A long-awaited rally in crude oil prices has helped the Club’s three oil-and-gas companies become some of our top-performing stocks over the past month. And with new signs the commodity could continue to rally this year, we’re sitting tight on our energy holdings. Brent crude, the global oil benchmark, and West Texas Intermediate crude, the U.S. oil standard, have both climbed by more than 10% since late June. Brent was up roughly 1% Thursday, at nearly $80 a barrel. WTI was trading up 0.72%, at more than $83 a barrel. Energy stocks linked to crude — including Club names Halliburton (HAL), Coterra Energy (CTRA) and Pioneer Natural Resources (PXD) — have risen on oil’s fortunes. Shares of Halliburton have climbed roughly 18%, while Coterra and Pioneer have advanced about 12% and 10%, respectively, since crude’s most-recent bottom in late June. Troubled pharmaceutical firm Bausch Health (BHC) has been the top-performing Club stock during that same stretch, advancing nearly 28%. “This was a move that many have expected to occur all year,” TD Cowen energy analyst Jason Gabelman said of crude’s recent rise. “A lot of investors, I think, have been … somewhat disappointed on oil being rangebound for the past few months in the low-to-mid $70s,” Gabelman told CNBC. Among the biggest drivers of the momentum has been signs that previously pledged production cuts from Saudi Arabia and Russia are finally taking hold, analysts widely said, helping address concerns investors had about excessive supply in the market. Russian production, in particular, has exceeded expectations throughout the year. But last week, nationwide crude shipments in Russia stood at 2.73 million barrels a day, down 1.48 million barrels per day from their late-April peak, according to data compiled by Bloomberg . Economic data also suggests oil demand is proving more resilient than investors initially expected, said Truist’s Neal Dingmann. “Not to say we’re certainly out of the woods on inflation or a recession,” Dingmann told CNBC, “but the picture is much better for some type of growth, even very minimal.” Mizuho analyst Nitin Kumar – who covers Coterra and Pioneer and has a buy rating on both stocks – said he believes the setup for crude prices remains solid throughout the second half of 2023. While the potential for a demand-destroying recession remains a big wildcard, Kumar said there’s a lot to be encouraged by on the supply side. The Organization of Petroleum Exporting Countries and its oil-producing allies, collectively known as OPEC+, has shown discipline on production and been willing to take action designed to shore up prices , Kumar said, even if the market has, at times, shrugged off such decisions . Saudi Arabia is the de-facto head of the OPEC cartel and Russia is the group’s largest partner producer. Saudi Arabia, Russia and the U.S. are the world’s three-largest oil producers. U.S. producers also have shown restraint, Kumar told CNBC, with domestic crude production hovering around 12.3 million barrels per day all year . Moreover, a year-over-year drop in U.S. rig counts points to “a bit of a decline in oil production” down the road, Kumar said. As of July 21, the number of active U.S. oil rigs stood at 530, according to Baker Hughes, down 11.5% from the same period in 2022. Taken together, Kumar said, “globally, except for a recession, you should be in an undersupplied scenario for the second half.” Others on Wall Street, including analysts at Goldman Sachs , also expect demand to outpace supply in the third and fourth quarters, supporting higher prices. In theory, when commodity prices are higher, our energy holdings can generate more free cash flow. And that money can be used to pay dividends and repurchase stock, a key reason we’re invested in the sector. That dynamic was on display last week, when Halliburton – our largest oil-and-gas holding, carrying a 2.1% weighting in the portfolio, as of Wednesday – reported better-than-expected free cash flow in the second quarter. While we locked in a small profit on Halliburton in mid-July , the company’s execution in the second quarter certainly pleased us. As an oilfield-services firm, Halliburton is a play on drilling activity. Pioneer and Coterra are set to report their second-quarter results on Aug. 1 and Aug. 7, respectively. On metrics such as revenue, earnings and cash flow, exploration-and-production (E & P) companies face difficult year-over-year comparisons. For most of the second quarter in 2022, crude prices were north of $100 per barrel amid shocks from geopolitical risks like Russia’s invasion of Ukraine — and subsequent Western sanctions on Russia oil sales — in February of that year. Against this backdrop, energy investors will be closely watching how companies’ well productivity stacks up versus last year, according to Truist’s Dingmann, who maintains hold ratings on Pioneer and Coterra. Management commentary on service-cost inflation is another area of focus, Dingmann said. If those costs continue to moderate, E & P firms should eventually see relief on their capital expenditures, assuming production plans are held constant. The Club’s take Our investment thesis in Pioneer has been rooted in its low production costs and high-quality acreage in the Permian Basin in western Texas and southeastern New Mexico. For Coterra, we continue to like its mix of oil-and-natural gas revenues — split roughly 50-50. Coterra’s exposure to natural gas bodes well long term, despite prices being down sharply from their 2022 peaks, because the U.S. is adding export capacity for liquified natural gas. Coterra is well-positioned to benefit as additional LNG facilities come online in 2024 and beyond . The bottom line is the oil rally may just be getting started — and, if that’s the case, our stocks linked to the commodity could see additional gains ahead. (Jim Cramer’s Charitable Trust is long CTRA, HAL and PXD. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Oil rig and pump of H&P Rig 488 in Stanton, Texas, on June 8, 2023.
Suzanne Cordeiro | AFP | Getty Images
A long-awaited rally in crude oil prices has helped the Club’s three oil-and-gas companies become some of our top-performing stocks over the past month. And with new signs the commodity could continue to rally this year, we’re sitting tight on our energy holdings.
