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Offshore workers examine hydrocarbon samples aboard the Chevron Corp. Jack/St. Malo deepwater oil platform in the Gulf of Mexico off the coast of Louisiana, U.S., on Friday, May 18, 2018.

Luke Sharrett | Bloomberg | Getty Images

U.S. oil producers are looking forward to less regulations on crude production under a Donald Trump presidency, meaning higher oil supply and consequently lower prices.

But it’s not that straightforward: Trump who was announced Wednesday as the winner of the 2024 election, has also vowed to put more sanctions on Iranian and Venezuelan barrels, meaning the global market could become tighter, potentially boosting prices.

At the same time, the increased likelihood of trade wars under Trump could dampen global economic growth and slow oil demand. So the picture for the market’s longer-term outlook is, well, decidedly mixed.

“Conceptually, the impact of a potential second Trump term on oil prices is ambiguous, with some short-term downside risk to Iran oil supply … and thus upside price risk,” Goldman Sachs commodities analysts wrote in a research note Monday. “But medium-term downside risk to oil demand and thus oil prices from downside risk to global GDP from a potential escalation in trade tensions.”

The U.S. has a 'clear competitive advantage' on energy, says TotalEnergies CEO

Trump expressed his enthusiasm for increased U.S. oil production while giving a speech from the Republican campaign headquarters in Florida on Wednesday, just hours before his victory was confirmed. He made a reference to Robert F. Kennedy, Jr., the independent candidate who he said would become a part of his team.

“Bobby, stay away from the oil, stay away from the liquid gold!” Trump said in a joking tone. “We have more than Saudi Arabia and Russia.” Kennedy is known for his history of environmental activism.

U.S. oil and gas production hit record highs under the Biden administration, which gradually changed its approach to the industry despite campaigning on pledges of environmental stewardship.

U.S. crude futures — both West Texas Intermediate and international benchmark Brent crude — are currently trading in the $70 to $75 per barrel range, which is lower than what many oil producers seek to balance their costs and budgets amid slowed global demand for oil and growing supply.

Energy sector is the best sector under Biden

But a further push to open drilling projects, putting more supply on the market, would lead to lower prices, thereby decreasing revenues for American producers, said Cole Smead, president and CEO of Smead Capital.

“If the Trump administration opens up federal leases for oil and gas, Federal lands would get 25% per barrel of revenues. You will have a lot of trouble finding an oil company that can make money at $52.50 per barrel with what they have left from a $70 barrel,” Smead said in emailed notes. “The only thing that will cause drill baby drill to happen is higher oil prices based on these margins.”

“Drill baby, drill is going to run into the energy vigilantes,” he added. “Now that equity investors in the energy business know what free cash flow looks like they won’t give it up. They will allow capital expenditures to go up over their dead body.”

‘Clear competitive advantage’

The U.S. is the world’s largest oil producer, accounting for 22% of the global total, according to the Energy Information Administration, with Saudi Arabia next, producing 11%. The vast majority of U.S. crude is consumed within the country, which is also the world’s largest oil consumer.

The CEO of French oil major TotalEnergies told CNBC over the weekend that whoever wins the presidency should ensure that the U.S. doesn’t lose its energy advantage.

“U.S. energy has been unleashed … since the last two, three years, production of oil has never been so high,” in the country, Patrick Pouyanne told CNBC in Abu Dhabi.

“For me, today, the U.S. has a clear competitive advantage on energy compared to many [in the] rest of the world,” he said. “So I will be surprised to see whoever is elected lose the competitive advantage.”

OPEC always plays the long game, Energy Aspects' Amrita Sen says

Many in the market forecast lower crude prices due to Trump’s encouragement of domestic oil production and greater supply. Amrita Sen, founder and director of research at London-based Energy Aspects, sees it differently due to the specter of sanctions.

“Every hedge fund I’ve spoken to thinks bearish, because [Trump has] tended to tweet about low oil prices … I actually think it’s the opposite,” she said. “There’s an enormous amount of sanctioned barrels right now in the market, especially Iranian volumes.” Iran is currently producing 3.5 million barrels per day of crude or more, Sen said, with 1.8 million of those being exported, as sanctions and their enforcement loosened under the Biden administration.

