May
17

100,000 Vehicles Closer to Energy Security

 
Within the next few weeks, an unsuspecting car buyer will cross an important threshold, without even knowing it. Somebody will purchase the 100,000th plug-in electric vehicle sold in the United States since the technology became commercially available at the end of 2010/early 2011. By our count, as of the end of April 2013, 95,234 plug-in vehicles have been sold. In the past few months, sales figures have exceeded 7,000 vehicles almost every month (with the exception of January and February which are typical annual lag-months for auto sales). It is entirely possible that the 100,000th plug-in vehicle has already been sold.
The folks over at Plug-In America deserve credit for noticing this pending milestone, which demonstrates a major shift in how Americans are thinking about their personal transportation.  So far, 100,000 families have chosen an alternative to the type of cars that they grew up with, and presumably, thought cars would always be. 100,000 families decided to choose an unfamiliar technology—and perhaps even pay more for it—because they believed in something better than gasoline. So far, they have been backed by the installation of 5,894 public charging stations, according to Department of Energy statistics. We don’t know how much fuel has been saved, but we know that it’s a lot, and that the number is growing. The road to 100,000 vehicles has not been as smooth and expeditious as some might have hoped, but there have inarguably been impressive accomplishments along the way. While not all of the startup companies which tried to tap into the electric vehicle movement are still producing EVs, the ones which have made it through the rocky initial stages are showing signs of progress and promise. The three biggest sellers—the Chevy Volt, Nissan Leaf, and Tesla Model S—are not only selling well now, but have set the stage for further market growth. The 2014 Chevy Volt, in addition to incorporating improved range and light-weighing technology, will be as much as $10,000 cheaper than the 2013 model, and the Volt powertrain is being incorporated into an upcoming Cadillac model. Earlier this week, Nissan CEO Carlos Ghosn reiterated his support for the Leaf, and electric vehicles  in general, while also expressing his long-term vision for an industry which thrives without incentives, based on the importance of the technology and consumer acceptance. Meanwhile, Tesla Motors’ share price has skyrocketed, the Model S Sedan has won Consumer Reports’ highest rating in history, and the company is selling shares in order to repay its Department of Energy Loan ahead of schedule. Furthermore, the public-private cooperation which has been so instrumental to the success of the electric vehicle movement continues. Just within the past week, AAA has launched a digital tool to help educate motorists about electric vehicles, while the State of Colorado extended its electric vehicle tax incentive through 2022, and expanded the definition of qualified vehicles to include plug-in hybrids such as the Volt. For a movement which has suffered so much negative press and naysaying, 100,000 vehicles is a huge accomplishment. Even in just the second year of the fledgling industry, the obituary was written many times, but our view is pretty straight-forward: this is only the beginning.


May
17

Where is Energy Security in the MLP Parity Act?

 

For decades, oil and gas development projects have enjoyed the benefits of a particular financing/taxing structure known as a Master Limited Partnership (MLP). MLPs—which originated in 1981, and have been used frequently by fossil fuel developers for oil, gas, coal, and pipeline projects ever since—are essentially a way to help attract private investment capital in a way which increases flexibility ...

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May
15

Colorado Expands Electric Vehicle Tax Credits to Plug-In Hybrids

 

Today saw a victory for energy security, electric vehicle owners, and the environment, as HB 1247, Colorado’s Innovative Motor Vehicle Tax Credit, was signed into law. While the State of Colorado is already an established leader in supporting adoption of electric vehicles, the new provisions in this bill extend the existing tax credit’s duration and apply it to plug-in hybrid ...

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May
15

Medium Term Oil Market Report: The Fundamentals Remain Unchanged

 

In today’s Medium Term Oil Market Report, using stronger language than usual, the IEA said that it anticipates a “supply shock,” driven in large part by surging North American production and the light tight oil (LTO) boom.  The agency believe this surge “could prove as transformative for the oil industry as was the rise of Chinese demand during the last ...

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May
10

Spending Smarter—not Harder—on Energy Security

 

“There is a better way. Rather than waiting for tomorrow’s technology, the federal government should use the tens of billions of dollars it spends today on trucking and delivery services to promote the alternative fuel technologies and fleets that currently exist. When energy security is on the line, the perfect need not be the enemy of the good. This is about ...

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