Surging gas prices are the ‘transition premium’ in the push toward renewables, OPEC chief says

Published

3 years ago

September 22, 2021

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DUBAI, United Arab Emirates — Soaring gas prices are the cost of the attempted shift to renewable energy sources, OPEC Secretary General Mohammed Barkindo told CNBC on Tuesday.

“I have talked about a new premium that is emerging in the energy markets that I term the transition premium,” Barkindo told CNBC’s Dan Murphy at the Gastech conference in Dubai.

The long-time head of the oil cartel criticized what he believed was an overly emotional approach to energy policies and climate change, though he did not point a finger at specifically who was to blame for what he described as a “misrepresentation of facts.”

Barkindo contended that there was “distortion of facts and the science, and the misrepresentation of these facts in the conversation, which is not healthy, because climate change and the energy transition are supposed to be guided by the science.”

“The intergovernmental panel on climate change is supposed to be the most authoritative body with regard to both climate change and the transition,” he said. “And we in OPEC believe they are doing a great job, they are producing very very important, seminal reports, but unfortunately these reports are being set aside and the discussions ensuing at the moment, more or less being driven by emotions rather than the great work that this scientific body is producing for all of us.”

Tripled gas prices

The OPEC chief’s words reflect a growing debate among policymakers and energy executives about the future of energy, renewables, and the climate. Many governments around the world and particularly in the West are pushing for a shift away from fossil fuel use, while those in the industry argue that a rapid transition attempt will disrupt markets, harm consumers, and is ultimately unrealistic.

Global gas prices have tripled this year alone, sending ripples through markets and raising concerns that prices of the commodity will only continue to rise.

The roots of the price increase lie in higher demand and lower supply, as higher summer temperatures in the U.S. stoked demand for air conditioning, and longer periods of cold in the U.K. other parts of Europe in the spring meant increased needs for heating.

The fuel nozzle in a car at a gasoline pump at the Citgo gas station on Lancaster Ave in Reading, PA Monday afternoon September 20, 2021.

Ben Hasty | MediaNews Group | Getty Images

This has all led to lower gas supplies for the coming winter months, meaning we are likely to see a greater squeeze on supplies and higher prices to come.

Gas prices had remained very low since the onset of the coronavirus pandemic, at around $2 per one million British thermal units, or mmBtus. But the reopening of economies and restart of travel as vaccination campaigns expand have jolted demand upward.

‘A burden on many countries’

United Arab Emirates Energy Minister Suhail Al Mazrouei, speaking to CNBC at the same event, contended that while gas prices appear high, they came from a very low level to begin with.

“It was coming from a very low environment,” Al Mazrouei said of the gas price situation. “I think the current prices, if they continue they will be a burden on many countries and will not see the demand side on a longer term be ready to take such prices.”

The energy minister said that “the right balance is the balance between the affordability of the consumers and the fact that we are seeing a reasonable return for the developers and the producing countries,” but added, “We’re not there yet.”

The costs, regulations and financing needs surrounding new energy projects are a barrier to any return to lower prices, Al Mazrouei noted.

“This is a situation that is responding to a low gas environment that happened before,” he continued. “Now, what is sustainable, I think the market will dictate it. There are challenges, financing new projects, especially for the IOCs (international oil companies), and we need to have a realistic view on easing such restrictions for them to finance new projects.”

“That’s what I think we will be discussing between the industry, the companies and the consumers and some of the developers as well, and hopefully, during the discussions of the event, they could announce new projects that could balance the prices in the future,” he added.

Environment

Cybertruck backlog runs out, Model S gets stuck, GM hits a sales milestone

Published

8 hours ago

November 5, 2024

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Cybertruck backlog runs out, Model S gets stuck, GM hits a sales milestone

On today’s episode of Quick Charge, Tesla’s Cybertruck is now available in Canada – and, like in the US, there’s no waiting! Plus, we’ve got an “actually” smart summon Tesla that’s actually stuck, GM reaches a sales milestone, and we get a brand-new title sponsor!

Today’s episode is the first with our new title sponsor, BLUETTI – a leading provider of portable power stations, solar generators, and energy storage systems.

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New episodes of Quick Charge are recorded, usually, Monday through Thursday (and sometimes Sunday). We’ll be posting bonusLucid proves than an EV company can keep its promises while Xiaomi teams up with Chevrolet and Honda to prove – at least conceptually – that records are made to be broken. audio content from time to time as well, so be sure to follow and subscribe so you don’t miss a minute of Electrek’s high-voltage daily news!

