Ron Insana: It’s time to use an ‘all of the above’ energy policy to break up the OPEC+ cartel

Published

3 years ago

October 7, 2022

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An Austrian soldier guards the entrance to the OPEC headquarters on October 4, 2022 on the eve of the 45th Meeting of the Joint Ministerial Monitoring Committee and the 33rd OPEC and non-OPEC Ministerial Meeting held on October 05, in Vienna, Austria.

Joe Klamar | AFP | Getty Images

Saudi Arabia’s decision to ally with Russia and push through the largest supply cut by OPEC+ since 2020 means it’s time for the U.S. to take every available step it can to boost U.S. energy production.

That could even mean exploring the “nuclear option” — a point I mean literally, in terms of deploying nuclear power to assist in meeting the nation’s energy needs.

Energy policy is an instrument of U.S. foreign policy. Given that a former ally has joined with a current adversary, I would argue that, at least for the moment, all bets are off. It’s time to bring Saudi Crown Prince Mohammed bin Salman and Vladimir Putin to heel, and take away some of the power that OPEC and its allies have.

The OPEC+ cuts were set at some 2 million barrels per day. The decision appears aimed at bolstering oil prices, which had fallen to roughly $80 a barrel from more than $120 in early June. Oil has already started to climb back up above $92 a barrel, despite signs of economic slowing.

The Biden administration — short-term environmental concerns aside — should offer price supports to the entire oil and gas industry, beyond the subsidies already offered, to rapidly boost production in some areas where exploration and production have slowed.

Biden, no doubt, would get pilloried by environmental groups, progressives and even some middle-of-the-road Democrats for potentially accelerating climate change, but short-run needs are paramount if the U.S. would like to maintain long-term control of both our energy security and our national security.

A multiyear price floor

With the imposition of a multiyear price floor, the U.S. could support domestic crude prices at, let’s say, $65 per barrel. That’s high enough to encourage existing fracking efforts while also encouraging additional production. Yet, it’s low enough to help pull the rug out from under a former ally that has shown its allegiance to Moscow. (We do this for all manner of commodity producers, by the way.)

Further, a more rapid addition of U.S. supplies of oil and natural gas would pressure global energy prices greatly and hurt the bottom lines of both Saudi Arabia and Russia, who are trying to ensure $100 per barrel oil to prop up their budgets — and, for Putin, to finance the ongoing war in Ukraine.

A flood of U.S. oil could drive prices back into the $20s even as U.S. companies are guaranteed to earn more.

In the 1980s, when the Saudis were the world’s “swing producer” of oil, they set the global price by raising and lowering production to send prices up or down, depending on prevailing circumstances.

The U.S. is poised to return to being the No. 1 producer next year when daily production reaches the old record of 12.3 million barrels per day from the current 11.8 million. (The U.S. has been the world’s largest producer of natural gas since 2017.)

In addition, the U.S. should expedite the build out of pipelines, transmission lines and LNG terminals so that the U.S. can more effectively — and profitably — export surplus oil and natural gas to an energy-starved world.

Adding a little fuel to that fire could help Europe avoid future disruptions of supplies as long as sanctions remain in place against a would-be Peter the Great.

An ‘all of the above energy’ policy

Beyond that, continuing an “all of the above” energy policy — which should absolutely include modern nuclear power plants — would go far in stabilizing global energy markets, ensure more than adequate supplies of power and energy here at home and, once and for all, cripple the OPEC cartel and Russia, whose economy rests almost entirely on energy exports.

And, yes, the U.S. and Europe should place a cap on Russian oil prices to also rob Moscow of the revenue it needs to sustain its invasion of Ukraine.

And, as some foreign policy experts have suggested of late, the U.S. should cut off sales of military hardware to MBS and deprive him of U.S. intelligence, rendering the alliance moot and leaving the Saudis at risk of armed conflict with regional rivals. That should be their problem from now on.

The U.S. should also strike a deal with Iran and Venezuela to allow oil to flow from those pariah states.

At the end of the day — and this may be naive — but what’s the difference between doing business with Saudi Arabia and Russia compared with doing business with Venezuela and Iran? Long ago, we learned that the enemy of my enemy is my friend.

It may well be time to put that philosophy to work and turn the tables on nations whose revenue options are far more limited than our own.

— Ron Insana is a CNBC contributor and a senior advisor at Schroders.

Environment

The era of cheap Chinese solar + storage is ending – here’s why

Published

2 hours ago

October 2, 2025

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The era of cheap Chinese solar + storage is ending – here’s why

Trinasolar Chinese solar storage — Photo: Trina Solar

Solar and storage prices are about to rise after a year and a half of record lows, according to new data from Wood Mackenzie. Equipment procurement costs for solar and energy storage will jump around 9% starting in Q4 2025, marking the end of the bargain pricing developers have enjoyed for the last 18 months. That’s because China is changing the rules.

Why solar +storage prices are going up

Wood Mackenzie points to three major drivers behind the coming spike:

Polysilicon consolidation. China’s polysilicon production exploded between 2022 and 2024, creating a glut and pushing prices to unsustainable lows. But new government guidelines are now forcing producers to slow down, cutting utilization rates to 55-70%. As a result, polysilicon prices surged 48% in September 2025 alone.
Production cuts across the value chain. Solar module makers are also reducing operating rates, with major producers running at just 55-60% capacity by mid-2025. Outdated PERC cell lines are being phased out, further shrinking available capacity.
The end of China’s export tax rebate. Starting in Q4 2025, China will scrap its 13% VAT export rebate on solar modules and storage systems. This fiscal change will ripple through global pricing since China supplies over 80% of the world’s solar modules and 90% of lithium iron phosphate (LFP) battery packs.

