Oil CEOs say this winter is not the season to worry about when it comes to the energy crisis
PCK Schwedt oil refinery in Schwedt, Germany on Monday, May 9, 2022.
Krisztian Bocsi | Bloomberg | Getty Images
ABU DHABI, United Arab Emirates — Politicians and governments around the world are bracing for potential civil unrest as many countries grapple with mounting energy costs and rising inflation.
The global economy is facing an onslaught from multiple sides — a war in Europe, and shortages of oil, gas and food, and high inflation, each of which has worsened the next.
Concerns are centered on the coming winter, especially for Europe. Cold weather, combined with an oil and gas shortage stemming from Western sanctions on Russia for its invasion of Ukraine, threatens to upend lives and businesses.
But as much concern as there is ahead of this winter, it’s really the winter of 2023 that people should be worried about, major oil and gas executives have warned.
Energy prices “are approaching unaffordability,” with some people already “spending 50% of their disposable income on energy or higher,” BP CEO Bernard Looney told CNBC’s Hadley Gamble during a panel at the Adipec conference in Abu Dhabi.
We are in good shape for this winter. But as we said, the issue is not this winter. It will be the next one, because we are not going to have Russian gas.
Claudio Descalzi
CEO of Eni
But through a combination of high gas storage levels and government spending packages to subsidize people’s bills, Europe may be able to manage the crisis this year.
“I think it has been addressed for this winter,” Looney said. “It’s the next winter I think many of us worry, in Europe, could be even more challenging.”
The CEO of Italian oil and gas giant Eni expressed the same worry.
For this winter, Europe’s gas storage is around 90% full, according to the International Energy Agency, providing some assurance against a major shortage.
But a large proportion of that is made up of Russian gas imported in previous months, as well as gas from other sources that was easier than usual to buy since major importer China was buying less due to its slower economic activity.
“We are in good shape for this winter,” Eni chief Claudio Descalzi said during the same panel. “But as we said, the issue is not this winter. It will be the next one, because we are not going to have Russian gas – 98% [less] next year, maybe nothing.”
Protests have already begun
This could lead to serious social unrest — already, small to medium-sized protests have cropped up around Europe.
Anti-government protests in Germany and Austria in September and in the Czech Republic last week — the latter of which has seen household energy bills surge tenfold — may be a small taste of what’s to come, analysts have warned. Some energy executives agreed.
Yes, there is a real risk that governments without a steady hand on policy shaping in Asia can deal with unrest.
Datuk Tengku Muhammad Taufik
CEO of Petronas
“We’ve seen that any shocks to the price at the pump, or something as simple as LPG [liquefied petroleum gas] for cooking, can cause unrest,” the CEO of Malaysian oil and gas company Petronas, Datuk Tengku Muhammad Taufik, said.
He described how a strengthening dollar and rising fuel prices pose a serious risk to many Asian economies – massive populations that are some of the biggest oil and gas importers in the world. And this is happening while subsidies are already in place to help ease prices for citizens.
Inflation in the euro zone remains extremely high. Protestors in Italy used empty shopping trolleys to demonstrate the cost-of-living crisis.
Stefano Montesi – Corbis | Corbis News | Getty Images
Many Asian economies were already reeling from the pandemic, which caused “vast swaths of [small and medium enterprises] in Asia to just collapse,” Taufik said. “So, yes, there is a real risk that governments without a steady hand on policy shaping in Asia can deal with unrest.”
Anger at oil companies’ massive profits
Much of the anger of protesters is also directed at the energy companies, which have been making record profits as bills get higher and higher.
Responding to this, many of the CEOs who spoke to CNBC said it’s an issue of market supply and demand, and that it’s up to governments to implement policies more conducive to energy investment. That investment, they stressed, has taken a hit in recent years as countries push for the transition to renewables.
The world has to face “the practicalities and realities of today and tomorrow,” BP’s Looney said, stressing the need to “invest in hydrocarbons today, because today’s energy system is a hydrocarbon system.”
Many policymakers and institutions still decry the use of fossil fuels, warning the far bigger crisis is that of climate change. In June, United Nations Secretary General Antonio Guterres called for abandoning fossil fuel finance, and called any new funding for exploration “delusional.”
The oil executives argued that this approach simply isn’t realistic, nor is it an option if countries want economic and political stability.
At the same time, however, they admitted that the energy transition itself does need greater focus and investment in order to avert a larger crisis next year and beyond, when there is no Russian gas in storage and other options are increasingly expensive.
