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The oil and gas sector has been experimenting with solar power as a generation source for oil operations for decades, such as this Chevron (then ChevronTexaco) California project in 2003. As costs of solar come down and pressure intensifies on oil companies to cut emissions, more renewable energy will de deployed, but it may remain limited — in scope and effectiveness.
David McNew | Getty Images News | Getty Images

Oil and gas companies are working hard on their messaging in the climate change era. If it’s “code red for humanity” as the UN’s IPCC said last Monday in its latest dire climate report, it’s some sort of “code red” for the fossil fuels industry too, in terms of figuring out how to stay relevant, believable — and for the market, investable — in an era of carbon emissions reduction mandates from governments, regulators and shareholders. 

Occidental CEO Vicki Hollub took a stab at it earlier this year, saying fossil fuels aren’t the problem — it’s emissions. It follows that if fossil fuel companies can find ways to eliminate emissions, on a large enough scale, maybe they can convince shareholders and stakeholders that they are moving into the future in more sustainable way.

But there are big differences in emissions types and emissions reduction strategies. What oil and gas companies do to reduce emissions in their operations and supply chain are, in the end, a smaller part of the carbon reduction game than reducing what is known as Scope 3 emissions — for example, from the tailpipe of your car. Those Scope 3 emissions, by expert estimates, are responsible for the vast majority of carbon emissions from the energy industry.

Lowering carbon emissions profile of oil and gas drilling

Companies including ExxonMobil have begun to disclose Scope 3 emissions, but in terms of their efforts to reduce emissions, remain focused on their own operations. What oil and gas companies do to lower operational emissions, the energy used to power drilling and all the way to the trucks going to and from drilling sites, does matter. Though how much it matters is inevitably smaller in the grander scheme of carbon emissions reduction efforts. 

“The electricity oil and gas companies use is a pretty small contributor to their carbon footprint,” said Chris Archer, head of Americas for Macquarie Capital’s Green Investment Group.

Occidental has been a leader in many of the new technology approaches to lowering the emissions profile of the oil and gas business. As Hollub told CNBC earlier this year, “The reality of a net-zero carbon barrel, it is possible, and we are doing things to make it possible. It’s not a goal on a sheet of paper.” 

Occidental is working on multiple projects related to carbon sequestration, not just for its operations, but other heavy emitters in the industrial sector. A growing but smaller part of that new technology thinking for oil and gas operations, which is expected to see more development in the future, is solar energy — solar panel arrays spreading out in places like the Permian Basin to help lower the emissions profile of oil and gas operations.

Occidental already has a 16 megawatt solar farm in the Permian — the first large-scale solar project to directly power oil and gas operations in Texas — and Hollub told CNBC earlier this year “we will be doing more of that. We believe it will take everything, and we will add more solar over time.” 

Oil and gas industry’s history with solar

Solar isn’t a new thing for oil and gas. Chevron had a project powering operations in the Kern oil field of California as far back as 2003, and BP even got into solar panel manufacturing for decades under Sir John Browne’s “Beyond Petroleum” mission (before solar manufacturing became mostly China’s game and most everyone else went bankrupt). 

“This isn’t a brand new journey,” said Amy Chronis, leader of Deloitte’s US Oil, Gas & Chemicals team in Houston. “But it’s still early days to see broad-based carbon reductions.”

Now several of the European and U.S. majors are making major investments in renewable again, including BP and Royal Dutch Shell, and all the big oil and gas companies have at least a few solar power projects, whether they developed them on their own or signed what are known as power purchase agreements with project developers, including ExxonMobil, which has added to its renewable energy portfolio in recent years.

It bought 500 megawatts of wind and solar in 2018 from Danish renewable energy company Orsted, the largest renewable deal ever signed by a U.S. major. Chevron signed its own 500 MW project last summer, with the energy generation to be split between the Permian, Argentina and Kazakhstan.  

A lot of the renewable energy history within solar has been more fits and starts — and lower down the priority list —than consistent application to the business. Though, the pressure is mounting.

Benjamin Shattuck, research director for Americas upstream oil and gas at energy consulting firm Wood Mackenzie, said most of the companies he follows in the U.S. are still fairly early on in their journey to a carbon reduction model, but as environmental performance and ESG become more mainstream — he said ESG is top of agenda when he talks to oil CEOs lately —and more companies talk about net-zero targets and tie executive compensation to the goals, the situation is rapidly changing. 