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This ‘supercharger on wheels’ brings fast charging to you [update]

Published

9 hours ago

November 4, 2024

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This 'supercharger on wheels' brings fast charging to you [update]

Mobile car care company Yoshi Mobility launched a DC fast charging EV mobile unit that it likens to “a supercharger on wheels.”

November 4, 2024 update: Yoshi Mobility will only be charging EVs on the side of the road now – it announced today that it’s selling its fleet fueling operation to EZFill Holdings (Nasdaq: EZFL).

It was originally founded as a direct-to-consumer, mobile fueling business in 2016, but now it’s going to focus on mobile EV charging, virtual vehicle inspections for partners like Uber and Turo, and onsite preventative maintenance.

Bryan Frist, Yoshi Mobility’s CEO & cofounder, said, “By spinning off our fuel business and focusing all of our energy on solving hair-on-fire problems that fleet owners face, we are meeting the changing needs of enterprise customers while making the future of transportation safer, cleaner, and more sustainable.”

May 22, 2024: Yoshi Mobility saw that its existing customers needed mobile EV charging in places where infrastructure has yet to be installed, so the Nashville-based company decided to bring the mountain to Moses.

“We recognized a demand among our customers for convenient daily charging, reliable private charging networks, and proper charging infrastructure to support their fleet vehicles as they transition to electric,” said Dan Hunter, Yoshi Mobility’s chief EV officer and cofounder.

The company says its 240 kW mobile DC fast charger, which can turn “any EV” into a mobile charging unit, is the first fully electric mobile charger available. It can provide multiple charges in a single trip but doesn’t detail how they charge the DC fast charger or who manufactured it. (I asked for more details, and they replied that they won’t disclose client names or the manufacturer of its DC fast charger yet.)

Yoshi is launching its mobile charger on two GM BrightDrop Zevo 600s and will introduce additional vehicles throughout 2024. It aims for full commercialization by Q1 2025. (I wonder if the Zevo 600 ever charges itself? Yes, I asked that too.)

Yoshi Mobility says it’s already deployed its EV charging solutions to service “major OEMs, autonomous vehicle companies, and rideshare operators” across the US. Its initial customers are made up of large EV operators managing “hundreds” of light-duty vehicles requiring up to 1 megawatt of energy per day that don’t yet have grid-connected EV chargers. I’ve asked Yoshi for details of who it’s working with, and will update if they share that info.

The company says pricing is based on location and enterprise charging needs. Once under contract for service, the service will be deployed to US-based customers within 10 days.

To date, Yoshi Mobility has raised more than $60 million, with investments from GM Ventures, Bridgestone, ExxonMobil, and Y-Combinator in Silicon Valley.

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Marqeta shares plunge more than 30% on big forecast miss

Published

10 hours ago

November 4, 2024

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Marqeta shares plunge more than 30% on big forecast miss

Marqeta celebrates its initial public offering at the Nasdaq on June 9, 2021.

Source: The Nasdaq

Marqeta shares tumbled more than 30% in extended trading on Monday after the company issued weaker-than-expected guidance for the fourth quarter.

Here’s how the company did compared with Wall Street estimates, based on a survey of analysts by LSEG:

Loss per share: 6 cents adjusted vs. a loss of 5 cents expected
Revenue: $128 million vs. $128.1 million expected

While third-quarter results showed a slight disappointment on the top and bottom lines, Marqeta’s forecast for the current period was more concerning.

The payment processing firm said revenue in the fourth quarter will increase 10% to 12% from a year earlier. Analysts were looking for growth of more than 17%, according to LSEG.

Marqeta, which primarily functions as a card-issuing platform, attributed the guidance miss to “heightened scrutiny of the banking environment and specific customer program changes.” The company has been struggling for a while, and its stock is now down more than 80% from its peak in 2021, the year it went public. The stock was down 15% for the year prior to the report.

Total processing volume of $74 billion was up more than 30% from a year earlier. Net revenue and gross profit were up 18% and 24%, respectively.

Marqeta’s digital commerce business sells payment technology designed to detect potential fraud and ensure that money is properly routed. It also issues customized physical cards that look like a credit or debit card that can be used for point-of-sale purchases.

The company has been trying to break into the buy now, pay later business with a recently launched product called Marqeta Flex. The service brings BNPL from lenders such as Affirm or Klarna to any credit card wherever Mastercard and Visa are accepted.

“It’s an orchestration layer, but it’s tied to issuing and processing and disputes and chargebacks,” CEO Simon Khalaf told CNBC at Money2020 in Las Vegas last week. “So it is not actually a Wild West in BNPL. It is actually very well established. And there is a reason why a lot of people are jumping to it.”