“You could lose a million barrels per day of that … when Trump was in power, Iranian exports were just 400,000 barrels per day,” Sen said. “Now I’m not saying it’s going to go down all the way, because smuggling networks are bigger and better probably now, but you could lose a million there,” she said, adding that some Venezuelan barrels could go off the market as well.

For Smead, the outlook is bearish, as he predicts lower prices putting many producers — particularly those with higher production costs — in a less-than-ideal situation.

“The price of goods that are produced is the number one factor in America’s policies,” he said. “If you are not the low-cost producer, you should be scared.”

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Mercedes unveils new entry-level CLA EV design details and it’s looking sleek [Video]

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Mercedes unveils new entry-level CLA EV design details and it's looking sleek [Video]

Mercedes-Benz says its upcoming entry-level CLA will set the bar for EV range, charging speed, and efficiency with advanced new tech. Ahead of its arrival, Mercedes is giving us a closer look at the sporty electric car.

“With the CLA, we are ushering in a new era at Mercedes-Benz,” CEO Ola Källenius said after driving the new EV at its Immendingen site for the first time.

The new model will be the first of a new family of vehicles, kicking off “a new chapter for the entry-level segment at Mercedes-Benz.” Mercedes said the new electric CLA “is designed to set new standards in range, efficiency and charging speed.”

Based on Mercedes’ next-gen MMA platform, the CLA integrates tech from its ultra-efficient Vision EQXX concept and brings it into mass production.

Mercedes said it developed a new electric drive unit in-house to ensure high performance and efficiency.

Källenius showed off the “secret” CLA EV during the event, revealing new features and details, including the new headlight design.

Mercedes previews new entry-level CLA EV

With the headlights being the first thing you see at night, Källenius said the design had to be perfect. One of the coolest design details is the Mercedes star logo integrated into the headlights. Although it looks pretty, Källenius said the design is also about safety and not blinding others on the street.

After hopping into the new EV, you can hear Källenius talk to the vehicle, and Mercedes’ virtual assistant responds. It’s “like you have a butler in your car,” Mercedes CEO explained.

Mercedes-Benz CEO Ola Källenius takes a first drive in the new CLA EV (Source: Mercedes-Benz)

The new entry-level model will be loaded with Mercedes’ latest software and connectivity tech. It will be the first to be equipped with the new MB.OS, or “the brain” behind its next-gen vehicles, as Mercedes calls it.

During the test drive, the new model shows off its sporty design and dynamic driving as it rips around the test track. “This is not even the AMG version,” Källenius said.

Mercedes-entry-level-CLA-EV
Mercedes-Benz entry-level CLA EV (Source: Mercedes-Benz)

With a two-speed transmission, “we can perfectly calibrate at every speed that you are driving how the electric motor works” to maximize efficiency, Källenius explained.

Mercedes leader said the CLA EV will have “incredibly fast” charging. With a new high-powered charging system, “charging almost becomes like fueling.”

Mercedes will officially unveil the new entry-level CLA EV next year, with deliveries expected in 2026. The new model will rival Tesla’s Model 3 and BMW i4, with expected prices around $50,000. It will also be available in a hybrid version.

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Tesla Model S Plaid becomes world’s quickest police patrol car

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Tesla Model S Plaid becomes world's quickest police patrol car

Unplugged Performance has unveiled its UP.FIT Tesla Model S Plaid police patrol car at Sema – becoming the world’s quickest police patrol car.

The Tesla tuner, through its UP.FIT division, has unveiled several new police vehicles based on Tesla vehicles, but this one is the first to be based on Tesla’s top performance vehicle: Model S Plaid.

This groundbreaking vehicle is designed to meet the high-performance demands of first responders, showcasing the future of electric police vehicles – albeit being a bit of an overkill with a 0-60 mph acceleration in 2 seconds.

Built on the Tesla Model S Plaid platform, the UP.FIT Plaid Pursuit brings a host of modifications and advanced technologies aimed at enhancing high-speed pursuits and traffic patrol operations. The vehicle will be delivered to the Los Angeles County Sheriff’s Department Motorsports community outreach program, underscoring a pivotal shift towards electric vehicles in public service roles.

The UP.FIT Plaid Pursuit model incorporates a proprietary electrical wiring harness designed specifically for UP.FIT Tesla vehicles, allowing for the integration of custom forward- and rear-facing warning lights into the front and rear glass.

