uncertainty surrounding EV technology is expected to drive more customers toward leasing rather than purchasing, accelerating the shift from ownership to usage.

Source: Discern Report

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India drone strike: Cargo ship attacked off Gujarat coast

Energy News Beat

A cargo ship was struck by a drone off the coast of the western Indian state of Gujarat on Saturday.

The Liberia-flagged chemical products tanker was linked to Israel, according to maritime security firm Ambrey, and was heading from Saudi Arabia to India.

The attack sparked a fire onboard the ship which was put out, but none of the roughly 20 crew members were harmed.

It comes after a series of drone and rocket attacks on ships in the Red Sea by Iran-backed Houthi rebels.

The group, which controls much of Yemen, has carried out more than 100 drone and missile attacks on 10 vessels, according to US officials. It claims to be targeting Israel over the war in Gaza.

Many large global shipping groups have suspended operations in the Red Sea due to the increased risk of attacks.

But it is not yet clear who was behind the strike near India on Saturday.

The incident took place 200 nautical miles (370km) south-west of the city of Veraval, according the British military’s United Kingdom Maritime Trade Operations (UKMTO).

It caused structural damage to the tanker – identified in Indian media as the crude oil-carrying MV Chem Pluto – and water was taken onboard.

Ambrey said the event, which is the first of its kind so far away from the Red Sea, fell within an area the firm considered a “heightened threat area” for Iranian drones.

The Indian navy sent an aircraft and warships to offer assistance.

Earlier on Saturday, the US accused Iran of being “deeply involved” in planning operations against commercial vessels in the Red Sea.

National security spokesperson Adrienne Watson said it was “consistent with Iran’s long-term material support and encouragement of the Houthis’ destabilising actions in the region”.

Who are the Houthi rebels attacking Red Sea ships?

Later, an Iranian Revolutionary Guards commander warned it would force the closure of waterways other than the Red Sea if “America and its allies continue committing crimes” in Gaza.

Brig Gen Mohammad Reza Naqdi said these could include the Mediterranean Sea and Strait of Gibraltar – but offered no details of how this would happen.

The post India drone strike: Cargo ship attacked off Gujarat coast appeared first on Energy News Beat.

 

China’s clean energy revolution a contradiction in terms? A few truths about its green story

Energy News Beat

GANSU, China: Chinese farmer Wu Wenju lives in a little house that is unassuming except for the 48 solar panels installed on its roof, glistening in the midday sun.

His family own a cotton and sheep farm in a village in Dunhuang, Gansu province. And the solar panels provide an additional source of income: A power company installed them for free and rents the roof space from the family.

The electricity generated is connected to the local grid but is also made available to the family, free of charge.

“Normally, our … electricity consumption is about 100 yuan (S$19) per month,” says Wu. “We can save about a few hundred yuan a year now.”

Not all the families in his village have installed solar panels at this point, but more are warming to the idea. Indeed, in the past few years, more villagers across China have done something similar.

Through the government’s Solar Energy for Poverty Alleviation Programme (SEPAP), announced in 2014, home owners lease their roof and land to solar companies. The electricity generated is sold to the grid, with profits shared with the home owners.

Solar panels on the rooftop of a house in Wu Wenju’s village.

He Jijiang, executive deputy director of Tsinghua University’s Research Centre for Energy Transition and Social Development, described this programme as “one of China’s signature energy transformations”.

“(Photovoltaics) are built in the poorest villages, and income generated from the power stations is reserved for the villagers to address poverty issues,” he said.

SEPAP has benefited more than 400 million people, according to China’s National Energy Administration. And by 2020, the programme increased national solar power capacity by 26 gigawatts, exceeding the initial target of 10 gigawatts.

This April, China’s solar capacity reached 430 gigawatts, which is triple that of second-placed United States, with 142 gigawatts.

China has invested heavily in other renewables too. In 2012, the country saw US$67.7 billion (S$90.2 billion) of clean energy investment. A decade later, this shot up to US$546 billion.

Today, China is the world’s biggest producer of renewable energy, and not only solar energy.

It has more than 4,300 wind farms in operation or development. Last year, these generated 46 per cent more wind power than all of Europe, the second-largest wind generation market.