“Oxy is one of the companies helping to lead the conversation, between the Goldsmith solar plant [the 16 MW plant Hollub referenced] and longer-term carbon capture and storage, they are thinking about it from a bold standpoint, which is good to see. Everything points to it picking up and accelerating,” Shattuck said.

The Permian is well-suited to renewables

Places like the Permian Basin in Texas and New Mexico are well-suited to renewable energy, with lots of land and a regulatory framework favorable to project development, whether oil and gas or renewables, but the economics have to make sense. And increasingly, they do.

An oil pump operates in the Permian Basin oil field near Carlsbad, New Mexico.
Joe Raedle | Hulton Archive | Getty Images

Archer says these companies can have a much bigger impact on carbon reduction through carbon capture efforts and flaring reduction than by going into renewables for the power. But the Permian Basin is one of the best places in the U.S. to cite solar, with loads of cheap flat land and really good irradiance. “Today, solar, for lots of oil and gas is the economic choice versus diesel generators,” Archer said.

That implies solar and wind projects being developed may have been less about a focus on carbon reduction, in his view, than being driven by the power generation being economically competitive. And Archer said given how economic solar has become in places like the Permian, if oil and gas companies were serious about it as a de-carbonization strategy, we might have seen more of it already under development. 

Never going to be oil’s carbon solution

No one is suggesting solar is oil’s solution. One or two solar plants, “won’t move the needle,” Shattuck said. But larger power purchase agreements and multiple projects across companies in the sector, isn’t insignificant either, in his view. “More operations need to be powered from renewables, whether they own the projects or are taking renewable generation from the grid,” Shattuck said.

It’s a complex process to attempt to make oil and gas drilling operations 100% renewable, from running the drilling rigs to generators and compressors and fracking trucks to get people to and from the field. The energy being used to prepare and drill new wells is greater than for existing wells, and these operations are not stationary either, moving around the Permian from West Texas to New Mexico with electric needs variable. In other words, if you build a solar plant in one area, you can’t just easily pick it up and move it to another where more wells are being focused on. That’s why Shattuck said we may see more oil and gas companies signing power purchase agreements with project developers.

“In some cases, that alleviates the capital risk,” he said. 

But all the diesel that is used today — especially the more remote a drilling site is —does represent a wide range of power replacement opportunities.

The oil field is emissions reduction ‘low-hanging fruit’

Because Scope 3 emissions are the vast majority of emissions and the furthest from the oil and gas companies direct control — and maybe active interest in controlling, with ExxonMobil saying that while it will track Scope 3 it is really up to society and consumers to make their own energy choices — renewable energy in the fields is in a sense, the low-hanging fruit. 

“Electrification of the oil field is important, and solar and wind can play a role, part of a larger puzzle that has to be solved. There isn’t a single solution today, that’s the theme,” Shattuck said. “It needs to be multi-technology for them.”

This won’t go over well with those ready to leave the fossil fuels economy behind, because the model is in effect augmenting what oil and gas companies are doing in the oil field rather than representing any full-scale pivot. It’s the emissions are the problem —not fossil fuels — of Hollub.

Building solar is not their solution. It’s good asset management with economic benefits on their existing assets. But it’s not a rubric through which they de-carbonize.
Chris Archer
Macquarie Capital’s Green Investment Group

But that low-hanging fruit gives the companies a means to test the market, see how investors and stakeholders react, and going down the road of renewables, because it’s not what they have typically done in the past, is part of the effort that will be put into winning back investors in the years ahead.

“They need to find out what’s hitting the mark and what isn’t, and if Goldsmith [the Oxy solar project] is resonating well with investors, then maybe they do more,” Shattuck said.

The first net-zero oil barrel

Archer worries it is still more about issuing a press release than executing on significant change, and he is skeptical that these projects can change the image of these companies.

“When was the last time you bought something from Oxy? It’s not like you’re swayed as a consumer,” he said. “Building a 20 MW solar farm and issuing a press release won’t earn you many points. You need a bigger strategy and goals.”

But while the consumer at the gas pump may not think in those carbon-neutral barrel terms today, industrial buyers already do. “We have talked to companies producing natural gas and the off taker is a utility and that utility does care about the carbon footprint, about the gas burning in a power plant,” said Kate Hardin, executive director of the Deloitte Research Center for Energy & Industrials. “So maybe it is not as direct as a person, as the end user in retail, but companies buying the oil and gas may care.”