According to UP.FIT, this enhances visibility compared to traditional rooftop light bars. Additionally, side skirt lighting and a push-bumper equipped with further warning lights and integrated high- and low-frequency emergency sirens ensure that this vehicle is fully compliant with Title 13 regulations in California.

To complement its exterior modifications, the UP.FIT Plaid Pursuit features performance upgrades from Unplugged Performance, including enhanced braking components and UP Forged lightweight wheels. These enhancements not only boost durability but also provide superior handling in pursuit scenarios. UP leveraged its experience building performance kits for performance-oriented Tesla owners.

This electric patrol car is not only duty-ready but also represents a zero-emission alternative to conventional patrol vehicles. With rapid acceleration and an impressive range of 345 miles, the UP.FIT Plaid Pursuit offers law enforcement agencies a powerful and sustainable option for their operations.

Ben Schaffer, CEO of Unplugged Performance, commented

“The UP.FIT Plaid Pursuit embodies everything we value in electric police vehicles. From outstanding acceleration and range to reduced maintenance and fuel costs, this platform equips law enforcement with the latest tools to enhance their mission while saving taxpayers’ money and promoting a cleaner future.”

The UP.FIT Plaid Pursuit will be displayed at the SEMA FutureTech Studio this week.

Electrek’s Take

This looks incredible. However, I think the Model S Plaid is a bit of an overkill. The Model S Long Range is $15,000 cheaper and the difference is an extra second 0-60 mph and 130 mph top speed rather than 200 mph.

A 3-sec 0-60 mph will smoke most cars, and while the top speed could technically be useful in high-speed pursuits, many police departments abandon pursuits when they reach high speeds because it is deemed too dangerous.

I’m not saying there are never any pursuits above 130 mph, but it is fairly rare.

UP’s Model Y police patrol vehicle is also an cheaper option that reduces the total cost of ownership when accounting for gas savings.

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XPeng 2024 Tech Day: AI chips, L4 autonomy, eVTOLs, humanoid robots, and… range extenders?

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XPeng 2024 Tech Day: AI chips, L4 autonomy, eVTOLs, humanoid robots, and... range extenders?

XPeng Motors celebrated its annual Tech Day event in China earlier today, which was renamed “AI Day” for good reason. The topic of artificial intelligence dominated the Chinese mobility company’s incoming technologies, which were abundant. We got updates on a new in-house AI computing chip, a new Xpeng platform to support Level 4 autonomous robotaxis, flying cars, and eVTOLs, a new humanoid robot called “Iron,” complete with an existential launch video, and a surprising adoption of combustion-powered extenders that deliver up to 970 miles of additional range.

Today marked XPeng Motor’s sixth consecutive Tech Day event – something we look forward to each fall as it is sure to be filled with exciting updates and debuts from a mobility company that continues to expand and dabble in a little bit of everything, not just passenger EVs.

Last year, we saw the debut of XPeng’s X9 MPV, a humanoid robot called the PX5, and plenty of AI-centric software upgrades. Since then, we’ve seen the X9 officially launch in China along with a rollout of OTA updates to XPeng’s operating systems, including its XNGP ADAS.

This past April, during the Beijing Auto Show, XPeng gave the public a preview of some of the technologies explained further during today’s Tech Day event. That included AI-centric chips, Level 4 autonomous robotaxis plans, and a new neural network called “XNet.” We also saw some fresh updates, including a new humanoid robot, an eVTOL, and a new gas range extender that could deliver some of the farthest-driving vehicles in the world. Let’s dig in.

  • XPeng Tech Day
  • XPeng Tech Day
  • XPeng Tech Day

XPeng shares flying car update during Tech Day 2024

There’s a lot to unfold here, but we’ll start with a mainstay in XPeng news, flying cars through its air mobility entity, AeroHT. Today’s talks were led by the “Land Aircraft Carrier” – an eVTOL/vehicle combo that debuted last year.

As we previously reported, the revolutionary land and air vehicle is slotted for scaled production in 2026, and AeroHT recently broke ground on the facility in China that will build them. There is not much of an update here. Still, XPeng founder and chairman He Xiaopeng reiterated that the Land Air Carrier will showcase its first public flight demonstration later this month before pre-orders open in December.

In September, AeroHT founder and president Zhao Deli said the modular eVTOL/van combo would be priced at no more than RMB 2 million ($279,200).