“In Europe, we pay at least six, seven times to [as much as] 15 times the energy costs with respect to the U.S.,” ENI’s Descalzi said.
“So what we have done in Europe, each country, gave incentive subsidies to try to reduce the cost for industry and for citizens. How long that can continue?” he asked.
“I don’t know, but it’s impossible that it can continue forever. All these countries have a very high debt,” he said. “So they have to find a structural way to solve this issue. And the structural way is what we said until now — we have to increase and be faster on the transition. That is true.”
“But,” he added, “we have to understand, from a technical point of view, what is affordable and what is not.”
Lexus is bringing the sports car back, but this time the LFA will be fully electric and will be developed alongside the Toyota GR GT and GR GT3. Here’s our first look at the EV sports car.
Meet the electric Lexus LFA Concept
The LFA is making a comeback as a low-slung, fully electric supercar. Lexus unveiled the new LFA Concept on Friday, calling it a next-generation battery-electric (BEV) sports car.
Lexus said the LFA name “embodies the technologies that engineers of its time should preserve,” adding it’s “not bound to vehicles powered by internal combustion engines.”
The electric LFA is being developed alongside the Toyota GR GT and GR GT3 race cars. Although it will share core technology and other components, including the GR GT’s all-aluminum frame, the new LFA will arrive with a unique design and advanced interior thanks to its electric powertrain.
Inside, the EV sports car features a yoke-style steering wheel, first showcased on the RZ electric SUV. The minimalist design is intended to create “a uniquely immersive environment,” according to Lexus.
At 184.6″ long, 80.3″ wide, and 47″ tall with a wheelbase of 107.3″, the electric Lexus LFA concept is about the size of many modern-day supercars, including the Aston Martin DB12 and Ferrari Roma.
The LFA EV will be centered on three key elements, shared with the GR GT, including a low center of gravity, a light but sturdy frame, and optimized aerodynamics.
Lexus has yet to reveal full details, aside from confirming the new LFA will be fully electric. With Toyota claiming it plans to launch its first solid-state battery in a high-performance vehicle by 2027, will the Lexus LFA be the one to debut it? We will find out more shortly.
While the new Lexus LFA is surprisingly an EV, Toyota is sticking to its roots with the GR GT, which will be equipped with a hybrid system that still uses a 4.0-liter V8 twin-turbo engine and a single electric motor.
Toyota announced similar plans to continue launching gas-powered vehicles under its new ultra-luxury Century brand.
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Environment
Tesla launches ‘Standard’ Model 3/Y in Europe with aggressive pricing to stop bleeding sales
Tesla has officially launched new “Standard” trims for both the Model 3 and Model Y in Europe after launching them in North America. The automaker is aggressively positioning these stripped-down models to undercut competitors and arrest a painful sales slump in the region, with the Model 3 now starting at an impressive €36,990 in Germany.
As we reported recently, Tesla is facing a tough quarter in Europe. Registration data from November showed sales down 12.3% year-over-year, but the reality is even starker: if you exclude Norway, which is soaring due to incentives going away at the end of the year, Tesla’s sales in the rest of Europe have plummeted by over 36%.
To counter this, Tesla updated its online configurator today with these new entry-level options that significantly lower the barrier to entry, albeit with some notable compromises in features.
The Model 3 Standard: breaking the €37k barrier
The new Model 3 Standard is priced at €36,990 in Germany, France, and Italy. This is a massive psychological breach of the €37,000 mark, putting it well within swinging distance of mass-market ICE vehicles and undercutting key electric rivals.
In the Nordic markets, the pricing is equally aggressive:
- Norway: NOK 330,056
- Sweden: SEK 449,990
Despite the lower price, the specs remain impressive. The Model 3 Standard is rated at 534 km (332 miles) of WLTP range. It achieves 0 to 100 km/h (62 mph) in 6.2 seconds.
Priced significantly lower than the next cheapest Model 3, like in North America, the new Model 3 Standard is a much better offer than the Model Y Standard,
The Model Y Standard: a tougher sell
The Model Y also gets the “Standard” treatment. It is now listed at €39,990 in the main European markets.
Tesla lists the Model Y Standard with the same 534 km WLTP range as the Model 3 Standard.
Like in North America, the proposition here is not as attractive as with the Model 3 Standard. It is closer in price to the ‘Premium’ version and, on top of losing almost 100 km of range, the Standard version comes with many fewer features.
De-contenting: What do you lose?
