Cratering motor fuel sales in Norway show the death spiral that can end oil

Published

2 years ago

October 20, 2023

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It’s common knowledge that Norway is the land of electric cars and that the country keeps breaking EV sales records with virtually no new fossil vehicle sales. But what’s really important is the effect those EVs are having on oil sales, which are in steep decline in the country as a result – and the same thing could happen elsewhere.

Norwegian statistics agency SSB released its latest numbers on motor fuel sales today, showing a whopping 9% decline in motor fuel sales year-over-year for the month of September.

This is a result of Norway’s world-leading EV sales, with over 90% of new vehicles in the country having some sort of plug and vanishingly few having no electrification at all. The country has exceeded its own high expectations, virtually ending fossil vehicle sales years ahead of schedule.

However, there are still fossil vehicles on the road from previous years that are continuing to pollute and use fossil fuels throughout their lifecycle. But as they age and are replaced almost solely with EVs, the vehicle fleet cycles out from fossil to electric. If it takes 10-15 years for the vehicle fleet to cycle out, then that means Norway would remove ~6-10% of fossil cars from the road every year, replace them with electric cars, and thus reduce motor fuel usage by a similar amount every year.

But this trend is nothing particularly new. While this big 9% drop is just a one-month snapshot, petrol/gasoline sales have been in decline for about two decades in the country, as diesel started to replace petrol in the mid-2000s. But diesel has also been in decline for the better part of a decade, as electricity has replaced it as a motor fuel.

Stats from Robbie Andrew’s excellent Norway EV stats tracker at robbieandrew.github.io/EV/

To compare against other rapid declines, US coal usage has gone from a peak of 1,045 million tons in 2007 to 469 million tons in 2022, a decline of about 5% per year (and going from ~50% of the US electricity mix to ~20% now, and dropping). Many observers acknowledged, even near the beginning of this trend, that coal was a dead industry. Any subsequent attempts to expand it have been unserious political stunts that were doomed to fail from the start – everyone (with a brain) knows the industry is dead.

But in that context, Norway’s decline in motor fuel sales seems to be happening almost twice as fast on a percentage basis as the United States’ decline in coal use, at least according to today’s data point. And the long-term trend may accelerate as the country now has virtually no gas vehicle sales.

This is important because when we talk about electrifying the auto industry, the point is not just to get people into better cars with neat new technology. The point is to reduce oil consumption, such that carbon that belongs underground stays there – permanently.

This is vitally important because if we burned even a fraction of all the oil that is already discovered and owned by oil companies, the carbon released would cause catastrophic climate change. This was covered in Bill McKibben’s excellent 2012 article “Global Warming’s Terrifying New Math.”

The only way we can avoid this fate is through one of the more wonderful phrases in the English language: “stranded assets.” In this context, the phrase refers to oil reserves owned by oil companies which get written off of those companies’ books because they are uneconomical to extract and sell.

In short, oil companies need to lose money, and lots of them need to go bankrupt.

And while Norway is just one relatively small country, news like this shows how that could happen as EV sales (and better yet, even cleaner methods of transportation like e-bikes and public transit) grow rapidly worldwide.

Oil demand -> oil prices -> oil supply

There is an interplay between oil demand, oil prices, and oil supply that could lead to a death spiral for the oil industry.

Lately, oil prices have been quite high around the world, nearing the historic highs of the 2010s and late 70s. This spike has largely been driven by pandemic-related supply (and demand) disruptions, the Russian invasion of Ukraine, and, as always, the decisions of Saudi Arabia (in this case, their decision to cut supply to buoy oil prices).

But looking back to the last peak, we can see another interesting thing: a giant drop in oil prices in the mid-2010s, which was driven by a “supply glut.” This supply glut was at least partially related to increased usage of hybrid and electric cars, which led to a relatively small decrease in oil demand. However, that small decrease meant that more oil was being pumped than used, which led prices to drop by about two-thirds in a matter of months.

The effect of oil prices on consumer demand is that as oil prices go up, usage (often) goes down, and interest in electric cars goes up. This stands to reason, as people start thinking about more efficient vehicles when the cost of fueling their vehicle becomes too much.

But the effect on supply is less popularly examined. In this case, low oil prices can actually be environmentally advantageous because it means that oil companies are less incentivized to explore new methods of extraction and that more expensive methods (such as tar sands extraction, which is also much more environmentally costly) become uneconomical.

If it costs more to extract the oil than the oil is worth, then the project won’t get started. And if the project doesn’t get started, then the oil stays in the ground to begin with, right where it belongs.

So, in a way, low oil prices can actually be better for the environment than high oil prices. This means fewer projects get started, and more projects and companies go bankrupt due to high costs and low profits.

And this is the spiral that we want to see. As the primary driver of oil demand (vehicles, specifically consumer vehicles) disappears, oil prices can drop because of this supply-demand imbalance. Then, there will be less reason for companies to extract oil in the first place, leading to the stranded assets we spoke of before.

