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MORNING ENERGY NEWS  |  09/24/2020
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In yet another move to turn California into Cuba...


Wall Street Journal (9/23/20) reports: "California Gov. Gavin Newsom signed an order Wednesday that aims to end the sale of new gasoline and diesel-powered passenger cars in the state by 2035. It is an ambitious attempt to bolster electric vehicles in the largest car market in the U.S., as well as a bid to tackle emissions that most scientists say contribute to climate change. Transportation is responsible for more than half of carbon pollution in California, the governor said. More than 11% of all light vehicles in the U.S. last year were registered in California, according to IHS Markit. California is the first state in the nation to commit to such a goal, but could serve as a spark for other left-leaning states to follow, given its size and historic leadership on regulatory issues. Seventeen countries including France, the U.K. and Germany have adopted goals to phase out internal combustion passenger cars, according to the International Council on Clean Transportation, a nonprofit that supports decarbonizing fuels. Through July, 6.2% of light vehicles registered in California were electric powered and 1.6% in the entire U.S., according to IHS Markit."

Not that it will make a bit of difference for their ostensive goal. 

"[California Democrats] want the government to dictate every aspect of every Americans’ life, and the lengths to which they will go to destroy jobs and raise costs on the consumer is alarming. President Trump won’t stand for it."

 

– Judd Deere,
White House Spokesman

NikLOLa founder won't be fleecing anyone in California's recently cornered market.


ARS Technica (9/21/20) reports: "Trevor Milton, founder of electric truck startup Nikola, resigned his job as executive chairman of the company on Sunday—effective immediately. Nikola's stock plunged after the news and is currently trading at around $28 per share, which is down 18 percent. Milton's resignation came just 10 days after a bombshell research report revealed that Milton wasn't telling the truth in 2016 when he unveiled the company's first product, the Nikola One, and claimed that it 'fully functions.' The report from short-selling firm Hindenburg Research also revealed that a Nikola One truck that appeared to be driving down a highway under its own power in a 2018 promotional video was actually rolling down a hill. Nikola acknowledged last week that it never got the Nikola One working. The Hindenburg revelations put Nikola's management under immense pressure. Both the Securities and Exchange Commission and the Department of Justice have reportedly opened investigations into possible fraud by the company. Over the weekend, Milton offered (voluntarily, he says) to resign as executive chairman, and Nikola's board accepted his offer. Milton will also relinquish his seat on Nikola's board."

It's time to end the PTC before any more of these boondoggles are made possible through tax dollars.


Real Clear Energy (9/23/20) column: "For an American working class ravaged by Covid-19’s economic destruction, the promise of tens of thousands of new, high-paying jobs in the offshore wind industry sounds like welcome news. Sadly, however, the economic benefits of job creation will be more than offset by increased energy prices and decreased growth—adding up to, dare I say it, so much hot air. Seven Atlantic Coast states—Massachusetts, New York, New Jersey, Maryland, Rhode Island, Connecticut, and Virginia—have enacted mandates to subsidize development of thousands of megawatts of offshore wind turbines. Taxpayers also have been forced to open their wallets. In Massachusetts, for example, state taxpayers paid $113 million for the Massachusetts Clean Energy Center to develop the New Bedform Marine Commerce Terminal, almost double the original $60 million estimated cost, to serve the offshore wind industry...Claims that offshore wind will invigorate these seven states’ economies are thin gruel. Given its high cost relative to wholesale electricity prices, offshore wind energy will lead to job-killing higher electricity prices. For example, in 2019, the average wholesale price of electricity in New England was less than $31 per megawatt-hour. In New York, average prices ranged between $22 per MWh Upstate to $51 per MWh in New York City. By comparison, the initial price for the Southfork Wind Project, to be built off the coast of Long Island, starts at $160 per MWh, over three times higher than the market price of electricity in New York City. Higher priced offshore wind power means higher-priced electricity for consumers and businesses—and fewer dollars to spend or invest." 

Energy Markets

 
WTI Crude Oil: ↓ $39.76
Natural Gas: ↑ $2.24
Gasoline: ~ $2.19
Diesel: ↓ $2.40
Heating Oil: ↓ $110.35
Brent Crude Oil: ↓ $41.57
US Rig Count: ↑ 297

 
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