JackRabbit, the maker of pint-sized electric microbikes, is back with a new product designed to quickly recharge their batteries from pure, uncut photons mainlined into an e-bike directly from the sun. In true independent charging form, the Solar Charging Kit from JackRabbit keeps riders rolling even when there’s not a convenient AC outlet in sight.
Unveiled this week, the Solar Charging Kit consists of a single folding solar panel and a tiny voltage converter that is configured to output 42.0V, which is the exact voltage required by JackRabbit’s little e-bike batteries. There’s also an added USB-A and a USB-C charging port for powering other devices in addition to charging JackRabbit batteries.
“This Solar Charging Kit plugs directly into your bike,” explained the company, “letting you recharge without needing an outlet, but with a speed comparable to the charger that comes with the OG/OG2 (42V, 2A).”
That would mean the panel outputs around 80W of solar power, which the company says can recharge its batteries in just three hours. That fairly quick recharging speed is helped by the fact that JackRabbit’s batteries are a mere 151 Wh, or around a third of the size of most e-bike batteries.
If that sounds small, then you’re right – it is. But JackRabbit is all about going micro, offering barely 25 lb rideables that are easy to store and bring on adventures, even when they aren’t actually being ridden.
With small batteries that fit under the 160Wh limit for many airlines in the US, the batteries can be quickly charged and taken to the widest number of locations. And for riders that want to go further than a single 10-mile (16-km) battery will allow, extra batteries are small enough to fit a pants pocket. The company also offers much larger Rangebuster batteries, though they won’t pass by TSA and make it onto an airplane in your personal item.
It sounds like the Solar Chargking Kit should be able to charge up JackRabbit’s large RangeBuster batteries, though likely in more than three hours.
The $349 Solar Charging Kit is a bit pricier than building something similar yourself, but it’s also safer and more convenient than hacking together your own battery charger since it’s designed to work with JackRabbit’s batteries right out of the box.
Technically it’s only inteded for JackRabbit’s micro e-bikes (themselves technically seated scooters, even if they look and feel more like a typical bike), but it’d probably work for just about any 36V e-bike that requires 42.0V to charge.
This isn’t the first time we’ve seen solar charging kits for electric bikes, and it’s a trend that is certainly appreciated by outdoors and camping enthusiasts, festival goers, or anyone who finds themself and their bike spending extended periods in the great, sunny outdoors.
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On today’s episode of Quick Charge, Polestar hopes to steal customers from Tesla now that Elon is involved in politics, CATL revenue dips for the first time ever, and a whole new way to feed the orcas drops down under.
As above, Polestar is hoping Elon’s descent into politics spells opportunity for the struggling Swedish/Chinese performance brand, CATL has big news in Europe, and Scooter Doll shows off a new electric submarine that’s so expensive, they won’t even tell us the price.
New episodes of Quick Charge are recorded, usually, Monday through Thursday (and sometimes Sunday). We’ll be posting bonus 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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Solar generated 11% of EU electricity in 2024, overtaking coal which fell below 10% for the first time, according to the European Electricity Review published today by think tank Ember.
EU gas generation declined for the fifth year in a row, and total fossil generation fell to a historic low.
“Fossil fuels are losing their grip on EU energy,” said Dr Chris Rosslowe, senior analyst and lead author of the report. “At the start of the European Green Deal in 2019, few thought the EU’s energy transition could be where it is today; wind and solar are pushing coal to the margins and forcing gas into structural decline.”
The European Electricity Review published today by global energy think tank Ember provides the first comprehensive overview of the EU power system in 2024. It analyzes full-year electricity generation and demand data for 2024 in all EU-27 countries to understand the region’s progress in transitioning from fossil fuels to clean electricity.
Wind and solar continue their meteoric rise in the EU
The EU power sector is undergoing a deep transformation spurred on by the European Green Deal. Solar generation (11%) overtook coal (10%) for the first time in 2024, as wind (17%) generated more electricity than gas (16%) for the second year in a row.
Strong solar growth, combined with a recovery of hydropower, pushed the share of renewables to nearly half of EU power generation (47%). Fossil fuels generated 29% of the EU’s electricity in 2024. In 2019, before the Green Deal, fossil fuels provided 39% of EU electricity, while renewables provided 34%.
Solar is growing in every EU country and more than half now have either no coal power or a share below 5% in their power mix. Coal has fallen from being the EU’s third-largest power source in 2019 to the sixth-largest in 2024, bringing the end into sight for the dirtiest fossil fuel. EU gas generation also declined for the fifth year in a row (-6%) despite a very small rebound in power demand (+1%).
The EU is reaping the benefits of reduced fossil fuel dependency
The surge in wind and solar generation has reduced the EU’s reliance on imported fossil fuels and its exposure to volatile prices since the energy crisis. Ember’s analysis found that without new wind and solar capacity added over the last five years, the EU would have imported an additional 92 billion cubic meters of fossil gas and 55 million tonnes of coal, costing €59 billion.
“While the EU’s electricity transition has moved faster than anyone expected in the last five years, further progress cannot be taken for granted,” continued Rosslowe. “Delivery needs to be accelerated particularly in the wind sector, which has faced unique challenges and a widening delivery gap. Between now and 2030, annual wind additions need to more than double compared to 2024 levels. However, the achievements of the past five years should instil confidence that, with continued drive and commitment, challenges can be overcome and a more secure energy future be achieved.”
Walburga Hemetsberger, CEO of SolarPower Europe said: “This milestone is about more than just climate action; it is a cornerstone of European energy security and industrial competitiveness. Renewables are steadily pushing fossil fuels to the margins, with solar leading the way. We now need more flexibility to kick-in, making sure the energy system is adapting to new realities: more storage and more smart electrification in heating, transport and industries.”
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