Morning Consult Energy: Ford Says It Will Lose $3 Billion on EVs This Year
 

Energy

Essential energy industry news & intel to start your day.
March 23, 2023
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Today’s Top News

  • Ford Motor Co. said its electric vehicle business, called “Ford Model e,” lost $3 billion before taxes in the past two years and expects to lose a similar amount in 2023 as it continues to invest more in EVs. Ford said it expects the EV business to be profitable before taxes by late 2026 but did not say when it expects the unit to start making money, with Chief Financial Officer John Lawler adding that Ford Model e should be considered a startup company within Ford. (The Associated Press)
  • Property and casualty insurer Chubb said it will provide coverage only to oil and gas project clients that can prove they have measures in place to reduce methane emissions, such as detecting methane leaks and removing non-emergency venting. Chubb, which is the world’s largest property and casualty insurer, also said it will no longer offer coverage for oil and gas projects that do not allow for sustainable use in government-protected conservation areas in the World Database on Protected Areas. (Reuters)
  • Republicans on the House Oversight Committee launched an investigation that is seeking documents and other communications regarding the Biden administration’s climate funding in the Inflation Reduction Act and other legislation and how the Energy Department plans to manage the billions of dollars in added funds. As part of their investigation, the GOP lawmakers cited a report from the Energy Department’s Office of Inspector General that warned about potential fraud and mismanagement stemming from the increased funding to the agency. (Bloomberg)
  • The Treasury Department said it will release proposed guidance next week for domestic sourcing requirements for electric vehicles to qualify for tax credits provided by the IRA. (Politico)
 

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What Else You Need to Know

Politics and Policy
 

US Seeks Exemption From EU Carbon Border Levy to End Tariff Dispute

Alberto Nardelli et al., Bloomberg

The US has asked for its steel and aluminum exports to be exempt from the European Union’s carbon border levy as part of ongoing talks to find a permanent solution to a dispute over metals tariffs the allies imposed on each other.

 

Treasury, IRS to Create Registry to Monetize Energy Tax Credits

Erin Slowey, Bloomberg Law

The Treasury and IRS are working on an electronic pre-filing registration process for companies and organizations that want to monetize clean energy tax credits, an official said Wednesday.

 

Xi Aligns With Putin Against US, But Hesitates on Gas Deal

Kari Soo Lindberg and Stephen Stapczynski, Bloomberg

Xi Jinping used two days of talks in Moscow to firmly align with Russia against the US. But the Chinese leader held back from offering Vladimir Putin something he’s been looking for: A commitment to buy a lot more gas.  

 

The feds have a low-carbon shopping list. It’s global.

Jean Chemnick, E&E News

The Biden administration’s upcoming changes to federal acquisition regulations aim to shrink the U.S. government’s carbon footprint. But they may also prompt companies to reduce emissions from their own operations and from suppliers as they vie for a share of the hundreds of billions of dollars in government contracts Washington doles out each year.

 
Climate and Enviroment
 

Shell recommends shareholders reject climate activist resolution

Reuters

Shell recommended on Wednesday its shareholders vote against a climate activist resolution asking for more stringent emissions cuts by 2030 at its May 23 general meeting.

 

In a first, EPA seeks emergency action to curb a plant’s cancer risk

Lylla Younes, Grist

The Denka facility releases thousands of pounds of carcinogens into the air of a predominantly Black Louisiana town every year.

 

Memo: 2021 Navy fuel spill in Hawaii contaminated water with antifreeze

Jacob Knutson, Axios

A November 2021 leak at a World War II-era bulk fuel storage facility that contaminated the water system of an Oahu military base forced thousands of people from their homes.

 

Crypto Is Mostly Over. Its Carbon Emissions Are Not.

Emma Marris, The Atlantic

The environmental toll of Bitcoin could be even higher this year than last.

 
Renewables and Nuclear
 

In Green Hydrogen Race With the U.S., Europe Is Hobbled

Carol Ryan, The Wall Street Journal

Excitement about green hydrogen is high in energy circles. Europe had an early lead, but now the U.S. is doing the better job of powering up the new industry.

 

What Does ‘Made in America’ Mean? In Green Energy, Billions Hinge on the Answer

Phred Dvorak, The Wall Street Journal

Companies pursuing subsidies try to shape the Treasury Department’s definition.

 

Dolphin Deaths Spur Calls for Wind Power Halt in New Jersey

Elise Young, Bloomberg

A spate of whale and dolphin deaths along New Jersey’s shore is prompting Republican lawmakers to call for a halt to preliminary work on Governor Phil Murphy’s offshore wind projects.

 
Fossil Fuels
 

OPEC+ likely to stick to its guns despite price slump, delegates say

Ahmad Ghaddar et al., Reuters

OPEC+ is likely to stick to its deal on output cuts of 2 million barrels per day (bpd) until the end of the year, even after a banking crisis sent crude prices plunging, three delegates from the producer group told Reuters.