Despite these achievements, there are inherent contradictions. China is the world’s biggest climate polluter and permitted more coal power stations last year than any time since 2015.

Why is this the case? The programme Insight finds out the true story of China’s green energy revolution and whether the world has something to worry about.

WATCH: China’s contradiction: World’s biggest clean energy producer and biggest polluter? (45:21)

“If you were here back in 2013, you probably had to wear masks, not because of COVID but because of the (air pollutants),” said Ma Jun, former chief economist of China’s central bank, the People’s Bank of China.

Ma, who is now the president of the non-profit Institute of Finance and Sustainability, helped draft China’s first green finance guidelines.

He noted that dealing with pollution — not only air but also water and land pollution — required “a lot of money”: About 4 trillion yuan yearly.

China has had to deal with air pollutants such as nitrogen oxides and sulfur oxides.

But experts attribute China’s growing motivations to economic reasons as much as the environment. While more than 80 per cent of the world’s solar cells are made in China today, there was no domestic market at the start.

“It was mostly the European demand that triggered China’s investment in the whole renewable energy sector,” said Hang Seng Bank (China) chief economist Wang Dan.

It was in 2006, with the start of the European photovoltaic market and the support of a series of European policies, when China’s photovoltaic cell industry’s technology began to advance.

Back then, China bought raw materials from overseas and used foreign technology to process photovoltaics domestically before exporting them.

“Because of the lower costs in China, … (Chinese photovoltaic companies) could quickly become profitable and raise the funds for rapid factory expansion,” said Solar Energy Research Institute of Singapore chief executive officer Armin Aberle.

Perhaps most emblematic of China’s green investments is Dunhuang’s molten salt solar thermal power station, known as the “super mirror power plant”, on the doorstep of Wu’s village.

Built at a cost of 3 billion yuan, it covers 7.8 square kilometres in the Gobi Desert — the size of almost 1,100 football fields and the largest of its kind in China.

The 100-megawatt station can generate over 2.3 million kilowatts per day, enough to supply electricity to Dunhuang city for a whole day, said its general manager, Liu Fuguo.

The station uses 12,000 photovoltaic mirrors to concentrate and reflect sunlight onto a receiver tower. Molten salt is pumped into the tower and then heated.

With no shortage of direct sunlight and very little cloud cover, the arid Gobi Desert is the ideal location for Dunhuang’s solar thermal power station.

Whereas conventional photovoltaics convert sunlight into electricity, which means the electricity generation stops once the sun has set, the station’s technology is different, according to Liu.

“During the day, the electricity generation process collects and stores the heat,” he said. “After the sun sets, the stored heat continues to generate electricity.”

THE COAL ATTRACTION

Even as China constructs clean energy projects such as Dunhuang’s solar thermal power station, it is responsible for about 30 per cent of global emissions, largely because of its dependence on coal.

China is also building more coal power stations than any other country. Last year, it produced a record 4.5 billion metric tons of coal, Reuters reported.

Despite its clean energy investment, experts note that coal is still the lowest-cost energy option in China today.

“China sits on huge reserves of coal,” said Aberle. “It doesn’t want to import energy from other countries; it wants to use as much local coal as possible. … That’s why coal is so attractive.”

China’s energy system is dominated by coal.

Clean energy generation, added Wang, is also “mostly intermittent”, which means there is no better alternative to coal power for heating.

“(You) need to have continued sunshine or continuous wind blowing in order to generate enough of the (power) supply,” she said. “If you build one more power plant using solar or wind, you almost have to build a separate coal power plant in order to stabilise the power supply.

“So a coal power plant in many areas of China is simply a necessity.”

Moreover, in China, economic growth “dominates everything”, and the environment “comes second”, said Aberle. “I don’t think they’re ready to serve as a global role model in the sustainability arena.”

Source: Channel News Asia

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Cyber attacks on the US Grid and CCP-tied group is quietly fueling US-based climate initiatives: tax filings

Energy News Beat

 

FOX: A climate-focused nonprofit with significant operations in Beijing has wired millions of dollars to fund climate initiatives and environmental groups in the U.S., according to tax filings first obtained by Fox News Digital.