And that is exactly what happened in early 2021, when Oxy shipped its first-ever carbon-neutral barrel of oil to India, and issued a press release about it.

There are multiple business cases to make in the future that revolve around more of these deals, if on the margins, and that relate back to the value of more renewable energy generation in the fields. Oil and gas companies need to find new competitive advantages, and even if there is a case where the economics of a solar plant don’t work on their own, decreasing export risk could be another way to make the model productive. 

“It will be interesting to watch that competition. It’s proof of concept work, really early on,” Shattuck said.

That work comes at time when the sector is focused more on capital discipline and budget cuts then spending, making it more difficult for oil and gas companies to pull the trigger on experiments with technology. One of the biggest questions for the future of the oil and gas industry is tied up in the question of how much renewable energy development it pursues — what percentage of the overall spending is earmarked for carbon emissions reduction.  

“I don’t think it will be an insignificant amount. If they want to continue to have access to funding and capital they will have to continue with a variety of these technologies and strategies, and we will learn more about what’s most effective,” Shattuck said.

The oil and gas companies early work on solar implies they are learning and getting familiar with the technology, and it will stay in the mix, but other initiatives will be more material, in Archer’s view. “Building solar is not their solution. It’s good asset management with economic benefits on their existing assets. But it’s not a rubric through which they de-carbonize. But we will see more of it,” he said. 

For a long time, the oil and gas industry could do no right when it came to cutting spending and running operations on a more conservative basis. But in recent years, the industry has been forced by investors to do just that. Now capital discipline is a top priority to stay in favor with investors.

Carbon reduction efforts, including renewable energy projects like solar, are a different mode of thinking than deciding on exploration spending, but there’s a similarity: the companies are leapfrogging each other in terms of targets and as technology gets rolled out, it will play a role in the sector players that investors decide on as the likely winners.

“It would be surprising if the budget line item is low,” Shattuck said.

Especially with oil and gas executive compensation packages now much more frequently designed to only go up if carbon emissions go down.

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Toyota to buy clean power from a $1.1 billion solar farm in Texas

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Toyota to buy clean power from a .1 billion solar farm in Texas

Enbridge, a Canadian energy company, just announced it’s moving forward with an 815-megawatt (MW) solar project called Sequoia in Texas. When it’s done, it’ll be one of the largest solar farms in North America. The project’s price tag is a hefty $1.1 billion.

Enbridge’s Sequoia, around 150 miles west of Dallas, has already landed long-term power purchase agreements (PPAs) with AT&T and Toyota, ensuring most of its output is sold for years to come. This deal was highlighted in Enbridge’s third-quarter report on Friday.

Sequoia will be built in two phases, with power expected to start flowing in 2025 and 2026. Enbridge says it’s taken steps to reduce risks by securing equipment and procurement contracts in advance. Permits and purchase orders are also locked down.

Toyota’s PPA with Enbridge’s Texas solar project is part of Toyota’s broader push toward sustainability, as the automaker aims to achieve net zero by 2035 and match 45% of its purchased power with renewable electricity by 2026 as it still clings to its “diverse powertrain strategy.”


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Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. –trusted affiliate link*

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NIO’s EV sales top 20,000 for the sixth straight month as new low-cost SUV shows promise

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NIO's EV sales top 20,000 for the sixth straight month as new low-cost SUV shows promise

With its new electric SUV rolling out, NIO’s (NIO) sales topped the 20,000 mark again in Oct, its sixth straight month hitting the milestone.

NIO sold 20,976 vehicles last month, up 30.5% from October 2023. The NIO brand sold 16,657 vehicles, while its new “family-oriented smart vehicle brand,” Onvo, contributed 4,319 in its first full sales month.

After launching its new mid-size Onvo L60 electric SUV in September, NIO said production and deliveries are steadily ramping up.

At the end of October, NIO’s Onvo had 166 Centers and Spaces throughout 60 cities. Onvo plans to continue expanding its network to drive future growth.

NIO’s new electric SUV starts at around $21,200 (149,900) and is a direct rival to Tesla’s Model Y. The base $21K model is if you rent the battery. Even with the battery included, Onvo L60 prices still start at under $30,000 (206,900 yuan), with a CLTC range of up to 341 miles (555 km). That’s still less than the Model Y.

