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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.

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GOP tax bill helps its biggest donor Musk, but harms his company, Tesla

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May 13, 2025

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GOP tax bill helps its biggest donor Musk, but harms his company, Tesla

Republicans announced a new tax plan today and it’s just about as bad for America as expected, taking money for healthcare, clean air and energy efficiency from American families and sending it to the ultra-wealthy instead.

You might think that this helps one of those ultra-wealthy, Elon Musk, who gave hundreds of millions of dollars to ani-EV candidates to help make this happen. But the main source of his wealth, Tesla, will be specifically harmed by rescission of EV credits – and its competitors largely won’t be.

Now that the republican party has unveiled its job-killing tax proposal, we know a little more about what’s in it.

Originally, it was thought by many that the proposal would completely kill all federal EV credits, with some estimating that the $7,500 credit would go away immediately (personally, I never thought it would be that stupid, but you never know with the republicans).

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But it’s clear they want to destroy the credit and make cars more expensive for Americans. After all, Donald Trump, while running for an office he remains Constitutionally barred from holding, asked oil companies for a billion-dollar bribe in exchange for ending the EV credit, a promise he has continued to say he will uphold as he squats in the aforementioned office.

And last week, House Speaker Mike Johnson said that the House is likely to end the credit.

It turns out the details are a little more nuanced than that, and that while the credit is ending, it will sunset a little later than many feared.

It’s likely that the credit will last through the end of this year – which makes sense, since that’s how tax changes often work. Then, at the end of the year, Inflation Reduction Act credits will largely disappear.

However, in the current draft of the bill, some automakers will retain access to some EV credits, for a time. This is due to an exception given for manufacturers who have not sold 200,000 vehicles between 2009 and 2025, a similar cap to the old EV tax credit that was first implemented in 2008, before Congress improved it and removed the cap in the Inflation Reduction Act.

So, smaller manufacturers will continue to have some support, while large manufacturers who have already sold plenty of cars will lose all of their credits.

A number of manufacturers have already reached the 200k EV cap, including Nissan, Ford, Toyota, Hyundai/Kia, GM, and of course, Tesla. Those manufacturers will lose access to credits.

But others who started late or have more niche offerings continue to be under the 200k cap. These include companies like Mercedes, Honda, Lucid, Mazda and Subaru.

Specifically, Rivian has been identified as one of the possible winners here, as the company has not yet sold 200,000 vehicles, though should be crossing that line sometime in the next couple years.

And finally, the real competition for Tesla, gas cars, will not lose anything from the rescission of EV credits. Those cars will continue selling, they’ll just have a $7,500 advantage relative to today – on top of their advantage of each gas car being allowed to choke the world with $20,000+ in unpaid pollution costs, which show up on everyone’s hospital bills and health insurance premiums.

So that brings up an interesting point: when Tesla and its bad CEO Elon Musk threw their support behind all of this, what did they think they would get out of it?

After all, Tesla wrongly said, at the behest of Musk and his tortured logic, that ending EV credits would somehow help it.

We called out that obvious incorrect statement at the time, saying that No, for crying out loud, killing EV subsidies will not help an EV company.

But now it turns out that the situation is even worse for Tesla, because not only does Tesla’s gas competition get to keep the credits, but many electric competitors will get to keep them for some time as well.

And don’t forget that this last quarter, government incentives were the only thing keeping Tesla from losing money. A regulatory environment that is more hostile to Tesla could turn black to red on the balance sheet, along with dropping sales and negative brand perception. Thank the bad CEO you voted to give $55B to for that loss, shareholders.

But the oil companies, another competitor for Tesla, will continue to benefit from roughly $760 billion in subsidy per year in the US alone, in terms of the health and environmental costs they impose on society and do not pay for.

If that subsidy was ended alongside the $7,500 EV credit, then EVs would indeed come out on top. But instead of ending those massive subsidies to fossil fuels, republicans have proposed to increase them, by cutting down enforcement and loosening pollution limits, both through this tax bill and through other agency actions and proposals.

Further, the tax proposal unveiled today sunsets credits for many other products that Tesla sells. There are solar and home energy efficiency credits which Tesla takes advantage of through its Energy division, which sells solar and home battery systems to homeowners. These can be worth tens of thousands of dollars per installation, and those will go away if this proposal goes through.

So in the end, Tesla loses access to credits both on its cars and its Energy division, while its competitors get an even more beneficial regulatory environment to continue polluting. And even its electric competitors get a temporary leg up for the time being.

Meanwhile, Elon Musk gets his part of the $4.5 trillion in tax cuts that go directly to wealthy elites. So at least his pocketbook will look slightly better for a time, even though the company that has been responsible for filling it it will fall further due to less attractive product pricing and through his own association, which has driven protests against the company, embarrassed owners and pushed many customers away.

So, to those of you who wanted us to “trust the plan” – how, exactly, is this beneficial to Tesla, again?

Among the proposed cuts is the rooftop solar credit. That means you could have only until the end of this year to install rooftop solar on your home, before republicans raise the cost of doing so by an average of ~$10,000. So if you want to go solar, get started now, because these things take time and the system needs to be active before you file for the credit.

To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.

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

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BYD just had its best sales week of 2025 in China with nearly 68,000 EV registrations

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May 13, 2025

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BYD just had its best sales week of 2025 in China with nearly 68,000 EV registrations

BYD-best-sales-week-2025

China’s EV giant is on a roll. BYD is coming off its best sales week in China of 2025, racking up nearly 68,000 registrations. In comparison, Tesla logged just over 3,000.

BYD notches its best EV sales week of 2025

Another week, another impressive performance from BYD. Although most automakers saw higher sales for the week ending May 11, the company continues leading China’s EV market by a mile.

