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DAILY ENERGY NEWS | 11/27/2024

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EV mandates are working as intended — killing jobs and forcing people out of their cars.

BBC (11/26/24) reports: "The owner of Vauxhall has announced plans to close its van-making factory in Luton, putting about 1,100 jobs at risk. Stellantis, which also owns brands including Citroen, Peugeot and Fiat, said it would combine its electric van production at its other UK plant in Ellesmere Port in Cheshire. Rules imposed to speed up the transition to electric vehicles (EV) in the UK partly drove the decision, the firm said. Union Unite said the move was a 'complete slap in the face' for its members working in Luton. There are growing concerns among car manufacturers over EV sales targets, with many, including Stellantis, calling for the government to do more to boost consumer demand. Following the Luton plant announcement and intense pressure from industry leaders, Business Secretary Jonathan Reynolds said the government would consult on changes to EV sales rules, which is officially called the zero-emission vehicles mandate, because it is not working as intended...Current rules state EVs must make up 22% of a carmaker's car sales, and 10% of van sales in 2024. For every sale that pushes it outside the mandate, firms must pay a £15,000 fine. There are flexibilities in the system, allowing manufacturers who cannot meet the targets to buy 'credits' from those that can. But car brands with factories in the UK have been urging the government to relax the rules, arguing that EV demand is not strong enough and more incentives are required for drivers to go fully electric."

"Chris Wright's knowledge of energy markets should be celebrated, not derided. Allowing the incoming administration to leverage his talents and expertise will put affordable and reliable energy back on the pedestal, thereby enabling America to flourish for years to come."

– Kevin Dayaratna & Roy Spencer, Heritage Foundation

Instead of crusading for renewables, maybe the IRS should stick to what it knows – harassing taxpayers.

AP (11/26/24) reports: "Already bracing for funding cuts under a new Trump administration, U.S. Treasury officials are calling on Congress to unlock $20 billion in IRS enforcement money that is tied up in legislative language that has effectively rendered the money frozen. Hoping to unlock the funds in upcoming budget negotiations, Treasury officials are rushing for action before President Joe Biden’s term ends. The $20 billion in question is separate from another $20 billion rescinded from the agency last year. However, the legislative mechanism keeping the government afloat inadvertently duplicated the one-time cut. Treasury officials warn of dire consequences if the funding is effectively rescinded through inaction. The loss of that money would lead to an increase of the national deficit by $140 billion, Treasury Deputy Secretary Wally Adeyemo said on a call to reporters on Tuesday. There would be 6,000 fewer audits of wealthy individuals and 2,000 fewer audits of large corporations, and the agency would have to go on a hiring freeze, he said."

Meet Rivian, the new Solyndra.

Free Beacon (11/26/24) reports: "President Joe Biden's Energy Department announced on Monday that it plans to lend $6 billion to Rivian—a company that only makes electric vehicles—to build an electric car factory in Georgia just before Biden leaves office. Department of Energy and Rivian are expected to sign the agreement, making the loan binding, before Trump takes office in January, the New York Times reported. The Rivian loan is one of more than a dozen green energy loans, worth more than $25 billion, that the Biden administration is rushing to finalize before the octogenarian president leaves office, a Washington Free Beacon analysis found this month. Trump, meanwhile, repeatedly vowed on the campaign trail to 'terminate' green energy spending...Less than 10 percent of all car sales in the United States are electric, according to data released in October by the Alliance For Automotive Innovation. 'On day one, I hope the Trump administration will halt all loans that are not closed and audit all of the projects that have been approved, but especially the ones they are attempting to rush out the door since the election,' said Tom Pyle, the president of the Institute for Energy Research and a member of the 2016 Trump transition team."

Has John Kerry ever been right?

I had all kinds of hope that the response from Toyota would be to get rid of the subsidies and regulations. Once again, the autos never fail to disappoint.

E&E News (11/26/24) reports: "Toyota, long a skeptic of the notion that drivers will go all-electric, is breaking from other automakers and proposing that federal EV tax credits be altered so its hybrid vehicles can also qualify. The Japanese automaker’s plan, outlined to POLITICO’s E&E News on Tuesday, emerged as President-elect Donald Trump is vowing to roll back government support of EVs and promising to revisit rules and regulations written by the Biden administration to support electric cars and fight climate change. A Toyota executive laid out a similar argument weekend in an op-ed in The Wall Street Journal on Sunday. We are not in lockstep with some of our competition,' said Zachary Reed, a Toyota spokesperson, a week after the main auto lobby said that it supports keeping a key EV tax credit in place in order to better compete with China. At issue is the $7,500 tax credit for electric vehicle purchases that Congress wrote into the 2022 Inflation Reduction Act. Republicans are set to have a majority in both houses of Congress, and some GOP members have called for a thorough reevaluation of federal rules to stamp out preferences for EVs."

Energy Markets

WTI Crude Oil: ↑ $69.25
Natural Gas: ↓ $3.28
Gasoline: ↑ $3.07

Diesel: ↑ $3.55
Heating Oil: ↓ $223.44
Brent Crude Oil: ↓ $73.25
US Rig Count: ↑ 607

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