The CEO of energy technology firm Baker Hughes has outlined what he feels are key points related to the energy transition amid deepening concern about rising gas prices and the knock-on effects this could have in the months ahead.
In an interview with CNBC’s Dan Murphy at the Gastech conference in Dubai, United Arab Emirates earlier this week, Lorenzo Simonelli was asked whether soaring gas prices were likely to be transitory or if he expected wider implications for consumers, markets and the broader economy.
“I think a lot of people are seeing what’s happening in Europe and it’s bringing to light the important discussion around the energy transition, and the importance that we have around gas as well,” he said.
It was still early to see if prices would remain high or if this rise was transitory, he said.
Benchmark European gas prices have jumped over 250% since the start of the year, Reuters reported this week.
The reasons for the spike are varied. The influential, yet typically conservative, International Energy Agency said on Tuesday that surging European gas prices had “been driven by a combination of a strong recovery in demand and tighter-than-expected supply, as well as several weather-related factors.”
“These include a particularly cold and long heating season in Europe last winter, and lower-than-usual availability of wind energy in recent weeks,” it said.
IEA Executive Director Fatih Birol said given that the reasons behind the price rise were multifaceted, it would be “inaccurate and misleading to lay the responsibility at the door of the clean energy transition.”
Birol’s statement would appear to contrast views expressed by figures such as OPEC Secretary General Mohammed Barkindo. Barkindo told CNBC on Tuesday that soaring gas prices were the cost of the attempted shift to renewable energy sources.
“I have talked about a new premium that is emerging in the energy markets that I term the transition premium,” Barkindo said.
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The effect of the gas price rise is already being felt on the ground. In the U.K., for example, it has caused a number of small energy suppliers to go bust.
“We need energy security,” Baker Hughes’ Simonelli said. “And look, there’s plenty of gas around the world, there’s plenty of energy available,” he added. “It’s a question of bringing it to the market.”
On the energy transition — a term referring to a move from fossil-fuel based sources to ones such as solar and wind — Simonelli sought to highlight a number of issues he felt were important.
“We think there’s three hard truths,” he said. “Firstly, we’ve got to work together, accelerate the move towards decarbonization and also eliminating emissions.”
“Secondly, hydrocarbons are here to stay … and natural gas, in fact, is a key element. And thirdly, we’ve got to do it together, collaborate and actually adopt the new technologies that are available.”
Burning fossil fuels, such as oil and gas, is the chief driver of the climate emergency. And despite policymakers and business leaders repeatedly touting their commitment to net zero strategies, the world’s fossil fuel dependency is expected to get even worse in the coming decades.
None of the world’s major economies are currently on track to contain global heating to the Paris Agreement target of 1.5 degrees Celsius, according to a study published by Carbon Action Tracker earlier this month, while separate research shows the vast majority of the world’s known fossil fuel reserves must be kept in the ground to have some hope of preventing the worst effects of climate change.
The role of natural gas
The current crisis surrounding the price of gas has reinforced its continuing significance, even as major economies such as the U.K., European Union and U.S. outline plans to move away from fossil fuels in the years ahead.
Indeed, in its statement issued Tuesday, the IEA said gas remained “an important tool for balancing electricity markets in many regions today.”
“As clean energy transitions advance on a path towards net zero emissions, global gas demand will start to decline, but it will remain an important component of electricity security,” the Paris-based organization added.
In his interview with CNBC, Simonelli was asked about the role gas would play in the race to net zero. “You just have to look at Europe and look at the United States with regards to the way they’ve been successful in the last decades to actually reduce their CO2 emissions,” he said.
“You’ve seen a shift from coal to natural gas and that’s going to continue as you look at it from an emissions profile,” he said. “So, you can reduce the footprint of natural gas from an emissions standpoint. It is already one of the most efficient fuels and we think it’s here to stay.”
Tesla has confirmed it has given up on plans to make a Cybertruck range extender to achieve the range it originally promised on the electric pickup truck.
It started refunding deposits for the $16,000 extra battery pack.
When Tesla unveiled the production version of the Cybertruck in late 2023, two main disappointments were the price and the range.
The tri-motor version, the most popular in reservation tallies before production, was supposed to have over 500 miles of range and start at $70,000.
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Tesla now sells the tri-motor Cybertruck for $100,000 and only has a range of 320 miles.
The dual-motor Cybertruck was supposed to cost $50,000 and have over 300 miles of range. In reality, it starts at $80,000 and has 325 miles of range.
However, Tesla had devised a solution to bring the range closer to what it originally announced: a separate battery pack that sits in the truck’s bed. Tesla called it a “range extender.” It costs $16,000 and takes up a third of the Cybertruck’s bed.
Even though the Cybertruck has been in production for a year and a half, the range extender has yet to launch.
At the time, Tesla also reduced the range that the removable battery pack adds to the Cybertruck to “445+ miles” rather than “470+ miles” for the dual motor – a ~25-mile reduction in range.
Last month, Electrek reported that Tesla has quietly removed the range extender from the Cybertruck online configurator, where buyers could reserve it with a “$2,000 non-refundable deposit.”
At the time, we speculated that Tesla was most likely giving up on the product.
Sure enough, the automaker has now confirmed that it doesn’t plan to produce the range extender.
A Tesla Cybertruck owner contacted Electrek to share communication that Tesla started sending to Cybertruck owners who reserved the range extender, letting them know that the product is dead.
Tesla wrote in the email:
“We are no longer planning to sell the Range Extender for Cybertruck.”
The automaker says that it will start processing refunds for the deposits.