While the Energy Foundation’s financial filings indicate that the group is technically headquartered in San Francisco, a Fox News Digital review determined that the majority of its operations are conducted in China with a staff that boasts extensive ties to the Chinese Communist Party (CCP). Its recently filed tax form show the group, which refers to itself as “Energy Foundation China,” contributed $3.8 million to initiatives in the U.S. like phasing out coal and electrifying the transportation sector.

“The Energy Foundation’s ties to China are both extremely disturbing and reprehensible,” Tom Pyle, the president of the Institute for Energy Research, told Fox News Digital in an interview. “These environmental organizations, the recipients of this money, are, in essence, sacrificing our national security and empowering China.”

Watch the latest video at foxnews.com

“We are the richest energy nation in the world with respect to coal, oil and natural gas,” he continued. “And yet the Biden administration and the environmentalists fueled by China are promoting policies that would increase our dependence on China, which controls all the minerals and materials needed for batteries and wind and solar, and curtail our production of oil and gas here at home.”

According to its financial filings, the Energy Foundation’s grant revenue declined 30% year over year to $56.7 million in 2022, but its grant contributions to outside groups and initiatives worldwide increased to $52.1 million, up 27% compared to last year.

Among its more than a dozen grants in the U.S. last year, the group wired $900,000 to the Rocky Mountain Institute, a Colorado-based think tank that has engaged the White House on climate policy and advocates phasing down fossil fuel reliance and net-zero policies. The group also funded a study in 2022 highlighting the dangers of natural gas-powered stovetops, which ultimately led to calls for bans on the appliance.

The Energy Foundation sent another $480,000 to the Washington, D.C.-based International Council on Clean Transportation, which advocates for widespread EV adoption and policies decarbonizing the transportation sector broadly. It also wired grants — one to the University of Maryland and another to the Jackson Hole Center for Global Affairs — worth a total of $450,000 and earmarked for projects to phase out coal power reliance.

The Energy Foundation gave $900,000 to the Rocky Mountain Institute, which advocates decarbonizing residential buildings and funded a study about the harms of gas stoves. (AP Photo/Thomas Kienzle/File)

It further sent $375,000 to the Natural Resources Defense Council (NRDC), a group founded as “America’s first litigation-focused nonprofit dedicated to making dirty industries clean up their pollution” and which has filed dozens of legal challenges pushing far-left green measures. Through its legal efforts, the NRDC has opposed domestic fossil fuel drilling, coal plants, the Keystone XL oil pipeline and critical mineral mining projects.

NRDC receives no funding from Chinese sources,” Bob Deans, NRDC’s director of strategic engagement told Fox News Digital. “The Energy Foundation is a U.S. philanthropic organization, as are its associated entities, as detailed in publicly available state corporate filings in California and Delaware.”

“This grant funding was used to help China cut its carbon footprint by, for example, encouraging the use of energy efficient appliances and improving access to wind and solar power for drivers of electric cars in China, where electricity and transportation account for more than half of all carbon emissions,” Deans said.

And the Energy Foundation contributed $350,000 to Harvard University, a grant earmarked for “outreach to build a clean energy future.”

“The Energy Foundation’s grant-making is almost exclusively focused on making it hard to produce energy and move it around here at home,” Pyle told Fox News Digital. “These organizations have little to do with the environment and everything, almost everything, to do with advancing this redistribution agenda.”

“If they’re successful, they’ll make America weaker and China stronger,” he said.

Workers build a solar panel at an energy industrial park in Bijie, China, on June 11, 2023. China has a greater than 80% share in all the manufacturing stages of solar panel manufacturing. (CFOTO/Future Publishing via Getty Images)

The group — which, according to its 2022 financial statement, leases two office facilities in China under operating leases that have terms through April 2024 — has significant ties to the CCP.

For example, Energy Foundation CEO and President Ji Zou previously served as the deputy director general of China’s National Center for Climate Change Strategy, an agency within the Chinese government’s National Development and Reform Commission.

Liu Xin, who heads the group’s environmental management division, previously served in a high-ranking role at the Beijing Municipal Environmental Protection Bureau. And Ping He, the program director of the group’s industry program, worked for eight years at the Chinese Academy of Sciences, a leading state-run research institution.

