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A sign displays gas prices at a gas station on May 21, 2024 in Chicago, Illinois.

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The Biden administration’s move to sell 1 million barrels of gasoline from a reserve in the Northeast is unlikely to have a substantial effect on pump prices as summer driving season gets underway, according to market analysts. 

The Department of Energy said Tuesday the sale would be timed to have a maximum impact on prices this summer with deliveries completed before the Fourth of July holiday.

But the barrels in the Northeast Gasoline Supply Reserve are equivalent to just 2.65 hours of total U.S. gasoline consumption and two or three days in the areas where the gas is stored, said Patrick de Haan, head of petroleum analysis at GasBuddy.

“It’s not going to be a huge needle mover,” de Haan said, though the sale could provide 5 cents to 10 cents of relief in the Northeast where the gasoline market is historically tight.

“This is not going to be huge party at the pump,” the analyst said.

The motorist association AAA agrees, with spokesman Andrew Gross saying the sale might “help stave off any regional pump price surges, but likely won’t move the national average that much.”

Gas prices trending lower

Oil prices surged last month as Israel and OPEC member Iran stood on the brink of war, raising concern at the White House that gasoline prices could jump heading into the summer.

But gas prices have been trending lower for weeks now as demand has softened and U.S. oil prices have pulled back 11% from April highs after a broader conflict in the Middle East was averted.

Prices at the pump are averaging about $3.61 per gallon nationwide heading into Memorial Day weekend, around five cents lower than the average last month, according to data from the motorist association AAA. However, current prices are still roughly five cents higher than the year-ago average.

When adjusting for inflation, pump prices are about 2% lower compared to last year, according to the Energy Information Administration.

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The gasoline sale announced by the Biden administration fulfills a mandate passed by Congress in March to close the Northeast Reserve this year.

De Haan said the reserve didn’t make financial sense to begin with. It was set up in in 2014 in the aftermath of Superstorm Sandy, which knocked out refineries and caused chaos at the pump.

But the reserve cost taxpayers $200 million just to maintain while the gasoline in the stockpile is only worth about $103 million right now, de Haan said.

“I don’t like the political victory lap,” he said of the Biden administration’s announcement. “It didn’t make sense to have this reserve. [Former President Donald] Trump tried to shut it down in 2020. Congress now approved it being shut down.”

De Haan said the summer driving season is already getting off to a “soft start,” with gasoline demand about 8% lower through Thursday compared to the year-ago period. Even in costly California, gasoline prices are down about 27 cents over the past four weeks, he said. 

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WTI v. Brent

“We know a lot of folks are saying they’re going to be traveling for Memorial Day,” de Haan said. “That would just imply to me that more people may be flying than driving this time around.”

AAA, however, is forecasting a record 38 million drivers will take to the road this weekend, a 4% increase compared to last year. This could move prices slightly higher, the group said.

But de Haan said gasoline prices will likely edge lower through the Fourth of July holiday as refiners increase output, which should keep downward pressure on pump prices. 

For July, GasBuddy is forecasting prices in a range of $3.39 to $3.72 per gallon on average nationwide. De Haan expects prices to be in the lower half of that range and generally sit in the mid-$3 range.

“Since the pandemic, the summer driving season has not seen a surge in demand, which can push pump prices higher,” said Gross, the AAA spokesperson.

Hurricane season wildcard

The gasoline price outlook becomes more uncertain heading into Labor Day on Sept. 2. Hurricane season in the Atlantic is expected to be extremely active this year, according to forecasts from Colorado State University Tropical and Weather Climate Research.

The Colorado university report is forecasting 11 hurricanes this season, the highest number ever issued in its April outlook due to extremely warm sea surface temperatures and the likely development of La Niña conditions. There is a 42% chance that a hurricane makes landfall in the Gulf Coast, the hub of U.S. oil infrastructure, CSU found.

If a major hurricane knocks refiners offline, gasoline prices could rapidly spike 50 cents a gallon for a month or two before returning to normal, de Haan said.

“Anyone traveling or planning a late-season road trip needs to be watching the Gulf of Mexico and watching the Atlantic because we’ve seen profound impacts from hurricanes on refiners before and that’s a worry for the closing innings of summer,” he said.

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Delhi-ghtful! India mulls 2035 ICE ban, blocks fuel sales to older vehicles

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Delhi-ghtful! India mulls 2035 ICE ban, blocks fuel sales to older vehicles

In a bold bid to combat the crippling air pollution crisis in its capital, Delhi, Indian lawmakers have begun high-level discussions about a plan to phase out gas and diesel combustion vehicles by 2035 – a move that could cause a seismic shift in the global EV space and provide a cleaner, greener future for India’s capital.

