Energy Musings contains articles and analyses dealing with important issues and developments within the energy industry, including historical perspective, with potentially significant implications for executives planning their companies’ future.
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September 1, 2023
NJ Calls It “Choice” But It Is Really About “Free Money”
The Governor of New Jersey is telling his residents that the legislation to ban the sale of internal combustion vehicles by 2035 is all about improving their choices in buying cars. Buy used or go next door are the answers for those who do not want an EV or hybrid. His climate director gave away the game: there is so much free money residents would be short-changing themselves if they didn’t grab some of it. Washington’s money printing press drives government policies. READ MORE
Last Tuesday’s Duds For Offshore Wind
BOEM’s Gulf of Mexico offshore wind lease sale received only two bids for the single Louisiana lease offered, while the two leases off Texas received no bids. The offshore wind movement took a hit. There are numerous reasons why developers were reluctant to bid. The same day, leading offshore wind developer Ørsted announced a $2.3 billion impairment of its U.S. offshore wind portfolio, the second impairment in 12 months. Inflation, capital costs, and reduced subsidies are the reason. The company is having similar problems with its North Sea projects. Ørsted’s stock fell by 25% as investors question if the bad news is over. READ MORE
August Market Doldrums Are Over And Energy Did Well
Energy was the best-performing sector for August, giving the sector a second consecutive month in the top spot. Fundamentals for the sector continue to improve, which enabled oil prices to rise over August. It appears global oil demand is growing, and supply is restrained supporting higher oil prices and energy company earnings, which drive stock prices. The balance of 2023 may see these trends continue. Enjoy the ride. READ MORE
NJ Calls It “Choice” But It Is Really About “Free Money”
New Jersey Governor Phil Murphy is a big green energy promoter. As the Wall Street Journal pointed out in an editorial, he wants to force residents to buy electric vehicles (EV) to save the planet. He has pushed the state to adopt California’s ban on the sale of new internal combustion engine (ICE) vehicles by 2035, barely over a decade from now. Murphy has not only championed EVs, but he also led the charge to give the state’s share of federal tax revenues from offshore wind destined for residents’ pocketbooks back to Ørsted, the Danish developer of the Ocean Wind project which has become a lightning rod of political outrage.
By wanting to burnish his green credentials, Murphy pushed to have New Jersey, one of the 17 states that routinely follow California’s auto standards, join the dozen states that have also signed onto the ban on ICE vehicle sales. Murphy is selling his proposal as expanding the vehicle choice options for residents while disguising the reality that their ability to purchase a new ICE vehicle is going to be restricted as the state heads toward the 2035 ban.