Here’s Tesla’s communication about the Cybertruck range extender in full:
Update to Your Cybertruck Range Extender Order
Hi [redacted],
Thank you for being a Cybertruck owner.
We are no longer planning to sell the Range Extender for Cybertruck. As a result, we will be refunding your deposit in full. The amount will be returned to the original payment method used for the transaction.
Thank you for your understanding.
The Tesla Team
Electrek’s Take
There could be many reasons why Tesla has given up on the product.
The range extender was confirmed to take 30% of the Cybertruck’s bed, and Tesla needed to install and remove it at a service center. Owners couldn’t remove them themselves. I think it was pretty much dead on arrival at $16,000.
But I think it could also be as simple as it’s not worth producing due to demand – both due to insufficient people reserving it and not enough Cybertruck buyers to create a market for the range extender.
Therefore, the range extender is dead for the same reason that the Cybertruck RWD now has the same battery pack as the AWD instead of a smaller pack for less money: the Cybertruck is a commercial flop, and it’s not a high-volume program enough to justify making several battery pack sizes, including a removable one.
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The U.S. Patent and Trademark Office (USTPO) has denied Tesla’s attempt to trademark the term “Robotaxi”. which it has been using to refer to its long-promised self-driving vehicles.
CEO Elon Musk has been using the term “robotaxi” for years.
At first, it was to refer to what its existing consumer vehicles (Model S, X, 3, Y and Cybertruck) would become once it finally delivers on its “full self-driving” promises– something that was supposed to happen by the end of every year for the last 6 years.
However, Tesla held its ‘We, Robot’ event in October 2024, where it unveiled two new vehicles, a dedicated robotaxi vehicle and a self-driving ‘Robovan’ – pictured above.
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Musk referred to the dedicated robotaxi vehicle as both a ‘Robotaxi’ and ‘Cybercab’.
Now, Techcrunch reports that USTPO has denied Tesla’s trademark application for being too generic:
Tesla’s attempt to trademark the term “Robotaxi” in reference to its vehicles has been refused by the U.S. Patent and Trademark Office for being too generic, according to a new filing. Another application by Tesla to trademark the term “Robotaxi” for its upcoming ride-hailing service is still under examination by the office.
USTPO notes that other companies and media have used the term ‘robotaxi” to refer to other self-driving vehicles.
The decision is “non-final”. Tesla can still appeal the decision.
Tesla also saw its trademark application for ‘Cybercab’ halted as USTPO reviews other applications using the term ‘cyber’.
Electrek’s Take
I don’t think Tesla should get a trademark for ‘Robotaxi’. It’s indeed too generic. ‘Cybercab’ should be fine though. If Tesla was able to get Cybertruck, it should be able to get ‘Cybercab’.
I hope the Cybercab works out better for them than the Cybertruck has so far.
But it’s tough to make a steering wheel-less vehicle works if you haven’t solved self-driving.
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California and 16 other states have sued the government for illegally withholding $5 billion in funds that Congress earmarked for EV charging, calling the action “another trump gift to China.”
The federal NEVI (National Electric Vehicle Infrastructure) program was established by the Infrastructure Investment and Jobs Act (IIJA), otherwise known as the Bipartisan Infrastructure Law, pushed for and signed by President Joe Biden.
Among other things, the IIJA dedicated $5 billion in funding to expanding EV chargers, in order to give more Americans access to EV ownership, and allow them to unlock the fuel cost and health savings that EV owners, and communities with high EV penetration, enjoy.
The NEVI program was even the main driver of Tesla opening up its charging port and creating the NACS standard, due to the law’s requirement that federal funding can only go to charging stations that have open access to multiple brands of vehicle. Tesla’s Superchargers used to be open only to Teslas, but after this law passed, Tesla started opening them up to other brands.
So, NEVI is a great program, and it’s helping Americans to save on fuel and maintenance costs, reducing barriers to charging, and making the world cleaner for everyone who breathes air.
So of course, the enemy of America currently occupying the White House (despite there being a clear Constitutional remedy for this crisis) opposes it.
In February, the Federal Highway Administration (FHWA), at the behest of convicted felon Donald Trump, froze funding for the NEVI program, even though that funding was already allocated by Congress for this purpose. Who knew a felon would break the law?
Now, states are pushing back against the illegal funding freeze, as 17 states, led by California, Colorado and Washington, are suing the FHWA to free up the funds that were allocated to them.
Among those arguments is something we’ve mentioned manytimeshereonElectrek: that republican efforts to diminish the US EV industry are a “gift to China,” who have well and truly taken the lead in the global EV industry, and other countries – particularly the US – are just not doing enough to keep up.
When America retreats, China wins.
President Trump’s illegal action withholding funds for electric vehicle infrastructure is yet another Trump gift to China – ceding American innovation and killing thousands of jobs.
Instead of hawking Teslas on the White House lawn, President Trump could actually help Elon – and the nation – by following the law and releasing this bipartisan funding.
Oddly, despite Mr. Trump’s clear opposition to the well-being of Americans, and particularly to the well-being of the American auto industry, Tesla CEO Elon Musk, perhaps America’s most high-profile auto CEO, donated hundreds of millions of dollars to this anti-EV candidate. He has used tortured logic to claim that raising the price of his products by $7,500 relative to the competition won’t hurt his business, but that’s just wrong.
Pausing that funding not only puts charger plans into chaos (something Musk is no stranger to), it also means that Tesla can’t use money that it created an entire charging standard just to get a piece of.
The lawsuit requests that a court stop Mr. Trump’s illegal actions and permanently halt the FHWA from withholding these funds.
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