St. Bernard Parish residents fill up their cars and gas cans as the Louisiana coast prepares for the arrival of Hurricane Ida on Friday, Aug. 27, 2021 in New Orleans.
Chris Granger | The Times-Picayune | The New Orleans Advocate via AP
Hurricane Ida temporarily shut down a critical swath of U.S. oil production and refining operations, and that should keep crude and retail gasoline prices at already elevated levels.
Now a tropical storm, Ida swept across the Gulf of Mexico production area before slamming into the Louisiana coast Sunday as a Category 4 storm, bringing torrents of rain, high winds and high tides. More than 1 million Louisiana utility customers were without power early Monday.
The energy industry was working Monday to assess when it could restore refining operations across Louisiana and oil and gas production in the Gulf of Mexico, taken off line as a precautionary measure.
Oil prices were slightly higher Monday, but off their early peak, after jumping 10% last week. However, West Texas Intermediate futures, trading at about $69 Monday, are still down over 6.5% for the month. Nearly all Gulf of Mexico oil production was shut in, accounting for about 15% of the U.S. total.
“The reaction is mixed because we avoided the worst-case scenario,” said John Kilduff, partner with Again Capital. “But supplies are tight, and that could impact prices, especially since we are moving into the peak period for storms, and weather worries are going to persist around the market for the next several weeks. As for supply, the cupboard was kind of bare going into this.”
The shut in operations in the Gulf of Mexico should resume to normal if no damage is found. The hit to supplies from the hurricane comes as OPEC+ meets this week.
OPEC+ is widely expected to restore the 400,000 barrels a day of production it had previously committed to return to the market. The Biden administration had asked Saudi Arabia and OPEC for more supply to be restored.
But the cartel and its associates, like Russia, are expected to restore only the planned amount of oil to the market. “They’re not coming to rescue us from $70 oil,” said Kilduff.
Crude inventories are at the lowest level since January 2020. In data reported last week, crude supply fell for a third straight week while fuel demand rose to the highest level since March 2020, according to the Energy Information Administration.
Price impact for Labor Day
Gasoline supplies could also be impacted temporarily by Ida, with refineries shut down across the region. The Colonial Pipeline, a key artery transporting gasoline from Houston, across the South and up to the Northeast, was partially shut down. The pipeline expects to resume service once the system is assessed. Terminals continued to distribute gasoline.
“The consumer should not expect gasoline prices are going to go down this week,” said Andrew Lipow, president of Lipow Oil Associates. Analysts expect gasoline prices to rise 5 cents to 10 cents per gallon by the Labor Day weekend for some consumers, particularly in the southern and eastern U.S.
The average national price for unleaded gasoline was $3.15 per gallon Monday, down a penny from a week ago, according to AAA. The price is the highest for a Labor Day weekend in seven years and up sharply from the $2.23 per gallon price at this time last year.
It’s unclear when refining operations will be restored to normal, since it may be difficult to move personnel back to the impacted area.
“Pretty much everything in Baton Rouge, New Orleans area is shut down, representing 12.5% of the nation’s refining capacity,” said Lipow.
Lipow said ExxonMobil is currently shutting down its entire refining operation in Baton Rouge, responsible for 540,000 barrels a day. Two other refineries in Mississippi remain in operation, but the area is under tornado and flood watch, he said. ExxonMobil said its Baton Rouge refinery was not harmed but it is shutting down operations to stabilize them.
Kinder Morgan’s Plantation pipeline, which also takes gasoline across the southeast, was operating Monday, but its Baton Rouge terminal was without power. Lipow said Plantation transports gasoline from Louisiana refineries, while Colonial also receives oil from Texas refineries.
“No facilities, as far as we hear now, appear to have any serious physical damage, which is good news for consumers,” said Kilduff. But the industry is watching to see how soon operations will be restored and whether refineries will be impacted by power outages.
“The electrical situation is the big unknown right now,” said Kilduff. If refineries are impacted, that could mean gasoline prices would rise even more.
Gasoline demand in the U.S. was a strong 9.57 million barrels a day, the Energy Department reported in its most recent weekly data. Weekly refined product demand reached another post pandemic high and a level not seen since August 2019, according to TortoiseEcofin. The top three weekly demand readings for gasoline have been in the last several weeks, it said.
“This holiday weekend, there could be epic gasoline demand if trends hold up,” said Kilduff.
Memories of Katrina
At the same time, the shutdown of economic activity, due to Ida, has resulted in a loss of demand for oil. Tom Kloza, head of global energy research at Oil Price Information Service, said he expects the loss of Gulf of Mexico production to have little impact.
“The demand destruction from Ida is probably a little bit more significant than the lost production that will accrue from the Gulf of Mexico,” he said.
Analysts said the impact of Ida on energy prices was nothing like that of Katrina, which made landfall in Louisiana 16 years ago to the day.
“The storm may draw similarities from a geographical perspective, but the sequel has a less than similar impact on the energy markets than Katrina did,” wrote Michael Tran, commodities strategist at RBC. “In fact, historical rules of thumb have changed. Hurricanes are no longer bullish for oil prices. In fact, storms can actually have longer lasting, medium- term bearish ramifications.”
