Two tankers were heading to Russia on Monday expecting to be filled with Russian crude as a price cap on its oil exports from a coalition of Western countries went into affect.
On Friday, the European Union agreed to cap Russian seaborne oil prices at $60 a barrel, aiming to limit Moscow’s revenues and curb its ability to finance its invasion of Ukraine.
Russian President Vladimir Putin and high-ranking Kremlin officials have repeatedly said that they will not supply oil to countries that implement the price cap.
In comments published on Telegram following the cap being agreed upon, Russia’s embassy in the United States criticized what it said was the “reshaping” of free market principles and reiterated that its oil would continue to be in demand despite the measures.
But while Russia is moving forward on its vow to not sell its oil to countries that implement the price cap, it is not being deterred in finding buyers for its oil. The G7 price cap will allow non-EU countries to continue importing seaborne Russian crude oil, but it has to be sold for less than the price cap.
Trade intelligence firm VesselsValue, which tracks the trade of Russian oil, told CNBC that there has been a substantial decrease in Russian crude as European imports with alternative markets instead being sought out.
“This is expected to carry on into December as the strong sanctions begin,” said Peter William, trade product manager at VesselsValue. “Russia has potentially found substitute markets for their crude with both India and China increasing seaborne imports from Russia.”
Jacques Rousseau, managing director of global oil and gas at ClearView Energy Partners, told CNBC there is a disconnect between the U.S. Energy Information Administration and OPEC Russian oil production forecasts.
“When comparing 4Q 2022 to 1Q 2023, the EIA projects a decrease of ~1.35 MM bbl/d vs. OPEC’s forecast of a ~0.85 MM bbl/d decline,” said Rousseau. “The magnitude of the quarter-on-quarter Russian oil production decline could be the difference between a global balance shortfall or surplus in 1Q 2023, and whether or not OPEC+ needs to reduce its production targets again.”
MarineTraffic is seeing two empty tankers heading to Russia.
One is the tankers is Minerva Marina, sailing under the Maltese Flag.
The other is the Moskovsky Prospect, sailing under the Liberian Flag, and came directly from Bombay, India.
Vessel traffic and tanker gridlock
AIS data which tracks vessel traffic is showing a number of tankers in the Black Sea, mainly crude and chemical tankers from Russia which are in transit and have listed various locations as their destinations, including India, the UAE, and China, according to a MarineTraffic spokesperson.
Meanwhile, tanker gridlock is building as a result of Turkey demanding tankers have proof of insurance to travel through Istanbul in the Bosphorus Strait.
Diesel exports from Russia to Europe have up ticked slightly between October and November. The sanctions on Russian diesel exports begin on February 5, 2023.
“This is likely due to supply issues and the start of the European winter, ” William said. “There was a drop in exports due to the start of the Russia-Ukraine conflict, which also coincided with the European transition into spring.”
U.S. liquified narural gas to the EU has fluctuated from a high of 11.48 million cubic meters in April to a low of 7.34 million in September 2022, according to VesselsValue.
“The decrease in USA demand after the winter season may have contributed to the increased exports in April and as other countries look to stock up,” William said.
Andrew Lipow, CEO of Lipow Oil Associates, told CNBC when Russia decided earlier this year to cut off natural gas supplies to parts of Europe, the U.S. stepped in to fill the shortfall.
“The trend will continue as Europe builds more LNG import infrastructure and the USA constructs new natural gas pipelines and LNG export terminals to accommodate increased production,” Lipow said.
Earlier this month, California enacted new regulations for electric bikes that resulted in stricter speed limits on e-bikes with throttles. At the time, it was unclear how electric bike makers would respond to the new regulations, but we’re now starting to see at least one manufacturer pushing to bring its existing e-bikes owned by California residents into compliance.
The new laws remove ambiguity in the Class 2/Class 3 e-bike categorization. Formerly, many e-bikes were designed to operate in either category depending on the owner’s desires. Such bikes could operate as Class 2 e-bikes reaching max speeds of 20 mph (32 km/h) with a throttle, or as Class 3 e-bikes reaching higher speeds of 28 mph (45 km/h) on pedal assist-only.
In fact, the overwhelming majority of Class 3 e-bikes sold in the US used this design, offering hybrid compliance for functionality as both Class 2 and Class 3 e-bikes.
After California’s new laws removed any ambiguity between the classes, it is now clear that e-bikes in the state will need to function either only as Class 2 e-bikes (throttle up to 20 mph) OR Class 3 e-bikes (up to 28 mph but without any throttle).
It was unclear whether existing e-bikes already sold prior to the law’s enactment would receive an exemption, but bicycle manufacturer Specialized doesn’t seem to be taking any chances.
Specialized is the maker of the Globe line of cargo e-bikes, and recently sent out an update to owners that would help them bring their e-bikes into compliance with California’s new stricter regulations.
Like so many other electric bikes on the market, the Globe e-bikes came with throttles allowing 20 mph speeds without pedaling, but could also reach up to 28 mph on pedal assist.
A new firmware update promoted by the company will essentially restrict its e-bikes to purely Class 2 operation, removing the motor’s ability to assist the bike in going any faster, even when pedaling without throttle operation.