Some regions with low cost of extraction might even prefer it this way and work to ensure this happens. The Middle East can extract oil for cheaper than anywhere else, so it could be to their benefit to put high-cost extraction methods out of business. Norway itself is an oil country (primarily for export, at this point) and has middling oil-extraction costs, but it may benefit in the short term from a shakeout of higher-cost countries. But ideally, Norway’s extraction would soon become uneconomical – and hopefully, so will Saudi Arabia’s.

The one danger of this path is that if oil demand does drop low enough, low oil prices could jeopardize consumer decision-making to move to cleaner options. Oil is subsidized to the tune of trillions of dollars worldwide per year based on unpriced external costs that all of us are paying on the back end – usually in the form of higher hospital bills or other environmental costs.

This could be solved by finally properly pricing oil globally, as Norway already rightly does. Norway’s realistic pricing for carbon pollution has helped to ensure that the true price of oil is reflected in consumer pricing, making it more apparent to consumers that fossil vehicles are not an economical option for society or their pocketbooks.

In contrast, the artificially low gasoline costs in the US (yes, US gasoline prices are still artificially low, even at today’s high prices) work to buoy consumer oil demand. Removing the ~$650 billion in implicit subsidies received by the fossil fuel industry in the US alone would help ensure that fair market conditions could prevail, and consumers would have a clear choice about what the better and cleaner option is.

And if we finally let the market work freely, after more than a century of both direct and implicit oil subsidies that have coddled this lying, deadly industry, we could finally see it spiral into the oblivion it deserves.

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Environment

Honda takes a page from Tesla playbook, launches new insurance business

Published

1 hour ago

July 26, 2025

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Honda takes a page from Tesla playbook, launches new insurance business

Honda launches in-house insurance agency for U.S. drivers

Say what you will about Elon Musk, but Tesla has changed the way that millions of people buy cars and, by extension, car insurance. Now, Honda is taking a page from Tesla’s successful playbook and launching its own in-house insurance business. Enter: Honda Insurance Solutions.

Honda Insurance Solutions is being launched as a fully licensed insurance agency serving the insurance needs of Acura and Honda customers, but it’s not stopping at competitive pricing and coverage options for Honda cars and motorcycles. Honda Insurance Solutions promises to go several steps beyond Tesla’s offering with coverage for trailers, RVs, homes, and even pets.

“Honda Insurance Solutions offers customers access to coverage through a brand they know and trust,” says Petar Vucurevic, President, American Honda Insurance Solutions, LLC and Senior Vice President, American Honda Finance Corporation. “Insurance is a key touchpoint in the vehicle ownership journey, and we aim to deliver a superior experience tailored to the unique needs of each customer, while promoting safer driving and increased peace of mind on the road.”

The company says the launch of its new insurance business is just part of Honda’s broader digital vehicle sales platform strategy, with future plans to integrate insurance offerings into new products.

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Electrek’s Take

It’s important to note some of the key differences between Honda’s insurance offering and Tesla’s. Honda isn’t offering discounts, they’re not bundling insurance premiums into the vehicle financing, and they’re not building their insurance offerings into their dealerships’ checkout/F&I offices. Not yet, anyway.

What Honda is doing right now is deepening relationships with its existing customers and finding ways to make money on products it hasn’t sold them – whether that’s the Harley parked in the garage next to their Prologue or the garage itself.

It’s a smart play. And, once Honda figures out a way to cut franchise dealers out entirely and go to a direct sales model, it’ll look even smarter.

SOURCE | IMAGES: Honda.

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Lion Electric school bus warranties voided, leaving districts stuck

Published

2 hours ago

July 26, 2025

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Lion Electric school bus warranties voided, leaving districts stuck

Previous Lion Electric School Bus Warranties Voided by Company Sale

Nobody ever says “this is business” before doing something nice, and the recently reborn Lion Electric company is keeping that streak alive by doing the unthinkable to cut costs: they’re going to void the warranties on hundreds of electric school buses.

In a letter issued to exiting Lion Electric customers last week, Deloitte Restructuring announced that the warranties on all Lion vehicles purchased outside of the company’s home Province of Quebec are null and void – leaving dozens of school districts in the lurch with stranded assets that won’t get fixed, and can’t be sold to generate funds for replacements.

“We are working with alternate vendors at the expense of the school district to help keep our electric buses functional and on the road,” explains Dr. Richard Decman, Superintendent of Herscher CUSD No. 2 district in Herscher, Illinois. “Currently, six of our 25 (Lion) electric buses need some type of repair.”

Student Transportation News reports that Lion buses represent fully half of Herscher’s overall fleet of 50 buses, and that the district has received nearly $10 million for the purchase of 25 electric buses and the related charging stations from various state and utility incentive programs.

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Herscher isn’t the only district having problems with Lion buses. “All four Lion buses that we own are currently parked and not being used,” Coleen Souza, interim transportation director of Winthrop Public Schools, told Clean Trucking. “Two of them are in need of repairs which would cost us money which we are not willing to invest in because the buses do not run for more than a month before needing more repairs.”