At the time, the U.S. produced just 5.2 million barrels a day, and the Gulf was responsible for 1.3 million barrels a day, compared to 1.6 million barrels a day.
“Hurricane Katrina devastated offshore oil production in the US Gulf Coast in 2005, prior to the shale revolution when offshore production comprised a much larger portion (nearly 25%) of total US output,” Tran noted.
ALSET Auto doesn’t protect cars; it protects EVs. This year, the Tesla customization company expanded its services to include all EV owners and offers services such as tint, ceramic coatings, paint protection film (PPF), and colored wraps. As ALSET Auto’s business grows, the company is offering new franchise opportunities to help expand its services to EV owners in the US and Canada.
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Founded by EV owners for EV owners
ALSET Auto was founded in Portland, Oregon in 2018 by Phil Bunting and Marcus Brown after they each purchased Teslas and were dissatisfied with their experience in their search for viable exterior protection options.
I called a half dozen shops in my area and got the same runaround. They loved to disparage Tesla’s soft paint, but no one wanted to give me a firm price for paint protection over the phone,
recalls ALSET CEO, Phil Bunting:
They all wanted me to bring my Tesla into their shop first, refused to provide a firm estimate over the phone, and declined to list their all-in prices on their website. I remember thinking, if I can build, price, and purchase a $100,000 Model X on my iPhone in five minutes, why should getting my Tesla protected be any different?
Thus, the idea for ALSET (Tesla spelled backward) was born. The company envisioned offering customers an experience similar to buying a Tesla, where the price is transparent, and there is no upselling, bait-and-switch tactics, or pricing gimmicks. Instead of selling Tesla owners on the fear of what could happen to their EV’s unprotected paint, ALSET set out to build a lasting connection with customers based on a shared passion for the cars they love.
Over the past five years, ALSET Auto has quickly become a leading provider of paint protection and personalization services. Operating in 15 markets across North America, ALSET has protected and personalized more than 7,000 EVs.
Aside from Cybertruck wraps, ALSET Auto’s three core services appeal to the broader market of owners who are looking to protect, preserve and enhance the look of their EVs. The company forged a partnership with XPEL Inc. to offer its customers a suite of best-in-class protective film and coating options, which include:
ALSET Auto offers a suite of options to protect, preserve and personalize your EV
Tesla Cybertruck wraps have quickly become a significant portion of ALSET Auto’s expanding business. The company offers the largest selection of colored PPF in the industry with more than 250 options in gloss, matte, metallic, and color shifting. The company is currently wrapping about 100 Cybertrucks per month, with several locations wrapping as many as five per week. Bunting elaborated:
The demand for colored paint protection film in recent years has surged because most EVs are offered in limited colors. Unlike flimsy vinyl wraps, colored PPF offer durable protection, self- healing properties and longer warranty coverage. It is the best of both worlds for protection and aesthetics. For Cybertrucks, we are finding that it’s a matter of when their owners will purchase wraps, not if.
The company has received nearly 1,000 five-star reviews for offering highly specialized customer service along with an industry-leading, lifetime warranty. In addition, ALSET services are CARFAX certified so that all upgrades appear on CARFAX reports to increase resale value and assist in insurance claims.
Paint Protection Film (PPF) – This durable self-healing film is offered in a clear or matte finish and is most commonly applied to the entire car or the front impact zones which include the full hood, fenders, bumper and mirror caps. PPF protects the vehicle’s paint from unsightly rock chips, scratches and abrasions. In many instances, scratches in the film can be removed with heat from the sun or blowdryer, or by using hot water.
Nano Ceramic Coatings – When fully cured, ceramic coatings are up to three times harder than factory clear coat. ALSET Auto’s full interior and exterior ceramic package uses four different ceramic formulas which are applied to the paint and trim, wheels, windshield, as well as the interior. While these coatings are not intended to prevent rock chips, they help protect from light scratches and swirls, environmental contaminants, and etching from bug guts and bird droppings. They also make your EV extremely shiny and hydrophobic, which makes washing and maintenance a breeze.
Ceramic Window Film – Available in a variety of shades, ceramic window tint offers unrivaled heat rejection as well as protection from harmful UVA and UVB rays. It also provides a sleeker look and enhanced security and privacy. EVs with ceramic window tint can expect to get more range from their battery due to lower cabin temps and less use of their EV’s air conditioning.
ALSET Auto also participates in XPEL’s OEM referral programs, which include Tesla and Rivian.
ALSET Auto plans to award 12 new franchises in 2025
After successfully opening corporate locations in Portland and Seattle, ALSET Auto launched the company’s first franchise in 2021 in Dallas, Texas. In doing so, ALSET Auto completed a rigorous franchise registration process with iFranchise Group, Inc., an industry-leading consultancy group that has worked with Massage Envy, Denny’s, Vitamin Shoppe, Shelf Genie and other name brands.
Since then, ALSET Auto has expanded to 15 locations with several more franchises currently in the pipeline.