The update will also come with a Class 2 compliance sticker that replaces the previous Class 3 sticker.
To install the voluntary update, Globe owners are encouraged to visit their local Specialized dealer.
A copy of the update letter was shared on Reddit and can be seen below.
Electrek’s Take
This is an interesting approach, because it indicates an understanding by Specialized that it is responsible for any of its e-bikes already on the road that have now been made non-compliant by the new law.
There are basically two main options to “fix” these previously hybrid Class 2/3 e-bikes and bring them into compliance. One is to unplug and remove the throttle, turning the bike into a true Class 3 e-bike under CA regulations. The other is to remove the ability for the motor to assist at speeds over 20 mph, turning it into a Class 2 e-bike. That latter is what Specialized appears to have decided to go with, and it makes sense to me. If you asked most owners of these e-bikes about which they’d give up if they had to, they’d probably tell you “take my 21-28 mph speed but leave me my throttle”. Throttles are simply such a major part of e-bikes in North America that most riders would give up the whole bike if they were forced to give up the throttle.
The bigger question here is how many Globe riders will actually install this update. Since you need to not only opt-in to it, but also physically visit a dealer to do it, I have to imagine that the vast majority of riders will simply ignore the update altogether, keeping their faster non-compliant speed on an e-bike with a throttle. I’m not saying that’s the right thing to do, but I am saying it’s what will happen in the real world.
And if we are being honest, these Globes aren’t even the e-bikes that are at the heart of the issue. Most CA residents are more concerned with teenagers ripping down sidewalks on moped-style e-bikes, not the local moms and dads riding to Trader Joe’s on their sensible, upscale cargo e-bikes that just happen to have hybrid Class 2/3 performance.
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Wind energy powered 20% of all electricity consumed in Europe (19% in the EU) in 2024, and the EU has set a goal to grow this share to 34% by 2030 and more than 50% by 2050.
To stay on track, the EU needs to install 30 GW of new wind farms annually, but it only managed 13 GW in 2024 – 11.4 GW onshore and 1.4 GW offshore. This is what’s holding the EU back from achieving its wind growth goals.
Three big problems holding Europe’s wind power back
Europe’s wind power growth is stalling for three key reasons:
Permitting delays. Many governments haven’t implemented the EU’s new permitting rules, making it harder for projects to move forward.
Grid connection bottlenecks. Over 500 GW(!) of potential wind capacity is stuck in grid connection queues.
Slow electrification. Europe’s economy isn’t electrifying fast enough to drive demand for more renewable energy.
Brussels-based trade association WindEurope CEO Giles Dickson summed it up: “The EU must urgently tackle all three problems. More wind means cheaper power, which means increased competitiveness.”
Permitting: Germany sets the standard
Permitting remains a massive roadblock, despite new EU rules aimed at streamlining the process. In fact, the situation worsened in 2024 in many countries. The bright spot? Germany. By embracing the EU’s permitting rules — with measures like binding deadlines and treating wind energy as a public interest priority — Germany approved a record 15 GW of new onshore wind in 2024. That’s seven times more than five years ago.
If other governments follow Germany’s lead, Europe could unlock the full potential of wind energy and bolster energy security.
Grid connections: a growing crisis
Access to the electricity grid is now the biggest obstacle to deploying wind energy. And it’s not just about long queues — Europe’s grid infrastructure isn’t expanding fast enough to keep up with demand. A glaring example is Germany’s 900-megawatt (MW) Borkum Riffgrund 3 offshore wind farm. The turbines are ready to go, but the grid connection won’t be in place until 2026.
This issue isn’t isolated. Governments need to accelerate grid expansion if they’re serious about meeting renewable energy targets.
Electrification: falling behind
Wind energy’s growth is also tied to how quickly Europe electrifies its economy. Right now, electricity accounts for just 23% of the EU’s total energy consumption. That needs to jump to 61% by 2050 to align with climate goals. However, electrification efforts in key sectors like transportation, heating, and industry are moving too slowly.
European Commission president Ursula von der Leyen has tasked Energy Commissioner Dan Jørgensen with crafting an Electrification Action Plan. That can’t come soon enough.
More wind farms awarded, but challenges persist
On a positive note, governments across Europe awarded a record 37 GW of new wind capacity (29 GW in the EU) in 2024. But without faster permitting, better grid connections, and increased electrification, these awards won’t translate into the clean energy-producing wind farms Europe desperately needs.
Investments and corporate interest
Investments in wind energy totaled €31 billion in 2024, financing 19 GW of new capacity. While onshore wind investments remained strong at €24 billion, offshore wind funding saw a dip. Final investment decisions for offshore projects remain challenging due to slow permitting and grid delays.
Corporate consumers continue to show strong interest in wind energy. Half of all electricity contracted under Power Purchase Agreements (PPAs) in 2024 was wind. Dedicated wind PPAs were 4 GW out of a total of 12 GW of renewable PPAs.
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In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss the official unveiling of the new Tesla Model Y, Mazda 6e, Aptera solar car production-intent, and more.
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