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Avatar of Jack Collins

by Jack Collins

Tesla and Musk Hyperloop, Oil Transition

August 12, 2013 in Electric Vehicles, EV News, Hyperloop, Tesla

Image courtesy of Tesla

Image courtesy of Tesla

Tesla stock (TSLA) opened below $150 and has been weak in morning trade.  The stock market as a whole has been edgy in recent days concerning the possibility of rising interest rates after the Federal Reserve starts tapering its stimulus.  Regardless, Tesla remains the great electric hope in a world that uses over 91 million barrels of oil a day (IEA).  Unfortunately, Tesla’s auto sales are still only a drop in a bucket in comparison to the approximate 80 million worldwide annual auto market.

WTI oil is trading slightly above $106 per barrel, which is a rather modest price considering China’s record oil imports in July.  In addition, WTI should be trading closer to parity with Brent since oil inventories at Cushing have been drawn down below 40 million barrels (EIA).  Brent oil is trading between $108 – $109.  The fourth quarter is the heaviest oil demand quarter due to the cold (heating oil fuels) in the Northern Hemisphere, so demand pressure will increase in the coming months.

How should the world transition from oil? 

Mr. Elon Musk plans to reveal his Hyperloop concept today.  As the CEO of Tesla Motors, Mr. Musk is no stranger to the oil and climate dilemmas of the world.  He may feel increasing pressure to work on his Hyperloop idea due to his own convictions.  In Europe, China and Japan, rail networks are already quite extensive and modern in comparison to the United States.  Mr. Musk has proposed that the US initiate a new form of transport, Hyperloop, which he believes would be significantly faster and cheaper than high-speed rail.

About EV News Report

EV News Report is a news and information service on electric vehicle news with a focus on the campaigns, events and star leaders shaping the EV revolution.

Electric vehicles are driving the change to a clean green sustainable future for the United States and the world. Tesla CEO Elon Musk and other EV stars have launched a revolution. At EV News Report, you will see daily updates on the new electric era, including Tesla news, LEAF news, and all the leading players in the electric transportation movement.

Plug-in to the electric car / electric transportation revolution by creating a free account with EV News Report and join Poll Vote to discuss your ideas with other EV enthusiasts. We’re just getting the electric motor started. Let’s change the world…

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Avatar of Jack Collins

by Jack Collins

Oil Market Mixed Signals

July 24, 2013 in China, EV News, Oil

Chart courtesy of EIA

Chart courtesy of EIA

The oil market is selling off due to weakness in a manufacturing index in China.  WTI oil is down about two dollars to around $105 per barrel.  Bloomberg reported: “The reading of 47.7 for an index released today by HSBC Holdings Plc and Markit Economics, if confirmed in the final report Aug. 1, would be the lowest in 11 months.”

This latest economic report has some market strategist guessing that the Chinese government may look to stimulate the economy.  If this came to fruition, it would be very bullish for oil. 

Despite the slowdown in China, worldwide oil demand is still pushing the boundaries of oil supplies.  US oil inventories continue to fall, according to the latest US Energy Information Administration (EIA) weekly oil inventory data report.  Total commercial oil supplies dropped by 2.3 million barrels.  The price for WTI oil should remain elevated in the near-term.

Cushing supplies dropped again, now at 44 million, despite continued growth in domestic oil production.  It appears that oil infrastructure can now handle shale oil production, alleviating the glut at Cushing.

South Sudan is expected to shut down oil exports at the end of this month due to its ongoing feud with Sudan.  South Sudan oil pipelines run through Sudan to the Red Sea, so the government of South Sudan has little choice but to halt export production.  Well, they do have a choice, but it will take time.  The country plans to build a pipeline through Kenya to the Indian Ocean, enabling South Sudan to sell its 300,000 barrels of oil a day to world markets.

In the meantime, the loss of oil revenues has caused political turmoil in South Sudan.  The BBC reported: “President Salva Kiir has sacked his entire cabinet, in an apparent power struggle with other senior leaders.”  China was the primary recipient of oil from South Sudan.

About EV News Report

EV News Report is a news and information service on electric vehicle news with a focus on the campaigns, events and star leaders shaping the EV revolution.