The revelation of the Energy Foundation’s extensive funding for U.S.-based climate initiatives comes amid an ongoing congressional probe led by House Natural Resources Committee Republicans over the CCP’s growing influence on the American environmental activist movement. The panel has probed a series of nonprofits with ties to China.

“For years, the CCP has used U.S. nonprofits to influence American public opinion and policy decisions,” a Natural Resources Committee aide told Fox News Digital. “The vast and well-funded CCP nonprofit influence machine is particularly focused on promoting Chinese energy interests and weakening America’s competitiveness.”

“Sadly, radical eco-activists in America do more to advance the interests of the CCP than promoting commonsense energy and environmental policies in the United States,” the aide added.

House Natural Resources Chairman Bruce Westerman, R-Ark., speaks at a press conference in March 2023. His committee has pursued a wide-ranging probe into how China is influencing the U.S. climate movement. (Kevin Dietsch/Getty Images)

Overall, while the U.S. is the largest global producer of oil and gas, which still drives every major industry from transportation and power to manufacturing and construction, Chinese companies have established a major foothold in green energy markets.

According to the International Energy Agency (IEA), for example, China produces about 75% of all lithium-ion batteries, a key component of EVs, worldwide. The nation also boasts 70% of production capacity for cathodes and 85% for anodes, two key parts of such batteries.

In addition, more than 50% of lithium, cobalt and graphite processing and refining capacity is located in China, the IEA data showed. Those three critical minerals, in addition to copper and nickel, are vital for EV batteries and other green energy technologies. Chinese investment firms have also been aggressive in purchasing stakes in African mines in recent years to ensure a firm control over mineral production.

China also continues to dominate the global solar supply chain even as Western nations attempt to increase domestic manufacturing capabilities. According to a July 2022 IEA report, China has a greater than 80% share in all the manufacturing stages of solar panel manufacturing. China further produces a staggering 95% of all global polysilicon, ingot and wafer supplies necessary for solar products.

The Energy Foundation didn’t respond to a request for comment.

Source: Fox

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Iran ‘deeply involved’ in attacks on shipping – US

Energy News Beat

Tehran has provided tactical intelligence critical to Houthi strikes in the Red Sea, according to the White House

The United States has accused Iran of being “deeply involved” in attacks by Houthi rebels on commercial ships in the Red Sea. Tehran has provided drones and missiles to the Houthis, as well as tactical intelligence “critical in enabling” the strikes, the White House has said.

Since last month, Yemen’s Houthis have launched multiple drone and missile attacks on international shipping in the Red Sea, disrupting maritime traffic.

“We know that Iran was deeply involved in planning the operations against commercial vessels in the Red Sea,” White House national security spokeswoman Adrienne Watson said in a statement, adding that it is “an international challenge that demands collective action.” The White House has also said it is mulling additional actions to respond to the Houthis.

The group has claimed the attacks are in response to Israeli strikes in Gaza. The conflict in the Palestinian enclave escalated on October 7 when Hamas fighters attacked Israel, killing about 1,200 people and taking scores hostage. Israel’s retaliatory operation against Gaza, which Israeli officials say is aimed at wiping out the militant group, has left more than 20,000 dead so far, according to local health officials. The Houthis have pledged to continue targeting ships sailing close to Yemen as long as Israel continues its war on Hamas.

Iran has repeatedly denied involvement in attacks by the Houthis in the Red Sea. Foreign Ministry Spokesperson Nasser Kanaani stressed in early December that “resistance groups” are acting independently and “not taking orders from Tehran to confront the war crimes and genocide committed by Israel.”

On Wednesday, ex-National Security Advisor to Donald Trump and former US Ambassador to the United Nations, John Bolton, argued in the Washington Post that the administration of President Joe Biden was showing weakness in its treatment of the Houthis. Bolton also cited Iranian Foreign Minister Hossein Amir-Abdollahian, who recently told The New York Times that the US must face “consequences” for its support of Israel. However, White House National Security Council spokesman John Kirby said this week that the US would not “telegraph any punches one way or the other.”

Last week, the US announced a naval coalition of 20 mostly NATO countries to jointly patrol the Red Sea area in order to repel and respond to Houthi attacks. The strikes have disrupted a key trade route linking Europe and North America with Asia via the Suez Canal, and caused delays in deliveries and dramatically raised shipping costs as vessels are being forced to take alternative and longer routes.