According to the latest insurance registration data (via CarNewsChina), BYD registered 67,980 vehicles from May 5 to May 11. That’s up 15% from the 58,310 registrations the previous week and BYD’s best sales week of 2025.

BYD’s premium sub-brands, Denza and Fang Cheng Bao, notched 2,990 and 2,660 registrations, respectively, up 3.8% and 17.7% from the prior week.

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NIO and XPeng posted stronger numbers last week in China, with 6,060 (+18.2%) and 6,870 (+23.8%) vehicle registrations. NIO’s new sub-brands are starting to gain traction. Onvo registered 1,660, and Firefly, which began deliveries on April 29, added 470 more.

BYD-best-sales-week-2025
BYD Seagull EV (Dolphin Mini overseas) Source: BYD)

During the week of May 5 to May 11, other Chinese EV brands, including Xiaomi, Deepal, and ZEEKR, also made strong showings. Xiaomi registered 5,180 vehicles of its sole EV, the SU7. Deepal registered 4,700 vehicles, and ZEEKR followed with 4,310.

Earlier today, Electrek reported that Tesla delivered just 3,070 vehicles in China last week, down 69% from the same week the prior year.

BYD-best-sales-week-2025
BYD’s wide-reaching electric vehicle portfolio (Source: BYD)

Tesla extended its 0% financing offer through June 30 to help drive demand and keep pace with BYD, SAIC, and others.

Electrek’s Take

Although EV sales were up 38% in China in April, Tesla’s fell 9% to 28,731. On the other hand, BYD sold over 380,000 new energy vehicles last month.

Those numbers include plug-in hybrids, but even if you look strictly at EV sales, BYD is leading Tesla and every automaker by a wide margin in China. Last month, BYD sold over 195,000 fully electric (EV) cars, the first time in over a year that BYD sold more EVs than PHEVs.

BYD’s overseas sales also hit a fifth straight month of growth, with over 79,000 vehicles sold. It outsold Tesla in key markets, including Germany (1,566 vs 855) and the UK (2,511 vs 512) in April.

Through April, the automaker has sold over 285,000 vehicles in overseas markets. With new manufacturing plans opening in Europe, Mexico, Brazil, Southeast Asia, and other global regions, BYD’s momentum is expected to accelerate over the next few years.

BYD is best known for its low-cost EVs, but it’s rapidly expanding into new segments with pickup trucks, luxury vehicles, and electric supercars rolling out.

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Trump’s tariffs stall US battery momentum as China powers ahead

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May 13, 2025

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Trump’s tariffs stall US battery momentum as China powers ahead

US battery storage
Photo: Ørsted

China has reclaimed the No. 1 spot on BloombergNEF’s annual Global Lithium-Ion Battery Supply Chain Ranking, bumping Canada to second place, as its low electricity prices and strong infrastructure gave it the edge in 2024.

The report ranks 30 countries based on how well they’re positioned to build a secure and sustainable battery supply chain, and this year’s reshuffling says a lot about where the market’s headed.

Canada, which had taken the lead in 2023, held onto a solid second-place finish, tied with the US. But while Canada is still a leader in battery raw materials and continues to attract investors with its stable political environment, it’s been slow to scale up battery manufacturing. That drop in momentum left the door open for China to reclaim its lead.

The US is facing its own set of challenges. The Inflation Reduction Act gave America’s battery industry a significant boost last year, but that progress is now under threat. Donald Trump’s latest tariffs and climate rollbacks are starting to push up costs for US battery makers. They’re also making the US less attractive to investors, which could slow down new projects and shrink domestic demand for EVs and storage systems.

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“Brazil and Indonesia registered the largest gains in the fifth edition of the ranking,” said Ellie Gomes-Callus, a metals and mining associate at BloombergNEF. “Growth across these emerging markets has been driven by surging demand and ambitious policy roadmaps. However, all eyes will be on the US this year, as it awaits the impact of the Trump administration’s trade policies.”

Japan and South Korea also climbed higher in the top 10. Their early lead in building out battery supply chains is still paying off, even as global competition heats up and profit margins shrink. Like China, they’ve managed to hold strong in all five of BloombergNEF’s scoring categories: raw materials, manufacturing, demand, ESG (environmental, social, and governance), and innovation.

Europe, on the other hand, is starting to slip. Out of 11 European countries in the ranking, only the Czech Republic and Turkey improved their standings this year. Five stayed the same, and four dropped. Hungary and Finland saw the biggest falls – seven and six spots, respectively. Hungary is now second-worst in Europe for ESG metrics, and Finland’s once-promising nickel and cobalt industries have lost steam, partly due to tough permitting rules. Case in point: BASF’s new battery component plant in Harjavalta has been delayed by permitting issues.

Without stronger government action and better support for manufacturers, Europe risks losing even more ground to fast-moving markets in South America and Southeast Asia.

The report also highlighted some other trends shaping the global battery race. Canada stayed strong overall but lost ground in manufacturing. A few major companies, including Ford, E-One Moli, and Umicore, have paused investments despite new government support, citing weaker-than-expected demand.

Meanwhile, Europe’s battery growth is slowing as capacity lags behind other regions and demand softens due to smaller market sizes and EV saturation in places like the Nordics. Countries in Eastern Europe and Scandinavia are falling behind as a result.

The raw materials side of the market isn’t looking great either. Supply is up, but demand is down. There’s too much material and not enough buyers. And while the market for mined metals is overflowing, refined battery metals tell a more mixed story. Still, one thing hasn’t changed: China remains the dominant force in refining, and it’s still leading the way in building new manufacturing capacity, even as other countries struggle to scale up.

Unless the US and Europe can course-correct quickly, they may find themselves watching from the sidelines as China and emerging economies lead the next phase of the global battery boom.

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

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