Your Morning Energy News
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MORNING ENERGY NEWS | 10/27/2021
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** Flying to your destination on the taxpayer's dime!
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Wall Street Journal ([link removed]) (10/26/21) column: "The more you look behind corporate and government press releases these days, the more you learn about their mutual benefit society. We wrote Tuesday about the many subsidies for Tesla’s electric cars, but it turns out there’s also a pot of subsidy gold behind the Hertz decision to buy 100,000 Teslas for its car-rental fleet. Tesla CEO Elon Musk says he isn’t giving Hertz a discount on the reported $4.2 billion order. But he doesn’t need to because the House reconciliation spending bill includes a 30% tax credit for 'qualified commercial electric vehicles.' The text doesn’t clearly define what is a 'qualified commercial electric' vehicle, but our sources say Hertz’s Teslas would likely make the cut. The credit could save Hertz $1.26 billion and make a Tesla almost as cheap for Hertz to
buy as a Toyota Camry. Hertz plans to install thousands of electric-vehicle chargers, which could also be eligible for taxpayers subsidies. The House spending bill extends a 30% tax credit for the installation of EV charging stations through 2031, which is on top of the $7.5 billion appropriation for stations in the separate Senate infrastructure bill...But if EVs make business sense, why must the government subsidize them? Democrats complain that corporations aren’t paying their fair share in taxes, but then they give them generous tax breaks for promoting progressive policies that reduce their tax payments."
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** “Fossil fuels are the most important energy for making civilization, causing us to live longer and live better.”
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– Patrick Moore, CO2 Coalition ([link removed])
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China is doing everything in its power to secure energy independence while Joe is going above and beyond to implode American production.
** Real Clear World ([link removed])
(10/26/21) column: "The island of Borneo sits more than 1,000 miles due south from mainland China across a vast expanse of the sea. That distance, however, hasn’t stopped the People’s Republic from treating Borneo as its own backyard. The three countries that share the island—Indonesia, Malaysia, and Brunei—now find themselves on the receiving end of the same trademarked Beijing resource grab that has, to greater publicity, threatened the Philippines and Vietnam. China’s ever-growing appetite for oil and gas under Xi Jinping has sparked new resource appropriation. China consumes 50% more oil and 100% more natural gas than it did just 10 years ago, and it is surging south to lay claim to offshore fields that promise to satisfy its demand. The most recent provocations at the edge of China’s so-called nine-dash line include the deployment of large Chinese maritime survey ships scoping the Malaysian and Indonesian Exclusive Economic Zones off the coast of Borneo, as well as the harassment of
Malaysian oil and gas development by China Coast Guard nautical vessels and aircraft."
His actions make so much more sense now--Larry Fink is ok with paying more taxes if the "money could be directed in a proper way." Apparently, he has never paid any attention to what government actually does.
** Bloomberg ([link removed])
(10/26/21) reports: "U.S. billionaires Ray Dalio and Larry Fink say they’re open to paying more tax -- but only if the money was put to good use. 'I would support anything that is going to have the effect of being spent on increasing, creating equal opportunity and greater productivity,' Dalio, the founder of hedge fund Bridgewater Associates, said at Saudi Arabia’s flagship investment conference. 'If it accomplishes those things, I would support it. I’m not sure that it does.' The wide-ranging discussion touched on plans drawn up by Democratic lawmakers, with President Joe Biden’s support, to tax ultra-high earners. The proposal would set the so-called billionaires’ income tax at $1 billion in assets, or three consecutive years of $100 million or more in income, which would hit some 700 taxpayers."
When coal, nat gas, and other commodity prices surge, solar prices do as well.
** CNBC ([link removed])
(10/26/21) reports: "Surging solar costs, driven my raw material price increases and supply chain constraints, could delay or even cancel more than half of 2022's expected utility-scale solar buildout, according to a new report from energy consultancy Rystad Energy. Next year's forecasts stand at 90 gigawatts of new utility-scale solar worldwide, and the firm said Tuesday that 56% of those projects are at risk amid the surge in prices. The spike means developers might try to negotiate higher power purchase agreements, or else absorb the costs themselves, leading to lower margins. All told, the cost for photovoltaic modules has risen nearly 50% from under $0.20 per watt peak (Wp) in 2020 to between $0.26 and $0.28/Wp during the second half of 2021, according to Rystad. Watt peak measures maximum output. A portion of the surging cost is thanks to the jump in polysilicon, which is a key component in solar systems. Rystad said that prices for the material are up 300% since July 2020. IHS Markit
estimates a slightly smaller increase, saying polysilicon prices are up more than 200% between October 2020 and today."
Energy Markets
WTI Crude Oil: ↑ $84.10
Natural Gas: ↑ $6.02
Gasoline: ↑ $3.39
Diesel: ↑ $3.61
Heating Oil: ↓ $255.48
Brent Crude Oil: ↓ $85.69
** US Rig Count ([link removed])
: ↓ 635
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