To hit these price points, Tesla had to cut costs. We are seeing a new level of “de-contenting” that is new for the brand. Tesla has always been known to cut costs aggressively and remove features it deemed not useful, but in this case, it cut things close to the bone.
Here is what is gone compared to the Premium/Long Range trims:
- Seats: The full vegan leather is replaced by “partially textile seats”.
- Rear Screen: The 8-inch rear display introduced with the Highland refresh has been removed.
- Comfort: Heated rear seats are no longer included.
- Audio: The system is downgraded to 7 speakers, removing the subwoofer and amplifiers.
- Wheels: The alloy wheels are gone, replaced by steel wheels with plastic aero covers.
That’s on top of the more obvious exterior changes, such as removing the light bars, updating the front end, and losing the panoramic roof.
The Competition
This move puts Tesla in a fiercely competitive position against the influx of Chinese EVs and legacy European automakers.
- Volkswagen: The VW ID.3 Pure has recently seen price cuts bringing it to around €29,760 in Germany with bonuses, but the Model 3 offers significantly more range and space. The ID.4 Pure, a direct Model Y competitor, sits around €40,335 , making the Model Y Standard slightly cheaper and arguably better specced in terms of software and charging network.
- BYD: The Chinese auto giant is Tesla’s main headache right now. The BYD Atto 3 is priced at €37,990 in Germany. The Model 3 Standard now undercuts it by €1,000, while the Model Y is only €2,000 more expensive for a much larger vehicle.
- Volvo: The successful EX30 starts around €36,000–€39,000 depending on the market. Tesla could threaten the higher end of the demand for this one.
As you can see, there’s some room for Tesla to work.
Electrek’s Take
There is no denying that Tesla is hurting in Europe. We always said that this was due to a combination of a stale lineup facing increased competition and what we’ve called “brand toxicity” stemming from Elon Musk’s political activism.
I’m actually a fan of the “Standard”/ de-contenting idea in the sense that it offers more options. Not everyone needs a rear screen or heated seats in the back.
However, I do worry about the value proposition, especially with the Model Y. The Model 3 makes a lot more sense to me.
I think this should help Tesla in Europe. It could stop the bleeding and help Tesla form a bottom in Europe.
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![Meet the Kia Vision Meta Turismo: Could this be the EV8? [Images]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/12/Kia-Vision-Meta-Turismo-side.jpeg?resize=1200,628&quality=82&strip=all&ssl=1)
Kia is celebrating its 80th birthday with a bang. The new Kia Vision Turismo concept offers a glimpse of what will likely arrive as the EV8. Here’s our first look at it.
The Vision Meta Turismo is more than a concept car. It’s “Kia’s vision for a new era of mobility,” and what will likely become the EV8.
Kia unveiled the futuristic concept car during an event in Korea on Friday, celebrating the brand’s 80th anniversary.
Several high-profile executives were in attendance, including Hyundai Motor Group executive chair Euisun Chung and Kia’s president and CEO, Ho Sung Song.
The Vision Meta Turismo concept pays homage to the 1960s era of long-distance touring, blended with Kia’s bold “Opposites United” design theme showcased on its latest electric vehicles, such as the new EV4, EV5, and EV6.
Although details are still pretty slim at this point, the concept car is expected to fill the EV7 or EV8 spot when it arrives in production form.
The low-riding GT looks like an electric successor to the Stinger, similar to the Polestar 5, with a sporty silhouette and aggressive front end.
Inside, the Kia Vision Meta Turismo offers a “lounge-inspired interior” with futuristic digital tech, unique design elements, and a spacious layout.
The yoke-style steering wheel “reimagines the next-generation intuitive driving interface,” Kia said. It’s equipped with three different digital modes: Speedster, Dreamer, and Gamer, which use an AR Head-Up Display (HUD) to create an immersive, personalized driving experience.
Featuring smart glass that’s integrated into the vehicle, the AR HUD projects graphics in front of the driver “as if they are floating above the road in three dimensions.”
Given Kia has already confirmed plans to cover nearly all segments, from the EV1 to the EV9, the concept is expected to be named either the EV7 or EV8 when it launches.
A flagship EV8 GT could be a lower-cost rival to the Tesla Model S or Porsche Taycan, opening a new market for Kia.
Kia said it will reveal full details about the concept car in the near future, so check back soon. We’ll keep you updated with the latest.
What do you think of Kia’s sporty concept car? Let us know your thoughts in the comments below.
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