Electric vehicles are driving the change to a clean green sustainable future for the United States and the world. Tesla CEO Elon Musk and other EV stars have launched a revolution. At EV News Report, you will see daily updates on the new electric era, including Tesla news, LEAF news, and all the leading players in the electric transportation movement.

Plug-in to the electric car / electric transportation revolution by creating a free account with EV News Report and join the forums to discuss your ideas with other EV enthusiasts. We’re just getting the electric motor started. Let’s change the world…

EV enthusiasts, environmentalists and peak oil activists are encouraged to submit news, information, events and opinions on the site. We are a community, sharing information to best facilitate the change from the fossil fuel age to a green sustainable energy future. Worldwide electric vehicle adoption accelerates the demand for a greener cleaner safer world.

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Avatar of Jack Collins

by Jack Collins

Dow Jones Hit 15,000!

May 3, 2013 in Economics, EV News

President Barack Obama and President Enrique Peña Nieto of Mexico share a toast prior to a working dinner at Los Pinos, Mexico City, Mexico, May 2, 2013. (Official White House Photo by Pete Souza) Courtesy of The White House

President Barack Obama and President Enrique Peña Nieto of Mexico share a toast prior to a working dinner at Los Pinos, Mexico City, Mexico, May 2, 2013. (Official White House Photo by Pete Souza)
Courtesy of The White House

The President does have reason to celebrate, because it certainly has been a long hard road back to economic recovery.  Today, the stock market is having a party with the latest job numbers.  Bloomberg reported: “Payrolls expanded by 165,000 workers last month following a revised 138,000 increase in March that was larger than first estimated, Labor Department figures showed today in Washington.  The median forecast of 90 economists surveyed by Bloomberg projected a 140,000 gain.  Revisions to the prior two months’ reports added a total of 114,000 jobs to the employment count in February and March.”

West Texas Intermediate (WTI) oil has run back up to around $96 per barrel, and Brent oil is about $105.  The gap between the two oil markers has narrowed in recent trading.  Cushing Oklahoma oil inventories had dropped last week below 50 million barrels, according to the EIA weekly inventory report, relieving some of the glut that has been holding down the price of WTI.  However, crude oil inventories are elevated in the US.  In general, the oil market remains expensive due to the high expenses of modern extraction technologies and fragile nature of the vast world oil market.

The electric vehicle market should do better with a stronger domestic economy and higher oil prices.  Tesla stock (TSLA) has climbed back above $55 per share (15 minutes delayed quote).  The company has another press event scheduled for 10:30 AM Pacific today.  The major auto stocks have been doing well, speaking broadly, in recent trade as well.  General Motors (GM) is near $32 per share.  Ford (F) is near $14.  Nissan (NSANY) is near $21.  Daimler (DDAIF) is little over $57.

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Avatar of Jack Collins

by Jack Collins

Oil Inventories Drop, Solar City Rises

January 4, 2013 in EIA, EV News, Greentech, Solar

The EIA reported this morning that total commercial oil inventories dropped by 10 million barrels for the week ended December 28.  This is a large drop for one week, but crude oil inventories remain high for this time of year, and gasoline and distillate inventories are at high to near normal levels respectfully.  However, oil inventories at Cushing hit another record of 49.8 million barrels.  Despite the new record at Cushing, the WTI – Brent spread has currently narrowed to $18.22.  Commodity traders appear to believe that Seaway oil pipeline volumes are increasing from Cushing.

Oakland Zoo photo courtesy of Solar City

Solar City stock is up significantly today due to a press release from the company.  The company stated:

In Fiscal Year 2012, the Company deployed 156 MW, against a plan of 146 MW deployed.  This represents 117% growth over 72 MW deployed in 2011.  Q4 2012 deployments totaled 47 MW.  Residential deployments were 85 MW for Fiscal Year 2012 and 30 MW for Q4 2012.  Commercial deployments, including non-residential government deployments, were 71 MW for Fiscal Year 2012 and 17 MW for Q4 2012.  The Company expects Fiscal Year 2013 deployments to be 250 MW.  The Company expects residential deployments to be 190 MW in Fiscal Year 2013.  The Company expects commercial deployments to be 60 MW in Fiscal Year 2013.

This is huge growth.  Solar City is the #1 home solar installer in the United States, and they are growing at a very rapid rate.  Since there is such a high correlation of solar and EV sales, this news bodes well for 2013 EV sales.

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