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US diesel demand plummeted to its lowest seasonal level in 26 years last quarter – but is that due to a down economy, or booming commercial EV sales?

The production of distillate, the petroleum-based fuel that powers trucking, heating, and heavy industry, plunged to 3.67 million barrels per day in March (down from more 4.1 million barrels last year) according to monthly data from the US Energy Information Administration. That figure marks a downward revision from the agency’s previous estimates, and is even lower than the same month in 2020 (3.96 million). But, while less oil is generally good for people and planet, it’s not always good for profits.

“The deteriorating diesel market is a warning signal that broader oil demand growth could be at risk,” according to a quote attributed to Dennis Kissler, senior vice president for trading at BOK Financial Securities, by Transport Topics. “Consumption of the fuel tends to fall as the economy slows, and a slowing economy presages waning demand for other fuels.”

“It’s a function of the slowing of the economies in Asia and the US and how inflation is tightening consumer spending habits,” Kissler said, continuing to spin a decline in oil consumption as a bad thing. “They’re not going out and spending money like they were a year ago.”

Is it really inflation, or is it EVs?

The last diesel-powered Volvo rolls off the assembly line; via Volvo.

Even in diesel-loving Europe, the diesel engine is dying a quick death. Volvo, for example, recently built its last-ever diesel vehicle, an XC90 (above), and rolled it straight off the assembly line and into a museum.

Volvo’s not alone. Companies like Nissan, Hyundai, and Daimler (parent company of Mercedes-Benz and the Freightliner and Rizon truck brands) have also backed away from developing new internal combustion engines.

And, while we’re on the topic of Daimler’s truck brands, it’s worth noting that commercial EV sales are soaring. Despite all the doom, gloom, and wishful thinking from the pro-oil/anti-EV crowd, the numbers paint a narrative of swift expansion in the commercial EV and ZEV (Zero-Emission Vehicle) markets, with CALSTART’s latest figures revealing a remarkable 250% growth in the zero-emission heavy truck market.

Those same CALSTART figures, from January of this year, show that the US had seen the deployment of more than 14,000 battery-electric cargo vans in 2023, with a significant surge of 11,835 units deployed in the first half of that year, alone. That is a staggering 461% increase in deployments compared to CALSTART’s previous report – and the electrification of large commercial fleets is a trend that doesn’t seem to be slowing down.

The “hockey stick” growth curve; via CALSTART.

Take a good look at the numbers for HD trucks. The CALSTART graph shows “just” 867 units on the road, sure – but consider some recent news stories that are blowing that number out of the water:

I could keep going, but you get the idea: there are hundreds, if not thousands of electric trucks on the road today that weren’t this time last year – and if you don’t think that’s putting a damper on diesel demand I have a bridge to sell you.

Electrek’s Take

Einride orders electric truck fleet from Peterbilt
Image via Einride.

The oil industry knows that we’re past “peak oil,” and demand for diesel is going to continue to drop. Both because trucks are electrifying and switching to hydrogen, and because diesel/ICE models are becoming ever more efficient, using less diesel to move the same amount of Earth and goods. That’s why they’re not pulling the usual demand levers of lowering prices – instead, oil companies seem to be raising prices compared to crude oil and refining costs, giving this writer the sense that they’re trying to grab as much cash as they can while the grabbing’s still good.

That’s my take, anyway. What’s yours? Scroll on down to the comments section at the end of this story and let us know.

SOURCES: Equipment World, Transport Topics; other source links throughout.

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Reyes Beverage Group adds 29 Freightliner electric semi trucks to California fleet

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Reyes Beverage Group adds 29 Freightliner electric semi trucks to California fleet

Daimler Truck North America has helped alcohol distributor Reyes Beverage Group deploy fully 29 zero-emission Freightliner eCascadia Class 8 electric semi trucks in its California delivery fleet.

Reyes Beverage Group (RGB) plans to deploy the first twenty Freightliner electric semi trucks at its Golden Brands – East Bay and Harbor Distributing – Huntington Beach warehouses, marking the first phase in the company’s transition to a fully zero emission truck fleet by 2039. An additional nine eCascadia Class 8 HDEVs are scheduled for delivery to RBG’s Gate City Beverage – San Bernardino warehouse before the end of 2024.

RBG’s decision to adopt the Freightliner eCascadia builds on its recent transition to renewable diesel and its ongoing idle-time reduction program. These electric vehicles (EVs) “go electric” will contribute significantly toward the company’s stated goal of reducing its carbon emissions 60 percent by 2030. These 2 trucks will save some 98,000 gallons of diesel fuel annually, and avoid putting nearly 700 metric tons of carbon dioxide and other harmful emissions into California’s air each year.

“We are excited to be among the first in our industry to adopt these electric vehicles,” explains Tom Reyes, President of RBG West. “This is a significant step toward our sustainability goals and ensuring compliance with state regulation as we transition our fleet to EV.”

