If you’ve refueled recently and spotted another “I did that” sticker at the pump, be prepared for gas prices to get even dumber. All this and more in The morning shift by November 29, 2021.
1st gear: oil prices recover after falling 10%
Friday saw the biggest one-day drop in oil prices since the start of the pandemic, and although prices rallied on Monday, I suspect things will only get dumber from here on out. Here’s Friday’s news of the new Omnicron variant tag combination with Biden releasing a glut of rough from our strategic reserve, like the Financial Time Explain :
Oil prices have plunged more than 10%.hundred on Friday, as reports of a virulent new variant of the coronavirus raised fears of more pandemic lockdowns and another blow to fuel demand, just as the United States plans to release more supplies into the market.
Both oil markers saw their biggest day-to-day declines since the price of WTI briefly turned negative in April 2020 at the height of the pandemic.
The price drop came days after the White House, concerned about soaring oil prices and widespread inflation, announced it would release 50 million barrels of crude from its strategic oil reserve over the next few months. month – the largest oil draw ever taken from government stocks. – in conjunction with additional contributions from five other countries.
Oil prices have recovered a little today, for Reuters:
Friday’s slide, the biggest one-day drop since April 2020, reflected fears that travel bans were hammering demand. The plunge was exacerbated by low liquidity due to a US holiday and the expected drop in demand does not justify such a drop, analysts said.
“The fear factor gripped the financial markets on Friday,” said Norbert Ruecker of Swiss bank Julius Baer. “Fundamentally, the constraints announced and put in place for international air travel cannot explain such a brutal collapse. “
All of this to say that if Covid worsens as fall turns into winter, we can expect gas prices to drop. Basically, if you see the price of gasoline going down, know it’s because the world is getting worse.
2nd gear: Nissan throws $ 18 billion on electric vehicles
Nissan has announced a new plan for 2030, which means investing a ton of money in electric vehicles and its hybrids. Excerpt from Nissan press release:
As a pioneer in electric vehicles (EVs), Nissan has democratized EVs and invested in building charging infrastructure and energy management. By placing electrification at the heart of the company’s long-term strategy, Nissan Ambition 2030, the company aims to accelerate the electrification of its range of vehicles and the rate of technological innovation with investments of $ 2 trillion. yen over the next five years.
Based on customer demands for a diverse range of exciting vehicles, Nissan will showcase 23 new electrified models, including 15 new electric vehicles by fiscal year 2030, targeting an electrification mix of over 50% at scale. worldwide in the Nissan and INFINITI brands.
With the introduction of 20 new models equipped with electric vehicles and e-POWER over the next five years, Nissan intends to increase its electrification sales mix in major markets by fiscal year 2026, notably :
• Europe by more than 75% of sales
• Japan by more than 55% of sales
• China by more than 40% of sales
• The United States 40% of electric vehicle sales in fiscal year 2030
It’s funny to see the United States last in this ranking. Maybe Nissan is as aware as anyone other than the Ariya may not be a Tesla grade success. Then again, even a Tesla grade hit doesn’t make such a big dent in the entire US auto market.
I will also say that normally anything that bundles electric vehicles with hybrids bothers me, but Nissan’s electric cars are entirely powered by electricity, they just have motors to function as range extenders. Not the worst.
3rd gear: lithium mining is coming home, so everyone wants clean lithium
The extraction of lithium has taken place largely in the most remote corners of the world, such as the desert of Chile, where the the world’s elite can pretend that no bad things are happening. Now more and more lithium mining is taking place in the backyards of the world’s elite, as in Germany. Read here in Automotive news Europe:
Stellantis has signed a preliminary agreement with lithium developer Vulcan Energy Resources for the supply of climate-friendly lithium from Germany, the automaker said Monday.
Stellantis is the latest automaker to sign an agreement with the German-Australian start-up to lock in battery metal supplies ahead of an expected increase in global demand as the transition to cleaner mobility gains momentum.
Vulcan is one of many companies that are testing a direct lithium mining (DLE) method that uses less land and groundwater, making it more durable than the more common existing methods of surface mining and mining. brine evaporation ponds.
See how this mining project advocate sustainability and cleanliness now that there is a real risk of bad press?
Gear Four: Striking Coal Miners Explain How Private Equity Makes Profits As Workers Cuts
Speaking of mining, there is a good article in the Financial Times on the historyCallus miners strike underway here in the United States, explaining how workers suffer as their employers cash in:
Striking miners at an Alabama coal company want better wages and benefits from management, but they are championing their cause by focusing on the company’s former owners in the private equity industry.
Apollo Global Management, Blackstone and KKR were among the previous owners who shared the bulk of nearly $ 800 million in dividends following the formation of the company, Warrior Met Coal, following a bankruptcy reorganization in 2016.
The miners’ union maintains that these special payments were made at their expense.
The impasse on labor has brought to light “dividend recapitalizations”, in which a holding company borrows to pay a special dividend to its owners. This month, three US Senators sent a letter to Apollo and Blackstone criticizing their earnings at Warrior, saying they “appeared[ed] to have fled like bandits ”.
That this system is screwed up is obvious, that it clearly cannot last is going to become even more evident in the years to come.
5th gear: car dealers still complain about electric vehicles
Market insider interviewed a group of car dealerships on the general trend to switch to electric vehicles and boy, everyone was so excited to help save both the environment and the economy. What is that? They are complaining ?
“So many questions don’t even relate to the car,” said Joe Jackson, general sales manager for the Detroit Bowman Chevrolet suburb.
Which is a concern for dealers well versed in the myriad of details of electricity to gas. The inability to give a convincing answer – about home charging versus public charging, range anxiety, safety, etc. – could result in the total loss of a sale.
“When we surveyed the dealers, they didn’t feel at all well equipped to answer these questions,” said Mike Dovorany, vice president of automotive and mobility at market research firm Escalent. In an effort to help dealers prepare for electric vehicles, GM has provided its dealers with resources such as designated electric vehicle education programs and regional field managers.
In fact, I have to give it to dealers to be concerned about one thing: the fear that chargers installed today will be obsolete tomorrow:
“The biggest problem is putting in the chargers, how much does it cost, finding the space in your store based on the size of your store, where do you put it,” EV educator Nigel Zeid said.
Being a follower too early comes with certain risks, dealers said, such as installing infrastructure that could quickly become obsolete. “The technology is constantly evolving,” said Jackson, who has installed eight additional chargers in his two buildings this year to prepare for the future product, “but we feel comfortable with the investments we’ve made this year. “
I wouldn’t want to be the guy who installs a ton of CHADeMO chargers while everyone else is switching to CCS!
Reverse: He really peaked with the Ford Falcon
Neutral: what place does Nissan have in the history of electric vehicles?
In some ways, you have to view Nissan’s modern electric vehicle efforts as a failure. It was Tesla, not Nissan, who made EVs desirable. But Nissan is also the most stable and consistent player in the market, producing lithium-ion electric cars virtually continuously since the 1990s.