Long considered one of the world’s most polluted capital cities, Indian capital Delhi is taking drastic steps to cut back pollution with a gas and diesel engine ban coming soon – but they want results faster than that. As such, Delhi is starting with a city-wide ban on refueling vehicles more than 15 years old, and it went into effect earlier this week. (!)

“We are installing gadgets at petrol pumps which will identify vehicles older than 15 years, and no fuel will be provided to them,” said Delhi Environment Minister Manjinder Singh Sirsa … but they’re not stopping there. “Additionally, we will intensify scrutiny of heavy vehicles entering Delhi to ensure they meet prescribed environmental standards before being allowed entry.”

Making it prohibitively difficult for Dehli’s residents to own and operate older, presumably more polluting vehicles is one way to reduce harmful emissions and air pollution, but Sirsa’s team isn’t just targeting newer vehicles. They’re also planning to deploy more than 900 electric transit buses, part of a larger plan to replace 5,000 of the city’s 7,500 total bus with lower- or zero-emission options this year alone.

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The Economic Times is reporting that discussions are underway to pass laws requiring that all future bus purchases will be required to be electric or “clean fuel” (read: CNG or hydrogen) by the end of this year, with a gas/diesel ban on “three-wheelers and light goods vehicles,” (commercial tuk-tuks and delivery mopeds) potentially coming 2026 to 2027 and a similar ban privately owned and operated cars and bikes coming “between 2030 and 2035.”

Electrek’s Take

2025 Xpeng G6 all-electric SUV with 5C ultra-fast charging “AI batteries” launched in China
Xpeng EV with Turing AI and Bulletproof battery; via XPeng.

After a Chinese government study linked air pollution caused by automotive exhausts and coal-fired power plants to more than 1.1 million deaths per year in 2013, the nation’s government took serious action, shuttering older coal plants and imposing strict emissions standards. The country also incentivized EV adoption through license-plate lotteries favoring electric cars and a nationwide EV mandate set to kick in by 2030.

The results were astounding, and the technological innovations that have come from an entire nation of talented engineers all “pulling in the same direction” have put the West to shame, with Western auto executives repeatedly sounding the alarm and lobbying for tariffs and other protectionist policies on both sides of the Atlantic.

To see India make move towards a gas and diesel ban like this, and on such an aggressive timeline, can only mean that they’ve been paying attention … and America is about to fall even further behind.

SOURCE: India Times; featured image by Sumita Roy Dutta.

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Parker launches Mobile Electrification Technology Center training program

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Parker launches Mobile Electrification Technology Center training program

Last week, Parker Hannifin launched what they’re calling the industry’s first certified Mobile Electrification Technology Center to train mobile equipment technicians make the transition from conventional diesel engines to modern electric motors.

The electrification of mobile equipment is opening new doors for construction and engineering companies working in indoor, environmentally sensitive, or noise-regulated urban environments – but it also poses a new set of challenges that, while they mirror some of the challenges internal combustion faced a century ago, aren’t yet fully solved. These go beyond just getting energy to the equipment assets’ batteries, and include the integration of hydraulic implements, electronic controls, and the myriad of upfit accessories that have been developed over the last five decades to operate on 12V power.

At the same time, manufacturers and dealers have to ensure the safety of their technicians, which includes providing comprehensive training on the intricacies of high-voltage electric vehicle repair and maintenance – and that’s where Parker’s new mobile equipment training program comes in, helping to accelerate the shift to EVs.

“We are excited to partner with these outstanding distributors at a higher level. Their commitment to designing innovative mobile electrification systems aligns perfectly with our vision to empower machine manufacturers in reducing their environmental footprint while enhancing operational efficiency,” explains Mark Schoessler, VP of sales for Parker’s Motion Systems Group. “Their expertise in designing mobile electrification systems and their capability to deliver integrated solutions will help to maximize the impact of Parker’s expanding METC network.”

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The manufacturing equipment experts at Nott Company were among the first to go through the Parker Hannifin training program, certifying their technicians on Parker’s electric motors, drives, coolers, controllers and control systems.

“We are proud to be recognized for our unwavering dedication to advancing mobile electrification technologies and delivering cutting-edge solutions,” says Nott CEO, Markus Rauchhaus. “This milestone would not have been possible without our incredible partners, customers and the team at Nott Company.”

In addition to Nott, two other North American distributors (Depatie Fluid Power in Portage, Michigan, and Hydradyne in Fort Worth, Texas) have completed the Parker certification.

