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DAILY ENERGY NEWS | 09/03/2024

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Energiewende will spell the end of Germany's manufacturing tradition.

Bloomberg (9/2/24) reports: "Volkswagen AG is considering unprecedented factory closures in Germany, setting up a showdown with powerful unions as the country’s most important industry fights for its future. The potential measures also include trying to end the company’s three-decades-old pact with workers to keep jobs secure, the company said Monday. VW’s main target is its underperforming namesake passenger car brand, whose profit margins are getting squeezed amid a sputtering transition to EVs and a consumer spending slowdown. Any shutdowns would mark the first closures in Germany during the company’s 87-year history. VW shares closed 1.3% higher after the news, paring this year’s losses of 13%...Raising returns at the VW brand has become tougher with higher logistics, energy and labor costs. The nameplate’s margin fell to 2.3% during the first half, compared to 3.8% a year ago. The company has also lost momentum in its biggest market, China, with its EV model range far behind competitors, while cheaper Chinese electric cars are pushing into Europe."

"Before we rush any further into this 'renewable energy transformation,' can we first have some realistic, commonsense analysis? Can we at least think before casting our ballots this fall?"

– Paul Driessen, CFACT

Does John Podesta really think China cares about any of this climate business or is he just getting his marching orders?

Daily Caller (8/28/24) reports: "White House senior adviser John Podesta is set to meet with Chinese Communist Party (CCP) officials to expand US-China collaboration on climate change, Bloomberg reported Wednesday. Podesta and China’s special envoy for climate change Liu Zhenmin are slated to meet during the first week of September to discuss reducing greenhouse gas emissions and increasing funding for climate initiatives in developing nations, according to the outlet. The talks follow efforts to Trump-proof environmental collaboration efforts between the two nations and come despite China continuing to hike coal production. Energy officials will use the meeting to continue working on climate initiatives agreed on by the countries in November 2023, such as promoting a transition to renewable energy sources and combatting greenhouse gas emissions beyond carbon dioxide, Bloomberg reported...The discussion between Podesta and Zhenmin also comes amidst efforts from the White House to Trump-proof its climate collaborations with China, with the countries attempting to use non-governmental organizations to sustain their environmental partnerships in case former President Trump wins in November and U.S.-China relations cool, according to Bloomberg."

As we watch California politicians (like Governor Gavin and VP Harris) propose policies like the state takeover of refineries and federal price controls on food, let Venezuela be a cautionary tale.

New York Times (9/1/24) reports: "It was once a thriving metropolis in the heart of oil country in Venezuela. That city, Maracaibo, no longer exists. Today, the city is rife with abandoned houses, some of which look like bombs were dropped on them, because homeowners tore windows and roofs off to sell for scrap before they took off on journeys to Colombia, Chile and the United States. Middle-class neighborhoods are filled with for sale signs and overgrown yards. Fewer cars drive down the streets, and fewer criminals are around to steal them. Christmas dinners, once packed with noisy relatives, are lonely affairs aided by webcams...A mass departure of the country’s dwindling numbers of doctors, nurses, sanitation workers and bus drivers would be even more brutal in Maracaibo, where so many who filled those jobs are already gone. Mr. Ramírez longs for the days when companies held conferences in Maracaibo and when the state oil company produced so much petroleum at a nearby lake that its workers enjoyed a comfortable standard of living. 'This was an oil city, a city that had designed a convention center so that all industries, people, the oil industry, would come here,' Mr. Ramírez said. 'That city is not going to come back, but it has to be reinvented.'

The South Africans want reliable energy. The EU (led by Germany - see above ☝️) doesn’t care.

Bloomberg (9/2/24) reports: "Germany’s climate envoy said her country is seeking clarity on South Africa’s plans to slow down the closure of its coal-fired power plants and alter the terms of a landmark climate-finance pact. The European nation is a founding member of the $9.3 billion agreement, known as the Just Energy Transition Partnership, under which some of the world’s richest nations will give South Africa loans and grants on condition it cuts dependence on coal. In July, South Africa said it wants to extend the lives of three coal-fired plants that it had agreed to close until 2030 to bolster energy security. It said it would run some other facilities below capacity to ensure it still hit an emission-reduction target, without giving details as to how it would achieve this...The failure of a Group of 20 nation to live up to its commitments around coal power would represent a blow to the JETP program, which has pledged more than $40 billion to South Africa, Indonesia, Vietnam and Senegal. South Africa’s retreat from the original terms of its agreement may raise questions about the program’s credibility."

Energy Markets

WTI Crude Oil: ↓ $70.52
Natural Gas: ↓ $2.09
Gasoline: ↓ $3.32

Diesel: ↓ $3.68
Heating Oil: ↓ $220.79
Brent Crude Oil: ↓ $73.97
US Rig Count: ↑ 635

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