Good morning, here's what the Oilman has for you today:

• Activists Ramp Up Pressure on LNG Industry

• 2024 Brings Reality Check for EVs

• Upcoming Oil and Gas Events

• Tweet of the Day

Activists Ramp Up Pressure on LNG Industry

Climate activists are turning up the heat on Gulf Coast LNG projects.

They are now pressing the DoE to suspend new approvals.

Apparently, LNG is even worse than oil at the planned scale.

The methane monster

LNG became a target for climate activists only recently.

As demand for gas soared in Europe, developers responded immediately.

U.S. LNG production is set to double by 2030.

Unless something prevents it, of course, such as climate activists.

Their problem is methane.

A more potent greenhouse gas than CO2, methane degrades much more quickly.

But it’s the “more potent” part activists focus on.

LNG production emits a lot of that.

After all, natural gas is mostly methane.

So, LNG has become the methane monster activists feel they need to fight.

Gassy problem in an election year

Right now, activists have a problem with Venture Global’s CP 2 project…

Which has already been approved by the federal government.

But only for countries that have a free trade deal with the U.S.

Approval for other potential buyers is pending.

And climate activists are a big part of Biden’s voter base.

Basically, we’re watching a repeat of the Willow situation.

With that, team Biden scored an own goal with climate voters.

But if it decides to withhold full approval for CP2, expect anti-LNG activism to intensify.

That won’t be good news for the energy industry.

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2024 Brings Reality Check for EVs

Last year, the media fell over themselves to trumpet record EV sales.

This year, things will change.

Because many popular models will no longer qualify for fat tax incentives.

Two Tesla models, the Nissan Leaf and the Chevrolet Blazer, will no longer qualify for incentives of up to $7,500 from January 1.

New battery supply chain

The change comes with new battery sourcing guidelines approved by the Treasury in December.

The aim is to decouple the EV supply chain from China.

As a result, the number of EVs eligible for the credit is now 19, down from 43 last year.

The problem is that there’s not enough local EV battery manufacturing capacity.

Which will make it harder for EV makers, at least for a while.

And it will make EVs that are already expensive even more expensive.

Stand on your own four wheels

Last year was a tough one for EV makers despite the record sales.

There are not enough chargers to motivate more buyers.

Range anxiety remains a thing.

Multiple reports of battery fires have not exactly helped.

Now, Treasury comes in hard with battery requirements.

The goal is smart in itself: the less dependent the industry is on China, the better.

But independence takes a while to develop.

Battery factories take a while to build.

So do charger networks.

This year sure looks like it will be a major reality check for the industry.

And it might not like the reality it sees.

Upcoming Oil & Gas Events

• January 16: TIPRO/IPAA Leaders in Industry Luncheon, Petroleum Club of Houston, Houston, TX

• January 17: IPAA Private Capital Conference, The Post Oak at Uptown Houston, Houston, TX

• January 17-18: GO-WV Winter Meeting, Marriott Town Center Hotel, Charleston, WV

• January 18: Kansas Oil and Gas Day Legislative Reception, Kansas State Capital, Topeka, KS

• January 23-25: POWERGEN International, Ernest N. Morial Convention Center, New Orleans

Around the Global Patch

🇮🇷 Iran sends warship, escalates Red Sea tensions.
🇨🇳 China's EV leap: sodium-ion sparks a revolution.
🇺🇦 Ukraine eases Europe's winter gas concerns.

Tweet of the Day

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