In addition to its modular Land Air Carrier and eventual plans for a bonafide flying BEV with propellers on its roof, Xiaopeng shared that AeroHT is also developing a dedicated full tilt-rotor eVTOL featuring six seats and hybrid power. The aerial vessel will have a maximum range of 500+ km (311 miles) and reach a top speed of 360 km/h (224 mph).

These flying cars and eVTOLs will be powered by a new AI “Turing” chip developed in-house by XPeng.

XPeng Tech Day
Source: XPeng Motors/AeroHT

In-house AI chips and a new platform

XPeng renamed its Tech Day event “AI Day” this year for a reason. Artificial intelligence was at the forefront of most of He Xiaopeng’s conversations on stage, and the debut of the mobility company’s new Turing chip was also a part of the event.

The company showcased a new Turing AI Intelligent Driving System, powered by XPeng’s proprietary Turing AI chip, described as “a world-first chip designed for AI vehicles, robots, and flying cars.” The new chip features a 40-core processor and supports models with up to 30 billion parameters, delivering the power of three high-performance chips in one.

Xiaopeng explained that the Turin chip has already completed over 2,700 functional verifications in a mere 40 days and has achieved three times the industry standard for development efficiency during that time.

  • XPeng Tech Day

In addition to powering XPeng’s flying cars and humanoid robots (more on that below), Xiaopeng used the 2024 Tech Day event to unveil a new Canghai Platform that will enable full Level 4 autonomous driving. XPeng has already been promising fully autonomous robotaxis by 2025, and we now have a better idea of the technology that will support that, again, centered around its new Turing AI chip.

The company explained that the new platform would act as the previously teased neural network for XPeng’s new line of AI-centric vehicles, supporting driving (with or without a human in the driver’s seat) with enhanced safety features, 33x bandwidth, and 12x faster camera image processing, thus creating “a foundation for full-scenario AI-enabled driving experiences.”

The “Hawkeye” pure vision ADAS system can see the world around it at 720 degrees without blind spots. Per XPeng during Tech Day:

XPeng’s Turing AI system marks a pivotal step toward L4 autonomy, with continual model updates from cloud-based models, ensuring a highly responsive, ever-evolving smart driving experience.

In addition to autonomous robotaxis, XPeng’s Turing AI chip will power a new humanoid robot called “Iron” which made its official debut at Tech Day.

XPeng introduces a new humanoid robot called “Iron”

One of the stars of today’s event was Iron, a serious upgrade to the robots XPeng has debuted at Tech Days in the past. With today’s debut, XPeng becomes the latest tech company developing and implementing impressive robot technology that could one day take over full assembly of its vehicles.

Per XPeng, the Turing AI chip enables the Iron bots to think and remember like humans (spooky) and also enables its hands and feet to move autonomously. The robot’s hands also use a 1:1 human hand size, with 15 degrees of freedom.

The debut included an interesting video in which Iron steps into a room and admires famous sculptures like Rodin’s “The Thinker” and “Discobolus” by Myron. Iron even copies the Discobolus pose, as seen in XPeng’s video below:

XPeng’s Tech Day event includes a new gas range extender

Perhaps the biggest surprise from XPeng’s 2024 Tech Day was the news that it is shifting its business strategy from all-BEV to include some combustion with a new gas-powered range extender.

On the stage in Guangzhou earlier today, He Xiaopeng unveiled XPeng’s Kunpeng Super Electric System. Xiaopeng says this next-generation solution “brings together XPeng’s advancements in latest AI-defined mobility innovations to deliver an unparalleled charging and range experience.”

XPeng Tech Day

The system consists of an 800V platform powered by XPeng’s battery technology, which supports 5C fast charging and can charge from 10% to 80% in 12 minutes. New to the party is a hybrid silicon carbide coaxial electric drive, which, according to XPeng, will offer industry-leading efficiency and reliability. The range extender is also extra quiet, outputting noise levels as low as 1 dB.

The automaker has also once again integrated AI into the power optimization system, which enables a seamless transition between pure electric and range-extended driving modes. As you can see from the Tech Day image above, XPeng’s new system offers 430 km (267 miles) of all-electric range and a combined range of over 1,400 km (870 miles).

That’s a lot to take in, but it’s all for now. Check back with Electrek soon as we await the official launch of XPeng’s next BEV model, the P7+. In the meantime, you can watch the full 2024 Tech Day presentation on XPeng’s Weibo page.

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