Tesla’s Model Y RWD starts at around $35,000 (249,900 yuan) with 344 mi (554 km) CLTC range in China.

NIO's-Oct-sales
Onvo L60 electric SUV models (Source: NIO Onvo)

NIO’s new Onvo brand drives higher Oct sales

NIO has often compared its new electric SUV to the Model Y, claiming it’s superior in many ways. The L60 has better consumption at 12.1 kWh/100km compared to the Model Y at 12.5 kWh/100km).

With a longer wheelbase (2,950 mm vs 2,890 mm), NIO’s electric SUV also provides slightly more interior space.

NIO's-Oct-sales
NIO Onvo L60 electric SUV (Source: Onvo)

Despite the L60’s success so far, NIO believes its second Onvo model will be an even bigger hit. It could be a potential game-changer.

“If you think the L60 is good, then this new model is a much more competitive product,” NIO’s CEO William Li told CnEVPost after launching the L60. Onvo will launch a new EV every year. Following the L60, Onvo will launch a new mid-to-large-size electric SUV next year.

NIO’s leader claims the new model will be revolutionary. According to Li, it will offer even more surprises than the L60. Deliveries are planned to begin in Q3 2025.

NIO Onvo L60 vs Tesla Model Y trims Range
(CLTC)
Starting Price
NIO Onvo L60 (Battery rental) 555 km (341 mi)
730 km (454 mi)
149,900 yuan ($21,200)
NIO Onvo L60 (60 kWh) 555 km (341 mi) 206,900 yuan ($29,300)
NIO Onvo L60 (85 kWh) 730 km (454 mi) 235,900 yuan ($33,400)
NIO Onvo L60 (150 kWh) +1,000 km (+621 mi) TBD
Tesla Model Y RWD 554 km (344 mi) 249,900 yuan ($34,600)
Tesla Model Y AWD Long Range 688 km (427 mi) 290,900 yuan ($40,300)
Tesla Model Y AWD Performance 615 km (382 mi) 354,900 yuan ($49,100)
NIO Onvo L60 compared to Tesla Model Y prices and range in China

Local reports suggest a six-or seven-seat electric SUV could hit the market even sooner. With rumors of a launch around Q1 2025, deliveries could happen as soon as May 2025.

According to sources close to the matter, the L60 is just a “stepping stone” with even more exciting EVs on the way. The source claimed the new six-seat option will start at around $42,100 (300,000 yuan).

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Velotric Ebikes’ big early-bird Black Friday discounts are here!

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Velotric Ebikes' big early-bird Black Friday discounts are here!

Velotric Ebikes are designed by some of the most brilliant minds in the business. And now, you have the opportunity to own one (or two!) of these high-performance, elegant, reliable rides. You won’t want to miss these fantastic early-bird Black Friday deals running from November 1-14, and, also get a sneak peek at special offers that start on November 8.

Read on to find the right model for you and learn how you can donate $5 to get up to $550 off a superb Velotric electric bike.

Velotric Black Friday deals – give to get back

If you donate $5 to either the Clean Air Task Force or the Solutions Project at checkout, you’ll unlock some fantastic discounts off Velotric e-bikes:

  • Clean Air Task Force: Fighting air pollution for healthier communities
  • The Solutions Project: Advocating for 100% renewable energy in frontline communities

Plus, Velotric is giving Electrek readers an exclusive discount: Enter the code Electrek20 at checkout to get an additional $20 OFF!

Velotric Discover 2 Ebike

The Velotric Discover 2, Velotric’s most comfortable e-bike, now has even more power, with a 750W high-performance motor and 75 Nm of torque. The 48V 706 Wh battery, providing up to 75 miles per charge, maximizes your range.

You can ride in comfort, as the frame design supports an upright posture; plus, it’s got a 200mm wide saddle and ergonomic grips, reducing long-ride strain. Enjoy a premium, versatile ride that turns every journey into a joyride.

Discover 2 – Save up to $200

Velotric Summit 1 Ebike

If you want both an everyday bike and a trekking bike, then this is the one for you. The customizable Velotric Summit 1 Ebike is a hybrid e-bike featuring a 750W motor with 90 Nm of torque that delivers exceptional power for both city streets and offroad terrain, and the intuitive throttle means you can access that power effortlessly. When you’re off-road, the 120mm travel suspension absorbs the impacts, resulting in a smoother ride. The 48V, 705.6Wh battery provides up to 70 miles of charge.

