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

• Insurance Is Killing EV Boom

• U.S. Energy, Private Equity Eye Canadian Opportunities

• Upcoming Oil and Gas Events

• Tweet of the Day

Insurance Is Killing EV Boom

Trouble’s brewing in transition paradise.

It’s not just plunging wind and solar stocks.

It’s not just soaring costs.

It’s EV insurance premiums that are threatening to kill the revolution.

Insurance: the obstacle nobody thought about

Electric vehicles are typically more expensive than regular cars.

Their insurance premiums are also higher.

And they are now getting even higher.

It’s all because of the batteries.

Insurers have discovered there is no way to verify battery damage, even in a minor bump.

So, they have been writing off slightly damaged cars for fear of battery combustion.

Because it only takes a little damage to make a battery into a major fire hazard.

That costs money.

Now, insurers want some of that money back.

EV revolution gets another postponement

Price and reliability are the two biggest problems for EV makers.

Just when they thought they were making progress on price, raw material costs soared.

Not least because more EVs were being made, so there was more demand.

Now, insurers are adding to the cost of owning an EV. Substantially.

And reliability problems can’t be solved, not with today’s technology.

You’d think someone would have thought about all this, wouldn’t you?

Unfortunately, all that everyone was thinking about were subsidies.

Too bad they can’t make EV batteries sturdier.

But they can help with the insurance premiums.

California is already subsidizing them. That state is dead serious about EVs.

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U.S. Energy, Private Equity Eye Canadian Opportunities

U.S. energy and private equity companies are looking for acquisitions in Canada.

The somewhat surprising news comes amid what increasingly looks like a consolidation rush.

It’s all about supply security.

The Exxon and Chevron deals were just the start

A Reuters report tells us that prospective buyers from the U.S. are seeking M&A targets in Canada’s Montney shale.

It’s a huge formation with abundant oil and gas resources.

They are also looking for potential targets in the Duvernay and Clearwater shale formations.

Did you even know there’s so much shale oil and gas in Canada?

We mostly hear about the oil sands, but there’s plenty of tight oil and gas there, too.

And now energy companies and private equity investors want a piece of it.

It may look strange, given the massive red-tape burden on oil and gas activities in Canada.

But it makes perfect sense.

They’re running out of assets at home

With Exxon’s and Chevron’s recent acquisitions, speculation is rife.

Is this a massive consolidation that will see just a few majors dominating the field?

Will there be more acquisitions?

The answers are yes and yes again.

Oil- and gas-rich acreage is finite.

It is also getting more expensive in the U.S. precisely because of its finite nature.

In Canada, valuations are lower while resources are ample.

It’s really a no-brainer: red tape, carbon taxes and all.

What a huge surprise that supply security trumps everything else.

Upcoming Oil & Gas Events

• November 6: Louisiana Energy Golf Open, Oakbourne Country Club, Lafayette, LA

• November 6-8: IPAA Annual Meeting, JW Marriott San Antonio Hill Country Resort and Spa, San Antonio, TX

• November 7: LOGA State of the Industry Series, Petroleum Club of Houston, Houston, TX

• November 8: Colorado Oil and Gas Association 39th Annual Meeting, Denver, CO

• November 8: IADC Annual General Meeting, Hyatt Regency Austin, TX

• November 9: Deepwater Executive Summit, Hyatt Houston West, Houston, TX

Around the Global Patch

🇯🇵 Impact of U.S. sanctions on Japanese energy security.
🇨🇳 China's export control disrupts rare earth markets.
🌍 Geothermal power in Africa surpasses Europe.

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