More of the same in Maine, where Yarmouth School Department bought two Lion Electric buses in 2023 with the state covering the costs. According to Superintendent Andrew Dolloff, the buses almost never worked. “We’ve had some sporadic service over the past two years, but as soon as the tech leaves, the buses produce error codes again,” explained Dolloff. ” and “Then the technician quits or is released, and we wait a few months for the next response.”

Dolloff added that Yarmouth’s electric buses did not operate during the 2024-25 school year.

Lion’s new owners are seemingly uninterested in their customers’ plight – which might be easily dismissed if those new owners, Groupe MACH, weren’t also the old owners of Lion Electric.

That’s right, kids. Quebec-based real estate company Groupe MACH, which stepped in to “save” Lion Electric earlier this summer, along with Ontario-based Mirella & Lino Saputo Foundation, bought $90 million of equity in Lion Electric back in 2023. And, while the MACH people may not have been the ones who ultimately made the call about voiding the warranties (that decision was made by the Deloitte bankruptcy team), it is absolutely Group MACH who have, to date, not announced plans to continue to honor those warranties, either.

Make of that what you will.

Deloitte Lion letter

SOURCES: School Transportation News, Clean Trucking, Deloitte.

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The Retrospec Beaumont Rev 2 might be the most stylish eBike for under $1K [Video]

Published

3 hours ago

July 26, 2025

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The Retrospec Beaumont Rev 2 might be the most stylish eBike for under $1K [Video]

We recently had the opportunity to test out Retrospec’s Beaumont Rev 2 electric bike. This Class 2 electric city bike is as stylish as it is functional. Despite its streamlined design, the Beaumont Rev 2 is sneaky fast with quality components throughout. Be sure to check out our full video review below.

Our latest product review came through Retrospec – a veteran micromobility company dedicated to delivering affordable, high-quality, adventure-ready eBikes without compromising performance or style.

According to Retrospec, its products aim to “make nature second nature” by offering accessible, high-quality gear that encourages people of all ages and abilities to enjoy the outdoors to “make nature second nature” by providing accessible, high-quality gear that encourages people of all ages and abilities to enjoy the outside world.

Designed for adventure and built to last, Retrospec prides itself on delivering mobility products look great, perform flawlessly, and stand up to the test of time. A fine example of this company ethos is the Beaumont Rev 2 electric city bike.

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The Beaumont Rev 2 has already gone viral as Retrospec’s number one best seller. It initially caught our eye because it combines a stylish vintage look of classic bicycles with modern tech to cruise quickly and easily.

We recently had an opportunity to take one of these eBikes out and have plenty to say about it.

Upon first ride, you can’t ignore the classic style of this eBike, which looks and feels super light, similar to a conventional bicycle. However, with one press of the throttle, you get a feel for the function and versatility of the Beaumont Rev 2, which was designed by Retrospec specifically for city riding.

The bike’s powerful rear hub motor is supported by a Shimano MegaRange drivetrain that can easily be switched between seven different gears with your right hand.

The electric motor offers five different levels of electric pedal assist and an easy-to-use throttle on the left handlebar (pictured below). As a Class 2 eBike, the Beaumont Rev 2 can cruise to assisted speeds as high as 20 mph. The bike itself is powered by a UL2849-Certified Battery that offers riders a range of up to 38 miles on a single charge.

If you encounter dirt or debris on your journey, you’re protected by full-wrap front and rear fenders. Other features of the Retrospec Beaumont Rev 2 include front and rear lights, a rear cargo rack, and Tektro mechanical disc brakes (pictured above).

Combined with the padded saddle seat and swingback handlebars, the Beaumont Rev 2 is as comfortable and supportive of a ride as it is functional.

As an urban-style e-bike, the Beaumont Rev 2 isn’t necessarily built for off-road riding, but as you’ll see in the video below, there were a couple of times I cut through some grassy terrain to get on and off the bike path, and the bike fared just fine.

I truly enjoyed the smooth comfort of this unique, Euro-style step-through bike thanks to its wide, high-volume city tires. It also feels like it rides a lot faster than 20 mph due to its light frame and best-in-class powertrain components.

While the Beaumont Rev 2 comes with the above mentioned accessories, Retrospec sells many compatible add-on components, including helmets, baskets, trailers, bike bags & panniers, air pumps, and car racks. In addition to the Beaumont Rev 2, Retrospec offers a growing lineup of all-electric city bikes. We highly recommend checking those out to find the right bike for you.

Retrospec also offers a range of other eBike categories, including fat tire electric bikes, electric beach cruiser bikes, electric commuter bikes, electric trikes, and more. All Retrospec eBikes are UL2849 certified, feature sleek and stylish designs, and employ the most modern eBike technology to make riding an absolute blast. Check out the full lineup here.

If you’re interested in riding in style on Retrospec’s best-selling Beaumont Rev 2 eBike, you can purchase one here. This blend of classic and modern is available for just under $1,000, making it one of the most affordable options in its class.

To learn more about this stylish electric city bike, be sure to check out our full video review below.