 

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China seeks exemption from US sanctions for Russian LNG – Reuters

Energy News Beat

Restrictions on the Arctic LNG 2 energy project endanger vital fuel supplies, according to Chinese energy majors

China’s state energy majors CNOOC and China National Petroleum Corp (CNPC) have both asked the US government for exemptions from sanctions on a new Russian liquefied natural gas (LNG) export plant. They are seeking to prevent disruption to crucial fuel flows, Reuters reported on Friday, citing people with direct knowledge of the matter.

The Arctic LNG 2 energy project, which is located on the region’s Gyda Peninsula, is operated by Russia’s largest independent LNG producer, Novatek. It will feature three LNG trains, with a total annual production capacity of 19.8 million tons. The first train was launched in July, while the remaining two are scheduled to commence in 2024 and 2025.

The US Treasury Department’s Office of Foreign Assets Control (OFAC) imposed sanctions on the Russian gas enterprise in early November, banning third countries in Asia and Europe from purchasing LNG produced by the plant when it starts operating in 2024.

“This is a standard response as an equity partner communicating with OFAC to protect our interest in the project,” a Beijing-based industry official told the outlet. China is the world’s biggest buyer of LNG, and US sanctions threaten deliveries that are considered vital for heating homes and fueling the industry in the country. 

CNOOC and CNPC each have a 10% stake in the Arctic LNG 2 plant, while Novatek has a 60% holding. France’s TotalEnergies and Japan Arctic LNG, a consortium involving Mitsui & Co and JOGMEC, are two other shareholders, each with a 10% stake. Former Japanese Economy Minister Yasutoshi Nishimura warned earlier that sanctions on the project could have a major negative impact on business in Japan. Tokyo had previously exempted Russian LNG projects in Sakhalin and the Arctic from sanctions and continued to provide architectural and engineering services for the projects.

Meanwhile, the start of exports from the Arctic LNG 2 project is at risk of being delayed after Novatek sent force majeure notifications on shipments to some of its buyers following the US sanctions, the outlet noted.

For more stories on economy & finance visit RT’s business section

 

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UK likely in recession – data

Energy News Beat

Britain’s economy unexpectedly contracted in the third quarter of the year, raising the possibility that the country is already in a recession, the latest data shows.

Third quarter GDP dropped 0.1% from the previous quarter after initial estimates suggested growth had been flat, according to a revised report by the Office for National Statistics (ONS) released on Friday. The ONS also downgraded its GDP figure for the second quarter, saying there was no growth between April and June, compared to the 0.2% expansion previously estimated.

According to the report, the fall in GDP was due to the struggling services sector, which accounts for four-fifths of UK output. Services fell 0.2%, more than offsetting growth of 0.4% in construction and 0.1% in production. Economists say the revision to the third quarter puts the UK at risk of a technical recession, which is typically defined as two quarters or more of falling GDP. Data shows that output decreased 0.3% in October on a month-on-month basis, putting the economy on track to shrink in the fourth quarter.

“The mildest of mild recessions may have begun in the third quarter,” Capital Economics analyst Ashley Webb was quoted as saying by Bloomberg. “Looking ahead, the latest activity surveys point to weak GDP growth in the fourth quarter too,” he added.


READ MORE:
British economic contraction worse than expected

Separate data from the ONS showed that retail sales grew by more than expected last month, with trading boosted by earlier-than-usual and wider Black Friday discounts. Meanwhile, experts say revised GDP figures could increase the pressure on the Bank of England, prompting it to start cutting rates again. The regulator had earlier projected a 50% chance of a recession in the second half of the year.

For more stories on economy & finance visit RT’s business section

 

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Russia’s key ally to hike rates for oil transit to EU

Energy News Beat

Transit of Russian oil through Belarus will become more costly next year, the Kommersant business daily reported on Saturday, citing Russian energy export giant Transneft.

According to the report, the Belarusian operator of the Druzhba pipeline, Gomeltransneft Druzhba, has reached an agreement with Transneft to hike the transit tariff by 10.2% starting on February 1, 2024. A Transneft representative confirmed the information to Kommersant.