That policy shift means developers worldwide will face higher costs. In the US, storage and solar projects relying on Chinese equipment will likely see about a 9% cost increase in Q4. Analysts expect inverters to lose their export rebate soon, too, adding more upward pressure.

From price war to market correction

For the past year and a half, Chinese manufacturers have been selling solar modules and storage systems at rock-bottom prices, trying to move oversupply even while posting losses. Modules hit record lows of $0.07-$0.09 per watt in 2024 and early 2025. But with government intervention, that price war is ending.

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“This is about to change,” said Yana Hryshko, senior research analyst and head of Global Solar Supply Chain at Wood Mackenzie. “The Chinese government has intervened to stabilize the market, and developers globally will have to adjust their procurement expectations accordingly.”

Wood Mac says the shift represents a “structural correction” toward sustainable margins, not just a temporary market adjustment. “This shift will ultimately benefit the industry’s long-term health,” said Hryshko. Manufacturers will finally have room to reinvest and innovate, but developers will need to revisit budgets and renegotiate supply deals for production scheduled after November 2025.

Bottom line is, ultra-cheap solar and storage gear is on its way out. The next phase of the energy transition will likely come with higher but more sustainable prices.

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Environment

Jeep vehicles still qualify for the $7,500 EV credit past the deadline, for now

Published

3 hours ago

October 2, 2025

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Jeep vehicles still qualify for the ,500 EV credit past the deadline, for now

Jeep, Dodge, Chrysler, and Fiat vehicles will remain eligible for the credit after the deadline expires. Stellantis confirmed it will replicate the offer for EV and PHEV models.

Stellantis extends credit for Jeep EV and PHEV models

Stellantis is looking for a comeback in the US. The company sold 324,825 vehicles under the Jeep, Ram, Chrysler, and Fiat brands in the US in the third quarter, notching its highest monthly market share in 15 months.

Although it currently offers only a few all-electric vehicles, including the Jeep Wagoneer S and Dodge Charger Daytona EV, Stellantis also provides a range of plug-in hybrids (PHEVs).

Through July, the Jeep Wrangler 4xe remained the best-selling PHEV in the US. Stellantis doesn’t provide a breakdown of Wrangler sales by model, but total sales rose 18% in the third quarter to nearly 45,000 units.

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Through September, Stellantis has sold over 128,000 Wranglers. Jeep also offers the Grand Cherokee 4xe, another PHEV. The Wagoneer S, Jeep’s first all-electric SUV, racked up 4,163 in sales in the third quarter, bringing its yearly total to 10,426.

To compensate for the loss of the federal tax credit, Stellantis will honor it for EVs and PHEVs. The offer is good on the lease or purchase of a new EV or PHEV, but there’s a catch.

The deal is only for vehicles currently in the dealer’s inventory, meaning it could run out at any point, if it hasn’t already.

Jeep isn’t the only brand, Stellantis is extending the credit to all PHEV and EV models. Dodge offers the electric Charger Daytona BEV and Hornet R/T PHEV. Chrysler only sells one vehicle, the Pacifica minivan, but it is available with a plug-in hybrid powertrain. And don’t forget the Alfa Romeo Tonale, the luxury brand’s first PHEV.

All will still be eligible for the credit while inventory lasts. Stellantis follows other automakers, including Ford, GM, and Hyundai, which will continue to offer the EV tax credit beyond the deadline.

Interested in checking one out for yourself? You can use our links below to see what’s available in your area.

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Environment

96 DC fast chargers are coming to Western Canada’s highways

Published

3 hours ago

October 2, 2025

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96 DC fast chargers are coming to Western Canada’s highways

fast chargers Western Canada — Photo: Wallbox

Wallbox’s Supernova DC fast chargers will power a major new EV charging network across Western Canada.

Public charging network operator SureCharge Corp is rolling out up to 24 high-speed public charging sites with 96 Wallbox Supernova 180 kW DC fast chargers across Alberta and British Columbia. The new network will fill critical charging gaps along key travel corridors, linking northern, central, and southern Alberta with British Columbia.

The initiative is backed by over $4.7 million from the Government of Canada through Natural Resources Canada’s Zero Emission Vehicle Infrastructure Program and $400,000 from the Government of British Columbia. SureCharge is leading the project, with SureTek Electric & Technologies, a certified Wallbox partner, handling installation, commissioning, and maintenance.

Each site will feature Wallbox’s 180 kW Supernova fast chargers. The Supernova line aims to keep costs low for operators while ensuring drivers have consistent access to high-speed charging.

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SureCharge says the project will connect communities in Western Canada that have never had access to fast chargers. “From the northern stretches of British Columbia to the southern reaches of Alberta, we’re enabling a fast-charging corridor that connects communities across the region,” said Michael Palarchio, SureCharge’s vice-president. “By building a network that’s owned, installed, and maintained by Western Canadians, we’re creating a locally powered solution that works for the people who live, work, and travel here.”

Canadian officials say the project will help ease range anxiety and encourage more people to drive EVs. “With this funding, Canadians traveling on Alberta and British Columbia highways will have access to more EV chargers where they need them most,” said Tim Hodgson, Canada’s minister of energy and natural resources. “These chargers give peace of mind to current EV drivers and help address charging anxiety for those considering an EV purchase.”

The first sites will go live by late 2025 in Red Deer, Lacombe, and Enoch Cree Nation, followed by rapid expansion into Whitecourt, Grande Prairie, Jasper, Fort St. John, Fernie, Edson, and other towns, including Grand Cache, Hinton, Rocky Mountain House, Valleyview, and Diamond Valley.

The project is part of a larger plan to create a long-term, regionwide charging network in partnership with retail, hospitality, and convenience brands committed to sustainable transportation.

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