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

• Banks Shun Refiners, Jeopardize Projects

• Trouble in EV Paradise: Sales Are Going Down

• Upcoming Oil and Gas Events

• Tweet of the Day

Banks Shun Refiners, Jeopardize Projects

Some refiners are running into trouble trying to secure bank funding for new projects.

Apparently, lenders will only lend if refiners convince them they have green targets.

No green targets, no money.

Lots of oil demand, not enough refineries

This year, oil demand is set to hit a record high.

Global refining capacity is tight.

Supply, then, is not exactly adequate to demand.

And banks are refusing to take part in remedying matters.

Because of green targets and climate catastrophe.

While oil demand is projected to continue growing.

There’s nothing wrong with reducing emissions and waste from refining.

I mean, waste not, want not, and all that.

But if banks continue down this path, refiners will start giving up.

Guess who’ll foot the bill for that?

The pariah industry

Oil and gas are being treated by bankers as a pariah industry.

Thanks to climate activism, the fundamental fuels underpinning modern civilization are now “dirty.”

So banks don’t want to do business with oil and gas…

Except they do. They make it harder for the oil and gas producers.

Virtue-signaling is one thing, after all.

Moneymaking is another.

And oil and gas clearly make money, lots of it.

Of course, banks would want a piece of the pie.

Even as they publicly slam oil and gas for being what they are.

The good news: there are alternatives to bank finance.

I suspect private equity will win big on its support for oil and gas.

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Trouble in EV Paradise: Sales Are Going Down

Demand for EVs is falling short of carmakers’ and governments’ ambitions.

Although sales are still strong, they appear to be nowhere near expectations.

And they’re going to slow down more.

Blame it on central banks

One of the biggest assumptions in EVs has been that costs will continue falling.

Whatever happens elsewhere in the economy.

How this assumption came to be is unclear.

Yet, it has been the basis for all sales projections.

Now, these projections are falling apart.

Higher interest rates mean higher costs, which means lower demand.

That’s on top of raw material inflation.

With shortages on the way in copper and lithium.

As a result, carmakers are scaling back on their EV plans.

GM and Honda killed a $5-billion EV battery venture a year after signing off on it.

GM said it won’t focus on production targets.

Because it can’t meet them.

It’s only going to get worse

Rates are not going down anytime soon.

Raw material inflation is not going down, either.

Demand for EVs, meanwhile, is not going up until they get much cheaper…

Which is not happening.

And until charging networks expand…

Which is also not happening.

In fact, the U.S. charging network is breaking down.

And there are not enough technicians to fix it.

That’s totally going to do nothing about range anxiety, right?

Upcoming Oil & Gas Events

• November 1: Oil and Gas Electrification Symposium, Longmont, CO

• November 2: LOGA State Industry Series, Benedict’s Plantation, Mandeville, LA

• 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

Around the Global Patch

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🇬🇧 London metal exchange's nickel contract exploration.

Tweet of the Day

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