Plus, it features a vibrant multifunctional screen with three configurations and use the Velotric app to monitor mileage and access real-time bike data.

Summit 1 – Save up to $200

Velotric Nomad 1 Plus Ebike

The Nomad 1 Plus Ebike‘s 750W motor and 75 Nm torque allow you to conquer just about any terrain. The 691Wh battery keeps you on the move for up to 55 miles, an 80mm suspension fork smooths your ride, and powerful waterproof hydraulic brakes give you full control.

The Nomad 1 Plus features an adjustable stem, a brighter front light, and max speed adjustable range is 12-28 mph.

Nomad 1 Plus – save up to $550

Velotric Fold 1 Ebike

The Velotric Fold 1 Ebike becomes compact in just three quick moves, but don’t mistake it for simple. The high-performance 750W motor and generates 70 Nm torque, beating most of the competition for acceleration and climbing ability. The 608Wh battery will give you up to 55 miles of range, its step-through design is 20% lower than the competition, and when you’re done zipping around town or commuting, you can pop it into a car trunk or even a closet.

Plus, the Fold 1 is compatible with a wide range of cool accessories so you can customize it to meet your needs.

Fold 1 – Save up to $350

Velotric T1 ST Plus Ebike

The Velotric T1 ST Plus Ebike is an ultra-compact, 39-pound city-and-gravel bike that’s designed for riders with an active lifestyle. But don’t be fooled by its sleek look because it’s very well-equipped: The five pedal-assist-level T1 ST has a 70-mile range and three riding modes, and the peak 600W motor generates 40Nm of torque. It also comes with Apple Find My integration.

T1 ST Plus – Save up to $400

Velotric Discover 1 Plus Ebike

The Velotric Discover 1 Plus Ebike is a fantastic commuter bike that’s designed for comfort. (Plus, it’s kinda fun that it comes in five color choices.) If your commuting route is a bit more challenging, then the Discover 1 Plus might be the right fit for you. It features a rear light with braking high-beam, a 60 Lux front light, and double hydraulic disc brakes for extra safety. Plus, Velotric rigorously tests its frames 150,000 times under tough conditions for quality assurance.

This commuter e-bike that rides like a cruiser has a pedal assist range of 65 miles and throttle range of 58 miles on a 900W peak motor that generates 65 Nm of torque.

Discover 1 Plus – Save up to $550

Velotric Go 1 Ebike

Velotric’s Go 1 Ebike is small but mighty – it can carry up to 440 pounds comfortably. This ride has hydraulic suspension and a plush saddle, and it can be kitted out with a wide range of accessories, making it a versatile form of transport for everything from a fun day out to carting groceries across town.

It’s powered by Velotric’s proprietary Velopower H50 Drive System, which provides a range of up to 55 miles on pedal assist up to 25 mph (unlocked) with a peak 900W motor.

Go 1 – Save up to $400*

  • Regular price: $1,399 $1,699
  • Promotion: Get $100 off total saving $400
  • Discounted price: $1,299
  • Get 3 accessories & unlock 30% off on selected accessories

*Not included in the early-bird Black Friday deal, this deal runs from November 8-28 only

Velotric Packer 1 Ebike

From kids to cargo, the Velotric Packer 1 Ebike was designed to haul it all! The Packer 1 features Velotric’s proprietary Velopower H75 Drive System, which provides a range of up to 52 miles on pedal assist up to 25 mph (unlocked) with a 750W motor.

It can carry up to 440 pounds and has a 176-pound rear cargo carry capacity, plus hydraulic suspension with 80 mm of travel for a smooth ride. If you’re running a child to school every day, this would be a fantastic choice. Be sure to check out all the great accessories.

Packer 1 – Save up to $600

  • Regular price: $1,699 $2,199
  • Promotion: Get $100 off total saving $600
  • Discounted price: $1,599
  • Get 3 accessories & unlock 30% off on selected accessories

*Not included in the early-bird Black Friday deal, this deal runs from November 8-28 only

Don’t forget to use Velotric’s exclusive code for Electrek readers of Electrek20 at checkout to get an additional $20 OFF!

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