Electrek’s Take

electric bobcat track loader
T7X all-electric track loader at CES 2022; via Doosan Bobcat.

With the rise of electric equipment assets like Bobcat’s T7X compact track loader and E10e electric excavator that eliminate traditional hydraulics and rely on high-voltage battery systems, specialized electrical systems training is becoming increasingly important. Seasoned, steady hands with decades of diesel and hydraulic systems experience are obsolete, and they’ll need to learn new skills to stay relevant.

Certification programs like Parker’s are working to bridge that skills gap, equipping technicians with the skills to maximize performance while mitigating risks associated with high-voltage systems. Here’s hoping more of these start popping up sooner than later.

SOURCE | IMAGES: Parker Hannifin.

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ReVolt extended range electric semi trucks score their first customer

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ReVolt extended range electric semi trucks score their first customer

Based on a Peterbilt 579 commercial semi truck, the ReVolt EREV hybrid electric semi truck promises 40% better fuel economy and more than twice the torque of a conventional, diesel-powered semi. The concept has promise – and now, it has customers.

Austin, Texas-based ReVolt Motors scored its first win with specialist carrier Page Trucking, who’s rolling the dice on five of the Peterbilt 579-based hybrid big rigs — with another order for 15 more of the modified Petes waiting in the wings if the initial five work out.

The deal will see ReVolt’s “dual-power system” put to the test in real-world conditions, pairing its e-axles’ battery-electric torque with up to 1,200 miles of diesel-extended range.

ReVolt Motors team

ReVolt Motors team; via ReVolt.

The ReVolt team starts off with a Peterbilt, then removes the transmission and drive axle, replacing them with a large genhead and batteries. As the big Pete’s diesel engine runs (that’s right, kids – the engine stays in place), it creates electrical energy that’s stored in the trucks’ batteries. Those electrons then flow to the truck’s 670 hp e-axles, putting down a massive, 3500 lb-ft of Earth-moving torque to the ground at 0 rpm.

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The result is an electrically-driven semi truck that works like a big BMW i3 or other EREV, and packs enough battery capacity to operate as a ZEV (sorry, ZET) in ports and urban clean zones. And, more importantly, allows over-the-road drivers to hotel for up to 34 hours without idling the engine or requiring a grid connection.

That ability to “hotel” in the cab is incredibly important, especially as the national shortage of semi truck parking continues to worsen and the number of goods shipped across America’s roads continues to increase.

And, because the ReVolt trucks can hotel without the noise and emissions of diesel or the loss of range of pure electric, they can immediately “plug in” to existing long-haul routes without the need to wait for a commercial truck charging infrastructure to materialize.

“Drivers should not have to choose between losing their longtime routes because of changing regulatory environments or losing the truck in which they have already made significant investments,” explains Gus Gardner, ReVolt founder and CEO. “American truckers want their trucks to reflect their identity, and our retrofit technology allows them to continue driving the trucks they love while still making a living.”

If all of that sounds familiar, it’s probably because you’ve heard of Hyliion.

Hyliion electric semi truck

Hyliion Hypertruck ERX; via Hyliion.

Before it changed its focus to develop Carnot-cycle generators and gensets, Austin-based Hyliion built a number of EREV Peterbilts using the then-new 15L Cummins diesel as a generator and employing the same sort of battery and e-axle-arrangement as ReVolt.

In addition to being located in the same town and employing the same idea in the same Peterbilt 579 tractor, ReVolt even employs some of the same key players as Hyliion: both the company’s CTO, Chandra Patil, and its Director of Engineering, Blake Witchie, previously worked at Hyliion’s truck works.

Still, Hyliion made their choice when they shut down their truck business. ReVolt seems to have picked up the ball – and their first customer is eager to run with it.

“Our industry is undergoing a major transition, and fleet owners need practical solutions that make financial sense while reducing our environmental impact,” said Dan Titus, CEO of Page Trucking. “ReVolt’s hybrid drivetrain lowers our fuel costs, providing our drivers with a powerful and efficient truck, all without the need for expensive charging infrastructure or worrying about state compliance mandates. The reduced emissions also enable our customers to reduce their Scope 2 emissions.”

Page Trucking has a fleet of approximately 500 trucks in service, serving the agriculture, hazardous materials, and bulk commodities industries throughout Texas. And, if ReVolt’s EREV semis live up to their promise, expect them to operate a lot more than 20 of ’em.

SOURCES | IMAGES: ReVolt; via Power Progress, TTNews.

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