Locations:
Atlanta, GA
Austin, TX
Dallas, TX
Jacksonville, FL
Las Vegas, NV
Orange County, CA
Portland, OR
Raleigh, NC
Richmond, VA
San Diego, CA
Sacramento, CA (ALSET Affiliate)
Seattle, WA
Tampa, FL
Vancouver, BC, Canada
The average annual revenue for ALSET Auto locations open at least 12 months was $1 million in 2023, according to the company’s 2024 Franchise Disclosure Document (FDD).
ALSET Auto provides franchisees a wide range of ongoing support including training, site selection assistance, coaching, access to proprietary software systems, in-house marketing and advertising, vendor partnerships, and dealer programs. These services are critical to setting up news franchise operators for success.
Current ALSET franchisees joined the company without any prior experience in the industry. They come from various backgrounds, including the restaurant and entertainment industries, sales, technology, sports, and finance.
Ideal franchise candidates are EV owners and enthusiasts who are passionate about the booming EV market and seeking financial freedom and independence from a typical 9-to-5 job. Candidates should be well-capitalized, business-minded, passionate about the EV industry, and committed to actively working in their business.
To learn more about franchising with ALSET Auto and receive the company’s franchising e-brochure, visit their website here.
If you’re interested in learning more about their services, visit their retail site at www.alsetauto.com.
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“Great to see Tesla’s Robotaxi unveiled … including the Robovan. But why wait?” Those are the words of Oxa’s VP of Director Strategic Partnerships & Universal Vehicle Autonomy, Paul Reynolds, on LinkedIn – and it’s hard to argue against the idea that if a self-driving van is a good idea five years from now, it’s a good idea today.
And Oxa says it has a self driving van today that’s ready to deliver on that idea’s promise.
Oxa’s autonomous-capable hardware is designed to fit snugly on the outside of the popular Ford E-Transit commercial van without encroaching on the van’s interior. That means fleets will be able to integrate the self-driving vans into existing fleets without the need to redesign their existing upfit solutions – a critical piece of the overall puzzle for fleet managers.
That also means that the self-driving version of the Oxa-powered Ford E-Transit can be configured to do everything the conventional ICE Transits can do, and serve logistics (delivery van), trades (work van), and passenger/shuttle services (up to 10 seats in passenger E-Transit trim – which we don’t yet get here in the US).
“Making the Ford E-Transit available for autonomous operations is the next step on our journey to deliver safe, scalable, and sustainable autonomous solutions,” explains Gavin Jackson, CEO of Oxa. “This vehicle represents an important milestone in our mission to reshape the future of passenger transportation and logistics.”
The Oxa E-Tranist self driving van is equipped with a full suite of sensing equipment to “take in the road,” including high-definition cameras, lidar, and radar sensors. The Oxa hardware sends a full 360-degrees’ worth of perception and long-range detection to the system’s processors, enabling autonomous operation at electronically-limited speeds of up to 35 mph in mixed traffic. The Transit’s manual controls are fully preserved, too, enabling a seamless transition to human operation in adverse/edge case conditions.
Yamaha has announced to its dealers that it will be pulling its e-bikes out of the North American market at the end of this year. In the meantime, the brand says that it will offer sales of up to 60% off for its remaining inventory and continue to support its e-bikes already sold in the US for at least five more years.
Yamaha’s electric bikes have been well-received in global markets and have also received rave reviews in the US. However, the company’s higher prices make it harder to compete in the North American market, which is dominated by value-oriented models with significantly lower price points.
Yamaha’s various electric bikes designed for commuting, fitness, and mountain biking all feature higher-end components, which has resulted in the company competing more directly with premium bicycle shops. The company’s elaborate frames and in-house motors have added value to their models, yet have also contributed to a more premium price range.
Meanwhile, Yamaha hasn’t been immune to the same sales slowdown and overstocking issues that have plagued the e-bike industry over the last few years, as the company explained to its dealers in the letter seen below.
“Dear Yamaha eBike Dealer,
We want to thank you for your partnership and for your business in purchasing and retailing Yamaha eBikes, and for proudly representing the Yamaha brand. However, as you know, the combination of a post-COVID oversupply within the entire bicycle industry, coupled with a significant softening of the market, has resulted in a particularly challenging business environment where it is extremely difficult to achieve a sustainable business model. Given these market conditions, we regret to inform you that Yamaha has made the difficult decision to withdraw from the U.S. eBike business and cease wholesaling units effective the end of this year.
Yamaha Motor Corporation, U.S.A. (YMUS) entered the U.S. eBike market in 2018, and we have enjoyed the opportunity to partner with you these past six years to sell exciting, high-quality, all-road, mountain, and fitness/lifestyle eBikes.
We will continue to support your dealership in the sell down of your inventory by extending the current “Fan Promotion” program where customers may receive up to 60% off their purchase of a new Yamaha eBike. This “Fan Promotion” program will be offered on all units retailed and warranty registered through June 30, 2025. YMUS will continue to provide parts, service, and customer support in the United States both now and in support of our limited 5-year warranty.
Finally, we wish to express our sincere appreciation and gratitude to you and your staff for your dedication and support of the Yamaha eBike business.
Thank you for your understanding and support.”
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