Freightliner’s eCascadia electric semi trucks offer a number of battery and drive axle configurations with ranges between 155 and 230 miles, depending on the truck specification, to perfectly match customers’ needs without compromising on performance and load capacity. RBG’s Freightliner eCascadia tractors will rely on electric charging stations installed at each facility, allowing them to recharge to 80% capacity in as little as 90 minutes for RGB’s trucks, which feature a typical driving range of 220 miles as equipped.

Electrek’s Take

Food and beverage trucks operate everywhere – not just at the ports but in urban population centers, too. That means they’re pumping out harmful emissions right where a lot of people live and work, and that’s no bueno, making the electrification of these vehicles a no brainer for anyone who cares about the quality of life of the people who live and work near them.

SOURCE | IMAGES: Daimler Trucks.

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Enwin Utilities adds $1 million Terex electric bucket truck to fleet [video]

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Enwin Utilities adds $1 million Terex electric bucket truck to fleet [video]

The Windsor, Ontario utility says it’s driving towards a more sustainable future after adding a dozen new electric vehicles to its fleet – including a state-of-the-art, 55-foot Terex electric bucket truck.

Based on a Class 7 (33,000 lb. GVWR) International eMV Series BEV, the Terex EV takes the eMV’s 291 kWh battery and adds the Terex Optima 55-foot aerial device and HyPower SmartPTO system to create a fully electrified utility service vehicle that can do anything its diesel counterparts can do while offering better, safer working conditions for utility crews.

“We’ve got 12 EVs,” said Gary Rossi, president and CEO, Enwin Utilities. That number represents fully 10% of the utility’s entire vehicle fleet. “Our centerpiece is our electric 55-feet bucket truck. It’s very quiet,” continues Rossi. “So (the truck) allows us, our crews, to communicate better. It’s not as loud in the community when they’re doing repairs in someone’s backyard.”

That notion is echoed by Terex, itself. The company says its HyPower SmartPTO (power take off), which replaces a mechanical PTO, avoids a loud idling engine while reducing workers’ exposure to toxic exhaust fumes.

The utility company says the new electric bucket truck cost it almost $1 million Canadian – but while that might sound like a lot, Rossi says the price is similar to what a similarly-optioned ICE version of the bucket truck would cost.

“It’s all about building Windsor’s future and literally plugging into the battery factory down the road that is being constructed and showing that Windsor is a leader on this front,” says Drew Dilkens, Mayor of Windsor. “I don’t own an internal combustion engine vehicle,” adds Mayor Wilkins. “I only own two electric cars. My wife and I, we made the change starting in 2019 and I can’t see myself ever going back.”

CTV News Windsor

Enwin says its commitment to clean energy extends beyond its vehicle fleet. The company recently unveiled a massive MW solar rooftop net metering facility at its Rhodes Drive headquarters with over 3,000 solar panels. The site, one of Canada’s largest solar installations, generates enough clean electricity to power 300 homes annually.

SOURCE | IMAGES: Terex; Enwin via CTV News Windsor.

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Damen sets a world record for most powerful electric tugboat

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Damen sets a world record for most powerful electric tugboat

Built by Damen Shipyards and the first fully electric tugboat to be deployed in the Middle East, the new RSD-E Tug 2513 Bu Tinah put in its record-breaking performance took place at Khalifa Port during ADIPEC, the world’s largest energy conference.

The RSD-E Tug 2513 is based on the already efficient hull design of the standard, diesel-powered RSD Tug 2513, but its new, fully electric propulsion arrangement enables it to offer zero emissions operations in situations where oil or fuel leakage would be – let’s say especially bad.

But, while the “clean” aspect of all-electric operation is obvious, its Guinness World Record of performance shows that the Damen RSD-E Tug 2513 is up to whatever task its owners put to it.

“This Guinness World Record achievement demonstrates that the transition to alternative energy does not come at the cost of performance,” explains Maritime & Shipping Cluster, AD Ports Group, Captain Ammar Mubarak Al Shaiba. “We are very proud that the first electric tug in the Middle East is also making waves on a global level with this accolade and the fact that in parallel it is improving the sustainability of our operations alongside cost efficiencies in terms of overall fuel saving is extremely important. This vessel is now a key component of our Marine Services fleet and our electrification strategy.”

To earn its record, the the Damen RSD-E Tug 2513 Bu Tinah recorded an average high peak bollard pull of 78.2 tonnes (about 86 ‘Murican tons). The record-setting tugboat can undertake a minimum of two towage operation on a single charge, and can be recharged on a marine DC fast charger in just two hours.

Electrek’s Take

Electric tug achieves Guinness World Record
Damen RSD-E Tug; via Damen.

We’ve come a long way since 2021, when a 6MW electric tugboat was pulling about 50 tonnes of bollard weight. A nearly 50% jump in performance without a similar weight or mass gain is a sign of advancing technology – and we are here for it.

SOURCE | IMAGES: Damen.

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