Russian oil is delivered to Hungary, Slovakia and the Czech Republic via Belarus through the southern branch of the Druzhba pipeline. The pipeline also carries Kazakh oil, which is delivered via its northern branch through both Russia and Belarus to Germany and Poland.

The tariff hike for Russian oil will be smaller than what Belarus previously intended. In mid-November, Gomeltransneft Druzhba proposed raising the tariff for the transit of oil through Belarus by 14.5% to 195.8 rubles ($2.1) per ton, but Transneft considered that hike too high. Minsk explained at the time that such a hike was necessary due to a sharp decrease in pumping after the EU placed sanctions on Russia in connection with the Ukraine conflict, which included a partial embargo on Russian oil imports. According to the operator, overall oil transit through the country fell nearly fivefold this year compared to 2022.

Meanwhile, Minsk also plans to raise the tariff for Kazakh oil, by 43% to 653.8 rubles per ton ($7.1), due to a 17-fold decrease in oil transit through the northern branch of the pipeline over the past year. Astana has been opposed to the hike, and reportedly plans to dispute the matter with Minsk.


READ MORE:
EU countries get Russian oil exemption – Reuters

Transneft indicated that discussing tariffs on Druzhba’s northern branch is not within the company’s competence, because that part of the pipeline does not transport Russian oil. Russian Energy Minister Nikolai Shulginov earlier noted that Kazakhstan has not been involved in the tariff discussions because the pipeline does not belong to Kazakhstan. He indicated, however, that Astana and Moscow have already reached a consensus that Kazakhstan will supply 1.2 million tons (100,000 tons a month) of oil through Druzhba next year.

For more stories on economy & finance visit RT’s business section

 

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The Top 5 Oil Producers of 2023

Energy News Beat

Oil Price

Defying earlier expectations of slowing growth, U.S. crude oil production has surged this year to extend America’s lead at the top of the ranking of the world’s biggest oil producers.  In September, U.S. oil output surged to a record high for any month in history, and forecasts are that production will continue to increase.

Source: Oil Price

U.S. oil producers are set to lower their 2024 spending by 1%, with private drillers cutting budgets by an average of 4%, per a spending survey by Barclays cited by Bloomberg.

Despite the expected slightly lower budgets for next year, the United States will continue to see production growth thanks to efficiency gains and longer laterals, analysts and forecasters say. The recent surge in oil production is putting the U.S. firmly in the lead among the five biggest oil-producing countries in the world.

The list also includes OPEC+ producers Saudi Arabia, Russia, and Iraq, and another North American producer—Canada.

#1 The United States

The U.S. is now producing more than 13 million barrels per day (bpd) of crude oil—more than any country ever—and is headed to a continued increase in the short and medium term.

U.S. crude oil production hit a new monthly record of 13.236 million bpd in September, according to the latest data from the U.S. Energy Information Administration (EIA).

“The growth has not just been a Permian story. We’re seeing many shale basins that were flattish experiencing a revival,” Francisco Blanch, Head of Global Commodities and Derivatives Research at BofA, said on a call to discuss the bank’s energy outlook, as quoted by Reuters.

The U.S. shale patch is now looking to do more with less as it seeks capital and operational efficiency to prove to shareholders that it has turned the page from growth at all costs to measured growth accompanied by higher returns to investors.

This year, U.S. crude oil production is set to average 12.93 million bpd, and rise further to average 13.11 million bpd next year, the EIA said in its Short-Term Energy Outlook (STEO) in December.

Soaring production is also leading to surging exports of U.S. crude oil and petroleum products.

“Not only is the U.S. producing more oil than any country in history, but the amount of oil (crude oil, refined products and natural gas liquids) that it is exporting is near the total production of Saudi Arabia or Russia,” Jim Burkhard, Vice President and Head of Research for Oil Markets, Energy and Mobility, at S&P Global Commodity Insights, said in research cited by Forbes.

#2 Saudi Arabia

Saudi Arabia, the leader of OPEC and the OPEC+ group, has been the second-largest oil producer in the world this year. Saudi crude oil production averaged around 10.2 million bpd in the first half of 2023, but since July, the Kingdom has been implementing an extra voluntary production cut of 1 million bpd, and its production has averaged 9 million bpd in the second half of the year. The Saudi cut, aimed at “market stability”, has been partly offset by soaring production from non-OPEC+ producers, most notably the United States, but also Brazil, Canada, Guyana, and Norway.