 

Falling US gasoline stockpiles signal a repeat of last summer’s high prices

Shariq Khan, Reuters

U.S. motorists face a repeat of last summer’s high gasoline prices, analysts warned on Wednesday, with fuel stockpiles heading towards multi-year lows ahead of the peak summer driving season that begins in two months.

 

Gas Industry Pushes Congress, FERC for Changes to Speed Permits

Daniel Moore, Bloomberg Law

Natural gas pipeline developers are pressing Congress and US energy regulators to speed up the permitting process as a way to build more projects that deliver energy to the Eastern states.

 

Oil exec held for 5 years in Venezuela sues Citgo for $100M

Juan A. Lozano, The Associated Press

One of the Citgo oil executives who was held for nearly five years in Venezuela has sued his company for $100 million, alleging it conspired in his detention and then abandoned him and his family as he wasted away in horrific prison conditions for a crime he didn’t commit.

 

Big Oil Eyes New Deals in North Africa Amid Rising Energy Demand

Chao Deng and Benoit Faucon, The Wall Street Journal

After years of underinvestment in North Africa’s energy infrastructure, global oil-and-gas giants from Halliburton Co. and Chevron Corp. to Eni SpA are ramping up their presence in the region as demand from Europe grows.

 

Oil spills and near misses: more ghost tankers ship sanctioned fuel

Jonathan Saul, Reuters

Hundreds of extra ships have joined this opaque parallel trade over the past few years as a result of rising Iranian oil exports as well as restrictions imposed on Russian energy sales over the war in Ukraine, said the industry players, who include commodity traders, shipping companies, insurers and regulators.

 
Transportation and Alternative Fuels
 

Norfolk Southern CEO dodges question on support for railway reform bill

Zack Budryk, The Hill

Norfolk Southern Railway CEO Alan Shaw said Wednesday that he supports certain aspects of a bipartisan railroad safety bill introduced after a train operated by the company crashed in East Palestine, Ohio, but declined to endorse the bill as a whole.

 

Toyota’s Outgoing CEO to Stay On as Japan Auto Group Chief

Nicholas Takahashi, Bloomberg

Akio Toyoda will remain chairman of the Japan Automobile Manufacturers Association for one more year, after stepping down as Toyota Motor Corp.’s chief executive officer next month, the group said.

 

Renault Invites Bank Pitches for Listing Its Electric Vehicle Arm

Swetha Gopinath and Albertina Torsoli, Bloomberg

Renault SA is inviting investment banks to pitch for a role on the planned initial public offering of its Ampere electric-vehicle business, according to people familiar with the matter.

 

Electric cars are creating a new economy — and leaving some towns behind

Jeanne Whalen, The Washington Post

Workers and small businesses in Belvidere, Ill., are dealing with the aftermath of mass layoffs, after Stellantis idled its Jeep factory.

 
Electricity/Utilities/Infrastructure
 

Tens of thousands without power in California as latest storm lashes state

Steve Gorman and Brendan O’Brien, Reuters

Tens of thousands of storm-weary Californians were without power and under evacuation warnings on Wednesday as the latest storm packing wind-blown rain and snow threatened to bring more flooding to the rain-soaked state.

 

Builders Tell EPA They Want Automated Help for Carbon Labeling

Stephen Lee, Bloomberg Law

Digital tools and buy-in from trade associations are what’s needed most for better labeling of environmental product declarations that show the carbon content of construction materials, business groups told the EPA on Wednesday.

 

Record-high electricity prices fail to boost residential energy management programs: JD Power

Robert Walton, Utility Dive

Despite “record high” residential electricity prices, customers are not taking advantage of energy management and conservation programs offered by utilities, J.D. Power said in a report published Wednesday.

 

New Microsoft Toolkit Will Measure Real-Time Xbox Energy Use

Coco Liu, Bloomberg

The company says game-makers will be able to use its toolkit to experiment with ways to reduce games’ energy consumption.

 

A Water System So Broken That One Pipe Leaks 5 Million Gallons a Day

Sarah Fowler, The New York Times

As a water shortage ballooned into a crisis in Jackson, Miss., the leak grew bigger and bigger, gouging out a swimming pool-size crater in the earth.

 
Land and Resources
 

Deep Sea Mining Just Lost Its Biggest Corporate Backer

Todd Woody, Bloomberg

A growing number of countries are calling to delay plans to strip-mine the seabed for metals to make electric car batteries as US defense giant Lockheed Martin Corp., the biggest corporate player in deep sea mining, exits the nascent industry. As a water shortage ballooned into a crisis in Jackson, Miss., the leak grew bigger and bigger, gouging out a swimming pool-size crater in the earth.

 
General
 

Big Sky bison battles spell trouble for Haaland

Rob Hotakainen, E&E News

While Interior Secretary Deb Haaland wants to restore more bison across the country, Yellowstone’s famous herd suffered through one of the deadliest winters on record, with the animals easy prey for hunters as they sauntered across the park’s northern border in search of food.

 
Morning Consult