#3 Russia

Russia, the key Saudi partner in the OPEC+ alliance, is believed to be producing around 9 million bpd of crude oil. Russia classified its oil production and export data after it invaded Ukraine, saying it would not provide detailed information about its oil sector, which could be used by the West to track down and clamp down on Russia’s oil exports or oil revenues.

Earlier this month, reports emerged that Russia had promised oil-flow tracking companies and price reporting agencies to provide data about its production, inventories, and fuel output after OPEC+ asked Moscow for more transparency in tracking its compliance with the cuts.

At the latest OPEC+ meeting, Russia said it would deepen the export cut to 500,000 bpd in the first quarter of 2024, with May and June of 2023 being the reference export levels for the cut, which will consist of 300,000 bpd of crude and 200,000 bpd of refined products.

#4 Canada 

While Russia and Saudi Arabia have been cutting supply to the market, North America has been growing its production—not only from the United States, but also from Canada.

Last year, Canadian oil production hit a record 4.86 million bpd, per data from the Canada Energy Regulator.

Analysts now expect output to grow in 2023, 2024, and 2025 as companies are ramping up production at new and tie-back sites in Alberta’s oil sands. Canada’s crude oil production is set to grow by 8% by 2025, analysts say.

#5 Iraq 

OPEC’s second-largest producer, Iraq, has been the fifth-biggest oil-producing country in the world this year, with output averaging around 4.3 million bpd, per OPEC’s secondary sources in its monthly reports.

In the latest report for December, OPEC acknowledged that while the cartel’s crude oil production fell in November for the first time in months, U.S. oil output continued to reach new highs.

OPEC noted in its report that “US crude and condensate production as well as NGL output continue to reach new highs. Total US liquids output reached a record 21.6 mb/d in September due to persistent outperformance of onshore and offshore production.”

OPEC expects U.S. liquids supply to grow by 1.3 million bpd in 2023.

The non-OPEC liquids supply growth forecast remains unchanged at 1.8 million bpd for 2023, driven by the U.S., Brazil, Kazakhstan, Norway, Guyana, Mexico, and China, the cartel said.

Rising oil production from outside OPEC+ makes the group’s task of managing oil prices next year more difficult than previously thought.

By  Tsvetana Paraskova for Oilprice.com

 

The post The Top 5 Oil Producers of 2023 appeared first on Energy News Beat.

 

Only half of all Ford dealers agree to sell EVs next year

Energy News Beat

Oil Price

Ford said on Thursday that half of all 1,550 Ford dealers chose to sell electric vehicles in 2024—down from two-thirds that said this time last year that they would opt in to sell EVs for 2023. The other half of Ford dealers will sell—and service—ICE and hybrid models.

Source: Oil Price

“EV adoption rates vary across the country, and we believe our dealers know their market best,” Ford spokesman Martin Günsberg told the Detroit Free Press.

The slack buy-in from Ford dealerships comes even after Ford relaxed its requirements for dealers in the EV dealer program last January that mandated fewer L2 chargers and extended installation deadlines. Certified Ford EV dealers were once required to spend $500,000 for a single public DC fast charger, or $1 million if they wanted to be in the Elite tier of EV dealers.

The extra $500,000 was for another fast charger and demo units, among other things. But the high price tag caused Ford dealers to balk.

Buick saw a similar engagement among its dealers last year, according to Electrek, with half of Buick dealers choosing buyouts of their franchises instead of selling EVs. As a result, GM now has 47% fewer Buick dealers as of the end of this year compared to January. The hardline taken by GM with regard to its Buick dealers is in line with Buick’s ambitious plan to be all-electric by 2030.

Ford said earlier this month that it was reducing the planned number of F-150 Lightning EV trucks by half starting next year, kicking out 1,600 F-150 per week beginning in January, down from 3,200 per week, saying that it would match production with customer demand.

By Julianne Geiger for Oilprice.com

 

The post Only half of all Ford dealers agree to sell EVs next year appeared first on Energy News Beat.

 

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